- Summary
- Table Of Content
- Methodology
Agriculture Biotechnology Market Size:
Agriculture Biotechnology Market size is growing with a CAGR of 9.1% during the forecast period (2024-2031), and the market is projected to be valued at USD 202.24 Billion in 2031 from USD 102.02 Billion in 2023.
Agriculture Biotechnology Market Scope & Overview:
Agricultural biotechnology is the application of scientific techniques to improve plants, animals, and microorganisms for agricultural purposes. It involves manipulating the genetic material of organisms to introduce desirable traits, such as disease resistance, pest resistance, increased yield, or improved nutritional content. Modern biotechnology today includes the tools of genetic engineering. It helps farmers with tools that make production cheaper and more manageable. The use of biotechnology in agriculture has resulted in benefits to farmers, producers, and consumers. This field offers several advantages in agriculture, such as increased crop yield, disease resistance, improved nutritional content, and resistance to adverse climates, among others. Furthermore, the application of the agriculture biotechnology industry includes the development of genetically modified crops, tissue culture for mass propagation, development of biocontrol agents, and biofuel production, among others. Agriculture biotechnology products are majorly opted by farmers, nurseries, and, research industries, among others.
Agriculture Biotechnology Market Dynamics - (DRO) :
Key Drivers:
Rising Global Sustainable Practice in Agriculture is Facilitating the Growth of Agriculture Biotechnology Market
Sustainable agriculture is a farming system that aims to meet the current food needs without harming the environment. It promotes protecting soil health and minimizing the use of chemicals. Agriculture biotechnology industry plays a crucial role in improvising sustainable agriculture by enhancing crop yield, and reducing the input of chemicals. Opting the use of bio-fertilizers which is a type of agriculture biotechnologically product, not only promotes crop yield but also protects the soil health. Additionally, organic farming, which is an agricultural approach that avoids the use of chemicals is rising globally.
- According to the National Centre for Organic and Natural Farming, globally, organic agriculture is practiced in 187 countries, and 72.3 million hectares of agricultural land were managed organically by at least 3.1 million farmers. As organic farming focuses on sustainable practices, agriculture biotechnology complements this approach by developing innovative and eco-friendly solutions to enhance crop yields.
Thus, as per the analysis of the market trend, due to the increase in the practice of sustainable agriculture globally, the agriculture biotechnology market is fostering growth.
Need for Disease Resistance Crop is Fostering the Market Growth of Agriculture Biotechnology Market
Agriculture biotechnology helps in developing crops that are genetically resistant to diseases. Thus equipping the modern varieties/hybrids with enhanced genetic resistance is the most economical, sustainable, and environmentally friendly solution. Plant geneticists have done tremendous work in identifying stable resistance in primary gene pools and many times other than primary gene pools to breed resistant varieties in different major crops. Disease resistance in crops further increases the yield and minimizes the use of chemical control agents to stop the disease progression.
- In 2022, according to the National Center of Biotechnology Information, climate change across the globe has an impact on the occurrence, prevalence, and severity of plant diseases. About 30% of yield losses in major crops are due to plant diseases; emerging diseases are likely to worsen sustainable production in the coming years. This, increase in the prevalence of crop disease, shows that there is an increase in the need for disease resistant crops. Agriculture biotechnology fosters a holistic approach to prevent plant diseases by developing disease resistance crops, using genetic engineering techniques.
Thus, as per the analysis of the market trend, due to the increase in the need for disease resistant crops in order to prevent crop losses, the agriculture biotechnology market size is subjected to substantial growth.
Key Restraints :
Stringent Regulations with Approval of Genetically Engineered Crops Are Restricting the Market Expansion
Genetically modified organisms are types of organisms whose genetic material has been artificially modified in order to give it a new property such as a plant to resist a disease, insects or drought or to increase crop productivity. Globally, countries have developed and adopted diverse regulatory approaches to genetically engineered (GE) plants or crops. In Europe, GMOs cannot be cultivated or sold for consumption without authorization at the EU level. This process of assessment includes a scientific risk assessment. Only Maize MON 810 has been approved for cultivation in the EU so far. Most of the GMOs authorized in the EU are used to only feed farm animals.
