Genetically modified crops refer to plants that have been genetically engineered or spliced to contain characteristics from different species, such as resistance to herbicides or production of a value-added compound. GM crops allow increases in productivity and crop quality, lowered agricultural costs, and enhanced nutrition/food security. The global demand for genetically modified crops has been increasing owing to their high yields and requirement for food security, as they are used for developing crops with improved tolerance to herbicides, pest resistance, and drought tolerance.
The global Genetically Modified Crops Market is estimated to be valued at US$ 126.99 Bn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising demand for food products represents a key market opportunity for GM crops. With the growing population worldwide, there is an increasing demand for food which is driving the adoption of genetically modified crops. GM crops allow higher yields from the same land area and hence help meet the rising food demand. Moreover, factors such as changing dietary habits, increasing health awareness and disposable income are contributing to growing consumption of foods including corn, soybean and other products developed using GM crops. The ability of GM crops to increase agricultural productivity makes them well-suited to address global food security challenges arising due to population growth.
Porter’s Analysis
Threat of new entrants: Low barriers to entry as GM seeds technology is readily available. However, established players enjoy economies of scale and brand loyalty which deters new players.
Bargaining power of buyers: Buyers have moderate bargaining power. They can choose from various GM seed producing companies but switching costs and brand loyalty increases their dependence on few major suppliers.
Bargaining power of suppliers: Seed producing companies have relatively high bargaining power due to proprietary technology and large R&D investments required to develop new seeds. Buyers have limited options.
Threat of new substitutes: Threat of substitution is low as there are limited alternatives to GM seeds that can provide similar yields and resistance. Conventional seeds are slowly being replaced.
Competitive rivalry: Intense competition among major seed producers. Players compete on technology, quality, pricing and brand loyalty.
SWOT Analysis
Strengths: Higher crop yields, pest and drought resistance, lower use of pesticides.
Weaknesses: Potential yield losses in subsequent seasons, over-reliance on few seed producers, regulations on field trials and crops.
Opportunities: Developing crops with enhanced nutrients, new gene combinations, expansion in developing nations.
Threats: Soil fertility losses over time, gene transmission to wild crops, regulations around the world.
Key Takeaways
Global Genetically Modified Crops Market Demand is expected to witness high growth at a CAGR of 11% during the forecast period of 2024 to 2031. North America dominates currently due to developed agriculture and higher adoption rates in major countries like US. Asia Pacific is poised to grow at fastest pace led by China and India aiming to ensure food security through GM crops.
Regional analysis: Asia Pacific region is expected to grow at the fastest pace during the forecast period. Countries like China and India are major producers and consumers of GM crops. Increasing population and shrinking arable land are driving these nations to adopt biotech crops that can boost yields. China is the largest producer of GM soybeans and cotton globally. Indian government is also promoting GM crops for food security.
Key players operating in the Genetically Modified Crops market are PPD Inc., Icon Plc, Syneos Health, Laboratory Corporation of America Holdings, and Charles River Laboratories International Inc., among others. PPD Inc. is a leading provider of central laboratory services to biopharma companies.
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