Genetically Modified Seeds Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Genetically Modified Seeds Market is Segmented By Crop( Corn, Soybean, Canola, Cotton, Others), By Trait(Herbicide Tolerance, Insect Tolerance, Disease Tolerance), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The Global Genetically Modified Seeds Market is estimated to reach at a high CAGR during the forecast period 2024-2031. 

Genetically modified (GM) seeds are laboratory prepared with desired traits such as drought-resistant and weed protected. It aids in improving the yield of the crop.

Genetically modified seeds are gaining popularity over conventional seeds due to longer shelf life, improved yields, enhanced nutritional values, and capacity to sustain against climatic changes. The benefits of cultivating GM crops have helped motivate farmers to opt for them in place of use of farm-saved or other conventional seeds in crop cultivation.

Market Summary

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Market Dynamics

Increasing demand for food, owing to increasing population

According to the Food and Agriculture Organization (FAO), the increasing population and rising disposable income of consumers would result in an increase in food production by almost 70% by 2050. The steadily growing demand for food and the reduced availability of arable land is expected to increase the adoption of various agricultural developments such as GM seeds, which in turn, is anticipated to support the global growth of the market. Globally, the area under GM crops has increased manifold from 17 lakh hectares in 1996 to 1917 lakh hectares in 2018. The governments across various countries from developing countries such as APAC and Africa are also encouraging farmers to use genetically modified seeds over conventional seeds to increase the yield of crops which also drives the growth of the global genetically modified seed market. On the other hand, a growing number of research and development activities along with the prevalence of environment-sustainable seeds will further bring various opportunities for the growth of the genetically modified (GMO) seeds market in the forecast period.

However, stringent regulations imposed by various regulatory bodies such as the Environmental Protection Agency (EPA), United States Department of Agriculture (USDA), and the Food and Drug Administration (FDA), on genetically modified crops is hindering the market growth. For instance, EPA regulates the use of Bt toxins under the FIFRA Act (Federal Insecticide, Fungicide, and Rodenticide Act)

Market Segmentation Analysis

Corn segment held largest market revenue share in the year 2020

Corn dominated the global genetically modified seeds with a share of XX%. This is attributed to the rising demand for corn, as it is extensively used in the production of ethanol and also as a feed for livestock. According to the US Energy Information Administration (EIA), corn is used as a primary feedstock of ethanol production and according to the estimation based on United States Department of Agriculture (USDA), U.S. produced 15.1 billion bushels of corn in 2016–2017 harvest year, which was 11% higher than the 2015–2016 harvest year. Moreover, according to the Renewable Fuel Association, the total ethanol production of the U.S. increased from 14.30 billion gallons in 2014 to 14.81 billion gallons in 2015. Along with corn, soybean is expected to hold a significant market revenue share. Key corn and soybean-growing countries such as the United States, Brazil, and Argentina have adopted GM crops, and GM crops currently account for about 85-95 percent of total soybean and corn crop harvested area. The GM canola crop is mostly grown in Canada, Australia, and the United States, and is expected to grow at the fastest rate between 2021 and 2028. Other GM crops, such as alfalfa and potato, are expected to gain more importance during the projected period, owing to their importance and development possibilities.

Market Geographical Share 

North America is expected to dominate the global genetically modified seeds market in the year 2020

North America and South America are the largest markets for GM crop seeds, cumulatively accounting for more than 90% share in the global genetically modified seeds market. Nearly 85-95% of the soybean and corn crop cultivated in North America and South America is GM crop. As of 2020, there are 10 GMO crops produced in the US, while more than 120 Deregulation of GM seeds with unique characteristics has taken place. More than 90% of maize, soybean, cotton, canola and sugar beet acreage in the United States is genetically modified. Overseas demand (especially China) for Americas cultivated corn and soybean produce plays a vital role in deciding the planted area and demand for planting seeds. In January 2019, China approved five genetically modified crops for import from the U.S. and the same have supported the expansion of planted area under GM crops and demand for planting seeds. 

Asia Pacific is the fastest-growing market for GM crops, and the region is expected to provide significant development prospects for market players over the forecast period. Bangladesh, for example, began cultivating GM eggplant in the 2013-14 season and saw a 485 percent increase by 2017-18. Bt cotton remains the only GM crop approved for cultivation in India. In 2015, Vietnam began cultivating the GM maize crop, which saw a 13-fold increase in planted area by 2017. During the forecast period, the introduction of new features in various crops is expected to promote the growth of the genetically modified seeds market.

Companies and Competitive Landscape

The global genetically modified seeds market is consolidated. Some of the key market players in the global genetically modified seeds market include Monsanto, BASF, Syngenta, and DuPont among others. Mergers and acquisitions, partnerships, and expansions are some of the strategies adopted by players to retain their market dominance. For example, Vimorin & Cie SA and KWS SAAT SE, a seed company, entered into a collaborative partnership in 2016 to research GM corn traits. Vimorin & Cie SA is a subsidiary of Groupe Limagrain Holding S.A. In February 2019, In Feb 2019, DowDuPont has received the final international regulatory approval needed, from the Philippines, for a global launch of a new line of genetically engineered soybeans. In Feb 2019, U.S. approved the soybean event FAD2KO for food and feed use.

COVID-19 Impact on Market

Negative impact on the genetically modified seeds market 

Since late 2019, the COVID-19 pandemic has spread rapidly and widely over the world, posing serious threats to food security and nutrition. The unfolding crisis has affected food systems and threatened people’s access to food via multiple dynamics. The agricultural industry has witnessed not only a major disruption to food supply chains in the wake of lockdowns triggered by the global health crisis but also a major global economic slowdown. Lockdown measures have also impacted supply chains for agricultural inputs such as seeds and fertilizer, making them both scarce and more expensive, according to the FAO. The COVID-19 pandemic delayed the rollout of pest-resistant Bt cowpea, Nigeria’s first genetically modified (GM) food crop. The country’s lockdown, imposed to stop the spread of the new coronavirus, has made it difficult to get the improved seeds out to farmers restrictions imposed on the movement of people in a bid to stop the spread of the virus had stalled progress in getting the seeds out to farmers for the planting season.