The food biotechnology market is expected to grow at a CAGR of 10.1% during the forecast period, 2020–2029.
Food biotechnology incorporates the use of genetic knowledge for product manufacturing, improvement of plants and animal growth, and develop microbes for a specific purpose. It primarily includes crops that are genetically modified (GM), aquaculture, functional foods, bread, dairy, and others. These advanced products potentially benefit several producers, farmers, and consumers by boosting the yield and quality of crops.
In parallel with the importance of food biotechnology to sustain the symmetry between demands and supply, the technology also contributes toward enhancing food security by boosting revenues for several regions. The government’s determination for promoting patents has encouraged Small Manufacturing Enterprises (SME) to engage in innovating agricultural technology. Stringent Trade-Related Aspects of Intellectual Property Rights (TRIPs) and patent laws in developing countries will ensure support to agricultural-based companies in developing new capacities in food biotechnology.
| Report Metric | Details |
|---|---|
| Base Year | 2021 |
| Study Period | 2020-2030 |
| Forecast Period | 2023-2031 |
| CAGR | 10.1% |
| Market Size | 7520 |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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According to the U.S. Department of State, the world’s population is estimated to witness a significant surge from its present 7 billion to approximately 9 billion by the year 2050. This growth will fuel the food production activities across the globe to meet the rising demand; thus, several technologies and projects have been initiated focusing an adequate supply of food. For instance, the BioCassava Plus (BC+) program aims at decreasing malnutrition in Africa by employing modern biotechnologies. These techniques will engender increased effectiveness and vitamin content in the region’s staple food by applying transgenic strategies.
The transgenic crops are produced sizably on account of several benefits provided, such as improved production yield, enhancement of nutrition content, and high resistance to insects, pests specific herbicides, and viruses. Largely, commercial activities under agriculture are focused on tissue culture techniques and micropropagation, which produce identical plants that are disease-free. This is possible due to the potential of DNA technology to combine genetics, thereby avoiding extended plant breeding programs, which take more than 10 years. On the basis of application, the market is segmented into plants, animals, and others. The increasing demand for organic food has potentially contributed to the growth of plants segment in the market.
North America has always been upfront to technological advancements in every industrial vertical. Successive efforts by the government to fuel R&D activities are engendering innovations in the market, thus presenting a gamut of opportunities. According to the IRS’s Statistics of Income Division, the President’s budget for 2019 to the tune of USD 118.1 billion for federal R&D includes the agriculture sector in tandem with other sectors. To accelerate the output rate of the agriculture sector, the American government prioritized the U.S. Department of Agriculture (USDA) research portfolio by potentially funding the research and associated activities in the year 2017. This funding was done under the umbrella of the Agriculture and Food Research Initiative, in-house basic research conducted by the Agriculture Research Service with a budget proposal of over USD 800 million.
Europe has an array of opportunities to offer for the food biotechnology market on account of the burgeoning agricultural activities and the associated efforts for expanding farming land. Besides, agriculture-driven government initiatives have propelled the demand for food biotechnology in the region. For instance, the EU-China Food, Agriculture, and Biotechnology (FAB) Flagship Initiative, a collaborative research network, has been initiated aiming to tackle issues regarding sustainable agriculture and food safety and security in Europe as well as China. This initiative is divided into several phases and a yearly period. Presently, the third phase (2018–2019), constitutes of integrated approaches toward food safety in the agro-food chain, highly efficient soil quality management, healthy soils for healthy food production, and high-quality organic fertilizers from biogas.
Asia-Pacific houses developing regions such as India and China, which have a strong agricultural base. These economies have higher chances of implementing biotechnology in the agriculture sector to trigger higher yields. Besides, the increasing import activities of genetically engineered (GE) crops have broadened the market’s scope. According to the United States Department of Agriculture (USDA), China is the largest importer of genetically engineered crops as well as the largest producer of GE cotton. Additionally, according to the International Service for the Acquisition of Agro-Biotech Applications (ISAAA), the arable land under GE crops in the year 2017 was approximately 2.9 million hectors enabling China to be 8th largest producer of GE crops by area across the globe. According to the Indian Department of Biotechnology, to propel the growth of biotechnology in several sectors such as healthcare, food/agriculture, clean energy, and education, the National Biotechnology Development Strategy has been initiated. This strategy aims to set up technological development and network translations with global partners across India.
Latin America offers several growth prospects for the market on account of agriculturally active regions such as Brazil. Brazil is one of the prominent producers of agri-based products such as sugar, cotton, soybeans, coffee, cocoa, and others. According to the Ministry of Science and Technology (MCT), Brazil is the second-largest plant biotech producer globally, following the U.S.
The Middle East and Africa particularly confront various challenges such as scarcity of freshwater resources, rising temperatures, regional conflicts, and others. According to the United Nations Food and Agriculture Organization (FAO), the shrinking resources of freshwater are drastically affecting the region’s food availability and stability. In a bid to tackle these issues, government bodies have incorporated several technologies. For instance, the United Arab Emirates (UAE) Ministry prioritized extensive use of hydroponic technology among the farmers. This method saves an approximately 70% water while avoiding hazardous chemicals and facilitating more extended growing season. Therefore, these associated technologies along with biotechnology, are expected to spur higher yields.
2016: BASF SE, one of the leading manufacturers of chemicals, is refocusing on plant biotechnology research portfolio intending to restructure the plant science operations.
