April 21, 2024
Genetically Modified Crops Market

Genetically Modified Crops Market is Expected to Flourish by Rising Demand for GM Food for Developing Nutritious Varieties

Genetically modified crops, also known as GM crops, are plants used in agriculture, whose DNA has been modified using genetic engineering methods. GM crops allow farmers to boost their agricultural production by making crops resistant to pests, diseases and herbicides. Popular GM crops cultivated globally include soybean, maize, cotton and canola. Soybean is the largest GM crop globally, with about 93% of the total soybean planted area comprising genetically modified varieties. The global genetically modified crops market is witnessing increased GM variety development by companies for improved nutrition, drought tolerance, resistance against viral and fungal infections and higher yield potential.

The global genetically modified crops Market is estimated to be valued at US$ 126.99 Bn in 2024 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 Dynamics:
The rising demand for nutritious and high-yielding crop varieties from developing regions such as Asia Pacific and Latin America is a major driver influencing the growth of the genetically modified crops market. According to the United Nations’ World Population Prospects 2019 report, the global population is projected to reach 8.5 billion by 2030 and 9.7 billion by 2050. In order to meet the escalating food demand of the growing population, agriculture production needs to be increased substantially. Development of GM crops with higher yield potential and resistance to biotic and abiotic stresses through genetic modifications is crucial for ensuring global food security. Additionally, GM crop varieties suitable for adverse climatic conditions will help in expanding cropland to new regions. This emerging opportunity for development of GM food crops suitable for cultivation in difficult terrains and variable weather conditions is boosting the GM crop market growth.

Rising health consciousness among consumers regarding the importance of essential nutrients such as vitamins, proteins, and minerals is propelling the demand for fortified and nutritious food varieties. This is encouraging seed companies to develop genetically modified crop hybrids with enhanced nutritional content through metabolic engineering and synthetic biology techniques. For instance, ‘Golden Rice’ – a GM variety of rice enriched with beta-carotene, which the body converts to vitamin A. Vitamin A deficiency affects an estimated 140 million children under five years of age globally. Increased focus on addressing ‘hidden hunger’ through biofortified GM staple crops will boost the market in the coming years.

Segment Analysis
The genetically modified crops market is segmented into soybean, corn, cotton, canola, and others. The corn segment currently dominates the market and accounts for over 30% share due to high adoption among farmers for traits such as herbicide tolerance and insect resistance. This segment is further expected to witness growth on account of introduction of new transgenic traits and expanding farming areas.

PEST Analysis
Political: Governments in countries such as US, Brazil, Argentina are supportive towards adoption of GM crops. However, regulations are stringent in Europe.

Economic: GM crops help increase yield and reduce cost of production. Lower food prices and higher incomes benefit consumers and farmers. However, market is challenged by high R&D costs.

Social: While farmers see benefit, questions are raised about impact on health and environment. Labelling and traceability laws sought to address consumer concerns.

Technological: Advancements in genome editing tools, gene transfer methods, and trait development expand applications in new crops and traits. Single-cell sequencing and digital tools aid product development.

Key Takeaways
Global Genetically Modified Crops Market Demand is expected to witness high growth over the forecast period.

Regional analysis: North America accounts for over 40% share and is expected to maintain dominance supported by high GM adoption rates. Growth in Latin America is anticipated to be fastest aided by expansion of soybean and maize cultivation in Brazil and Argentina.

Key players: Key players operating in the genetically modified crops market are PPD Inc., Icon Plc, Syneos Health, Laboratory Corporation of America Holdings, among others. Key players such as Monsanto, DuPont, and Syngenta have widespread presence and are focused on developing new transgenic traits for major crops.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it