Global genetically modified crops market is estimated to witness high growth owing to rising farm yield and increasing productivity demand
The global Genetically Modified Crops Market is estimated to be valued at USD 24.80 Bn in 2024, exhibiting a CAGR of 5.3% over the forecast period (2024-2031). Genetically modified crops allow farmers to grow more food and fiber on less land, helping to preserve natural habitats and open space. Furthermore, genetically modified crops have led to increased yields for farmers.
Market Dynamics:
Rising farm yield: Genetically modified crops give higher yields compared to conventional crops. Traits like herbicide tolerance and insect resistance allow farmers to control weeds and pests effectively, leading to more produce being grown on the same land. This is an important driver contributing to the rising global demand for food.
Increasing productivity demand: With rising population worldwide, the demand for agricultural produce is surging tremendously. Genetically modified crops play a vital role in meeting this heavy productivity demand through higher yields and built-in protections from biotic and abiotic stresses. Traits allow year-round harvesting of certain crops to fulfill steady consumer demand.
Increasing Demand for Food Due to Growing Population Is Driving Global genetically modified crops market
According to UN Organization, the world population is expected to grow by about 2 billion over the next 30 years, reaching over 9 billion people by 2050. Feeding this growing population in a sustainable way is one of the biggest challenges that humanity faces today. Genetically modified crops allow higher yields from the same area of land and help boost food production to meet the increasing demands of the rising global population. GM crops with traits like herbicide tolerance and pest resistance help farmers protect their crops from damage and increase crop yields. This addresses the important issue of global food security and is a key factor that is propelling the growth of global genetically modified crops market.
Need For Developing Drought And Disease Resistant Varieties Is Another Major Driver
Climate change is resulting in unpredictable weather patterns like increased droughts and floods in many parts of the world. This is severely impacting agricultural production and crop yields. There is a pressing need to develop crops that can withstand extreme weather conditions and are resistant to diseases and pests. Genetic engineering helps introduce such resistant traits into crops and safeguards farm outputs from the threats posed by climate change. Developing GM crop varieties that have enhanced tolerance to drought, salinity, and disease is another major driver boosting demand in Global genetically modified crops market.
Regulatory Hurdles and Consumer Perceptions Pose A Challenge
While GM crops offer several agronomic and economic advantages, regulatory uncertainty and consumer perceptions remain significant restraints impeding global genetically modified crops market market's growth. There are still ongoing public debates around the safety of GM foods for human consumption and their environmental impact. Stricter regulations on approval and import of GM crops in many countries are hindering widespread adoption. Changing negative consumer attitudes and gaining public acceptance for GM foods is proving challenging. The involvement of high costs in R&D and regulatory compliance of GM crops is also a barrier. These factors collectively pose regulatory and consumer-centric challenges to the global genetically modified crops market.
Opportunities In Developing Countries with Growing Agricultural Sectors
Many developing and underdeveloped nations are recognizing the potential role of biotechnology in boosting their agricultural productivity and ensuring food security. There is a vast untapped market opportunity for GM seed companies in these areas to introduce biotech crops. Countries like Brazil, Argentina, India, China etc. with rapidly growing populations and agricultural sectors present lucrative growth opportunities. These emerging markets will be major contributors to the increasing global demand for GM crops in the coming years.
Commercialization Of New Traits Will Further Fuel Growth
While herbicide tolerance and insect resistance are the dominant GM crop traits currently, companies are actively engaged in R&D of new biotech traits. There is significant scope for traits like drought tolerance, enhanced nutrition, and resistance to diseases. Development and successful commercialization of second-generation GM crops with such new traits will open newer segments within the industry. This will attract more investment and further fuel the growth of the overall global genetically modified crops market in the long run.
Link - https://www.coherentmarketinsights.com/market-insight/genetically-modified-crops-market-3495
Key Developments:
- As of June 2023, the Genetic Engineering Appraisal Committee (GEAC) in India granted approval for the environmental release of the genetically modified (GM) mustard hybrid DMH-11. This significant decision represents a pivotal moment in Indian agriculture, as it paves the way for potential full commercial cultivation of GM mustard in the country.
- In September 2023, the Philippines granted approval for the canola event LBFLFK for use in food, feed, and processing. Additionally, in March 2023, the country approved the cotton event GFM cry1A for commercial cultivation.
- In October 2022, the Genetic Engineering Appraisal Committee (GEAC) authorized the environmental release of GM mustard (Dhara Mustard Hybrid/DMH-11), developed in 2002, along with its parental crops from Indian and Eastern European lines. The primary objective of this initiative was to enhance yields beyond those of its parental lines and other currently available mustard varieties.
- In 2020, the Genetic Engineering Approval Committee (GEAC) authorized field trials for new varieties of Bt-brinjal across eight Indian states. This decision follows the initial approval of the fruit and borer-resistant Bt-brinjal for commercial cultivation in 2009, which was subsequently placed under a 10-year moratorium due to public backlash.
Key Player:
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
