South America Biorationals Market Outlook, 2030

South America’s agricultural landscape has been fertile ground for the growth of biologically based crop inputs because the region combines vast monocultures, high value horticulture, and strong export dependence that all require safer and more sustainable pest management. Brazil has played a central role with its Ministry of Agriculture, Livestock and Food Supply (MAPA) streamlining the registration of biological inputs and setting targets for expanded use through national bioinput programs that encourage adoption across soybeans, sugarcane, and coffee. EMBRAPA, the country’s leading agricultural research corporation, has advanced microbial discovery projects, releasing strains of fungi and bacteria adapted to local soils and pests.

Argentina and Chile have followed with their own regulatory and scientific initiatives, supporting microbial pesticides and semiochemicals that address vineyard diseases and citrus pests. Export markets in Europe and North America enforce strict maximum residue limits, which has accelerated the use of plant extracts, pheromone traps, and microbial sprays for grapes, blueberries, and avocados grown for international buyers. Certification bodies like IFOAM and EcoCert recognize these inputs, allowing producers to maintain organic status or residue free labels.

Farmer cooperatives in Peru and Colombia are also involved in promoting training programs that integrate biorationals into pest management systems, particularly for coffee and tropical fruit producers seeking premium markets. Historically farmers across the region relied on plant derived remedies such as chili, tobacco, or neem extracts, and today this tradition is reinforced by modern formulation science that produces stable, effective, and export compliant products. South America has therefore evolved from traditional botanicals into a structured market supported by government policy, international certification, advanced research, and farmer demand for safe and sustainable solutions.

According to the research report "South America Biorationals Market Outlook, 2030,", the South America Biorationals market is anticipated to grow at more than 6.10% CAGR from 2025 to 2030. Marrone Bio Innovations, now part of Bioceres, has run successful vineyard trials in Chile showing that its plant extract based fungicide performs comparably to chemical alternatives while meeting organic standards, opening doors for wine producers targeting Europe. Koppert Biological Systems has expanded its operations in Brazil and reported strong growth in sales of beneficial insects and pollinators, reflecting greenhouse and horticulture demand.

UPL, headquartered in India but heavily invested in Latin America, has partnered with Koppert to scale integrated biological programs across soybeans and vegetables in Brazil and Argentina. BASF and Bayer have increased their focus on microbial inoculants for soybeans and corn, aiming to address soil health and nitrogen fixation challenges. Andermatt Biocontrol has expanded its distribution of microbial biofungicides in the Andes to support smallholder horticulture. The Brazilian government’s bioinput plan has created incentives for domestic startups that produce Trichoderma, Bacillus, and entomopathogenic fungi in dry formulations suitable for long distance transport across rural areas.

These developments reflect a shift in competition, where synthetic pesticide markets face challenges from resistant weeds and residue restrictions while biologicals gain traction through innovation and compliance advantages. International trade pressure is another driver, with fruit and vegetable exporters adopting pheromone based mating disruption and microbial fungicides to protect shipments against rejection in Europe.

Retailers and cooperatives are reinforcing the trend by branding produce grown with reduced chemical inputs under eco labels, rewarding farmers who integrate biological products. South America’s biorational market is therefore performing strongly, fueled by corporate investment, regulatory support, export requirements, and farmer initiatives that make biologicals a central part of agricultural practice.

Market Drivers

• Supportive regulatory environment in Brazil: Brazil has reformed its pesticide registration process, giving biopesticides faster approvals than synthetic chemicals. This regulatory environment has encouraged both multinational corporations and local companies to prioritize biological inputs for crops such as soybeans, maize, sugarcane, and coffee. Government agencies and research institutions like EMBRAPA also run large-scale trials, making biological adoption practical for the region’s vast farming systems.
• Resistance issues in large-acre crops: South America’s monoculture systems, especially soy and maize, face severe pest resistance problems due to repeated use of chemical pesticides. Caterpillars like Helicoverpa armigera and Spodoptera frugiperda have developed tolerance to many synthetics. Farmers are increasingly turning to biologicals such as Bacillus thuringiensis, Trichoderma, and entomopathogenic fungi to manage resistance and extend the life of existing crop protection programs.

Market Challenges

• Limited adoption beyond major crops: While adoption is strong in soy, maize, and sugarcane, use of biorationals in smaller horticultural or ornamental crops remains limited in many South American countries. Farmers outside the large export-oriented sectors often lack access to affordable biological solutions, restricting broader market penetration. Bridging this gap requires stronger distribution networks and targeted education programs.
• Infrastructure and distribution barriers: Rural infrastructure challenges, particularly in countries like Argentina, Colombia, and Peru, make it difficult to distribute biorational products effectively. Some microbial inputs require careful handling and storage, which is difficult in regions without consistent cold chains or logistics support. These barriers can lead to product inefficacy and lower farmer trust.

