Agricultural Biotechnology Market

Market Overview:

The global agricultural biotechnology market size reached US$ 140.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 249.2 Billion by 2032, exhibiting a growth rate (CAGR) of 6.57% during 2024-2032. The rising global demand for sustainable farming practices and higher crop yields, rising demand for food security due to population growth, the introduction of innovative gene editing and sequencing technologies, and continual advancements in genomic research represent some of the factors that are propelling the market.

Agricultural biotechnology is a specialized branch of biotechnology dedicated to improving agricultural practices through the application of scientific techniques. It involves the manipulation of living organisms, including plants, animals, and microbes, to enhance crop yields, improve resistance to pests, and reduce the dependency on chemical fertilizers and pesticides. Through technologies such as genetic engineering, tissue culture, and molecular diagnostics, agricultural biotechnology aims to create more resilient, nutritious, and abundant crops, thereby addressing some of the most pressing issues such as food security and sustainable agriculture. The use of this biotechnology enables farmers to grow more food with fewer inputs.

The global market is primarily influenced by the rising global demand for sustainable farming practices and higher crop yields. In line with this, the introduction of innovative gene editing and sequencing technologies offers the capability to develop crops with specialized traits, including drought resistance and higher nutritional content. Moreover, increasing adoption of biotech crops among farmers due to demonstrated yield improvements and reduced pesticide use is another compelling factor that is stimulating the market. In addition to this, the rising awareness regarding plant genomics is helping scientists create crops that can adapt to changing climate conditions, thereby creating a positive market outlook. Additionally, continual technological advancements in bioinformatics tools for agriculture providing a robust framework for data analysis and aiding in quicker, more effective crop development cycles are fueling the market. Some of the other factors contributing to the market include increased public-private partnerships in biotech research, growing awareness of the benefits of technology in agriculture, and the global shift towards organic foods.

Agricultural Biotechnology Market Trends/Drivers:

Rising demand for food security due to population growth

One of the major drivers in the global agricultural biotechnology market is the escalating concern over food security coupled with rapid population growth. As global numbers continue to rise, the demand for a secure and sufficient food supply also increases exponentially. Agricultural biotechnology offers promising solutions to this dilemma, particularly through the development of genetically modified crops optimized for higher yields, greater nutritional value, and improved resistance to environmental stresses. The technology is especially valuable for nations grappling with acute food scarcity, as it has the potential to transform agriculturally nonviable lands into productive farmlands. By aligning itself closely with the global imperative for food security, agricultural biotechnology becomes an indispensable tool for governments and organizations striving to meet the growing food demands sustainably and efficiently.

Regulatory Support and Public Awareness

Regulatory backing from several government bodies across the globe along with heightened public awareness are other significant catalysts contributing to the agricultural biotechnology market's expansion. Across the globe, governments are increasingly cognizant of the immense potential that biotechnology holds for agriculture, from enhancing crop yields to minimizing dependence on chemical pesticides and fertilizers. This awareness has culminated in more streamlined and conducive regulatory frameworks that facilitate quicker approvals for genetically modified crops and other biotechnological applications. Concurrently, public opinion is shifting, aided by concerted efforts from advocacy groups and educational institutions that work to elucidate the scientific basis and benefits of agricultural biotechnology. This synergistic support from both regulatory bodies and the general populace has created an environment highly conducive to the proliferation of biotechnological applications in agriculture.

Continual advancements in genomic research

Continual advancements in genomic research refer to a significant factor propelling the agricultural biotechnology market forward. Innovations in gene-editing techniques, notably CRISPR technology and advanced gene sequencing, are enabling scientists to perform highly precise modifications to plant genomes. This precision extends the realm of possibilities for developing crops with unique and beneficial traits. Whether it's engineering crops to be more pest-resistant, nutrient-rich, or tolerant to adverse environmental conditions, the advances in genomic research cover a wide spectrum. Furthermore, the implications of these technologies aren't limited to staple grains but span fruits, vegetables, and even extend to livestock. Such extensive applicability is fundamentally altering the scope and face of agriculture, creating new market segments, and offering solutions for long-standing agricultural challenges. These groundbreaking advances contribute significantly to the agricultural biotechnology market’s robust and sustained growth.

Agricultural Biotechnology Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global agricultural biotechnology market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on organism type, technology, and application.

