GENETICALLY MODIFIED CROPS MARKET ANALYSIS
The global genetically modified crops market is estimated to be valued at USD 24.80 Bn in 2024 and is expected to reach USD 35.56 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031.
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Increasing demand for food owing to rapidly growing population has intensified the need for crops with higher yields. Genetically modified crops are engineered to resist pests and diseases, and exhibit tolerance to herbicides. This allows farmers to harvest higher yields and meet the rising food demand. Additionally, Genetically Modified Crops crops help reduce the use of pesticides, lowering the production cost for farmers. The development of drought-tolerant and pest-resistant genetically modified seed varieties also helps enhance crop resilience amid changing climatic conditions. While regulations in some regions remain a challenge, continued advancements in gene-editing technologies are expected to help expand the applications of GM crops in the coming years.
Market Driver - Increasing Population
With the global population expected to increase over 9 Bn by 2050, there is growing pressure on agriculture to produce more food on less land. Genetically modified crops help address this challenge by increasing yield and making crops more resistant to pests, diseases, and stressful environmental conditions.
As the population expands, the demand for food also rises significantly. For instance, according to food and agriculture organization It is estimated that food production will need to increase by over 70% to feed the additional 2.3 billion people on the planet compared to today. However, there is limited potential to expand agricultural lands further considering constraints around availability of cultivable land and water resources. GM technology allows farmers to modify crops so they can produce higher yields from the same plot of land through enhancements such as herbicide tolerance and resistance to insects. This helps boost overall agricultural productivity.
Another issue faced with the rising population is food wastage and losses during production, storage, and transportation. Genetically modified crops address this challenge through built-in resistance to pests and diseases which reduces crop losses and lowers food wastage rates. This ensures more of the produced food is available for consumption.
The growing middle class in populous emerging markets like India and China is also demanding higher quality diets with more meat consumption which puts additional pressure on crop yields. Feeding the increasing livestock population created by this dietary shift requires larger amounts of animal feed which can be sustainably met through GM crops that have greater resistance and higher biomass productivity.
With continuing rapid population growth projected, there is a clear and increasing need to boost agricultural productivity to fulfill the rising global demand for food while optimizing available resources. Genetically modified crops can play a significant role in enabling sustainable intensification of agriculture to feed more people from existing farmlands.
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Demand for High Yield Crops
As global population growth and rising affluence drive up the worldwide food demand, farmers and producers increasingly require crop varieties with higher and more reliable yields. However, conventional breeding methods to develop improved hybrids can be lengthy and unpredictable. Genetic engineering tools allow for more precise introduction of novel traits which can help address farmers' needs for high-yielding crop options.
Some of the key traits delivered through genetic modification which increase harvest potential include herbicide tolerance, pest resistance through Bt technology, and abiotic stress tolerance. Herbicide tolerant crops enable more effective weed management practices and let farmers maximize yields by eliminating crop-weed competition for water, sunlight, and nutrients. Insect resistant Bt crops prevent damage from economically important pests like corn rootworm, and bollworm, minimizing losses from insect predation.
Tolerance to environmental stresses like drought, flooding, heat, and cold also boosts yields through GM crops. Climate change is making weather patterns more extreme and variable in many regions, threatening more frequent crop failures without stress-resilient varieties. Traits imparting resilience against adverse conditions allow farmers to maintain high production even in difficult growing seasons, stabilizing their incomes.
As market forces like rising fertilizer costs and efforts to produce more sustainably increase pressures on maximizing returns on farmland, farmers are seeking higher yielding options. Genetically modified seed technologies reliably deliver larger harvests per acre grown. This enables farmers, especially smallholders, to farm more efficiently and profitably on their limited land resources while meeting growing food needs.
Key Takeaways of Analyst:
Rising demand for food owing to the exponential global population growth will drive the need for higher agricultural yields. GM crops have proven to increase crop yields which is likely to support their increasing cultivation worldwide. North America dominates the genetically modified crops market currently due to large cultivable areas and high adoption rate of GM crops among farmers in the U.S. and Canada.
Asia Pacific is poised to be the fastest growing region owing to initiatives by governments in countries like China and India to boost GM crop production. However, regulatory concerns and issues related to intellectual property rights continue to restrain the market growth particularly in Europe. Meanwhile, consumer preference for non-GM crops and crops branded as organic presents a challenge for GM crop producers.
Additionally, lack of awareness among smallholder farmers regarding benefits of GM crops can negatively impact the market in developing regions. Opportunities lie in the development and approval of drought-tolerant and pest-resistant GM crops which can enhance yields for farmers affected by adverse climate change effects. Continued R&D investments by leading players to introduce innovative biotech traits in new varieties of major crop types will also play a key role in shaping future demand.
Market Challenge - Regulations on GMO Crops
One of the major challenges for the global genetically modified crops market is the stringent regulations imposed on genetically modified crops by various governments and regulatory bodies across the world. Many countries such as India, Thailand and other have imposed complete bans on cultivation and sale of certain GM crops based on health, environment and ethical concerns. Complying with these complex and diverse set of regulations across different markets require substantial investments of time and resources for GMO seed and crop producers and developers. Obtaining necessary approvals and permits is a lengthy process which delays the market introduction of new GMO varieties. The regulatory framework also requires rigorous testing and evaluations over many crop cycles to establish safety, which increases costs and uncertainty for GMO crop players. Any perceived or real risks around GMOs also face public scrutiny and opposition from advocacy groups in many parts of the world.
