Agricultural Biotechnology Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2032

Agricultural biotechnology refers to the application of scientific techniques and tools to modify living organisms, particularly plants and microorganisms, to enhance agricultural productivity, improve crop quality, and increase sustainability. It is consisting of various methods such as genetic engineering, molecular breeding, tissue culture, and genome editing to introduce desirable traits into crops, including resistance to pests and diseases, tolerance to environmental stresses, and enhanced nutritional content.

Agricultural biotechnology plays a crucial role in addressing global challenges such as food security, climate change resilience, and sustainable agriculture practices by offering innovative solutions to improve crop yields, reduce chemical inputs, and ensure a stable and nutritious food supply for growing populations.

MARKET OVERVIEW

The global market valuation of Agricultural Biotechnology Market was valued at approximately USD 115.2 Billion in 2023 and is projected to reach USD 242.1 Billion in 2032 exhibiting a CAGR of 8.6% during the forecast period of 2024-2032. Agricultural Biotechnology promotes sustainable farming practices through innovation and scientific advancements and contributing to more efficient and environmentally friendly agricultural systems. The market is aligned with agriculture sector, which makes it a sustainable and growing market.

GROWTH DRIVERS

 According to the United Nations Population Division, there will be approximately 10 billion people on earth by 2050, which is 30% more as compared to the population in 2017. Agricultural biotechnology addresses this challenge by leveraging scientific advancements to improve crop productivity and yield. By utilizing biotechnological techniques such as genetic engineering, scientists can develop crops with desirable traits such as resistance to pests and diseases, tolerance to environmental stresses like drought and salinity, and increased nutritional value.

The World Bank to boost innovative investment approaches for sustainable agriculture to mitigate these negative impacts on the environment and human well-being, agribusiness will need to adopt sustainable, climate-smart agricultural practices. These practices, along with agricultural intensification, will play a critical role in mitigating the adverse effects of climate change by reducing emissions and encroachment on forested areas while also raising yields and improving livelihoods. Agricultural biotechnology offers innovative solutions for sustainable farming practices, such as genetically modified crops that require fewer pesticides and fertilizers, reducing environmental impact while maintaining productivity.

According to National Academy of Sciences (NAS), CRISPR-Cas9 is a powerful, precise, and inexpensive genome-editing tool that has opened up many new research opportunities. These advancements in genomic editing technologies have revolutionized agricultural biotechnology, enabling precise and targeted modifications in crop genomes to introduce desired traits such as disease resistance and nutritional fortification. The IPCC's Sixth Assessment Report (AR6) details the potential risks of climate change to agriculture, including reduced productivity, water and soil quality issues, and economic hardship.

Agricultural biotechnology addresses challenges posed by climate change by developing climate-resilient crops capable of withstanding extreme weather conditions such as drought, flooding, and heat stress, ensuring food security in changing environmental conditions. The expansion of biotech crops is one of a significant driver of the market. According to ISAAA, Biotech crops drive socio-economic development and sustainable environment in the new frontier. The global area of biotech crops has increased ~112-fold from 1.7 million hectares in 1996 to 190.4 million hectares in 2019 – this makes biotech crops the fastest adopted crop technology in recent times. An accumulated 2.7 billion hectares or 6.7 billion acres were achieved in 24 years (1996-2019) of biotech crop commercialization. 

MARKET SEGMENTATION:

·         By Product Type– Crop Protection Products (bio-stimulants, bio-pesticides), transgenic seeds (soyabean, maize, cotton) and others

·         By Organism Type- Plants, Animals, Microbes

·         By Technology – Genome editing, tissue culture, synthetic biology, genetic engineering, marker-assisted breeding, plant breeding, germplasm, molecular diagnostics, vaccine and others

·         By Application- Vaccine development, transgenic crops and animals, antibiotic development, nutritional supplements, flower culturing, biofuels and others

·         By Region- North America, Europe, Asia Pacific, The Middle East and Africa, South America

Agricultural Biotechnology Market By Product Type Segment Review:

In Crop Protection Products segment, Bio-stimulants are the products that contain natural substances that promote plant growth and enhance crop yield by stimulating physiological processes such as nutrient uptake, root development, and stress tolerance. Bio-stimulants are eco-friendly alternatives to traditional chemical fertilizers. Bio-pesticides are derived from natural sources such as plants, bacteria, and fungi, bio-pesticides are used to control pests and diseases in crops. They offer effective pest management solutions while minimizing environmental risks and reducing chemical residues in food.