Thus, due to stringent regulation on GE crops, the agriculture biotechnology market growth is limited.
Future Opportunities :
Innovations is Expected to Create a Lucrative Opportunity for Agriculture Biotechnology Market Expansion
Agricultural biostimulants are biologically derived fertilizer additives used in crop production to supplement and enhance existing agricultural crop inputs. Biostimulant helps to improve crop nutrition. High-quality crops have increased their level of nutrition, with having better resistance to pest and crop diseases. Additionally, high-quality crops will support the increase in consumer need for healthy food and enhance agriculture profitability.
Furthermore, biostimulant is observed to act as a complementary tool to conventional agriculture, helping farmers to produce high-quality crops.
- In 2024 according to BASF, as a biostimulant Ascophyllum nodosum, is rich in bioactive compounds like polysaccharides, mannitol, and betaines. "These compounds work together to improve plant tolerance to stressful growing conditions, including, but not limited to, heat and drought.
Thus, due to innovations such as Ascophyllum nodosum biostimulant, the agriculture biotechnology market opportunity is expected to rise in the upcoming years.
Agriculture Biotechnology Market Segmental Analysis :
By Product Type:
Based on product type the market is segmented into bio-fertilizers, bio-pesticide, genetically modified crops, and others.
Trends in the Product Type:
- Genetically modified crop development aims to increase the nutritional content, addressing the global nutritional deficiency.
- Increased use of bio-fertilizer as an alternative to synthetic fertilizer increases the soil fertility and crop productivity.
The genetically modified crop accounted for the largest revenue of the agriculture biotechnology market share in the year 2023.
- Genetically modified (GM) crops are a new addition to crop varieties developed through traditional methods such as breeding, selection and mutation.
- These crops demonstrate increased agriculture productivity, helping farmers globally to generate more profit.
- Genetically modified crops further reduce the loss of yield due to pests and diseases.
- Moreover, it also uplifts the nutritional value of a crop while simultaneously demonstrating higher yield.
- In 2022 according to the Food and Agriculture Organization, more than 17 million farmers planted GM crops in 29 countries and reaped higher yield with reduced use of pesticides and better management of weeds among other benefits.
- Thus, as per the analysis of segmental trends, due to the increased benefits of genetically modified crops, it is dominating the agriculture biotechnology market.
The bio-pesticide segment is anticipated to register the fastest CAGR during the forecast period.
- Anthropogenic activities are increasingly affecting agricultural productivity globally.
- Bio-pesticides, a pest management agent based on living microorganisms or natural products, offer a great promise in controlling yield loss without compromising the quality of the product.
- It helps to meet the global need for food and supplies, by enhancing the productivity and sustainability of agricultural practices.
- In 2022 according to a study published in Proceedings of the International Academy of Ecology and Environmental Sciences Journal, among farmers globally, biopesticides are increasingly being preferred over chemical pesticides as a better alternative.
- Globally it is increasingly being adopted as an alternative for crop protection.
- Thus, as per the segmental trend analysis, due to the promising pest management ability, bio-fertilizers used in agriculture is rapidly growing globally.
By Technology:
Based on technology the market is segmented into genetic engineering, tissue culture, breeding, and others.
Trends in the Technology:
- Genetic engineering technology focuses on developing crops with improved productivity, disease resistance, and pest resistance.
- Tissue culture is increasingly utilized for rapid propagation and preserving crop variety.
The genetic engineering technology accounted for the largest revenue share of 47.31% in the year 2023.
- Globally, genetic engineering (GE) technology is being used to successfully develop novel genes of economic importance that is used to improve the genetics of crop plants.
- This has numerous benefits such as faster and more precise breeding, higher crop yields, development of more nutritious food, and decreased need for herbicides and pesticides.
- Hence, due to its wide benefits, GE is widely adopted by the farmers.
- In 2020 according to the International Service for the Acquisition of Agri-biotech Applications, 92% percent of U.S. cotton crop having insect-resistant seeds planted are developed using agriculture biotechnology technology called genetically engineering.
- Thus, as per the analysis of segmental trend, genetic engineering dominates and holds a vital place in the agriculture biotechnology market due to its importance in crop development.
