Agricultural Biotechnology Market By Organism Type (Plants, Animals, Microbes), By Application (Vaccine Development, Transgenic Crops & Animals, Antibiotic Development, Nutritional Supplements, Flower Culturing, Biofuels, and Other Applications) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Agricultural Biotechnology Market size is expected to be worth around USD 232 Billion by 2033, from USD 111 Billion in 2023, growing at a CAGR of 7.86% during the forecast period from 2024 to 2033.

Agricultural biotechnology is a field of agriculture that uses scientific tools and processes to improve plant yield. To increase crop production, agricultural biotechnology is used. It is a set of scientific techniques and methods applied to plants and other living organisms. Crops altered in some way are genetically modified or transgenic crops. Demand for innovative breeding techniques is anticipated to surge in the market.

This is due to the increased penetration of biotechnological tools to invent or modify organisms’ traits, including animals, plants, and microbes, in response to yield, color, or size. Biotechnology tools are getting significant demand in agricultural applications. These involve tissue culture and micro propagation, market-assisted selection or molecular breeding, genetically modified crops and genetic engineering, conventional plant breeding and molecular diagnostic technologies.

Key Takeaways

• The agricultural biotechnology market size is expected to reach USD 232 billion in revenues by 2032.
• This growth will occur at a CAGR of 7.86% from 2023 to 2032.
• Genetic modification of crops leads to increased nutrient content, better food processing, resistance to pests and diseases, higher yields, nitrogen fixation, and resilience to harsh weather.
• In 2022, the global agricultural biotechnology market generated approximately USD 111 billion in revenue.
• Agritech is the use of scientific tools to improve plant yields. Genetically modified or transgenic crops have altered characteristics.
• Innovative breeding techniques are in demand.
• Plant organisms dominate the market in terms of revenue.
• Transgenic crops and animals are the most revenue-generating application.
• North America holds the largest market share at 35.3%.
• Asia Pacific is expected to be the second-largest market.
• Biotechnology tools are widely used in agriculture.
• Factors driving market growth include the rise of genetically modified crops, high demand for sustainable crops, and marker-assisted breeding.
• The increasing global population leads to higher food demand and the need for organic fertilizers.
• Market growth is hampered by the high cost of biotechnology products and uncertainty about their environmental and health effects.
• Key players in the agricultural biotechnology market include ADAMA
• Agricultural Solutions Ltd., BASF SE, Bayer AG, and others.
• Lavie Bio Ltd. aims to improve food quality and sustainability through microbiological-based products.

Organism Type Analysis

Based on organism type, the market for agricultural biotechnology is segmented into plants, animals, microbes, and others. Among these types, the plant segment is the most lucrative in the global agricultural biotechnology market. Plants are widely used in agricultural biotechnology to generate a high yield. Plants resistant to various viruses and diseases are used to improve overall productivity.

Due to genetically modified plants and controlled genetic changes produced in the organism, genetic engineering plays an essential role in agricultural biotechnology. Also, the transfer of a gene from one species to another species to generate more output is enabled by genetic modification. To increase crop potential genetic engineering is widely used on new crops.

Application Analysis

Based on application, the market is segmented into vaccine development, transgenic crops & animals, flower culturing, antibiotic development, biofuels, nutritional supplements, and other applications. Among these, the transgenic crops & animals segment holds the largest revenue share. Agricultural biotechnology has helped improve animals and crops by using modern technologies. A few applications of agricultural biotechnology are tissue culture, micro propagation, embryo transfer, cloning, and artificial insemination.

Effective use of biotechnological technology is micro propagation of disease-free plants, enhancing aluminum tolerance, genetic alteration of crops, and agricultural fortification. In addition, transgenic animals have advantages like enhanced prolificacy and reproductive performance, increased feed utilization, and growth rate, along with improved carcass composition, milk products, and composition. These factors hold a larger share and surge the application of biotechnology in the agriculture sector.

Key Market Segments

By Organism Type

• Plants
• Animals
• Microbes

By Application

• Vaccine Development
• Transgenic Crops & Animals
• Antibiotic Development
• Nutritional Supplements
• Flower Culturing
• Biofuels
• Other Applications

Drivers

Rising genetically modified crops globally

Increasing genetically modified crops drive market growth during the forecast period. Genetic modification allows the growth of crops with high nutrient content, increased food processing characteristics, increased resistance to pest control and diseases, more yield, nitrogen fixation, and improved strength to hold high climatic conditions. As a result, the genetic food market is surging and is estimated to boost the market’s growth.

High demand and increased sustainability of crops

Genetically modified plants are getting highly adopted due to high demand in the market and increased sustainability of crops. The International Service for the Acquisition of Agri-Biotech Application (ISAAA) estimates that almost 2.14 billion hectares of biotechnological crops were commercially developed.

These include biotechnology cotton, soybean, and biotechnology canola totaling 0.13 billion hectares. This factor is expected to help market expansion during the forecast period. As a result, key players are focusing on their product portfolio to get more attention and sustain in the market.

