Genetically engineered seeds have undergone genetic modification to enhance desired traits such as herbicide tolerance, pest resistance and improved nutritional content. Seeds can be modified by transferring genes from other organisms like bacteria to improve their resilience against extreme weather conditions and pests. Genetically modified corn, soybean, cotton and canola seeds dominate the market. These seeds help farmers boost crop yields by protecting crops against bugs, diseases and weeds. As the global population is rising exponentially, there is increased demand for food supplies, driving use of genetically modified seeds across major crop producing countries. The global Genetically Modified Seeds Market is estimated to be valued at US$ 20.34 Bn in 2023 and is expected to exhibit a CAGR of 10 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the genetically modified seeds market is development of drought tolerant seeds. Drought has severe impacts on agricultural productivity. Global climate change has led to increased intense, frequent and prolonged droughts around the world. As per the UN estimates, every 1 degree Celsius rise in temperature leads to 7% reduction in yields for major crops including corn, wheat and rice. Leading seed companies are engaged in developing advanced genetically engineered seeds that can withstand low water availability through enhanced root growth and terminal drought tolerance. For example, Bayer has developed drought tolerant corn varieties that maintain high yields even under limited water conditions through collaboration with public research institutions. Such innovations are expected to drive significant demand over the coming years.
Threat of new entrants: The genetically modified seeds market requires huge investments in R&D which acts as a entry barrier for new players. However, large players can enter through partnerships and acquisitions.
Bargaining power of buyers: Individual buyers have low bargaining power due to availability of a variety of seed options from key players. However, large buyers such as governments and cooperatives have moderate bargaining power.
Bargaining power of suppliers: A few major companies dominate the supply of genetically modified seeds globally. This gives them substantial bargaining power over buyers.
Threat of new substitutes: Alternatives like organic seeds are available but do not match the yield and pest resistance benefits of genetically modified seeds. Threat from substitutes is therefore low.
Competitive rivalry: The market is highly competitive with top companies continuously investing in new product launches and acquisitions. Intense competition ensures better quality products and pricing for buyers.
The global genetically modified seeds market is expected to witness high growth.
Regional analysis: North America accounted for the largest share in 2020, mainly driven by the United States. This was primarily due to the early commercialization and wide adoption of genetically modified corn and soybean in the country. Latin America is also expected to grow at a fast pace during the forecast period, with Brazil being a key revenue generator.
Key players: Key players operating in the genetically modified seeds market are Bayer CropScience, BASF SE, Syngenta, and JR Simplot Co. Bayer CropScience is one of the leading companies in this space owing to its diversified product portfolio and strong global presence. BASF SE also has a wide range of GM seeds and traits across major crops.