Genetically Modified Crops Market is Anticipated to Witness High Growth Owing to Growing Population and Increasing Deman

The growing Genetically Modified Crops market will exhibit the highest pace owing to rising population and increasing demand for food.

Genetically modified (GM) crops are plants used in agriculture, the DNA of which has been modified using genetic engineering methods. GM crops allow farmers to boost agricultural productivity and increase global food output. They have been developed to resist insects, tolerate herbicides, or have an improved nutritional content. The global food demand is growing driven by continuous population growth which is putting immense pressure on conventional agriculture practices and threatening global food security. GM crops helps in addressing this challenge by making the plants resistant to pests and diseases and boosting crop yields. Key reasons behind increasing adoption of GM crops include enhanced crop protection, drought tolerance, herbicide tolerance and insect resistance.

The Global Genetically Modified Crops Market is estimated to be valued at US$ 126.99 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the Genetically Modified Crops Market are PPD Inc., Icon Plc, Syneos Health, Laboratory Corporation of America Holdings, and Charles River Laboratories International Inc., among others. These players are focusing on R&D investments to develop new GM seeds with improved traits. For instance, PPD collaborated with Corteva Agriscience to develop a new GM cotton strain with higher yields.

The key opportunities in the GM crops market include developing drought and salt resistant crops to counter adverse effects of climate change. Many companies are working on gene editing technologies like CRISPR to insert specific traits without transferring antibiotic resistance genes. This will help in gaining regulatory approvals and public acceptance for GM food crops.

There is a huge potential for GM crop cultivation and imports in developing countries to address their food security issues. Leading players are focusing on expanding in Latin American, Asian and African markets through partnerships and acquisitions. For example, Syngenta unveiled plans to double its corn hybrid field trials across Africa over the next 5 years.

Market drivers and restrain

One of the key driver for the genetically modified crops market is increasing global food demand driven by rising population. As per UN estimates, the global population is projected to reach 9.7 billion by 2050 putting significant pressure on available food supplies. GM crops can boost crop yields substantially helping bridge this demand-supply gap. Second driver is the changing climate patterns which is threatening crop productivity. GM drought tolerant and saline resistant crops can address issues of water scarcity and soil salinity better than conventional varieties.

Major restraint for the GM crops market is regulatory issues and lack of public acceptance in some countries. Many regions have enacted moratoriums on commercial cultivation of GM food crops over environmental and health concerns. Further, high cost of R&D for development of new Gm traits is also a challenge especially for small players in the industry. Non-uniform global regulations continue to hamper international trade in GM crops.

Segment Analysis
The Genetically Modified crops market is dominated by soybean. Soybean holds around 50% of share in the GM crops market. Soybean is modified to resist herbicides like glyphosate which allows farmers to spray weed killers to clear the fields without harming the soybean crops. This has simplified weed management for farmers and boosted soybean cultivation. Corn stands at the second position and holds around 30% share. It is modified to produce its own insecticide proteins from Bacillus thuringiensis (Bt) which makes corn resistant to corn rootworm and other pests. This has significantly reduced the need for insecticide spraying and increased corn yields for farmers. Other segments include cotton, canola, and sugar beets.

Global Analysis
North America is the fastest growing region in the Genetically Modified crops market. The US is the largest producer and exporter of GM crops globally. Favorable regulations and extensive research and development have supported the growth of GM crops in the US. Europe is also gaining traction due to increasing acceptance of new GM technologies. However, regulatory delays and restrictions are slowing down the overall adoption of GM crops. Asia Pacific is expected to witness the highest growth during the forecast period. Rising population and increasing demand for food have boosted the cultivation of GM crops in major Asian countries like India and China. Growing contract farming and collaboration with seed companies are promoting biotech crops in the region.

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