Published: December 2017 | Report Code: LS10145 | Available Format: PDF | Pages: 150
Agricultural Biotechnology Market Overview
The global agricultural biotechnology market size was valued at $28.5 billion in 2016, and is projected to grow at 10.1% CAGR during the forecast period. The various technologies used in the agricultural biotechnology market include genome editing tools, deoxy ribonucleic acid (DNA) sequencing, ribonucleic acid interference (RNAi), synthetic biology, and biochips. Synthetic biology is projected to garner fastest growth in demand and is likely to witness CAGR of 10.9% by 2023. This growth is led by the ability of synthetic biology to generate larger clusters of genes and gene parts in a single genome of a crop seed, as compared to conventional transgenic approach.
GLOBAL AGRICULTURAL BIOTECHNOLOGY MARKET SPLIT, BY TECHNOLOGY (2016)
The agricultural biotechnology market is categorized into transgenic seeds and crop protection products, based on products. The market for crop protection products is predicted to register fastest growth in demand, and is likely to observe CAGR of 10.7%, during the forecast period. The growth in the demand for crop protection products is mainly due to its various advantages such as protecting plants from any harmful chemicals and other pests or weeds.
Globally, North America held the largest share in the agricultural biotechnology market, with a 47.4% contribution in 2016. The U.S. is expected to contribute the larger revenue in the North American market, due to the increasing adoption of genetically modified crops in the country. According to the reports published by International Service for the Acquisition of Agri-biotech Applications (ISAAA) in 2016, there was a substantial increase in global hectarage of biotechnology crops among the industrial countries.
This increase was reported with a rise of 3.5% between 2015 and 2016 and is mainly attributed to the growth of genetically modified crops in the U.S. and Canada. Increasing adoption of genetically modified crops in countries such as the U.S. is characterized by increased crop yields, reduction in the application of pesticides, and higher returns from farming operations leading to the growth in the agricultural biotechnology market in the region.
Agricultural Biotechnology Market Dynamics
Various factors leading the demand in the agricultural biotechnology market include rising per capita income, growing population size, thriving demand for transgenic crops, regulatory support in the U.S. and Brazil and growing demand for biofuel. Agricultural land used for GM crops cultivation has been increasing for more than two decades, reaching 181.5 million hectares in 2014. the U.S., Brazil, Argentina, India, and Canada are some of the largest GM crop producing countries. In the next 5–10 years, the profile of commercial GM crops may diversify in both crop variety and traits to include fruits, protein seeds, and staple foods such as rice and cassava.
Developed countries in the Europe and North America are experiencing a decline in liquid fuels consumption from the road transportation sector, due to increased vehicle fuel efficiency and growing interest in alternative fuel vehicles. For instance, the United States Department of Agriculture (USDA) mentioned in its report that, EU-27 has a minimum target of 5.8% biofuel in 2010 and aims to increase it to 10.0%, by 2020. This increase in demand for biofuel in the developed countries is expected to boost the growth of agricultural biotechnology market.
The agricultural biotechnology market provides immense opportunities for the players to grow, due to majority of GM crops being grown in developing economies and rising research activities in these countries. According to a report published by ISAAA, in 2014, around 53% of the 182 million hectares (nearly two million square kilometers) of GM crops were grown in developing countries such as, India, Pakistan and China.
Many developing countries have recently become much more integrated into the international potato trade as it is the staple diet for more than half a billion consumers in these countries. Reduction of production costs, health and environment improvements due to reduced uses of pesticides are the possible immediate benefits of GM potato cultivation in developing countries. The development of GM crops has clearly shown that modern biotechnology offers promising solutions to problems faced by resource-poor farmers in developing countries if their specific needs are considered in agricultural biotechnology research.
Agricultural Biotechnology Market Competitive Landscape
The key players in the agricultural biotechnology market are developing new crop protection products in order to increase their product portfolio. For instance, in October 2017, the Brazilian unit of Bayer AG received a regulatory approval to sell its FOX Xpro fungicide, potentially boosting its agro-chemical business. The new product’s main focus is soybeans, particularly due to Asian soy rust disease, caused by two types of fungi.
In June 2017, Dow AgroSciences launched Enlist corn in the U.S. and Canada for the 2018 growing season, enabling farmers to access the premier technology to maximize yield by controlling weeds. Enlist corn would be widely available in the U.S. and Canada, and would be sold as both SmartStax Enlist and PowerCore Enlist hybrids, creating the leading weed and insect control packages in the agricultural biotechnology market.
Some of the other key players operating in the agricultural biotechnology industry include Syngenta AG, Performance Plants Inc., Monsanto Company, Certis USA LLC, BASF SE, Vilmorin & Cie, Evogene Ltd., ADAMA Agricultural Solutions Ltd., KWS SAAT SE, DowDuPont Inc., and Global Bio-chem Technology Group Company Limited.
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