The global food biotechnology market size was valued at USD 21.43 billion in 2023 and is projected to reach a value of USD 51.79 billion by 2032, registering a CAGR of 10.30% during the forecast period (2024-2032). The increase in food biotechnology market share during the forecast period is related to increasing food demand to spur the food biotechnology market demand.
Food biotechnology incorporates using genetic knowledge for product manufacturing, improving plants and animal growth, and developing microbes for a specific purpose. It primarily includes genetically modified crops (GM), aquaculture, functional foods, bread, dairy, and others. These advanced products benefit several producers, farmers, and consumers by boosting the yield and quality of crops.
In parallel with the importance of food biotechnology in sustaining the symmetry between demands and supply, the technology also enhances food security by boosting revenues for several regions. The government’s determination to promote patents has encouraged Small Manufacturing Enterprises (SMEs) to engage in innovating agricultural technology. Stringent Trade-Related Aspects of Intellectual Property Rights (TRIPs) and patent laws in developing countries will support agricultural-based companies in developing new capacities in food biotechnology.
Highlights
According to the U.S. Department of State, the world’s population is estimated to surge significantly from its present 7 billion to approximately 9 billion by the year 2050. This growth will fuel food production activities across the globe to meet the rising demand; thus, several technologies and projects have been initiated focusing on an adequate supply of food. For instance, the BioCassava Plus (BC+) program aims to decrease malnutrition in Africa by employing modern biotechnologies. These techniques will increase the effectiveness and vitamin content of the region’s staple foods by applying transgenic strategies.
As an illustration, the total global food demand is anticipated to increase by 35% to 56% between the years 2010 and 2050. However, the population in danger of famine is expected to shift anywhere from -91% to +8% within the same period.
Transgenic crops are produced sizably because of several benefits, such as improved production yield, enhancement of nutrition content, and high resistance to insects, pest-specific herbicides, and viruses. Primarily, commercial activities in agriculture are focused on tissue culture techniques and micropropagation, which produce disease-free identical plants. This is possible due to the potential of DNA technology to combine genetics, thereby avoiding extended plant breeding programs, which take more than ten years. Based on application, the market is segmented into plants, animals, and others. The increasing demand for organic food has contributed to the growth of the plants segment in the market.
The prolonged duration of research necessary for developing genetically modified products constitutes a significant impediment to the food biotechnology industry. This limitation hinders the prompt commercialization and innovation of genetically modified products, thereby affecting the punctuality of their introduction to the market. The substantial investment of time and resources required for research and development in food biotechnology may impede market expansion, postpone the introduction of new products, and restrict the industry's capacity to promptly adapt to evolving consumer preferences and technological progress.
One of the most influential trends reshaping the worldwide food industry is the rising demand for nutritious and healthful foods, specifically in the health and wellness foods market. Changing consumer preferences toward foods promoting a healthy lifestyle, heightened health consciousness, and increased lifestyle-related illnesses are driving this demand.
Additionally, a growing number of consumers are actively seeking food items that provide nutritional value, including options that are high in protein, to adopt healthier dietary practices. Protein is essential for overall health and wellness, which is the propelling force behind the market's increasing demand for protein-rich food products. This phenomenon is bolstered by the realization that protein is indispensable for metabolic processes, weight regulation, and general welfare.
Opportunities for innovation and product development are presented by the ongoing technological breakthroughs that are taking place in the field of food biotechnology. The creation of genetically advanced products with greater agricultural yields, increased nutritional value, and other desirable characteristics is made possible by developing improved procedures for genetic modification, biotechnological tools, and research methodology.
| Study Period | 2020-2032 | CAGR | 10.3% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 21.43 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 51.79 billion |
| Largest Market | North America | Fastest Growing Market | Europe |
The global food biotechnology market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
North America is the most significant market shareholder and is estimated to grow at a CAGR of 10% over the forecast period. 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. To accelerate the output rate of the agriculture sector, the American government prioritized the U.S. Department of Agriculture's (USDA) research portfolio by potentially funding the research and associated activities.
