Recent developments in biotechnology are likely to expand the global genetically modified (GM) seed market. GM seeds help to multiply crop yield and aid in cultivation of robust crop variations. This information was published by Fortune Business Insights in a report, titled “Genetically Modified Seeds: Global Market Analysis, Insights and Forecast, 2019-2026” which offers an elaborative analysis on the drivers and restricts prevailing in the market. In 2018, the overall valuation of the market stood at US$ 20.07 Bn. With breakthroughs in technology and introduction of genetically engineered crops are expected to help the global market reach US$ 30.24 Bn by 2026. Also, the global market is anticipated to expand at a CAGR of 5.3% during the forecast period.
Corn and Soybean Crops to Receive More Attention with the Introduction of GM Technology
Among crop types, corn and soybean are expected to cover the largest share in the global market. The introduction of genetically modified technology in agriculture sector is a primary factor driving growth of these two segments. In 2018, corn crop accounted for a share of 48.9% in the global market. Countries such as Argentina, Brazil, and the U.S. are increasingly adopting GM crop technology and these crops cover a share of around 85-85% of the total corn and soybean crop harvested area. Genetically modified canola crop is also expected to register higher CAGR in the forecast years with its increasing cultivation in countries such as Australia, the U.S., and Canada.
Rising Overseas Demand for Grains to Boost the Market in North America
North America is expected to lead the global GM seed market owing to the rising adoption of GM crops. As per a study by Acquisition of Agri Biotech Applications or ISAAA, North America and South America together account for over 90% of the share in the global market. Overseas demand for soybean and corn crop types is the primary factor creating growth opportunities for the market in these two regions. Canada produced five genetically modified crops which include canola, sugar beet, soybean, alfalfa, and corn.
Asia Pacific is also anticipated to register fastest growth over the forecast years mainly on account of developments in biotechnology. The fluctuating weather conditions and low productivity of crops in countries such as India and China affect the quantity and quality of crops. GM seeds are expected to help produce a better quality of crop yield in these regions, thus driving the market. Also, farmers are becoming more aware about the benefits of genetically modified seeds. This is expected to fuel demand for GM seeds in this region.
Rising Demand for Crop Production to Expand the GM Market
“The rising population is expected to increase the demand for food, subsequently crop production across the world,” stated a lead analyst at Fortune Business Insights. “The conventional agricultural methods are replaced by genetically modified crops as conventional methods were not able to produce a better crop yield to meet the rapidly growing demand,” he added. As a result of this, the demand for genetically modified plants is likely to increase in the forecast years.
Technological advancements in biotechnology are expected to expand the agriculture sector. This is further expected to be a propellant for the growth of GM crops. Also, the adoption of gene modification process in GM seeds is helping in the better crop yield, thus driving the GM seed market.
Environmental Concerns May Impede the Market’s Growth
On the other side, certain bottlenecks in the market may hamper growth. The ever-changing environment is the primary reason causing a shortfall in the global market. Furthermore, several farmers are not ready to accept this new variety of genetically engineered crops owing to lack of awareness. Nonetheless, the genetic modification of crops offers numerous benefits which may attract these farmers to adopt genetically modified technology in their crops.
Companies Leverage on Technology to Increase their Market Share
Companies are continuously involving in research and development (R&D) activities to expand their borders in the global GM seed market. Also, some of the companies initiated collaborations to strengthen their market share. These companies are leveraging on advanced technology to stay ahead of competition. For instance, Vimorin & Cie SA joined hands with KWS SAAT to develop traits of Vimorin & Cie SA. Another company called DowDuPont launched genetically modified soybean and received FDA approval in February 2019.
Some of the other leading players operating in the global market are Bayer CropScience, BASF SE, Syngenta, Calyxt Inc., JK Agri Genetics Ltd., J.R. Simplot Co., Nuseed Pty Ltd, and Stine Seed Farm, Inc.
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