Market Opportunity: Emerging Markets
One of the key opportunities for the global genetically modified crops market lies in the emerging countries and regions of the world. While regulations are stringent in developed nations of North America, Europe, and other developed markets, The adoption and cultivation of GMO crops enjoy a significantly more favorable policy environment in markets across Latin America, the Asia Pacific, and Africa. Countries like Brazil, Argentina, India, China, and South Africa offer vast potential for GM crop producers given their growing population size, rapidly expanding middle class, rising food demand, and more conducive regulations compared to other parts of the world. With technological adaptation and increasing acceptance levels, these emerging nations will drive future growth in GM crop acreage, product sales. and industry revenues in the coming years. Focusing resources on emerging markets will help GMO companies to achieve economies of scale and offset challenges posed by limitations in traditional markets.
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Insights by crop type: Corn Dominates Due to its Versatility and Resilience
In terms of crop type, corn is expected to contribute 46.4% share of the market in 2024, owing to its versatility and resilience. Corn is widely grown globally as it adapts well to a variety of climatic conditions and soil types. It is heat and drought tolerant, giving higher yields even in adverse weather. Corn serves as a staple food and feed crop in many countries, feeding both humans and livestock. As the most widely utilized grain, corn finds applications in various food and industrial products. Its derivatives like starch, sweeteners and corn oil are major raw materials for many industries. Genetically modified corn varieties have further boosted yields through built-in resistance to pests and herbicides. This has increased profitability for farmers and met the rising demand for food, feed and fuel. With its robust agricultural characteristics and diverse commercial uses, corn maintains its dominance as the largest genetically modified crop type.
Insights by trait type: Herbicide Tolerance Dominates Due to Weed Management Ease
In terms of trait type, herbicide tolerance is expected to contribute 33.6% share of the market in 2024, due to allowing easier weed management practices for farmers. Herbicide-tolerant seeds allow broad-spectrum post-emergence chemical application to eliminate weeds without affecting the crop. This provides a cost-effective way for growers to control weeds that compete for water, light and soil nutrients meant for crops. Not having to carefully distinguish crops from weeds by hand during spraying saves much effort and labor. Genes inserted into crops make them resistant to major herbicides like glyphosate. With a single spray, farmers can remove virtually all types of weeds in the field. Reliance on herbicides also decreases dependency on toxic chemical insecticides and need for multiple productions of crops to compensate losses from weeds. Widespread adoption of this technology highlights its advantages for large-scale, efficient farm management practices globally.
Insights by application: Food and Feed Dominates Due to Meeting Basic Human Needs
In terms of application, food and feed is expected to contribute 39.5% share of the market in 2024, owing to fulfilling basic human needs. As the world population continues growing, there is mounting pressure to increase agricultural yields to meet rising food demand, for instance, according to UN Organization, the world's population is expected to increase by nearly 2 billion persons in the next 30 years, from the current 8 billion to 9.7 billion in 2050. Genetically modified crops play a vital role in enhancing global food production through built-in resistances and higher nutrient contents. Corn, soybean and canola are major GM food crops consumed directly by humans or used in various processed food products. Animals are also reliant on corn and soybean as primary ingredients in their feed rations. Meeting nutritional requirements of the ever-growing human and livestock populations is a challenge. Genetically modified varieties address this through greater harvests on the same land, thereby ensuring food and nutritional security worldwide. As long as basic needs for food and sustenance exist, this application segment of GM crops will remain core to supporting worldwide agriculture and human sustenance.
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North America's dominance in the global genetically modified crops market can be attributed to several factors with 40.1% share in 2024. The U.S. and Canada have been at the forefront of the adoption and commercialization of GM crops, driven by supportive regulatory frameworks, extensive research and development efforts, and the presence of major agricultural biotechnology companies. Farmers in these countries have readily embraced GM crops due to the benefits they offer, such as improved crop yields, enhanced pest and disease resistance, and reduced reliance on traditional pesticides and herbicides.
In contrast, the Asia Pacific region is the fastest-growing market for GM crops, driven by the increasing demand for food and the need to enhance agricultural productivity. Countries like China, India, and Brazil have made significant strides in the development and adoption of GM crops, particularly for staple food crops like corn, soybean, and cotton. The growing population, rising incomes, and the need to address food security concerns have contributed to the rapid expansion of the genetically modified crops in the Asia pacific region.
Genetically Modified Crops Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 24.80 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 5.3% | 2031 Value Projection: | US$ 35.56 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Bayer CropScience, BASF SE, Syngenta, Corteva Agriscience, Monsanto (now part of Bayer), DowDuPont, J.R. Simplot Company, Maharashtra Hybrid Seed Company (Mahyco), JK Agri Genetics Ltd., KWS SAAT SE & Co. KGaA, Land O'Lakes, Inc., Limagrain, Cibus, FMC Corporation, GenTech Seeds Pty Ltd., Pioneer Hi-Bred International (a subsidiary of Corteva), and Hawaiian Commercial & Sugar Company |
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| Restraints & Challenges: |
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*Definition: The global genetically modified crops market involves the cultivation and sale of food crops whose DNA has been modified using genetic engineering techniques. These crops are altered at the molecular level to enhance desired traits such as increased resistance to herbicides or improved nutritional content. Key players in this market develop and sell GM seeds and traits to farmers worldwide.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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