September/October 2023 - 10

BIOLOGICALS
SET TO EXPLODE
T
Economics, sustainability drive the expanding
global biologicals market
BY CHRIS KOGER
MANAGING EDITOR
he global agricultural biologicals industry is
set to explode from a market of about $9 billion
currently to more than $25 billion by the end of
the decade, but there are hurdles and more growing
pains to face along the way.
A panel of representatives from Dunham Trimmer
LLC spoke about the past, present and future of
the agricultural biologicals market at the inaugural
Salinas Biological Summit in June in Salinas,
California. Dunham Trimmer provides market
research and consulting on biologicals to a range
of clients, from startups looking for investors (and
vice versa), to distributors of those products and
food manufacturers.
A newer trend is an interest from traditional
agricultural chemical companies who see an
opportunity to expand into the lucrative market,
although it's not without potential pitfalls.
Although " sustainability " is an often-used word
when talking about biopesticides, biofungicides and
biostimulants, Dunham Trimmer partner and vice
president of global business Rick Melnick said growers
have referred to "" sustainability " as trite and an
oversimplification of what it typically describes.
" If you talk to five different stakeholders, you'll
probably get six different definitions of what
sustainability really means, " said Mark Trimmer, a
founding partner of the company.
Although sustainability, shorter pre-harvest
intervals, (the amount of time between spraying
when the crop can be harvested) and pest resistance
management are often mentioned as factors in the
growth of the biologicals market, which Trimmer said
has been about 15% a year in the past 10 years, the
main driver is something else. So what's driving the
growth of biologicals?
10 | SEPTEMBER/OCTOBER 2023
" When I get asked that question, and I limit it to one
thing that's driving the industry, I'd say it's consumer
demand, " Trimmer said.
Consumers are more swayed by how products
are grown when making purchasing decisions, he
said, and if there's a " sustainable " label that conveys
the non-synthetic products used to grow the item,
that's a selling point. Retailers across the globe have
started implementing pesticide residue standards that
are stricter than the regulations established by the
government, he said.
Industry consultant Ashish Malik, a senior industry
associate for Dunham Trimmer, said agricultural
stakeholders are known for finding ways to do more with
less, affordably and safe, and the ag biologicals market is
seen by investors as a low-risk growth market.
" The first thing you learn out of ag school when you
start growing is that like it or not, economics drives
agronomics. It's always first, " said Vatren Jurin, an
agronomist and vice president of product development
for Dunham Trimmer.
Communicating that value to growers is key, panelists
said, with Trimmer identifying retailers and distributors
as critical in conveying the value.
" You know their soils, you know the crops they're growing,
you know the challenges they're facing, and you're best
equipped, probably - other than the grower himself - to
identify which product can work for him, " Trimmer said.
Delivering a product that works doesn't ensure repeat
sales if growers aren't educated on using it properly, he
said. Jurin agreed, saying a transfer of knowledge must
take place.
Barriers and missteps
Malik said he has the opinion that he and other
marketers have done some disservice in promoting
biologicals by focusing on comparing them to the
performance of synthetics. Every brochure or website
September/October 2023

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