Market Trends

• Growth of local bio-input companies: South America is seeing a wave of domestic companies like Biotrop and Koppert Brasil developing biofungicides, bioinsecticides, and inoculants adapted to local pests and climates. These firms work closely with universities and EMBRAPA, ensuring regionally tailored innovation. The presence of strong local players makes biologicals more accessible and affordable for farmers compared to imported products.
• Integration into sustainable certification schemes: Coffee, cocoa, and fruit exporters in countries such as Brazil, Colombia, and Ecuador are increasingly required to meet certification standards like Rainforest Alliance and Fairtrade. These standards discourage chemical pesticide reliance, encouraging farmers to adopt biopesticides and semiochemicals. This trend is accelerating biological adoption in export-focused horticultural and plantation sectors.Botanicals dominate in South America because the region has abundant plant biodiversity and a strong tradition of using natural plant-based pest control solutions.

South America is home to some of the richest biodiversity in the world, and this natural wealth has translated into widespread use of plant-based solutions in agriculture. Farmers across Brazil, Peru, and Colombia have traditionally used extracts from neem, chili, tobacco, and other locally available plants to control pests long before modern synthetic pesticides became mainstream. The transition from traditional practices to commercially formulated botanicals has therefore been relatively smooth in this region. Neem-based products are particularly widespread in Brazil and Argentina, where they are used against sucking insects and caterpillars in soybean, cotton, and horticultural crops.

Pyrethrum and other plant-derived oils are also gaining traction because they degrade quickly, leave no harmful residues, and meet the residue standards of export markets such as the EU and US. For fruit and vegetable exporters in Chile, Peru, and Ecuador, botanicals are indispensable tools to protect produce like grapes, avocados, and bananas while ensuring compliance with stringent maximum residue levels. Governments and research institutes encourage their adoption as part of integrated pest management programs, which have become central to national strategies for reducing chemical pesticide use.

Moreover, local companies can produce botanicals from readily available raw materials, reducing dependency on imports and keeping costs affordable for small and large farmers alike. The blend of cultural familiarity, local resource availability, export compliance needs, and strong institutional support explains why botanicals remain the largest source of biorationals in South America.

Herbicides are significant because weed resistance is a major threat in South America’s large-scale cropping systems, and biological herbicides are being adopted as sustainable alternatives.

Weed pressure is one of the most pressing challenges in South America’s agriculture, particularly in vast monocultures of soybeans, maize, and sugarcane. Heavy reliance on glyphosate and other chemical herbicides has created severe resistance problems, especially with weeds like Amaranthus palmeri and Conyza bonariensis, which now spread across millions of hectares in Brazil and Argentina. This resistance crisis has forced farmers to look for alternatives, and biorational herbicides provide an important complement to integrated weed management.

Products derived from plant extracts, microbial metabolites, and bio-based fatty acids are increasingly used to suppress difficult-to-control weeds without causing harm to the soil or surrounding ecosystems. Brazil, through EMBRAPA and university-led programs, has been leading research and field trials of bioherbicides adapted to local conditions, including fungal agents that target specific weeds. Sugarcane growers have been early adopters because they face constant pressure from invasive weeds that reduce yields and complicate harvesting.

Farmers value bioherbicides because they can be integrated with cover crops and crop rotation, helping reduce reliance on synthetics while restoring biodiversity in the soil. Export-driven compliance is another factor, since chemical herbicide residues are increasingly scrutinized in global supply chains. The scale of the resistance problem and the need for sustainable weed management make herbicides a particularly significant category within South America’s biorational market.

Fruits and vegetables dominate because they are South America’s most valuable export commodities and face strict international residue requirements.

Fruits and vegetables are at the heart of South America’s agricultural export economy, with crops like grapes, avocados, bananas, citrus, mangoes, and berries shipped to Europe, the United States, and Asia. These importing markets enforce some of the strictest maximum residue levels in the world, making it impossible for growers to rely exclusively on synthetic pesticides. Biorationals provide the perfect solution, as they can be applied close to harvest without leaving residues that would result in rejection of shipments. In Chile, grape growers use pheromone dispensers and microbial sprays to manage moths and mildew while maintaining compliance with EU standards.

In Peru, blueberry and avocado exporters depend on neem-based insecticides and Bacillus biofungicides to protect fruit quality. Brazil and Argentina’s citrus industries also rely heavily on biological solutions to manage post-harvest decay and fungal infections while keeping fruit residue-free. Beyond exports, domestic markets in cities like São Paulo, Buenos Aires, and Santiago are seeing rising consumer demand for organic and healthier food, which is encouraging adoption of biological inputs in vegetables and greenhouse crops.