In Transgenic Seeds segment, Soybean are genetically modified soybean seeds are engineered to exhibit traits such as herbicide tolerance, insect resistance, and improved yield potential. These traits enhance crop performance and reduce the need for chemical inputs, leading to higher productivity and profitability for farmers. Maize (Corn) are transgenic maize seeds are developed with traits such as insect resistance, herbicide tolerance, and drought tolerance. These traits help maize plants withstand environmental stressors and pests. Cotton are genetically modified cotton seeds are designed to resist pests such as bollworms and tolerate herbicides, leading to higher yields, reduced pesticide use, and improved fiber quality.

Agricultural Biotechnology Market By Organism Type Segment Review:

Plant biotechnology plays a crucial role in crop improvement, disease resistance, and trait enhancement. Genetically modified crops developed through plant biotechnology offer numerous benefits such as increased yield, enhanced nutritional content, and tolerance to biotic and abiotic stresses. These plants include herbicide tolerance, insect resistance, drought tolerance, and disease resistance. These traits contribute to sustainable agriculture by reducing the need for chemical inputs, improving crop productivity, and ensuring food security.

Agricultural biotechnology also extends to animal breeding and genetics, aiming to enhance livestock productivity, health, and welfare. Genetically engineered animals are developed with traits such as faster growth rates, increased disease resistance, and improved meat or milk production. Examples of genetically modified animals include pigs with enhanced lean meat production, dairy cows with increased milk yield, and poultry resistant to specific diseases. These advancements in animal biotechnology contribute to efficient livestock farming practices and the production of high-quality animal products. Microbial biotechnology involves the use of microorganisms such as bacteria, fungi, and algae in agricultural applications.

Microbes are utilized for various purposes, including soil fertility enhancement, biocontrol of pests and diseases, and production of biofertilizers and biopesticides. Biofertilizers containing beneficial microbes such as nitrogen-fixing bacteria and phosphate-solubilizing fungi promote plant growth and nutrient uptake. Similarly, biopesticides derived from microbial sources offer environmentally friendly alternatives to chemical pesticides, reducing harmful effects.

Agricultural Biotechnology Market By Technology Segment Review:

Genome editing techniques such as CRISPR-Cas9, TALENs, and ZFNs allow targeted modifications of specific genes in plants, animals, and microbes. These technologies facilitate precise alterations in the genetic code, leading to desired traits such as disease resistance, improved nutritional content, and enhanced yield potential. Tissue culture, also known as plant tissue culture or micropropagation, involves the aseptic culture of plant cells, tissues, or organs in a nutrient medium under controlled conditions.

This technology enables rapid multiplication of plant varieties and production of disease-free planting material. Synthetic biology applies engineering principles to design and construct biological systems with desired functions. In agriculture, synthetic biology techniques are used to engineer microbes for biofertilizer production, develop biosensors for environmental monitoring, and design novel pathways for metabolic engineering in plants. Genetic engineering involves the manipulation of an organism's genetic material using recombinant DNA technology. This technology is widely used to introduce foreign genes into plants for trait improvement, such as herbicide tolerance, insect resistance, and drought tolerance.

Marker-assisted breeding (MAB) utilizes molecular markers to identify and select desirable traits in plants or animals during the breeding process. It accelerates the breeding cycle by enabling precise selection of genotypes with target traits, leading to the development of improved varieties with enhanced performance. Plant breeding involves the traditional method of crossing plants with desirable traits to produce offspring with improved characteristics. Modern plant breeding techniques combine traditional breeding methods with biotechnological tools such as marker-assisted selection and genomic selection to accelerate the breeding process and develop superior crop varieties. Germplasm refers to the genetic material (seeds, tissues, or organs) of plants, animals, or microbes that are conserved for future use in breeding programs.

Germplasm repositories play a critical role in preserving genetic diversity, facilitating research, and supporting crop improvement efforts. Molecular diagnostics techniques such as polymerase chain reaction (PCR), DNA sequencing, and gene expression analysis are used to detect and characterize genetic traits, pathogens, and diseases in agricultural organisms. These tools enable rapid and accurate diagnosis of plant and animal diseases, enhancing disease management strategies. Vaccines are biotechnological products developed to induce immunity against specific pathogens in plants or animals. In agriculture, vaccines are used to prevent infectious diseases in livestock, poultry, and aquaculture species, reducing the reliance on antibiotics and improving animal health and welfare.