The Tissue culture segment is anticipated to register the fastest CAGR during the forecast period.
- Plant Tissue Culture (PTC) is in vitro maintenance and propagation of isolated cells, tissues or organs in an appropriate artificial environment.
- Several crop plants are routinely propagated by tissue culture technique and are being traded domestically and internationally.
- Since PTC is a powerful technique for mass production in many crops, it has become an important tool in the nursery and farming industry.
- In 2023 according to a study published at International Journal of Advanced Biochemistry Research, tissue culture technology through micro propagation has revolutionized the agriculture scenario globally and is witnessing significant growth in the market.
- Thus, the segment of tissue culture is poised for rapid growth driven by its high sensitivity, technological innovations, and wide range of applications across various sectors, proliferating the Agriculture biotechnology market potential.
Regional Analysis:
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2023, North America accounted for the highest market share at 33.25% and was valued at USD 33.92 Billion, and is expected to reach USD 67.51 Billion in 2031. In North America, U.S accounted for the highest market share of 78.13% during the base year of 2023. A GMO (genetically modified organism) is a plant, animal or microorganism that has had its genetic material (DNA) changed using technology that generally involves the specific modification of DNA, including the transfer of specific DNA from one organism to another. There is increased use of GM crops in North America, due to their herbicide tolerance and insect resistance characteristics. Only a few types of crops are grown in the United States, but some of these GM crops such as soybeans, corn, sugar beets, canola, cotton, and more, make up a large percentage of the crop produced. Most of the GM crops in United States are used as feed for animal like cows, chickens and fish.
Additionally, Mexico is one of the world's largest importers of Genetically Engineered (GE) corn and soybeans, with 2020 imports reaching approximately U.S. $3.1 billion and U.S. $2.2 billion respectively, with supplies mainly from the United States.
- In 2024 according to Economic Research Service, more than 90 percent of U.S. corn, upland cotton, and soybeans are produced using GE varieties. This shows that there is increased use of agriculture biotechnology in United States in order to obtain genetically engineered crops.
Thus, as per the analysis of regional trend, due to increase in use of GM crops in North America the agriculture biotechnology market trend is subjected for a substantial rise in North America.
Asia Pacific is expected to witness the fastest CAGR over the forecast period of 9.8% during 2024-2031. As the population is rapidly increasing in the Asia Pacific region, there is an increased need for food production. Thus, due to the increase demand for food the demand for agriculture production is rising. In countries like India, China, and Japan farmers are trying to incorporate new techniques to increase their crop yield. In order to increase agriculture production in India there is the rise in the need for additional fertilizers that are eco-friendly. Due to this large number of farmers in India are opting for bio fertilizers. Biofertilizers are known to not only improve yields and produce quality but also improve nutrient use efficiency.
- In 2021 according to the Food and Agriculture Organization, the total estimated demand for bio-fertilizers in India was 18,500 tons per year, whereas the estimated production is about 10,000 tons per year. These biofertilizers an agriculture biotechnology product not only improve production yield but also enhance the nutritional efficiency of the crop. This shows that there is the increase in the need for agriculture biotechnology-based products such as bio fertilizers in agriculture to cater to the growing demand for food.
Thus, due to an increase in need for bio fertilizers, the agriculture biotechnology market is expected to obsever an exponential grow in upcoming years.
In Europe organic farming is growing rapidly. In 2022, 10.5 % of land is used for organic farming in Europe. The EU Commission has set the target of having 25 % of the EU's agricultural land organically farmed by the end of 2030. Additionally, the EU has funded for organic farming over USD 13.39 billion in 2014-2022. This shows that there is an increase in demand for bio based fertilizers, pesticides fungicides and more, hence demonstrating a growing opportunity for agriculture biotechnology in the region.
There is an increase in the need for genetically engineered (GE) crops in Latin America. GE crops are increasingly being developed using agriculture biotechnology industrial tools in countries such as Brazil, Argentina, Chile and more. Brazil is the second-largest producer of biotech crops in the world with 105 events approved. For the 2022/2023 crop season, Food Agriculture Service Brasilia forecasts a 65 million hectares planted with GE traits. Adoption rates for GE soybeans and GE cotton reached 99 percent and 95 percent for GE corn. Thus, due to the increase in the adoption rate of GE crops, the agriculture biotechnology market opportunity is rising in demand in Latin America.