Europe is estimated to grow at a CAGR of 10.5% over the forecast period. Europe has many opportunities for the food biotechnology market because of the burgeoning agricultural activities and the associated efforts for expanding farming land. Besides, agriculture-driven government initiatives have propelled the region's food biotechnology demand. For instance, the EU-China Food, Agriculture, and Biotechnology (FAB) Flagship Initiative, a collaborative research network, has been initiated to tackle issues regarding sustainable agriculture and food safety and security in Europe and China. This initiative is divided into several phases and a yearly period. The third phase (2018–2019) consists of integrated approaches toward food safety in the agro-food chain, highly efficient soil quality management, healthy soil for healthy food production, and high-quality organic fertilizers from biogas.
Asia-Pacific houses developing regions such as India and China with a solid agricultural base. These economies have higher chances of implementing biotechnology in agriculture 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 and 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 2017 was approximately 2.9 million hectares, enabling China to be the 8th largest producer of GE crops by area across the globe. According to the Indian Department of Biotechnology, the National Biotechnology Development Strategy has been initiated to propel the growth of biotechnology in several sectors, such as healthcare, food/agriculture, clean energy, and education. 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 because 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 mainly 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 freshwater resources drastically affect the region’s food availability and stability. To tackle these issues, government bodies have incorporated several technologies. For instance, the United Arab Emirates (UAE) Ministry prioritized the extensive use of hydroponic technology among the farmers. This method saves approximately 70% of water while avoiding hazardous chemicals and facilitating a more extended growing season. Therefore, these associated technologies and biotechnology are expected to spur higher yields.
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The global food biotechnology market is segmented based on product, technology, and application.
The market is further segmented by product into Transgenic Crops and synthetic biology-derived products.
Transgenic Crops dominate the product segment during the forecast period. Transgenic crops refer to genetically modified plants that have been altered to possess specific traits. One example of such a crop is purple tomatoes, engineered to accumulate significant amounts of anthocyanins. Anthocyanins are flavonoids that possess antioxidant characteristics. The tomatoes in question can function as a reservoir of anthocyanins, which are known to promote health and extend the lifespan of rodents prone to cancer. This rice variety produces anthocyanins via the expression of eight transgenes; it is an example of plant synthetic biology intended to improve nutritional value and health benefits.
Biologically derived synthetic products refer to materials or molecules that are created by biological processes or sourced from biological origins, as opposed to conventional chemical synthesis methods. These goods utilize biological processes such as fermentation, biocatalysis, and genetic engineering to create chemicals that have a wide range of uses. The Impossible patty is a plant-based patty fortified with engineered yeast-produced soy leghemoglobin. This product exemplifies the utilization of synthetic biology in the development of meat substitutes that possess enhanced flavors and fragrances, thereby promoting sustainability through land conservation efforts and the mitigation of greenhouse gas emissions.
The market is further segmented by technology into Deoxy Ribonucleic Acid (DNA), Biochips, Genome Editing Tools, and Ribonucleic Acid Interference (RNAi).
Deoxyribonucleic Acid (DNA) dominates the global market in the technology segment and held 53% market share in 2023. The utilization of genetic engineering to introduce novel genes from one species into an unrelated species facilitates the development of genetically modified organisms (GMOs) and the enhancement of agricultural productivity. DNA recombination technology is employed to introduce desired traits into host plants by transferring transgenes; developments in techniques such as the CRISPR/Cas system enable precise genome editing and modification of plant DNA.
Biochips find application in crop synthetic biology, where they are incorporated into a comprehensive strategy that encompasses both crop design and breeding. They are responsible for introducing foreign DNA into cereals to improve their genetic composition and attributes.
The market is further segmented by application into Plants, Animals, and Others.
Transgenic plants are those in which genetic engineering techniques are used to modify the DNA of the plants to introduce new traits that improve their characteristics. The objective is to enhance agricultural productivity by developing genetically modified organisms (GMOs) possessing superior qualities and characteristics.
Crop synthetic biology pertains to crop design and breeding, which encompasses the introduction of exogenous DNA into plants to augment their genetic composition and ameliorate specific characteristics. The implementation of this all-encompassing approach is pivotal in the advancement of genetically modified crops possessing intended attributes.
The other segment holds a significant share. Biotechnological advancements have profoundly affected the healthcare system, facilitating treating a wide range of ailments. Technologies such as big data and omics-based approaches have significantly transformed healthcare by enabling improved prognosis, treatment, and administration of noncommunicable diseases (NCDs) and the COVID-19 pandemic. The developments above have enhanced healthcare results and exhibit potential for implementing precision medicine.