Agricultural Biotechnology Market By Application Segment Review:

Agricultural biotechnology plays a crucial role in the development of vaccine development for livestock, poultry, and aquaculture species. Vaccines are designed to prevent infectious diseases, improve animal health, and reduce the need for antibiotics in animal husbandry. Transgenic crops are genetically modified to express desirable traits such as herbicide tolerance, insect resistance, and improved nutritional content. Similarly, transgenic animals are engineered to exhibit traits such as disease resistance, enhanced growth, and higher yield potential. Agricultural biotechnology contributes to the development of novel antibiotics for plant and animal diseases.

These antibiotics help control bacterial infections, fungal diseases, and viral pathogens in crops, livestock, and aquaculture, thereby improving yield and reducing crop losses. The biotechnological approaches are utilized to develop nutritional supplements for plants, animals, and microbes. These supplements enhance nutrient uptake, improve growth performance, and boost immunity in agricultural organisms, leading to better overall health and productivity. It is employed in flower culturing to improve floral traits such as color, fragrance, and longevity.

Biotechnological tools enable the development of ornamental plants with enhanced aesthetic appeal, disease resistance, and post-harvest quality, catering to the floriculture industry. It also plays a pivotal role in the production of biofuels from renewable biomass sources such as crops, algae, and agricultural residues. Biotechnological processes such as enzymatic hydrolysis, fermentation, and bioconversion are employed to convert biomass into biofuels such as ethanol, biodiesel, and biogas, offering sustainable alternatives to fossil fuels.

Agricultural Biotechnology Market Regional Analysis:

North America is a significant market driven by presence of leading biotech companies, research institutions, and academic centers in North America fosters continuous innovation in crop genetics, gene editing, and biotech applications, driving market growth. The region's well-established regulatory framework for biotechnology including U.S. Department of Agriculture (USDA), U.S. Environmental Protection Agency (EPA), and U.S. Food and Drug Administration (FDA) work together to regulate GMOs. These agencies ensure that GMOs are safe for human, plant, and animal health, and also monitor their environmental impact.

Europe is a significant market share driven by stringent regulations governing GMOs and biotech products like Regulation (EC) 1829/2003, Directive 2001/18/EC and more applied to GMOs used in food and feed, and includes rules for food and feed that contain or are made from GMOs, deliberate release of GMOs into the environment, and contained use of genetically modified microorganisms. Asia Pacific is a rapidly growing market driven by large and growing population, driving the adoption of biotech crops and technologies to enhance agricultural productivity, food security, and nutritional quality.

According to the Ministry of Agriculture of India, rice production in the country accounted for 102.36 million tones in FY 2020-2021, higher by almost 6.70 million tones as compared to the previous 5 years average production. The Middle east and Africa are a promising market due to region’s climate change impacts, water scarcity, and agricultural challenges, driving the adoption of biotech crops and technologies for drought tolerance, pest resistance, and improved crop yields. South Ameria is growing market driven by factors like expansion of Biotech. According to Intent, in 2021, 95% of the 65 million hectares planted to soybeans, corn, and cotton were biotech varieties. Biotech varieties occupied 97% of the 38 million soybean hectares in Brazil.

Key Challenges:

The primary challenge for this market is the public concerns regarding the safety, ethics, and environmental impact of genetically modified organisms (GMOs) and biotech crops may hinder consumer acceptance and adoption. The misinformation, fear of unknown risks, and skepticism about genetic engineering technologies may influence consumer purchasing decisions and market demand for biotech products. The stringent regulatory requirements and approval processes for genetically modified organisms (GMOs) and biotech products pose significant challenges to market entry and commercialization. The regulatory agencies often impose rigorous safety assessments, environmental evaluations, and labeling requirements, leading to delays and increased costs for biotech companies.

Competitive Landscape:

In the highly competitive Agricultural Biotechnology market, companies are investing heavily in research and development to innovate and improve the product and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. Recent developments includes ADMA Agricultural Solutions Ltd. Launched prothioconazole fungicide for improved cereal and oilseed rape disease control, in February 2021. KWS collaborated with DKE data agri router consortium for networking and trades for tapping the strength of agricultural digitalization, in April 2022. TuBiomics with the support of Nevada Governer’s Office of Economic development emerges as a leader in developing plant and soil health products using sustainable natural and chemistry-based solutions, in January 2024. Corteva Agriscience opened a new CSAT, in April 2022.

Global Key Players:

·         Thermo Fisher Scientific

·         Pro Farm Group, Inc.

·         Bayer AG

·         Biocentury Group

·         Eurofins Scientific

·         LGC Biosearch Technologies

·         Corteva Agriscience

·         YIELD10 BIOSCIENCE

·         BASF SE

·         Valent BioSciences

·         Novozymes A/S