Global Biotech Seeds Market - 2021-2028
The global biotech seeds market is subject to witness a substantial growth due to the growing need for improving overall agriculture productivity to sustain ever-growing population across the globe. Biotech seeds offer higher resistance to insects and fungicides, thus driving market demand in the past few years. Incorporation of biotechnologies in agriculture sector such as seed enhancement technologies is expected to favor market growth over the forecast period. Seed enhancement technology has led to development of biotech seeds, which are gaining widespread attention for their capability to confer greater disease resistance in seeds. Biotech seeds enhances seed vigor, thus modifying seed emergence capabilities. Globally, market is anticipated to grow at a CAGR of XX% in the forecast period, providing numerous opportunities for market players to invest for research and development in the biotech seeds market.
Use of biotech seeds offer advantages such as higher nutritional content, higher yield and improved quality of crops. Above-mentioned factors are expected to fuel market demand over the forecast period. Furthermore, higher approval rate from regional as well as international authorities regarding use of biotech seeds is predicted to favor market expansion across the globe. Other advantages of biotech seeds include protection against diseases & fungicide, and longer lifecycle of seeds. These actors are significantly contributing to high-end market demand in the recent years. Biotech seed are also used to enhance germination rate and offer uniformity, thus overcoming seed dormancy. Biotech seeds are hydrated in a specified manner, thereby providing enough water to initiate the metabolic processes of germination.
Moreover, use of biotechnology to prevent crops from pests is expected to drive the market growth. Biotechnology has helped increase crop productivity by introducing qualities such as disease resistance and increased drought tolerance. Researchers can select genes for disease resistance from other species and transfer them to essential crops. Genes from naturally drought-resistant plants can be used to increase drought tolerance in many crop varieties. Farmers use crop-protection technologies to provide cost-effective resolutions to pest problems that would seriously lower yields. Crops such as corn, potato and cotton crops have been successfully transformed by genetic engineering to produce a protein that kills insects while feeding on plants.
The rapid growth in corn products, making corn most significant cereal globally, with seasonal global production surpassing wheat and rice is expected to drive the segment growth. Both improved genetics and farm management provided significant progress in corn yield. In 2017, corn production was valued at 41% of total grain production globally. While corn is a significant food in parts of world, it holds many applications, such as animal feed, sweetener and biofuel. Biotech maize obtained 58.9 million hectares globally, which was 31% of global maize production in 2018. A slight decline in biotech maize area from 2017 is due to adverse weather conditions in Latin America, low market price, minor pest incidence, high year-end stocks, and artificial seeds in the Philippines.
The soybean seeds are considered as one of the rapid growing segments in the biotech seeds market with substantial revenue generation in the last few years. Growing popularity of the soybean seeds segment is attributed to the increasing demand from Asia Pacific region and higher market penetration.
USA is the largest producer of biotech crops globally, planted 75 million hectares in 2018, overlaying 39% of global biotech crop plantation. Brazil arrived in second place and 51.3 million hectares which were 27% of the global production. Increasing growth in biotech crops is associated with technology's positive result on human, environmental and animal health and the growth of farmers' socioeconomic requirements. Up to 92% of corn is genetically engineered in U.S., as are 94% of soybeans and 94% of cotton. Biotechnology benefits the environment and farmers by providing more food while saving water and decreasing need for chemicals, tilling and pesticides. Biotech seeds provide farmers with tools that can make production cheaper and manageable such as, some crops are engineered to abide by specific herbicides, which make weed control more straightforward and more efficient. Other crops have been engineered to be immune to particular plant diseases and insect diseases, make pest control safer and more productive and decrease synthetic pesticides. Specific crop production benefits can help countries keep speed with requirements for food while decreasing production costs.
Asia Pacific is expected to grow with highest CAGR of XX% during the forecast period. Increasing adoption of biotech seeds from Asia Pacific region, particularly in developing economies such as India & China for improving overall agriculture yield to sustain ever-growing population is projected to stimulate market growth over the forecast period. Furthermore, increased number of patents granted by India & China in biotech technology is immensely contributing to market growth in the region over the past few years. Growing importance towards improvements in quality of seeds for incorporating various production methods and crop protection strategies is estimated to drive market expansion over the next seven years. Biotech seeds not only serves as delivery mechanism for plants but also enhances plant genetics.
The biotech seeds market is moderately competitive with presence of local as well as global companies. Some of the key players contributing to the market's growth include Bayer AG, Corteva, KWS SAAT SE & Co., Limagrain, Syngenta, Dow, BASF SE, among others. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the growth of the biotech seeds market globally. Collaborations and agreements are the prominent strategies undertaken by the industry players to sustain the competition and to improve the business performance. For instance, the Monsanto Company entered into a collaboration with Pairwise Plants to take advance steps in agricultural research and development by leveraging gene-editing technology.
The outbreak of COVID-19 and the measures taken to control the pandemic are having a crippling effect on the agriculture sector across the globe. Seeds are the starting point for agricultural production; therefore, during times of crisis such as the COVID-19 pandemic, seed delivery is among the essential services that must continue to operate to support the current and subsequent production cycles. However, issues related to transportation of seeds either domestically or internationally due to the reduced number of flights, low number of drivers and slow process of the necessary documentation because of lower number of staff is creating specific problems for the seed sector. Due to the pandemic of COVID-19, there has been a delay in the supply of seeds to farmers and is a major pain point as seed production depends on allied sectors such as labor, transporting, and packaging, which have been impacted due to the lockdown. COVID-19 impact on the agriculture and agri-allied sectors remain latent, especially with the inability of small farmers to move their products from their farms to markets, both semi-urban and urban, and to source agricultural quality inputs in some regions across the globe. Immediate actions are required to facilitate farmers' access to seeds and other agricultural inputs; the disruptions caused by COVID-19 may lead to a decrease in agricultural production and acreages due to the unavailability of required quality and quantity of seeds to plant across the globe.
The global biotech seeds market report would provide an access to approximately 45 market data tables, 40 figures and 180 pages