Agricultural Biotechnology Market Size Projection (2024–2030)

According to the latest research findings, the global Agricultural Biotechnology Market exhibited a valuation of USD 95.54 billion in 2023, with an anticipated expansion to USD 181.02 billion by the year 2030. This trajectory reflects a robust Compound Annual Growth Rate (CAGR) of 9.56% spanning from 2024 to 2030. Key drivers propelling this growth include heightened fruit and vegetable production rates, particularly evident in burgeoning economies such as China and India, alongside an escalating focus on market innovations, increased adoption of advanced agricultural practices, and heightened competitiveness within the industry.

Industry Overview:

The demand for biotechnological tools in agricultural contexts is steadily escalating. These tools encompass a spectrum of techniques, including tissue culture, marker-assisted breeding, transgenic crops, molecular diagnostics, and conventional plant breeding. The surge in genetically modified (GM) crop adoption globally is anticipated to fuel market expansion. GM technology facilitates the development of crops with enhanced attributes such as nutritional value, yield, processing quality, and disease resistance. The swift adoption of GM crops in many nations, particularly those boasting insect and herbicide-resistant GM seed markets, underscores this trend. Estimates from the International Service for the Acquisition of Agricultural Technology Applications (ISAAA) indicate extensive commercial cultivation of biotech crops, including cotton, soybeans, rapeseed, and corn, contributing substantially to global fiber, feed, fuel, and food supplies.

The proliferation of GM crop cultivation worldwide, driven by escalating food demands and population growth, is a pivotal factor stimulating biotechnology demand and application. Moreover, the increasing application of biotechnology to enhance crop characteristics such as size, color, and yield further amplifies growth prospects. Developing economies, in particular, are witnessing an uptick in agricultural biotechnology adoption, fostering the expansion and diversification of agricultural enterprises.

COVID-19 Impact on Agricultural Biotechnology Market

The COVID-19 pandemic constitutes an unprecedented global public health crisis, exerting far-reaching ramifications across industries. Forecasts suggest enduring effects on industry growth throughout the projection period. Ongoing research efforts are diligently integrating COVID-19 insights to ensure comprehensive coverage of pertinent dynamics, including shifts in consumer behavior, supply chain disruptions, and governmental interventions.

Continual monitoring of geopolitical developments, notably Russia's Ukraine invasion, underscores the potential for global repercussions, particularly in Eastern Europe, the European Union, and Asia. The resultant turmoil poses significant disruptions to business operations and portends enduring economic ramifications, particularly for Russia.

MARKET DRIVERS:

Rising Adoption of Biofuels Driving Market Growth

Biofuel production, primarily sourced from crops like wheat, corn, soybeans, and sugar cane, represents a burgeoning sector within the agricultural biotechnology domain. The surge in global biofuel demand is attributable to its cleaner combustion profile and reduced environmental footprint compared to conventional fossil fuels. Consequently, developed regions such as Europe and the United States are witnessing a pronounced shift towards biofuel adoption, predominantly sourced from biotechnological processes. This escalating trend underscores the pivotal role of biofuels in propelling agricultural biotechnology market expansion.

Increasing Demand for Food Products Fuelling Market Growth

Population growth dynamics, coupled with heightened food demand, underscore the indispensable role of agricultural biotechnology in ensuring sustainable food production. According to the United Nations Bureau of Economy and Society, the global population surged from 6.9 billion in 2010 to 7.7 billion in 2019, with further growth projected, notably in key countries such as Nigeria, China, and India. The ensuing surge in food demand necessitates advanced biotechnological interventions to bolster agricultural productivity, thereby fostering market growth.

MARKET RESTRAINTS:

Initial High Investment and Skilled Workforce Shortages Hampering Market Growth

Biotechnology necessitates substantial initial investments, posing a barrier to market entry and expansion. Additionally, the demand for skilled personnel proficient in biotechnological applications outstrips the available talent pool, impeding effective technology utilization. This skill gap inhibits market growth by creating operational challenges and fostering uncertainty among stakeholders.

Agricultural Biotechnology Market - By Application:

• Vaccine Development
• Transgenic Crops & Animals
• Antibiotic Development
• Nutritional Supplements
• Flower Culturing
• Biofuels

The agricultural biotechnology market is delineated into six segments based on applications, comprising vaccine development, transgenic crops and livestock, antibiotic development, nutritional supplements, floriculture, and biofuels. In 2021, the transgenic crops and livestock segment demonstrated the highest revenue generation, with vaccine development projected to exhibit the most rapid growth compared to other applications.

