The genetically modified (GM) seed market is expected to grow by $12.8 billion by 2028, with a compound annual growth rate of 7.08%. This growth trend is mainly driven by the widespread application and continuous innovation of agricultural biotechnology.
The North American market has experienced rapid growth due to widespread adoption and innovative advancements in agricultural biotechnology. Basf is one of the leading providers of genetically modified seeds with important benefits such as reducing soil erosion and protecting biodiversity. The North American market focuses on factors such as convenience, consumer preferences and global consumption patterns. According to forecasts and analyses, the North American market is currently experiencing a steady rise in demand, and biotechnology is playing an important role in shaping the agricultural sector.
Key market drivers
The increasing application of GM seeds in the field of biofuels is clearly driving the development of the market. With the growing demand for biofuels, the adoption rate of genetically modified seeds in the global market is also gradually increasing. In addition, with increasing attention to reducing greenhouse gas emissions and mitigating climate change, biofuels derived from genetically modified crops, such as corn, soybeans and sugar cane, are becoming increasingly important as renewable energy sources.
In addition, genetically modified seeds designed for increased yield, increased oil content and biomass are also driving the expansion of the global production market related to biofuels. For example, bioethanol derived from genetically modified corn is widely used as a fuel additive, while biodiesel derived from genetically modified soybeans and canola provides an alternative to fossil fuels for the transportation and industrial sectors.
Major market trends
In the GM seed industry, the integration of digital agriculture and data analytics has become an emerging trend and important driver of the market, changing agricultural practices and increasing the market value of GM seeds.
Digital agriculture uses advanced technologies such as satellite imaging, drones, sensors, and precision farming equipment to collect vast amounts of data related to soil health, weather patterns, crop growth, and pests. Data analysis algorithms then process this information to provide farmers with actionable solutions and optimize the decision-making process. In the context of GM seeds, digital agriculture contributes to the effective management and monitoring of GM crops throughout their life cycle. Farmers can use data-driven insights to customize planting practices, optimize planting processes, and maximize the performance of GM seed varieties.
Major market challenges
The emergence of new technologies such as vertical agriculture poses a threat to the application of traditional technologies in the field of genetically modified seeds and is the main challenge facing the market at present. Unlike traditional field or greenhouse farming, vertical farming involves stacking plants vertically together, often integrated into other buildings such as skyscrapers, shipping containers, or converted warehouses. In this way, only the water and light conditions required by the plant are controlled, and the dependence of the plant on pesticides, synthetic fertilizers, herbicides and genetically modified organisms (Gmos) can be effectively avoided.
The market by type
The strength of the herbicide tolerance segment will increase the market share of GM seeds. Herbicide tolerance enables crops to withstand the application of a specific herbicide while inhibiting weed growth. Typically, this trait is achieved through genetic modification, in which crops are genetically engineered to produce enzymes that detoxify or resist the active ingredients of herbicides.
In addition, glyphosate-resistant crops, particularly those offered by Monsanto and operated by Bayer, are among the most widely available herbicide resistant varieties. These crops can effectively promote weed control without damaging cultivated plants. This factor is expected to continue to drive the market in the future.
The market by product
The dynamic landscape of the market is shaped by advances in agricultural science and genetic engineering technologies. Gm seeds bring good crop qualities such as high yield and insect resistance, so public acceptance is growing. Genetically modified crops such as soybeans, corn and cotton have been modified to exhibit traits such as herbicide tolerance and insect resistance, providing farmers with effective solutions to help them fight pests and weeds while increasing crop yields. Techniques such as gene splicing and gene silencing in the laboratory are used to modify the genetic makeup of organisms and enhance genetic traits. Gm seeds are often designed to be herbicide tolerant, reducing the need for manual weeding and helping to increase yields. These technologies are achieved through gene technology and genetic modification using viral vectors such as Agrobacterium tumefaciens.
The corn market is expected to show significant growth in the future. Maize dominates the global market and is in increasing demand, mainly for the production of ethanol and livestock feed. In addition, corn is the main feedstock for ethanol production. The U.S. Department of Agriculture estimates that U.S. corn production will reach 15.1 billion bushels annually in 2022, up 7 percent from 2020.
Not only that, the US corn yield in 2022 will hit a record high. Yields reached 177.0 bushels per acre, up 5.6 bushels from 171.4 bushels in 2020. In addition, corn is used for industrial purposes such as medicine, plastics and biofuels. Its versatility has contributed to the yield of maize in the world’s second largest planted area after wheat and is expected to drive the growth of the maize segment and continue to drive the GM seed market in the future.
Key areas of the market
The United States and Canada are the major contributors to GM seed production and utilization in North America. In the United States, genetically modified crops such as soybeans, corn, cotton and canola, most of which have been genetically engineered to have properties such as herbicide tolerance and insect resistance, are the dominant growing categories. The widespread adoption of GM seeds is driven by a number of factors. These include the need to increase crop productivity, effectively manage weeds and pests, and the desire to reduce environmental impact by reducing chemical use, among others. Canada also plays an important role in the regional market, with herbicide-tolerant GM canola varieties having become a staple crop in Canadian agriculture, helping to increase yields and farmers’ profitability. Therefore, these factors will continue to drive the GM seed market in North America in the future.
Post time: Apr-17-2024