Agricultural Biotechnology Market Forecasts to 2028 – Global Analysis By Product (Crop Protection Products, Transgenic Seeds), Type (Molecular Diagnostics, Molecular Markers) and By Geography

Agricultural Biotechnology Market Forecasts to 2028 – Global Analysis By Product (Crop Protection Products, Transgenic Seeds), Type (Molecular Diagnostics, Molecular Markers) and By Geography

According to Stratistics MRC, the Global Agricultural Biotechnology Market is accounted for $31.89 billion in 2022 and is expected to reach $58.05 billion by 2028 growing at a CAGR of 10.5% during the forecast period. Agricultural biotechnology is a collection of new techniques that develops plant, animal, and living organisms to enhance crop productivity and efficiency. It delivers farmers innovative technology that can make crop production cheaper and more reasonable. Agricultural biotechnology can be utilized to shield crops from destructive diseases. It is mainly used to modify the genetic sequence of crops known as transgenic or genetically modified crops, which increases the crop productivity.

As per International Service for the Acquisition of Agri-biotech Application (ISAAA) around 2.14 billion hectares of biotechnology crops have been developed commercially from 1996 to 2016. This includes 0.13 billion hectares of biotechnology canola, 1.04 billion of biotechnology soybean, and 0.34 billion of biotechnology cotton. Further, this factor is estimated to stimulate the growth of the market in the forecast period.

Market Dynamics:

Driver:

Increase in need to improve nutritional value by biotech corps

Researchers are using biotechnology for the development of foods with improved nutrition. Biotechnology plays a vital role to upgrade some plant proteins that are presently considered incomplete or of low biological value, as they lack one or more of the ‘essential’ amino acids; for instance, maize with improved protein balance and sweet potatoes with increased total protein content. Biotechnology also reduces the toxicity of certain foods. Advancements in plant transformation and transgene expression also allow the use of plants as bioreactors to produce a variation of bio-products on a large scale and low cost. Several proof-of-concept plant-derived healthcare products have been generated and several commercialized.

Restraint:

High Cost

The higher costs for the expansion of its products are hampering the growth of the market. As per the ERS of the USDA, spending on agricultural research has declined in high-income countries. The drop between 2009 and 2013 was 6% for high-income countries such as the US, Australia, and France, and this decline continues to date. The increase in costs may be passed on to the farmers from the manufacturers, which may hamper the acceptance of agricultural biotechnology products in the forecast years.

Opportunity:

Expansion of Biofuels

The formation of biofuels is another appropriate example of the application of biotechnology in agriculture. Biofuels are made from natural sources such as algae, corn stover, and sugarcane bagasse rather than petroleum products. This helps reduce greenhouse gas emissions, as they do not generate any carbon when burned. Biofuels are also used in oil cleanup operations, as biofuels have been confirmed to effectively address this issue since the methyl esters contained in the fuel source are a powerful solvent that can serve as a washing agent for contaminated shorelines. This also increases the range of fuel sources available and may promote competition, thus lowering prices. Developing biofuels using sophisticated biotech technologies offers the potential to cut greenhouse gas emissions, while also providing a more reliable fuel source.

Threat:

Adverse impact on the environment

Agricultural biotechnology is in its infancy and its effects upon the environment are not well known. However, research has shown that it may lead to the proliferation of herbicide resistant weed. Genetic engineering includes the transfer of specific genes between organisms. In that regard, the technology could transfer unwanted genes into weeds and pests, thus making them more difficult to eradicate. Additionally, it may create new microorganisms such as bacteria and viruses through the transfer of genes that make them more virulent. Genetically engineered plants produce new products such as proteins that might be toxic to wildlife. This is one of the factors threatening the market growth.

The supply chain disruptions as a result of COVID-19 pandemic are a major factor that will pose a major challenge to the growth of the market. Besides, fluctuating costs of the raw materials, lack of awareness among the small-scale livestock growers and lack required infrastructure facilities in the underdeveloped economies will further slowdown the market growth rate. The pandemic has put a heavy burden on the food processing industry and producers, who are unable to work due to the lockdowns. Following the economic slowdown, biofuel prices collapsed in 2020 and so did the prices of their major feedstocks, such as maize and oilseeds. Despite the fact that the income losses during the lockdown and local supply chain disturbances have inevitably led to a vast food shortage in many industrialized economies, the demand for agricultural products didn’t reduce, owing to the sustained food consumption.

