Red Biotechnology Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Red Biotechnology Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Red Biotechnology Market is expected to register a CAGR of 6.1% over the forecast period.

COVID-19 had a significant impact on the red biotechnology sector globally. Red biotechnology is an important part of the fields of diagnostics, gene therapy, and clinical research and trials. It is used in the manufacturing of vaccines, drugs, diagnostic reagents, cell lines, gene therapy products, and so on. Since biotechnology had a lot to provide for vaccine production, the pandemic had a positive influence on the red biotechnology market since vaccine discovery and approvals were in high demand. However, the 2021 update from the Internal Co-ordination Group for Biotechnology showed that their Co-operative Research Program activities in both 2020 and 2021 have been severely impacted by the COVID-19 pandemic and most of the activities have been postponed, either to the end of 2021 or 2022. Hence, the impact of the COVID-19 outbreak on the market growth rate was moderate amid the pandemic phase, and the market is anticipated to gain traction over the coming years owing to the increased R&D activities for vaccine production against various viral strains.

Moreover, increased funding by the government and research activities in the field of biotechnology have been driving the market growth. For instance, the report from the National Biotechnology Development Strategy (2021-2025) by the Government of India stated that the Department of Biotechnology (DBT), Ministry of Science & Technology, and Government of India (GoI) have taken myriads of initiatives to increase investments in research & development (R&D) and manufacturing of COVID-19 Vaccines. In September 2021, the Department of Biotechnology's "Mission COVID Suraksha" supported Biological E Limited's novel COVID-19 vaccine candidate, CORBEVAX, which received the Drugs Controller General of India (DCGI) approval for two clinical trials. Research, genetic engineering, development, and production of various new medicinal products to treat life-threatening diseases are significant components of red biotechnology. The article titled "Role of genomics in combating COVID-19 pandemic" published in 2022 noted that a key indicator of the importance of genomics in contemporary medicine is the rising use of genetic technologies in various aspects of the global response to the COVID-19 pandemic.

Additionally, the remarkable developments in genomics offer great potential to reduce future threats to mankind. In addition, the Global Cancer Observatory, updated in March 2021, estimated that, in 2020, 467,965 new cancer cases were reported in France. The top five most frequent cancers, excluding non-melanoma skin cancer, are prostate, lung, colorectum, bladder, and kidney cancer among males. Whereas, breast, colorectum, lung, corpus uteri, and thyroid cancers were frequent among females in the same year. Since red biotechnology utilizes organisms for the development and manufacturing of therapies and diagnostics techniques, the market is expected to witness growth due to a growing diseased population in the near future.

Thus, these aforementioned factors are likely to boost the growth of the red biotechnology market over the analysis period. However, the market's growth is restrained by costly therapeutic technology and machinery.

Key Market TrendsThe Biopharmaceutical Business Segment is Expected to Hold a Major Market Share in the Red biotechnology Market

Biopharmaceuticals are proteins, antibodies, DNA, RNA, or antisense oligonucleotides used for therapeutic or diagnostic purposes, and these products are produced by means other than direct extraction from a native (non-engineered) biological source. The biopharmaceutical business segment is expected to witness tremendous growth during the forecast period owing to the increasing R&D activities related to biopharmaceutical drugs and medications.

There has been significant development in the field of medical biotechnology, including the development of gene-based therapies. For example, in May 2022, Novartis received the United States Food and Drug Administration approval for CAR-T cell therapy Kymriah (tisagenlecleucel) to treat adults with relapsed or refractory (r/r) follicular lymphoma (FL), following two or more lines of systemic therapy. Moreover, in March 2021, the United States Food and Drug Administration approved idecabtagene vicleucel (Product from Abecma, Bristol Myers Squibb) for the treatment of adult patients with relapsed or refractory multiple myeloma after four or more prior lines of therapy, including an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 monoclonal antibody. This is the first Food and Drug Administration-approved cell-based gene therapy for multiple myeloma.

As per the report from the Cleveland Clinic in 2021, genetic disorders may also cause rare diseases. This group of conditions affects around 200,000 people in the United States as per experts, there may be as many as 7,000 of these diseases. The increasing incidence and prevalence of chronic and rare diseases and the rapid expansion of the biopharmaceutical industry are the key driving factors for the growth of the biopharmaceutical business segment.

Therefore, the biopharmaceutical business segment is expected to witness significant growth over the forecast period due to the abovementioned factors.

North America is Expected to Hold a Significant Share in the Market and it is Expected to do the Same in the Forecast Period

North America is expected to hold a significant market share in the global red biotechnology market due to the rising prevalence of chronic and rare diseases, growing R&D activities, and high technological advancements in this region.

According to 2022 facts and figures from the American Cancer Society over 1.9 million new cancer cases are expected to be diagnosed in the United States in 2022 and this estimate excludes basal cell and squamous cell skin cancers, which are not required to be reported to cancer registries, and carcinoma in situ (non-invasive cancer) except for urinary bladder. The 5-year relative survival rate for all cancers combined has increased substantially from 39% to 68% among white people and from 27% to 63% among black people. This greatly highlights the use of red biotechnology in developing new and effective treatments for the population, in turn boosting the demand for biotechnological products.

The increasing spending on research and development of cancer diagnosis and therapeutics is expected to boost the demand for diagnostic tests in the country. The Consolidated Appropriations Act and the 21st Century Cures Act allocated USD 6.56 billion to the National Cancer Institute in FY2021, a USD 119 million increase over the regular and Cancer Moonshot appropriations allocated in FY2020.

Moreover, the rise in the adoption of advanced technologies in gene therapy and increasing investments in research and development are fueling the growth of the overall regional market to a large extent.

Competitive Landscape

The red biotechnology market is competitive and consists of a few significant players. In terms of market share, a few of the major players are currently dominating the market. Some prominent players are investing heavily in merger and acquisition activities to consolidate their market positions across the world. Some of the companies which are currently dominating the market are Pfizer Inc., AstraZeneca PLC, F. Hoffmann-La Roche Ltd, Takeda Pharmaceutical Company Limited, and Amgen Inc., among others.

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