Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Genetically Modified Crops Market – Insights
Genetically modified crops are plants which are utilized in agriculture, and their DNA has been modified using genetic engineering methods. The numerous benefits offered by GM crops are currently driving the market growth. Genetically modified crops offer enhanced nutritional value, longer shelf life, improved yield and have high resistivity to frost, drought and insect pests. For instance, Roundup GM soybeans are inserted with the gene that delivers maximum weed control.
However, stringent regulations and delayed approvals by regulators on GM crops is hindering the growth of genetically modified crops in the global market. An article titled ‘The consequences of delayed approvals of GM crops’ published in 2017 states that the approval process for GM crops is slow in almost all the countries, especially in the European Union. This is due to the involvement of political activities in the approval process of GM crops. Therefore, the aforementioned factors are expected to hinder the genetically modified market growth during the forecast period.
The global genetically modified market was valued at 18.15 billion in 2018 and is expected to exhibit a CAGR of 8.7% in terms of value over the forecast period (2019 – 2027), and is expected to reach 37.46 billion by 2027.
Figure 1. Global Genetically Modified Crops Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Asia Pacific is expected to witness significant growth in the genetically modified crops market during the forecast period due to partnerships between key players focused on the development of GM crops for farmers. For instance, in 2016, DuPont Co. partnered with Origin Agritech Ltd., a seed manufacturer based in China. The partnership is aimed at development of genetically modified crops for farmers in China. Therefore, such strategic partnerships in Asia Pacific region are likely to fuel the market growth during the forecast period.
North America is expected to account for a substantial growth during the forecast period in the global genetically modified crops market owing to a rise in adoption of the genetically modified crops by farmers in the U.S. A report published by United States Department of Agriculture (USDA) in 2014 on ‘Genetically Engineered Crops in the United States’ demonstrated the growth in adoption of growing genetically modified crops by U.S. farmers. As per the same source, genetically modified crops such as corn were planted in 85.50 million acres in 2012 which increased to 87.64 million acres corn planted by the U.S. farmers in 2013. Therefore, growing plantation of GM crops is expected to boost the market growth for this region.
Figure 2. Global Genetically Modified Crops Market Share (%), By Trait Type, 2018
Source: Coherent Market Insights, 2018-19
Based on crops type, the soybean segment held significant market share in the global genetically modified crops market as government organization are approving genetically modified soybean crop for trading. For instance, in July 2016, the European Union approved the imports of Monsanto’s Roundup Ready 2 Xtend genetically modified soybean variety from the U.S. In addition to this, the European Commission also approved Bayer’s CropScience soybean variety which is genetically modified soybean. Therefore, the growing product approvals for trading is fueling the segment growth in the global market.
On the basis of trait, the herbicides tolerance segment held substantial market growth in terms of value in the global genetically modified crops market. Herbicides tolerance genetically modified crops are commonly grown across the globe. Therefore, numerous key players in the global market offer herbicide tolerant crops that have been genetically modified. For instance, Monsanto offers Round-Up Ready soybean which includes herbicides tolerance trait type and is used for food and feed applications.
Key players are adopting growth strategies such as acquisitions in order to gain market share in the global genetically modified crops market. For instance, in 2016, Bayer AG, a pharmaceutical and life science company based in Germany acquired Monsanto’s GM seeds business, which is known for its GM seeds for crops. The acquisition of Monsanto’s GM seeds business valued at US$ 66 billion.
Major players in the global genetically modified crops market include Bayer AG, BASF SE, Syngenta AG, and The Dow Chemical Company, among others.