Breakup by Organism Type:

• Plants 
  • Conventional Techniques
  • Established Genetic Modification
  • New Breeding Techniques
• Animals
  • Conventional Techniques
  • Established Genetic Modification
  • New Breeding Techniques
• Microbes 
  • Conventional Techniques
  • Established Genetic Modification
  • New Breeding Techniques
     

Plants represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the organism type. This includes plants (conventional techniques, established genetic modification, and new breeding techniques) animals (conventional techniques, established genetic modification, and new breeding techniques), and microbes (conventional techniques, established genetic modification, and new breeding techniques). According to the report, plants represented the largest segment.

The demand for higher crop yields and disease-resistant plants is a significant factor driving the plants segment in the agricultural biotechnology market. The increasing global population and the subsequent need for food security have resulted in higher interest in genetically modified plants. As climate change poses new challenges to agriculture, the application of biotechnological tools becomes increasingly relevant in creating stress-resistant varieties. Therefore, advancements in plant biotechnology continue to attract investments and research.

In the animal segment, the focus is often on improving livestock for better meat quality, resistance to diseases, and increased productivity. Genetic engineering and marker-assisted breeding are crucial technologies supporting these advancements. Concerns over animal welfare and the efficiency of food production have further propelled the adoption of biotechnologies in animal agriculture. Overall, these factors have led to a growing market segment dedicated to the biotechnological improvement of animals.

On the other hand, the microbes segment is driven primarily by their role in soil fertility and plant health. The use of microbial inoculants in sustainable farming practices is becoming increasingly popular. These beneficial microbes can also aid in reducing the dependency on chemical fertilizers and pesticides. As a result, this segment continues to grow in significance as more farmers seek eco-friendly and effective alternatives.

Breakup by Technology:

• Genome Editing
• Synthetic Biology
• Genetic Engineering
• Marker-Assisted Breeding
• Plant Breeding
• Germplasm
• Others
   

Synthetic biology represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the technology. This includes genome editing, synthetic biology, genetic engineering, marker-assisted breeding, plant breeding, germplasm, and others. According to the report, synthetic biology represented the largest segment.

Synthetic biology aims to design and construct new biological systems, including those that do not exist naturally. This segment is driven by its potential for creating sustainable alternatives to conventional agricultural inputs. This technology can be employed to produce biofuels, develop pest-resistant crops, and much more. As sustainability becomes a global priority, the synthetic biology segment is expected to witness robust growth.

On the other hand, genome editing technologies such as CRISPR are revolutionizing the field of agricultural biotechnology. These tools allow for precise modifications, making it possible to create plants and animals with desired traits more efficiently. Concerns over bioethics and regulations do exist but are counterbalanced by the potential for groundbreaking solutions to agricultural challenges. The genome editing segment, thus, remains a dynamic and fast-growing part of the market.

Also, genetic engineering continues to be a significant driver in agricultural biotechnology for developing genetically modified organisms (GMOs). This technology provides solutions for pest resistance, improved nutritional content, and longer shelf life for produce. While there is public debate over the safety and ethics of GMOs, the benefits they offer in addressing food security and agricultural productivity keep this segment active.

Moreover, marker-assisted breeding uses genetic markers to select desirable traits in both plants and animals. The method is less controversial than other forms of genetic manipulation and is generally quicker than traditional breeding techniques. It is especially useful in developing disease-resistant varieties, thereby reducing the need for chemical treatments. This segment has gained traction due to its efficiency and relatively straightforward application.

Besides this, traditional plant breeding techniques are also receiving a boost from biotechnological advancements. Hybridization and selection methods have become more sophisticated, thanks to better understanding of genetics. Increased focus on the development of high-yield, disease-resistant, and climate-resilient crops drives this segment. As the backbone of agriculture, plant breeding remains an essential market segment.

Furthermore, germplasm forms the basis of all crop breeding programs, and the conservation and exchange of germplasm are critical for maintaining biodiversity and providing raw material for future breeding efforts. The segment is driven by its necessity for long-term sustainability and food security, resulting in germplasm repositories and gene banks receiving heightened focus and investment.

Breakup by Application:

• Vaccine Development
• Transgenic Crops and Animals
• Antibiotic Development
• Nutritional Supplements
• Flower Culturing
• Others
   

Vaccine development accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes vaccine development, transgenic crops and animals, antibiotic development, nutritional supplements, flower culturing, and others. According to the report, vaccine development represented the largest segment.