Restraints

Market growth is hampered due to high cost

The high cost of developing agricultural products is one of the major factors that hamper the market growth. In addition, increasing costs may be passed on to farmers from manufacturers, hampers the adoption of agricultural biotechnology products during the forecast period.

Growing Effects on Human Health

The application of biotechnology is relatively recent. Hence, it is challenging to anticipate its potential effects on health and the environment. There are many perspectives on this issue because experts are unaware of the health effects of genetically modified products.

For example, in genetic engineering, antibiotic-resistance genes serve as markers. If these genes are added to a plant’s genome, antibiotics might be less effective. In addition, pathogens can acquire resistance genes, increasing their drug resistance. It is anticipated that these uncertainties and risks will hamper the expansion of agricultural biotech market.

Opportunity

Use of Agriculture Biotech for Marker-assisted Breeding

Animal and plant development has been controlled for agricultural interests for the past thousand years. Selective breeding is a lengthy and imprecise procedure for creating a new crop variety. The addition of jet fuel by novel molecular approaches has boosted the selective breeding tank. In this procedure, plant breeding operations are guided, supported, and accelerated by DNA markers.

MAS facilitates a precis deal than traditional approaches as it relies on genome sequencing and sophisticated bioinformatics techniques to find markers. All these aspects will boost the agricultural biotech market size in the coming years.

Trends

Increasing Demand for Food due to the Growing Population

The growing population drives the demand for food, which further drives the demand for organic fertilizer. APAC region has the highest population of more than 50% of the worldwide population. The regional market in APAC is driven by the adoption of excellent cultivation techniques and agricultural practices during the forecast period.

Rapid urbanization also boosts the organic fertilizers market by reducing cultivable land, raising food shortage, and increasing demand for grains, pulses, vegetables, and other agricultural yields.

Regional Analysis

North America dominates the market due to its wide range of agro-climatic zones and crops, with an extensive global genetically modified planted area. US and Canada in this region represent about 50% of the global GM area and about 10% global planted area. North America is considered a net exporter of agricultural products with about 30% production.

Asia Pacific is expected to grow faster during the forecast period. This region is characterized by several political and economic systems, cultural backgrounds, and languages—the agricultural industry changed from adopting high technical standards in Japan to basic systems in India.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The emerging key players focus on various strategic policies to develop their businesses in foreign markets. For example, several agricultural biotechnology market companies are concentrating on expanding their existing operations and R & D facilities. Also, businesses in this market are developing new products and portfolio expansion strategies through investments, mergers, and acquisitions. In addition, several key players are now focusing on different marketing strategies, such as spreading awareness about natural ingredients and boosting market growth.

Market Key Players

With many local and regional players’ presence, the agricultural biotechnology market is fragmented. As a result, market players are subject to intense competition from top players, particularly those with strong brand recognition and high distribution networks. As a result, companies have gained various expansion strategies, such as partnerships and product launches, to stay on top of the market. The following are some of the major players in the Global agricultural biotechnology Market industry:

• ADAMA Agricultural Solutions Ltd.
• BASF SE
• Bayer AG
• Benson Hill Inc.
• Certis USA LLC
• Corteva, Inc.
• DuPont de Nemours, Inc.
• Eurofins Scientific SE
• Evogene Ltd.
• Isagro SPA
• KWS SAAT SE & Co. KGaA
• Marrone Bio Innovations, Inc.
• Novozymes A/S
• Performance Plants Inc.
• Syngenta AG
• Vilmorin & Cie S.A
• Yield10 Bioscience, Inc.
• Other Key Players

Recent Developments

• In September 2024: Corteva and Pairwise formed a collaboration, anchored by a $25 million equity investment from Corteva into Pairwise. This partnership under the Corteva Catalyst initiative is focused on advancing gene editing technologies aimed at increasing crop resilience and yield amidst changing climate conditions. This joint venture is set to leverage both companies’ gene editing capabilities over a span of five years, focusing on a variety of staple and specialty crops.
• In September 2023: New Fermentation Plant for Crop Protection Products BASF announced an investment in a new fermentation plant at its Ludwigshafen site, aiming to enhance its portfolio of biological crop protection products. This facility will utilize microorganisms to convert renewable raw materials like glucose into desired products. This strategic move is part of BASF’s commitment to innovative manufacturing processes that are less energy-intensive and rely on renewable resources.
• In June 2023: ADAMA announced a significant expansion of their research and development activities with the establishment of a new R&D hub in Shanghai. The company has invested approximately $100 million in this facility, which aims to enhance their capabilities in developing innovative crop protection solutions.
• In June 2023: Bayer AG has announced a significant expansion in its Crop Science division, focusing on regenerative agriculture. The company aims to double its market potential by accessing over 100 billion euros in adjacent markets such as crop fertility, biofuels, and digital platforms annually. This strategic shift is expected to extend its influence on more than 400 million acres globally by the middle of the next decade.
• In June 2023: Certis USA LLC, along with Kumiai Chemical Industry Co., Ltd., launched a new generation of bacterial biofungicides globally. This product, based on the Bacillus amyloliquefaciens strain D747, is notable for its high potency which enables lower application rates. The launch included registrations approved by the U.S. EPA and applications for registration in the European Union and Italy.

Report Scope