GLOBAL ANIMAL BIOTECHNOLOGY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global animal biotechnology market size is expected to reach US$ 45.70 Bn by 2030, from US$ 25.15 Bn in 2023, exhibiting a CAGR of 8.9% during the forecast period.

Animal biotechnology involves the use of science and technology to modify living organisms and cells to produce products beneficial for humans and animals. Some key products developed through animal biotechnology include pharmaceuticals, genetically engineered livestock, and clones. Pharmaceuticals developed include vaccines, antibiotics, hormones, and enzymes that are extracted from the milk of genetically engineered livestock. These drugs help humans and animals fight diseases in a safe and cost-effective manner.

Global Animal Biotechnology Market- Regional Insights

• North America is expected to be the largest market for animal biotechnology during the forecast period, accounting for over 35.7% of the market share in 2023. North America has established itself as the dominant player in the global animal biotechnology market over the years. The region has the strongest market presence with leading global players having their headquarters based out of the U.S. and Canada. Major animal biotech companies like Monsanto, DuPont, and Elanco have invested heavily in R&D in the region, establishing world-class research facilities and laboratories. This focus on innovation and technology development has driven advancements in animal genetics, stem cell research, and animal health management products.

Furthermore, the positive regulatory environment and funding support for biotechnology from the government bodies like the U.S. Food and Drug Administration (FDA) and United States Department of Agriculture (USDA) has encouraged growth. Farmers and producers in the region have also readily adopted new animal biotech solutions. For instance, growth hormones, genetically modified feed, and vaccines developed using genetic engineering techniques see extensive adoption amongst the large industrial livestock farms in North America. The region also dominates international trade with significant exports of advanced animal diagnostic equipment, genetically engineered animal semen, and embryos to markets across the world.

• Asia Pacific is expected to be the second-largest market for animal biotechnology, accounting for over 25.2% of the market share in 2023. Asia Pacific is witnessing the fastest expansion, led by China and India. These nations have a massive livestock population and growing meat consumption has raised the demand for animal protein. This has prompted increased focus on factors like animal health, production efficiency, and quality standards. Both the governments and private players in countries like China are investing heavily to modernize the livestock industry using biotechnology solutions. For instance, Chinese companies are actively collaborating with global diagnostic majors for the development and localization of new tests and vaccines.

Additionally, rising affluence is driving the demand for superior animal products like hormone-free milk in the region. Local producers are keen to adopt productivity-enhancing solutions to meet these evolving needs and gain access to international markets. Furthermore, impetus comes from rising R&D budgets and growing expertise in genetic engineering within educational institutes in the region. This positions Asia Pacific favorably as the next frontier for notable developments in this field.

• Europe is expected to be the fastest-growing market for animal biotechnology, with a share of 19% during the forecast period. The growth of the market in Europe is attributed to the increasing prevalence of zoonotic disease in the region.

Figure 1. Global Animal Biotechnology Market Share (%), By Region, 2023

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Analyst’s Views: The global animal biotechnology market is expected to see steady growth over the next 5 years. Rising consumption of animal-based products is a major driver as it is increasing the demand for improved animal yields. Growing focus on the development of disease-resistant and high-milk producing cattle and poultry is also fueling the adoption of biotechnology in animal breeding programs worldwide. However, high costs of research and development for biotechnology-based solutions, and ethical concerns related to genetically-modified animal research may limit the market expansion to some extent.

North America currently dominates the market owing to strong government funding and the presence of leading biotech companies in countries like the U.S. and Canada. Asia Pacific is anticipated to see the fastest gains and emerge as a key market due to rising meat consumption in China and India coupled with increasing awareness among producers regarding animal biotech solutions. Europe also holds significant opportunities for players but regulations related to genetically modified organism crops and animals are more stringent compared to other regions.

Opportunities exist in the development of advanced gene-editing tools like Clustered Regularly Interspaced Short Palindromic Repeats, for producing genetically engineered animals with desired traits. The growing demand for monoclonal antibodies from animal biotechnology also presents an avenue for companies. Partnerships between animal biotech startups with large agriculture firms could help drive the adoption of novel technologies.