Agricultural biotechnology has significantly contributed to livestock and crop enhancement through the integration of advanced methodologies. Integrated agricultural biotechnology finds widespread application in tissue culture, micropropagation, embryo transfer, cloning, artificial insemination, among others. Biotechnological tools have been effectively utilized in the micropropagation of disease-resistant plants, enhancement of aluminum tolerance, crop enrichment, and genetic modification.

Agricultural Biotechnology Market - By Organism Type:

• Plants
• Animals
• Microbes

Agricultural biotechnology encompasses a spectrum of modern techniques aimed at developing innovative products with enhanced quality attributes. Traditional breeding techniques have predominantly been employed in modifying plant and animal genomes. Furthermore, advancements in genetic engineering have facilitated the precise manipulation of gene alterations within organisms.

Advanced biotechnological tools have empowered specialists to introduce novel genes from one species to another, optimizing agricultural output or the synthesis of valuable pharmaceutical compounds. Prominent areas of genetic engineering include farm animals, crops, and soil microorganisms. The global agricultural biotechnology market is categorized into three segments based on organism type: plants, animals, and microorganisms.

Agricultural Biotechnology Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

North America emerged as the revenue leader in 2021, owing to its extensive agricultural and crop regions, coupled with significant global adoption of genetically modified (GM) crops. The United States and Canada jointly account for approximately 50% of the global GM area and around 10% of the global cultivated area. Key crops cultivated across approximately 70% of North America's arable land include corn, soybeans, and wheat, followed by alfalfa, cotton, canola, and barley. Additionally, North America serves as a net exporter of agricultural commodities, contributing to approximately 30% of global corn, soybean, and wheat production.

Meanwhile, the Asia-Pacific region is anticipated to witness the fastest growth during the forecast period. The region's agricultural landscape varies widely, encompassing diverse political and economic systems, as well as cultural and linguistic diversity. Agricultural practices range from highly advanced techniques in Japan to rudimentary systems in India.

The Asia-Pacific market presents lucrative opportunities, accounting for nearly 40% of the world's cultivated area (approximately 600 million hectares). Rice cultivation holds significant prominence in the region (excluding Australia), with smallholder farmers predominantly engaged in agriculture. Rice production is heavily subsidized across Asia, with food security remaining a primary concern for most developing economies. China and India collectively account for nearly 90% of the total rice-growing area, with China contributing 20% and India 28%.

Agricultural Biotechnology Market Share by Company:

Key players in the agricultural biotechnology market include:

1. KWS SAAT SE & Co. KGaA
2. ChemChina
3. Limagrain
4. Nufarm
5. Marrone Bio Innovations
6. Performance Plants Inc.
7. Corteva
8. ADAMA Ltd
9. MITSUI & CO., LTD
10. Evogene Ltd.
11. ValentBioSciences LLC
12. Bayer AG

Recent Developments:

KWS SAAT SE & Co. KGaA introduced six new hybrid maize varieties under its KWS and Riber brands in Brazil, offering enhanced genetic protection against pests, high yields, and herbicide tolerance. This initiative strengthens the company's presence in the Brazilian market by providing innovative seed solutions to local farmers.

Syngenta AG announced the acquisition of Sensako (Pty) Ltd., a South African seed company specializing in cereals. This strategic move enables Syngenta to penetrate the South African wheat, maize, and sunflower seed markets, laying the groundwork for future expansion.

Market Dynamics:

Suppliers are heavily investing in research and development to develop technologically advanced systems that confer a competitive edge and foster economic growth within the industry. The agricultural biotechnology sector is poised to witness numerous mergers and acquisitions in the coming years as corporations strategically position themselves to capture market share and broaden their product portfolios.

Recent Notable Events in the Agricultural Biotechnology Market:

• Product Launch: ADAMA Agricultural Solutions Ltd. unveiled a novel prothioconazole fungicide in February 2021, offering enhanced disease management for cereal and oilseed rape diseases.
• Acquisition: In April 2020, Syngenta AG announced the acquisition of Sensako (Pty) Ltd., a South African cereal seed producer. This strategic acquisition marks Syngenta's entry into the South African wheat, corn, and sunflower seed markets, setting the stage for future growth and expansion.