The vaccine development segment is driven by the increasing prevalence of animal diseases and the growing demand for high-quality livestock products. Technological advancements in molecular biology and genetics have also accelerated the development of vaccines that are more effective and faster to produce. Government funding and policies promoting sustainable livestock farming further fuel this market. Moreover, as the world faces global health challenges like pandemics, the focus on efficient and rapid vaccine development has intensified, thereby influencing the market positively.

On the other hand, the transgenic crops and animals segment is propelled by the global necessity to increase food production while minimizing environmental impact. The introduction of genetically modified organisms (GMOs) has significantly enhanced crop yields and resistance to pests, thereby reducing dependency on chemical pesticides. Consumer awareness about the benefits of GMO crops, such as nutrient fortification, has also increased acceptance.

Moreover, antibiotic development in agricultural biotechnology is largely influenced by the rise of antibiotic-resistant strains of bacteria, making the development of new formulations critical. Consumer demand for antibiotic-free meat and poultry products has also encouraged more sustainable and targeted uses of antibiotics in livestock. Innovations in microbial genomics and collaborations between biotech companies and research institutes play a significant role in this segment.

Additionally, the nutritional supplements segment is gaining momentum due to growing health-consciousness among consumers and the rising incidence of nutritional deficiencies. Biotechnological methods such as enzyme engineering and fermentation are increasingly employed to produce supplements that are more bioavailable and effective. E-commerce platforms have also made these products more accessible, widening consumer reach.

Furthermore, flower culturing in agricultural biotechnology is primarily influenced by consumer demand for more varied and long-lasting floral products. Advances in tissue culture and gene editing have enabled the cultivation of flowers with enhanced aesthetics and longevity. Furthermore, with global trade in floriculture on the rise, biotechnological improvements help meet international quality standards, thus aiding the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest agricultural biotechnology market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

In North America, the agricultural biotechnology market is experiencing strong growth due to several interrelated factors. There's a robust institutional framework supporting research and development, coupled with significant private sector investment. Consumer preferences for high-quality, sustainably produced food products also drive market demand.

Additionally, the region has well-established regulatory systems that, despite posing strict standards, offer a clear path for product approval. Furthermore, North America is home to some of the world's leading agricultural biotechnology companies, contributing to a competitive and innovative market landscape.

Educational initiatives in biotechnology are well-funded and widespread, creating a skilled workforce that further fuels the sector. Trade agreements also play a role, as they facilitate the export of biotechnology products to other regions. Given the high levels of technological adoption in agriculture, there is a constant push for innovations that can increase productivity while reducing environmental impact. The issues of climate change and water scarcity are increasingly driving the adoption of biotechnological solutions in the region.

Competitive Landscape:

The key players in the market are currently investing heavily in research and development to churn out innovative solutions. They are actively forming partnerships with research institutions and government bodies to expedite product approvals. These companies are diversifying their product portfolios to cater to a broad range of needs in the farming community. The prominent players are also employing digital tools like big data analytics to make ongoing, informed decisions and enhance supply chain efficiencies. In addition to this, they are actively expanding into emerging markets to widen their customer base. Emphasizing sustainability and eco-friendly practices, the major companies are continuously working to improve market growth.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• ADAMA Ltd. (Syngenta Group Co. Ltd.)
• BASF SE
• Bayer AG
• DowDuPont
• LGC Biosearch Technologies (LGC Ltd.)
• Performance Plants Inc.
• Yield10 Bioscience Inc.

Agricultural Biotechnology Market Report Scope:

Key Questions Answered in This Report:

• How has the global agricultural biotechnology market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global agricultural biotechnology market?
• What is the impact of each driver, restraint, and opportunity on the global agricultural biotechnology market?
• What are the key regional markets?
• Which countries represent the most attractive agricultural biotechnology market?
• What is the breakup of the market based on the organism type?
• Which is the most attractive organism type in the agricultural biotechnology market?
• What is the breakup of the market based on the technology?
• Which is the most attractive technology in the agricultural biotechnology market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the agricultural biotechnology market?
• What is the competitive structure of the global agricultural biotechnology market?
• Who are the key players/companies in the global agricultural biotechnology market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the agricultural biotechnology market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global agricultural biotechnology market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the agricultural biotechnology industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.