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The agricultural biotechnology market size is forecasts to increase by USD 28.63 billion, at a CAGR of 9.6% between 2023 and 2028. The market growth analysis depends on several factors such as the increasing demand for higher crop yield, the strict regulatory controls on agricultural pesticides, and the increasing adoption of biostimulants. Our market report examines historic data from 2018-2022, besides analyzing the current and forecasts market scenario. Technological advances for better cultivation practices, increasing demand for agricultural equipment, and consumer preference for environmentally safe products propel the growth of the market in the region. Bayer AG company offers advance and establish biological solutions derived from natural sources, including crop protection products that address pests, diseases and weeds, as well as biostimulants to promote plant growth. DuPont de Nemours Inc. company offers solutions that include pest control, crop harvesting and protection activities such as application of dry insecticides, pesticides, herbicides, and fertilizers.
Market Forecast 2024-2028
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The agricultural biotechnology market is rapidly evolving, driven by synthetic biology-enabled products and genetic modification. The research focus includes virus-resistant organisms, vaccine development, and antibiotic development, alongside selective breeding and molecular methods like marker-assisted selection. Enhanced quality traits and genetic changes are achieved through genome editing and plant breeding, influencing the cultivation of biotech plants. The resistance of plants is bolstered through strategic flower culturing and the cultivation of transgenic crops and animals. Infrastructure supports include network layouts and intelligence services, offering strategic support for domestic market players and partners.
Import-export analysis reveals price trend analysis and supply chain dynamics, with an emphasis on raw material shortage, shipping delays, and economic slowdown. Regulatory changes and economic downturn challenge competitors, while strategic growth analysis and action plans aim to mitigate these issues. Pricing and availability concerns impact the industry, as does the cultivation of germplasm and the strategic integration of synthetic biology in developing nutritional supplements. Sales projection remains a critical focus, influenced by industry analysis and economic factors, with continued monitoring required to ensure competitiveness in the market. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Bio stimulants help in reducing the requirement for fertilizers and boost plant growth and resistance to water and abiotic stresses biostimulants comprise essential amino acids, microorganisms such as bacteria and fungi, proteins, and some inorganic compounds. Biofertilizers are a sub-category of bio-stimulants, which are living microorganisms that are applied to seeds, plant surfaces, and soil. The approvals for new bio-stimulant products are also a reason for the increasing adoption of the same.
Moreover, bio stimulants are expected to witness an increase in adoption during the forecast period due to the increasing number of product launches and conferences. The increasing global challenges due to increased fertilizer costs, with rising consumer demand for healthier foods that are grown more sustainably, are the major factors that are increasing biostimulant usage. Thus, the increasing adoption of biostimulants is expected to drive the growth of the market during the forecast period.
Among GM seeds, the varieties are herbicide-tolerant (HT) and insect-resistant, and the varieties contain genes from the Bacillus thuringiensis (Bt) bacterium. There are also stacked varieties containing traits from both HT and Bt varieties. Globally, the cultivation of stacked GM seeds has been increased to meet the growing consumer demand. The percentage of domestic soybean acres planted with HT seeds has increased to around 95% in 2023 from 68% in 2001. Also, HT cotton acreage was at approximately 94% in 2023. The increase in adoption rates for stacked GM seeds is due to the commercial introduction of new varieties resistant to rootworms and earworms.
Furthermore, with climate change continuing to impact agriculture productivity, there is a growing need for crops that can tolerate extreme weather conditions, such as heat, sanity, and drought. Stacked GM seeds can be engineered to provide weather-resistant traits, helping farmers to adapt to the changing environmental conditions. Additionally, as regulatory agencies across the world continue to improve stacked seeds for commercial use, more farmers are adopting these GM seeds. This is driving the demand for stacked seeds as farmers seek to benefit from the multiple traits it offers. Thus, such factors are expected to drive the growth of the market during the forecast period.
The R&D costs for the development of agricultural biotechnology products are very high, especially the cost of developing new active ingredients, which has increased over the years. As per the European Parliament, the time for the approval of a crop protection product is 11 years, resulting in high costs for the manufacturers. Also, with the high costs of production, the research spending by governments in developed countries has been decreasing. The spending on agricultural research has decreased in high-income countries.
Also, in the US, public spending on agricultural research was reduced in 2021 as compared with 2018. While the approved spending by the US government for agriculture was USD 2.48 billion in 2018, it was USD 2.48 billion in 2018, according to data on research and development provided by the White House. As costs increase for manufacturers with lesser government support, increased costs may be passed on to the farmers. This can result in lesser adoption of agricultural biotechnology products and impede the expansion of the market during the forecast period.
The transgenic seeds and crops segment will account for a major share of the market's growth during the forecast period.? Transgenic seeds are also known as GM seeds. The market scope consists of only seeds for plants and not the output produced by those plants. These transgenic characteristics can be classified as tolerance to herbicides, insect resistance, and stacked traits. A common GM variety of corn, soybean seed, and cotton seeds is the Bacillus thuringiensis (Bt) type, containing a part of the gene from the bacterium known as Bt.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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