In Middle East and Africa there is the increase in date farming. UAE contains around 40 million palm trees including 120 date varieties. United Arab Emirates University, is recognized internationally for its largest mass propagation units for dates. According to DPTCL is 40,000-50,000 seedlings per year is produced by using tissue culture technique in order to meet the regional need for dates. Additionally, high-quality varieties of Date seedlings are heavily exported to major export markets at Egypt, Iraq, Jordan, Oman, and more. Thus, the agriculture biotechnology market demand is rising in the Middle East and Africa.
Top Key Players & Market Share Insights:
The agriculture biotechnology market is highly competitive with major players providing products and services to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global agriculture biotechnology market. Key players in the agriculture biotechnology industry include-
- Indigo Ag, Inc. (United States)
- Bayer AG (Germany)
- Corteva (United States)
- Monty's Plant Food. (United States)
- Inari Agriculture, Inc. (United States)
Recent Industry Developments :
Partnerships and Collaborations:
- In 2024, through multi-year strategic research and development partnerships with Ginkgo Bioworks, Kimitec, MustGrow and others, Bayer is accelerating the delivery of breakthrough biological innovations in the areas of next-generation nitrogen fixation, crop protection and biostimulant products. Additionally, Bayer is also capitalizing on the potential to double its accessible market to more than 200 billion euros, driven by global market growth and investments into ag-adjacent spaces like biofuels, crop fertility, as well as digital platforms and marketplaces.
- In 2024, BASF partners with Acadian Plant Health, a renowned marine plant harvesting, cultivation and extraction company to introduce climate resilient solution. BASF is planning to incorporate sea weed Ascophyllum nodosum as a bio stimulant, which will increase the productivity of the crop and promote sustainability.
Product Launch:
- In 2024, Corteva, Inc. announced the launch of Corteva Catalyst, a new investment and partnership platform focused on accessing and bringing to market agricultural innovations that advance the company's R&D priorities and drive value creation. Corteva Catalyst will partner with entrepreneurs and innovators to accelerate the development of early-stage, disruptive technologies that enable farmers to sustainably produce more food and feed.
Investments and Funding:
- In 2023, Bayer spent €5,835 million before special items on R&D to drive innovation for our customers, patients and farmers. Approximately 16,800 Bayer scientists work in research and development sites around the world, focusing on health or agriculture.
- In 2023, BASF invested a high double-digit million-euro amount in a new fermentation plant for biological and biotechnology-based crop protection products at its Ludwingshafen site. The plant will manufacture products that bring value to the farmer including biological fungicide and biological seed treatment.
Mergers and Acquisitions:
- In 2023, Rovensa, a global leader of agricultural inputs for sustainable agriculture, announced the completed acquisition of MIP Agro, a leading player in biocontrol and bio stimulants in Chile. This acquisition has strengthened company's portfolio of bio solutions.
Agriculture Biotechnology Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 202.24 Billion |
| CAGR (2024-2031) | 9.1% |
| By Product Type |
|
| By Technology |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the Agriculture Biotechnology Market? +
In 2023, the Agriculture Biotechnology Market was USD 102.02 Billion.
Which is the Largets region in the Agriculture Biotechnology Market? +
North America is the Largest region in the Agriculture Biotechnology Market.
Which is the holds the fastest growing market share for Agriculture Biotechnology Market? +
Asia Pacific is the fastest growing region in the Agriculture Biotechnology Market.
What specific segmentation details are covered in the Agriculture Biotechnology Market? +
Product Type and technology are the segments that have been covered in the Agriculture Biotechnology Market.
Who are the major players in the Agriculture Biotechnology Market? +
Indigo Ag, Inc. (United States), Bayer AG (Germany), Syngenta (Switzerland), BASF (Germany), Corteva (United States), Monty's Plant Food. (United States), Inari Agriculture, Inc. (United States), KWS SAAT SE & Co. KGaA (Germany), AgroFresh (United States), ADAMA (Israel).