Global Animal Biotechnology Market- Drivers

• Increasing Demand for Animal Protein: With the growing global population, the demand for animal protein is rising rapidly across both developed and developing countries. As incomes rise worldwide, people are consuming more meat, eggs and dairy products which is fueling the growth of the livestock industry. Meat consumption per capita has doubled globally over the past 50 years and it is expected to further increase significantly in coming decades. Developing regions like Asia Pacific, Latin America, and Africa are projected to account for over 70% of growth in global meat consumption due to urbanization and economic development in these areas. To meet the surging protein needs of burgeoning population worldwide, animal biotechnology tools and techniques are helping increase the production and productivity of livestock raised for meat, milk and eggs. Technologies like cloning, transgenic animals, genome editing, and genomic selection are allowing faster breeding of animals with desired characteristics of growth rate, disease resistance, and feed efficiency. This is enabling farmers to produce more animal proteins with fewer resources, less land, and in an environmentally sustainable way. The ever rising demand for livestock products is expected to drive the greater adoption of animal biotechnology methods in the coming years.
• Advancements in Veterinary Care: With improving standards of living globally, people increasingly view their pets as companions and family members. This has resulted in greater spending on animal healthcare needs. At the same time, livestock production is becoming more intensive to meet the rising food demand from growing human population. However, crowding animals in confined spaces increases the risk of infectious diseases. Both these factors have led to increasing importance being given to veterinary care of pets and livestock. Advancements in animal biotechnology are improving disease management for both farm animals and companion animals. Technologies like vaccines, diagnostics, therapeutic cloning, and gene therapies are enhancing disease detection capabilities and treatment methods. For example, genetically-engineered vaccines are more effectively preventing infectious diseases affecting livestock productivity. Gene therapies hold promise to cure genetic diseases in companion animals in future. Biotechnology tools are also aiding in the rapid identification of pathogens during disease outbreak investigation. The growing importance of animal health is fueling investments in veterinary bioscience innovations. The market for animal biotechnology products and services is expanding rapidly driven by the need for advanced veterinary care solutions.
• Advancements in Genetic Engineering Enable Tailored Breeding Traits: Rapid advancements in genetic engineering and gene editing technologies are another key driver for the animal biotechnology sector. Tools like Clustered Regularly Interspaced Short Palindromic Repeats, Transcription Activator-Like Effector Nucleases, and zinc finger nucleases allow scientists to precisely edit genes and breed animals with specific enhanced traits. New gene combinations that were not previously possible through conventional breeding can now be created. Animals are being engineered for traits like higher nutritional content, improved meat quality, faster growth rates, disease resistance, environmental adaptability, and others. The ability to finely tune desired breeding characteristics with precision genetic tools is driving innovation in animal agriculture. Livestock and aquaculture producers are adopting animal biotechnology to gain competitive advantages through genetically superior stock. The demand to breed healthier and more productive farm animals is propelling the animal biotechnology market growth.

Global Animal Biotechnology Market- Opportunities

• Advancements in Genetic Engineering Drive the Gene Therapy Segment:

Gene therapy involves modifying genes or inserting new genes into an individual's cells and tissues to treat a disease. Researchers have made significant strides in developing gene therapies for various genetic disorders. For example, gene therapy techniques are increasingly being used to develop treatments for congenital blindness, hemophilia, immune deficiencies, and cancer. The rising success rates of gene therapy clinical trials are bolstering the growth of this segment.

Additionally, growing private sector investments are propelling the research on advanced gene therapy applications. Many biotech startups are attracting funding to develop novel DNA and RNA therapies for genetic conditions. Government grants are also supporting academic research on next-generation precision gene editing tools like CRISPR-Cas9, which holds immense potential for treating inherited diseases. The segment is further aided by the increasing availability of genomic data that helps identify suitable gene targets for therapy.

