Sustainable agriculture

How biotechnology will save us from drought and a shortage of arable land

Europe is a leader in science. In 2024, the agricultural biotech sector had a global turnover of 50 billion dollars: annual growth rates of up to 12 per cent are forecast

by Daniela Russo

7 July 2026

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5' min read

Translated by AI

Versione italiana

Key points

Sustainability becomes an industrial choice
Europe and skills
Agriculture as infrastructure

5' min read

Translated by AI

Versione italiana

Producing more food with less water, less land and lower emissions is becoming an ever-greater imperative. Population growth, extreme weather events, the reduction in arable land and food supply chains that are increasingly exposed to geopolitical risks are changing the way we view agriculture. It is against this backdrop that biotechnology and new production models are emerging as a concrete solution, whilst also becoming an asset class increasingly favoured by institutional investors. The figures also point to a transformation that is already well under way. According to various research firms, including Grand View Research and Fortune Business Insights, the global agricultural biotechnology market, estimated at between 42 and 50 billion dollars in 2024, could double by the early 2030s, with annual growth rates of between 8 per cent and 12 per cent. Controlled-environment agriculture is already worth over $100 billion and could exceed $400 billion by 2035.

Sustainability becomes an industrial choice

The combination of biotechnology and sustainable agriculture is therefore of strategic importance and is set to drive a major transformation of the market. “We are at a turning point. Ten years on from the Paris Agreement, the debate has shifted from mitigation to adaptation, and agriculture and agri-food systems are at the forefront of this transition,” comments Guillaume Baxter, partner at Sofinnova Partners – Industrial Biotech Strategy. At the same time, the biotechnology and sustainable agriculture market has matured significantly over the last decade. What was once driven primarily by sustainability objectives is now increasingly supported by economic considerations, as well as those relating to resilience and food security. This is why our strategy today is more focused on agriculture and food: we believe that these sectors present both the most pressing challenges and the solutions with the greatest investment potential.”

Europe and skills

From a geographical perspective, according to the expert, Europe possesses exceptionally strong expertise in scientific research and innovation, particularly in areas such as industrial biotechnology, crop resilience, fermentation and sustainable ingredients. This is complemented by growing support from institutions through initiatives such as the Bioeconomy Strategy and the Biotech Act, as well as greater recognition of biotechnology as a strategic industry. “Outside Europe and North America,” adds Baxter, “China is playing an increasingly important role, thanks to a combination of strong public support, manufacturing capabilities and a rapidly expanding biotechnology ecosystem. We are also seeing the emergence of interesting innovation hubs in countries such as Israel and Singapore and in certain parts of Latin America, particularly where agriculture plays a significant economic role.”

Water stress, precision fermentation and green chemistry are just some of the areas on which the company’s investments are focused. Among its portfolio companies, for example, is Elicit Plant, which has developed a plant-derived molecule capable of reducing water stress in crops without requiring changes to machinery or farming practices, thereby facilitating its adoption on a large scale. ““In the coming years, I expect technologies of this kind, aimed at strengthening crop resilience, to evolve from being a specialist product to becoming a standard component of the agronomic tools used for major extensive crops, particularly in southern and central Europe, where irrigation systems are already under severe pressure – explains Baxter. ‘On their own, they will not solve the problem of water scarcity, but they can provide the agricultural system with significant adaptability, whilst we wait for infrastructure and public policies to catch up.’

Another area of focus is precision fermentation. Verley produces milk proteins identical to those found in cows without resorting to animal husbandry. According to an independent life-cycle assessment cited by Sofinnova, the process reduces greenhouse gas emissions by 72 per cent, water consumption by 81 per cent and land use by 99 per cent compared with conventional milk. The company is also the first to have received a ‘No Questions Letter’ from the US Food and Drug Administration for functionalised milk proteins produced via precision fermentation. Green chemistry is also one of the most promising areas. GF Biochemicals converts plant biomass into levulinic acid to produce biosolvents and ingredients for industrial use.

However, according to Sofinnova, there are three priorities for transforming European scientific leadership into industrial leadership: “Expanding access to patient capital to fund the first industrial plants of their kind, strengthening the skills and infrastructure needed for scale-up, and securing stronger partnerships on the demand side through long-term purchase agreements,” concludes Baxter. “It is encouraging to see that progress is being made in all three of these areas, driven by growing interest from companies, priorities relating to industrial sovereignty, and initiatives such as the EU Biotech Act II.”

Agriculture as infrastructure

Another key issue for investment is infrastructure. Swiss Life Asset Managers recently backed Planet Farms, one of Europe’s leading indoor vertical farming companies. “Some investments become attractive because they solve a problem. In this case, the problem is traditional agriculture, which has served humanity well for 3–4 thousand years, but now things have changed,” comments Carlo Forattini, Senior Investment Manager for Value-add Infrastructure Equity at Swiss Life Asset Managers. The world’s population has grown and consumption patterns have changed, but there are factors that make the situation even more critical: the reduction in arable land per capita, water scarcity and the increase in extreme weather events. Added to this are rising volatility and inflation in agricultural commodities – the supply of which varies according to weather conditions – and growing concern over the issue of food insecurity.”

Infrastructure investments, such as that represented by Planet Farms, are therefore crucial; its model does not disrupt biology but simply allows for total control over the growth and production process of crops. This gives rise to a fully-fledged controlled-environment agricultural infrastructure that allows for the regulation of light, irrigation, temperature, humidity and CO₂ concentration, achieving a yield approximately eight to ten times higher per square metre than traditional agriculture – a figure that increases further thanks to multi-tiered vertical cultivation. Production also takes place without the use of pesticides and without the need to wash the produce, thereby extending the shelf life of the finished product to fifteen days, compared with 4–5 days for traditional produce. “These characteristics transform vertical farming into a fully-fledged infrastructure: an essential business, characterised by predictable cash flows thanks to multi-year contracts with large-scale retailers, high initial investment and significant barriers to entry,” explains Forattini.

Planet Farms currently distributes its products in Italia, Switzerland and the United Kingdom, where it already accounts for around 35 per cent of its total sales volume through partnerships with retailers such as Waitrose and Marks & Spencer, and has also begun expanding into the Spanish market.