Genetically modified crops or transgenic crops are plants that have been engineered with techniques of genetic engineering to modify their genetic makeup and introduce new desirable traits. Genetic engineering allows for the transplantation of genes between unrelated species to produce plants with valuable agronomic traits such as herbicide tolerance, pest resistance, and stress tolerance. The global need to ensure food security along with rising population levels and changing climatic conditions have led farming communities to adopt genetically modified crops that are capable of delivering higher yields with minimal inputs.
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, as highlighted in a new report published by Coherent Market Insights.
Genetically engineered crops provide farmers the opportunity to maximize crop productivity and quality through desirable genetic traits such as higher yield potential, increased tolerance to drought and soil salinity, and pest and disease resistance. This helps secure food supplies and meet the growing global demand for food, feed, fiber, and fuel. Genetically engineered crops that are drought tolerant require less water for cultivation, conferring advantages in water- scarce regions. Their higher tolerance to herbicides and built-in pest resistance reduces the need for chemical pesticides and helps minimize crop losses due to insect infestations and weed competition.
Market key trends
Increasing cultivation of herbicide-tolerant crops: Herbicide-tolerant crops account for the largest share of global GM crop acreage, as they help control weeds through broad-spectrum herbicide application. The cultivation of herbicide-tolerant maize, soybean, and cotton varieties has been on the rise across major agricultural countries to achieve higher productivity.
Developments in gene-editing technology: New gene-editing techniques such as CRISPR have enabled faster development of specialty traits in crops. Genome-edited crops are garnering attention from growers and regulatory agencies for their potential to address nutrition security, climate change resilience, and sustainability goals.
Threat of new entrants: The threat of new entrants in the genetically modified crops market is moderate. Considerable capital investment is required for R&D activities related to GM crop development. In addition, stringent regulations and testing procedures need to be followed before commercializing new GM crops.
Bargaining power of buyers: The bargaining power of buyers in the genetically modified crops market is high. Buyers can negotiate lower prices due to the presence of a large number of players offering similar GM seeds and crops. They also have alternatives available in the form of conventional crops.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as they are limited in number. However, major players holding patents and technology for genetic modifications have higher bargaining power.
Threat of new substitutes: The threat of substitutes is moderate as conventionally bred crops still account for a major share of agricultural production. However, organic and traditional crops pose a threat.
Competitive rivalry: The competitive rivalry is high owing to the presence of numerous global and regional players offering varied GM seed and crop types. Players differentiate their offerings based on traits, region-specific needs, and introduction of newer technologies.
Global Genetically Modified Crops Market Demand is expected to witness high growth over the forecast period owing to the rising need to increase agriculture productivity and demand for food.
Regional analysis: North America dominates the genetically modified crops market currently due to high acreage under GM cultivation and commercial release of new GM traits in the US and Canada. Asia Pacific is expected to exhibit the fastest growth on account of a growing population, rapid urbanization, and increasing demand for food grains in major countries like China and India.
Key players: 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. PPD Inc specializes in early-phase clinical research and laboratory services while Icon Plc offers drug development services. Syneos Health provides integrated biopharmaceutical solutions.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it