🔍 Macro Outlook: Strategy in a “Wait-and-See” Economy
The German and European agri-input ecosystem is operating in a narrow, uncertain economic corridor. Real growth has practically stalled; consumption remains fragile. Capex is not frozen — it is simply becoming smarter and more selective.
Key message: Efficiency is not a defensive strategy anymore — it’s a growth strategy.
♻️ Peat-Free Shift: Innovation Required, Not Optional
The peat phase-down is accelerating. Both consumer and professional substrate segments show double-digit reductions in peat usage. However:
- Alternative materials require evidence-based performance (water, nutrients, hygiene)
- Retailers are raising the bar on certification and traceability
- Sustainability claims now demand scientific validation
Strategic view: Peat reduction is no longer a compliance exercise — it’s a technology race.
🧪 Plant Health: Regulation Creates Risk — and Opportunity
Policy volatility and litigation shape the crop protection landscape. Winners will be those who:
- Expand biological and IPM – Integrated Pest Management-ready portfolios
- Reduce dependency on single molecules
- Position resilience as a value proposition
Core principle: Diversification = Risk mitigation.
🤖 Workforce Scarcity: Forced Evolution Toward Autonomy
Labor attraction and retention are weakening across the entire value chain. As a result:
- Automation and robotics adoption accelerates
- Employer brand becomes a strategic asset
Competitive advantage in German agriculture is shifting from yield per hectare to productivity per employee.
📊 ESG, Data & Compliance: The New Competitive Threshold
Sustainability reporting is now a market entry ticket — not a nice-to-have. Claims must be backed by transparent, auditable data.
If it’s not measured, it’s not sustainable.
Retail buyers are already moving toward ESG (Environmental, Social, and Governance)-first listing decisions.
💬 Closing Thought — Pragmatic Optimism
“The pace of change won’t slow down. Only the direction will.”
Agriculture is being redefined by sustainability demands, margin pressure and accelerated automation. The winners will be the players who convert data into strategy and strategy into operational advantage — fast.
Reference: Industrieverband Garten e.V. (IVG) Market & sector update, December 2025.
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Dr. Merve Kaya
Global Biostimulant Innovation & Market Development Expert