Fruits and vegetables are also more vulnerable to cosmetic damage and spoilage compared to grains, making pest and disease control critical to maintaining their market value. The relatively high economic return from these crops allows farmers to invest in specialized biorational solutions. With export pressure, consumer preferences, crop vulnerability, and high economic stakes all aligned, fruits and vegetables not only hold the largest share but also expand at the fastest rate in South America’s biorational market.

Dry formulations are growing fastest because they are easier to distribute, store, and use across South America’s vast agricultural areas and diverse climates.

The agricultural systems of South America extend across immense areas, from Brazil’s soybean fields to Andean fruit orchards, where logistical challenges make the use of biological products in liquid form difficult. Liquids often require refrigeration and controlled storage to maintain microbial viability, but this is impractical in hot, humid, or remote regions with poor infrastructure. Dry formulations, such as powders and granules, offer a solution because they are stable at room temperature, easier to transport over long distances, and have longer shelf lives.

Farmers appreciate the flexibility of dry products, which can be applied as seed coatings in maize and soy, incorporated into the soil in sugarcane and coffee, or reconstituted into sprays for vegetables and fruits. Trichoderma and Bacillus powders are particularly common for controlling soil-borne diseases, while granular entomopathogenic fungi are used in sugarcane to manage pests at the root level. Smallholder farmers benefit from affordable sachets of powdered biologicals that can be mixed with water as needed, while large-scale producers value their stability and cost-effectiveness in mechanized systems.

Distributors also prefer dry formulations because they reduce spoilage and transport costs across rural supply chains. In a region where infrastructure is uneven and climates vary from tropical humidity to dry savannah, dry formulations are the most adaptable option, which explains why they are expanding faster than any other form of biorationals in South America.

Soil treatment is expanding fastest because it tackles soil-borne pests and diseases while restoring soil health in regions affected by decades of intensive chemical use.

Soil treatment has become one of the most important applications for biorationals in South America because it tackles multiple challenges at once: protecting crops from soil-borne pests and diseases while restoring degraded soils that have been overexploited by decades of chemical use. In crops like soybeans, sugarcane, and coffee, farmers face persistent problems with nematodes, Fusarium wilt, and root rots that reduce productivity year after year. Biological soil treatments using Trichoderma, Bacillus, and Pseudomonas are increasingly applied to colonize the root zone, suppress pathogens, and promote healthier root growth.

Sugarcane plantations in Brazil commonly use granular formulations of entomopathogenic fungi to control soil insects, while coffee growers in Colombia integrate microbial inoculants to reduce nematode damage and improve plant resilience. Farmers see immediate benefits in terms of disease reduction, but they also recognize that soil treatments improve nutrient uptake and microbial diversity, making fields more productive over the long term. Governments and institutions like EMBRAPA actively promote biological soil treatments as part of sustainable farming initiatives, and cooperatives distribute them widely among smallholders.

Export buyers also favor crops grown with soil health focused practices, as these align with sustainability certifications. In a region where intensive farming has strained soil fertility and pest resistance is common, soil treatments offer a holistic solution, providing both immediate crop protection and lasting improvements to soil quality.Brazil leads because of its regulatory reforms, vast agricultural area, and strong research-industry partnerships that make large-scale biological control practical.

Brazil has become the focal point of South America’s biorational market because it combines a unique set of conditions: vast crop acreage, supportive regulation, and active innovation in biological pest control. The Brazilian government reformed its regulatory framework so that biopesticides and bioinputs are approved faster than synthetic pesticides, encouraging companies to prioritize biological registrations. This has led to a surge of products targeting key crops such as soybeans, maize, and sugarcane, which are cultivated over millions of hectares and face major pest pressures like caterpillars, borers, and fungal diseases.

EMBRAPA, the Brazilian Agricultural Research Corporation, plays a central role by conducting large-scale trials of microbial agents, pheromones, and natural products and transferring this knowledge to growers through extension programs. Private companies, both multinational (Bayer, Syngenta, BASF) and domestic (Biotrop, Koppert Brasil), collaborate closely with EMBRAPA and universities to scale up production and adapt products to local conditions. Farmers in Brazil are highly motivated to adopt biologicals because of the economic damage caused by pesticide resistance in pests like Helicoverpa armigera and Spodoptera species, which biorationals such as Bacillus thuringiensis and entomopathogenic fungi can help manage.

Export pressures also matter, as Brazil’s fruit, coffee, and vegetable exporters must comply with international residue standards, while domestic consumer awareness about food safety is rising. The sheer scale of Brazil’s agricultural economy means that once biorationals prove effective in field trials, they can be deployed across millions of hectares quickly, giving them immediate market impact. The government also supports local production facilities for bioinputs, and the country’s biodiversity provides unique microbial strains adapted to tropical climates, which have been commercialized successfully.

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