• Rising Healthcare Expenditure: One of the significant factors influencing the growth rate of the global animal biotechnology market is the growing healthcare expenditure, which helps in improving its infrastructure. For instance, according to the International Health Care System of the U.S., in June 2020, U.S. government organizations aim to improve the healthcare infrastructure by increasing funding, setting legislation and national strategies, and cofounding, and setting basic requirements and regulations for the Medicaid program. Similarly, in November 2022, the Canadian Institute for Health Information reported that the total health spending in Canada was US$ 331 billion in 2022, or US$ 8,563 per Canadian, while health expenditure represented 12.2% of Canada's gross domestic product (GDP) in 2022, following a high of 13.8% in 2020.
• Demand of Diagnostic Tools Augment the Genetic Diagnostics: Genetic diagnostic tests play a crucial role in detecting genetic disorders, enabling clinicians to provide personalized treatments. The segment is undergoing transformations with the development of new genomic and proteomic diagnostic technologies. For instance, microarray technology and next-generation sequencing methods allow for high-throughput genetic analysis of multiple biomarkers simultaneously. This has significantly broadened the scope of conditions that can be evaluated with a single diagnostic test.

Moreover, minimally invasive liquid biopsy tests using cell-free DNA detection are revolutionizing cancer diagnostics and monitoring. Such advanced tests facilitate non-invasive tumor profiling for guiding targeted therapies. Similarly, rapid molecular testing kits allow for point-of-care diagnostics and faster clinical decisions. Growing preference for companion diagnostics that assist in therapeutic area selection is also fueling the demand. Collectively, the rising efficiency, accuracy, and affordability of diagnostic technologies are driving strong growth in this segment.

Global Animal Biotechnology Market- Trend

• Food-security Concerns and Demand for Healthy and Safe Food Products: Rising concerns around global food security and access to safe, nutritious food are major drivers influencing growth in the animal biotechnology market. As the world population increases and farmland decreases due to urbanization, there is growing pressure to develop innovative solutions that can help boost sustainable food production. Technologies like animal genetic engineering allow for the development of livestock that are more disease resistant, grow faster on less feed, or are better suited to various climates and environments. This helps increase yields to better meet growing demand. For example, according to the Food and Agriculture Organization of the United Nations, aquaculture production must grow by over 50% by 2030 to keep pace with population growth. New biotech tools are being applied in areas like aquaculture to breed fish that are more tolerant to changing ocean conditions from climate change.

At the same time, consumers are also demanding food products that are produced in a way that considers animal welfare and environmental sustainability. Technologies like gene editing allow researchers to precisely alter animal genomes in a way that reduces susceptibility to diseases without compromising welfare. For instance, a 2020 study published in the journal Scientific Reports found that gene editing dairy cows to produce beta-lactoglobulin free milk reduced risks of allergic reactions without any unintended effects. As sustainable, healthy options become more important to shoppers, biotech applications that offer welfare and nutrition benefits are driving more interest and commercial investment in this sector.

Global Animal Biotechnology Market - Restraints

• Ethical Concerns Hamper Commercialization of Transgenic Animals: A major restrain hampering the wider adoption of animal biotechnology is ethical concerns around transgenic animal research and applications. While genetic engineering holds promise to solve problems related to food security and sustainability, some view transgenic animal technologies as unnatural and unethical. Issues involving animal welfare, environmental impact, food safety, and religious sensibilities arise when transgenic or cloned animals are considered for agriculture and human consumption. There are debates around subjecting animals to genetic modification without their consent. Questions are raised on the long-term effects on animal health, ecosystem balance, and unintended consequences of transgenic animals escaping into the wild. Stringent regulations are imposed in many countries to address ethical oversight and biosafety issues. All these ethical considerations raise entry barriers and limit commercialization potential for some advanced animal biotechnology applications.
• High Development Costs Pose Challenge for Small Players: The high capital investment required for animal biotechnology research and development poses a major challenge, especially for small companies and startups. Establishing facilities, sourcing specialized equipment, hiring expert scientific workforce, and navigating the regulatory pathway makes animal biotech an expensive venture. Techniques like transgenic engineering, cloning, and gene editing require substantial financial resources for setting up the necessary biological safety infrastructure and carrying out multi-year validation studies. Even after successful product development, high marketing expenditure is inevitable to counter perceptions and gain public acceptance. The large multinational agricultural biotech corporations have deeper pockets to invest in long term research. However, the barriers to entry deter new entrants and limit innovation in animal biotechnology to mostly larger players who can bear the high development costs. This restrain stalls wider dissemination and commercial scaling up of promising new animal biotech innovations.

