Genetically modified seeds: Key market research findings
- Increasing use of biofuels drives market growth
- Herbicide-tolerant seeds account for a majority of the market’s revenue
- Key vendors – Bayer, DowDuPont, Groupe Limagrain, Monsanto, and Syngenta
Technavio’s market research analysts predict the global market for genetically modified seeds to grow at a CAGR of around 10% between 2016 and 2020. The growth of the market can be accredited to the rise in adoption of biofuels. Biofuels are made up of energy crops such as wheat, soybean, sugarcane, and corn. Governments of different countries in APAC and Africa are also trying to reduce the use of conventional fuels and encourage the use of biofuels. As a result, farmers in these regions have increased the use of biofuel crops for maximum yields. In 2015, the global genetically modified seeds market was dominated by North America with a market share of around 30%. The market in this region will exhibit steady growth during the forecast period owing to factors such as M&As, rapid R&D growth, and the advancement and adoption of biotechnology at a greater level.
The new market research report from Technavio presents a breakdown and analysis of the genetically modified seed segments based on the traits.
“The market is currently witnessing an upsurge in the use of seeds with advanced generation traits. The growing adoption of seeds with advanced traits is expected to escalate the growth of the market. Droughts are a constraint to crop cultivation. Competitors in the market are putting in efforts to develop cultivars with drought-tolerant traits. In 2015, DuPont introduced the drought-tolerant Pioneer Brand Millet Hybrid 86M88 and Pioneer Brand Millet Hybrid 86M66 varieties,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
The herbicide-tolerant seeds segment accounted for almost 70% of the overall market revenue to become the key revenue generating vertical in the global market during 2015. Herbicide-tolerant (HT) traits in GM crops provide farmers with a vital tool to fight unwanted weeds and are compatible with no-till methods that help preserve the topsoil. It offers farmers the flexibility to use herbicides only when it is required to control the total input of herbicides. This is because herbicides target key enzymes that damage food production in the plant metabolic pathway. HT traits are largely practiced in corn, soybean, cotton, canola, alfalfa, wheat, and sugar beet seeds.
The prominent players in the global market for genetically modified seeds include Bayer, DowDuPont, Groupe Limagrain, Monsanto, and Syngenta. These players dominate the total supply of the market. BASF, DLF, KWS, Land O’Lakes, Sakata, and Takii are some of the other well-known prominent vendors. These players compete on many different factors including price, quality, brand, and variety. Different companies indulge in different strategies to increase their market share. The acquisition of new enterprises will give the leading players a chance to maintain their dominance in the global GM seeds market throughout the forecast period. The practice of sustainability is essential for future production and is well-applied by major and prominent competitors.
A more detailed analysis is available in the Technavio report, Global Genetically Modified Seeds Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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