Agricultural Biotechnology Market Size

Agricultural Biotechnology Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Agricultural biotechnology market size is expected to reach $247.77 billion by 2024, which is expected to increase to $ 490.11 billion by 2032. This growth is due to the high CAGR of 8.9%. The increasing need for food security and the need for sustainable agriculture are driving the adoption of biotechnological innovations in agriculture. The growing population and the shortage of arable land are the two major challenges to agriculture. Agricultural biotechnology provides solutions in the form of GMOs and advanced breeding techniques to increase crop yields and resistance to pests and climate change. The CRISPR gene-editing technology that enables precise genome editing in plants and biofortified crops that improve the nutritional content of crops are the two main technological trends that are driving the agricultural biotechnology market. These trends are exploited by major companies in the industry, such as Bayer AG, Syngenta AG, and Corteva Agriscience. Bayer, for example, is collaborating with academic institutions to accelerate the development of new solutions for crops, while Corteva Agriscience is investing in digital agriculture to increase the productivity of farms. These strategic initiatives reflect the growing importance of the agricultural biotechnology industry in solving the world's food problems.

Regional Market Size

Regional Deep Dive

The Agricultural Biotechnology Market is expected to grow at a significant CAGR across different regions, driven by the rising demand for sustainable agricultural practices, advancements in genetic engineering, and a growing world population. The North American Agricultural Biotechnology Market is characterized by a strong emphasis on research and development, with large companies leading innovations in genetically modified organisms (GMOs) and crop protection. Europe, on the other hand, has stringent regulations affecting the market. Asia-Pacific, on the other hand, is experiencing rapid adoption of agricultural biotechnology, driven by its large agricultural base and government support. Middle East and Africa is slowly adopting biotechnology to improve food security, while Latin America is capitalizing on its agricultural strengths to become a leading producer of biotech crops.

North America

• Several new varieties of drought-resistant, genetically modified crops have been approved by the U.S. Department of Agriculture (USDA). The new varieties are expected to increase crop yields and increase resilience to climate change.
• In the United States, the two leading companies, Monsanto and Syngenta, are investing heavily in the CRISPR technique to develop crops with improved characteristics, such as resistance to pests and nutritional content.
• The growing demand for non-GMO products is forcing a change in marketing strategies, and the biotech companies are increasing their efforts to be more transparent and to label their products.

Europe

• The strict regulations of the European Union on GMOs continue to influence the market, although there are recent proposals for a more flexible approval process for gene-edited crops.
• Those who are responsible for evaluating the safety of new biotech products, such as the European Food Safety Authority (EFSA), are a major influence on public acceptance.
• In the case of France and Germany, the emergence of sustainable agriculture is driving the development of biotechnology.

Asia-Pacific

• China and India are increasing their investment in biotechnology for agriculture, with the aim of ensuring food security.
• In India, the government has approved the commercial cultivation of genetically modified cotton. It is also experimenting with other crops. The government expects that the cultivation of a variety of such crops will increase farmers’ incomes and productivity.
• Biotechnology is being increasingly used in the region to produce crops with a high content of vitamins and other nutrients, in order to meet the nutritional deficiencies in many Asian countries.

MEA

• The African Union has undertaken to encourage the use of biotechnology in agriculture, in order to improve food security and ensure the adaptation of agricultural products to climate change.
• The acreage devoted to genetically modified maize and soyabeans is already considerable in South Africa.
• Regulations are evolving. Several countries in the region are working to establish guidelines for the safe use of biotechnology in agriculture.

Latin America

• Brazil and Argentina are among the most important producers of genetically modified crops, and they are making considerable investments in biotechnology to increase yield and pest resistance.
• The mild climate and the soils of the region make it a fertile ground for the development of new crops. Here, the great chemical companies BASF and DuPont are engaged in developing new varieties of grain.
• Biotechnology is more and more supported by government policies in countries like Colombia. This has created an environment favourable to the research and commercialization of biotechnological products.

Did You Know?

“The importance of the role played by agricultural biotechnology in world food production is demonstrated by the fact that approximately 75 per cent of the world’s soyabean crop and 90 per cent of the world’s cotton crop are now genetically modified.” — International Service for the Acquisition of Agri-biotech Applications (ISAAA)

Segmental Market Size

The Agricultural Biotechnology Market is a very strong growth market, driven by the increasing demand for sustainable agricultural practices and increased crop yields. This is a result of the rising world population, which needs to be fed, and the need for crops resistant to climate change and pests. Moreover, the regulatory policies in various regions favoring genetically modified organisms (GMOs) are also expected to boost the market by facilitating the development and commercialization of biotech products.

At present, the adoption of agricultural biotechnology has reached its climax. Among the companies that have developed it are Monsanto (now a part of Bayer) and Syngenta. The most widely used products are Bt cotton and herbicide-resistant soybeans, which are widely used in North America and in parts of Asia. The trend toward the reduction of pesticide use, as well as the sustainable agriculture movement and the reduction of the use of pesticides, is accelerating the pace of development. Recent developments in gene-editing and synthetic biology will further improve the precision and efficiency of the improvement in crops.

Future Outlook

The market for agricultural biotechnology is set to grow at a substantial CAGR of 8.9 percent from 2024 to 2032. This growth is largely based on the increasing demand for food security in the wake of an ever-growing world population and the changing dietary preferences of consumers. In 2032, it is estimated that crops derived from biotechnology will represent 40 percent of all agricultural production, indicating a substantial penetration of biotechnological innovations into farming practices.

CRISPR gene-editing and synthetic biology have the potential to revolutionize crop production and pest management, thereby increasing yields and enhancing resilience to climate change. Government initiatives to encourage sustainable agriculture will help drive the market. Meanwhile, the integration of digital and precision farming will be crucial in ensuring that biotech is used to optimize production while reducing the impact on the environment. In the coming years, agricultural biotechnology will be at the heart of the modernization of agriculture, and will play a key role in ensuring the innovation and sustainability of food production.