In conclusion, while rising demand for animal proteins and advancements in tailored genetic tools drive the growth of the animal biotechnology sector, concerns over ethics and high costs pose challenges. Balancing economic viability with ethical oversight and regulating new technologies judiciously will be crucial to realize the full potential of animal biotechnology for agricultural sustainability and human nutrition security. 

Figure 2. Global Animal Biotechnology Market Share (%), By Product Type, 2023

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Global Animal Biotechnology Market- Recent Developments

Product Approval

• On November 20, 2023, the U.S. Food and Drug Administration (FDA) had approved a number of animal drugs including those that treat Giardia duodenalis in dogs and bacterial enteritis in replacement beef and dairy heifers
  • Ayradia for dogs, on October 11, 2023, the U.S. FDA approved Ayradia, a metronidazole oral suspension, for the treatment of Giardia duodenalis infection in dogs. Ayradia is the first U.S. FDA-approved animal drug for treating Giardia duodenalis infections (Manufactured by Virbac AH, Inc., an animal health pharmaceutical company).
  • Aivlosin for female swine: On October 13, 2023 the U.S. FDA approved Aivlosin Water Soluble Granules (WSG) - 62.5% w/w tylvalosin as tylvalosin tartrate - for female swine intended for breeding such as replacement gilts, gestating replacement gilts, gestating sows, lactating sows, and weaned sows
  • Estroplan for dairy cows: On September 20, 2023, the U.S. FDA approved Estroplan, an injectable cloprostenol solution for dairy cows. This supplement is indicated for use with gonadorelin to synchronize estrous cycles to allow for fixed time artificial insemination in lactating dairy cows.

Business Development Activities

• On June 26, 2023, the Chief Animal Husbandry Officer India, Leh, Indian-administered Ladakh in the disputed Kashmir region, launched the third phase of Foot and Mouth Disease (FMD) vaccination under the National Animal Disease Control Program (NADCP) on June 23, 2023. The primary objective of the NADCP is to control the spread of FMD in cattle by implementing widespread vaccination programs. The program aims to achieve effective control of FMD by 2025 and ultimately eradicate the disease by 2030. The online vaccination data will be updated by the officials carrying out vaccination in the field and will be reflected on Bharat Pashudan or National Digital Livestock Mission (NDLM) portal and the farmer friendly e-Gopala App.
• In April 2022, Cadila Pharmaceuticals, a pharmaceutical company, announced that it had developed first novel three-dose vaccine against rabies. The three-dose vaccine, named as 'ThRabis', is a recombinant nano-particle-based G protein vaccine, which is prepared using virus-like particle technology.

Top Companies in Global Animal Biotechnology Market

• Heska Corporation
• Indian Immunologicals Ltd.
• HESTER BIOSCIENCES LIMITED
• Zoetis Inc.
• Boehringer Ingelheim International GmbH
• Biogénesis Bagó
• Merck & Co., Inc.
• Virbac
• Elanco
• Cadila Pharma
• Thermo Fisher Scientific Inc.
• Idexx Laboratories
• Randox Laboratories Ltd.
• Gold Standard Diagnostics.
• Bionote USA Inc.
• Meiji Holdings Co., Ltd.
• Kemin Industries, Inc.
• Pfizer Inc.

Definition:

Animal biotechnology involves the application of biotechnology techniques in veterinary medicine, agriculture, and pharmaceutical research. Technologies, such as cloning, transgenic technology, genome sequencing, and gene therapy, are used in the genetic engineering of animals.