The genetic engineering, segment is expected to be the largest during the forecast period

The genetic engineering, segment is expected to be the largest during the forecast period. The genetic engineering segment is getting tailwinds for its ability to assist in the production of a high amount of crops with a better nutritional standard.

The Transgenic Crop segment is expected to have the highest CAGR during the forecast period

Transgenic means that genes have been transferred using recombinant DNA technology. In general, a transgenic crop has one or more genes that have been purposefully transferred from a different species or an unrelated plant. Plants are also modified to increase their tolerance to cold, frost, or drought; all making a crop easier to grow in a constantly changing environment. This makes the plants safer for the consumer and enables the farmer to save money on chemicals. Most genetically modified soybean is used for food for animals, predominantly poultry and livestock, and to make soybean oil. Thus, transgenic crops are a cost-effective safer method of producing crop products, which makes them appealing and potentially profitable.

Region with highest share:

North America is projected to hold the largest market share during the forecast period, owing to its wide range of agro-climatic zones and crops, along with a large global Genetically Modified (GM) planted area. In this province, the U.S. and Canada together represent around 50% of the global GM area and around 10% global planted area. Major crops cultivated in around 70% of the cultivated area of North America include corn, soybean, and wheat, followed by alfalfa, cotton, canola, & barley. Moreover, North America is a net exporter of agricultural products with around 30% production of corn, soybean, and wheat globally.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, this area is categorized by the existence of several with different political & economic systems, cultural backgrounds, and languages. Within these, the agricultural industry varies from the adoption of high technical standards in Japan to basic systems in India. Asia Pacific serves as a lucrative market as the region occupies nearly 40% of the global cropped area (nearly 600 million hectares). The province is also characterized by the importance of rice crop (except Australasia), and the predominance of smallholders. Rice is available at highly subsidized rates across Asia and food security is a major concern for local governments in most of its developing economies. The region holds nearly 90% of the total crop area for rice, with 20% and 28% in China and India respectively.

Key players in the market

Some of the key players profiled in the Agricultural Biotechnology Market include Vilmorin, Valent BioSciences Corporation (USA), Syngenta, Rubicon, Performance Plants Inc, Mycogen Seeds, Monsanto, Marrone Bio Innovations, Inc. (USA), KWS SAAT AG, Global Bio-chem Technology, Evogene Ltd, Eurofins Genescan AG (U.S., Du Pont Pioneer Hi-Bred, Dow AgroSciences LLC, Certis USA, Biocentury Transgene Co. Ltd. (China), Bayer CropScience AG , ADAMA Agricultural Solutions Ltd.

Key Developments:

In February 2021: ADAMA Agricultural Solutions Ltd. launched a novel prothioconazole fungicide that offers improved cereal and oilseed rape disease (OSR) disease control.

In April 29, 2022: KWS collaborated with DKE data’s. The establishment of cross-supplier networks and the exchange and joint use of data are important levers for tapping the potential of agricultural digitalization. With the data exchange platform agrirouter, DKE Data drives this forward by bringing together international companies and their digital services in the agricultural value chain. Seed producer KWS is joining this network with its digital consulting platform myKWS.

In August 2020: Syngenta AG acquired Sensako (Pty) Ltd., The acquisition lay the foundation for growth and help accelerate Syngenta Seeds’ entry into the South African seeds market in wheat, corn and sunflower.

Types Covered:
• Molecular Diagnostics
• Molecular Markers
• Tissue Culture
• Vaccines
• Genetic Engineering

Products Covered:
• Crop Protection Products
• Transgenic Seeds
• Synthetic biology-enabled products

Technologies Covered:
• Biochips
• Ribonucleic Acid Interference (RNAi)
• Genome Editing Tools
• Synthetic Biology
• Deoxy Ribonucleic Acid (DNA) Sequencing

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements