Genetically modified seeds are seeds that have been transformed through recombinant DNA techniques, also known as genetic engineering or genetically modified organisms (GMOs). Such seeds are designed to resist pests or herbicides, or to increase crop yields. In recent times, genetically modified seeds have become predominant in many countries due to their advantages of providing higher crop yields along with resistance against pests and herbicides. However, there are also concerns regarding their impact on health and the environment. The global Genetically Modified Seeds Market is estimated to be valued at US$ 20.34 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growing Global Food Insecurity:
The global population is expected to grow exponentially in the coming decades which has increased concerns around global food security. Genetically modified seeds have the potential to increase crop yields and help tackle the challenge of feeding the growing global population. Genetically modified crops have been reported to provide increased yields by reducing crop failures stemming from various diseases and pests. This makes them a viable solution to deal with growing concerns around food shortage and rising global food insecurity.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is medium. The genetically modified seeds market requires high capital investment for R&D. Established players have strong brands and distribution network.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers can switch to alternative traditional seeds suppliers. Buyers have options to choose from multiple branded seeds in the market.
Bargaining power of suppliers: The bargaining power of suppliers is low to medium. A few major players dominate the hybrid and GM seeds supply chain. Suppliers face pressure on prices from big buyers.
Threat of new substitutes: The threat of substitutes is low. No close substitutes currently exist for GM seeds with superior crop traits and yields.
Competitive rivalry: The competitive rivalry is intense. Major players compete on technology, traits, seeds quality and distribution reach.
SWOT Analysis
Strength: Genetically modified seeds offer superior yields and resistance to diseases and herbicides. Technological advancements enable development of new seed varieties.
Weakness: High R&D costs increases seed prices. Strict regulations delay product approvals. Environmental and health concerns persist regarding GM crop impacts.
Opportunity: Growing demand for food due to rising population presents opportunities. Adoption in developing regions is increasing. Development of biotech crops adapt to climate change impacts.
Threats: Protectionist trade policies and non-tariff barriers restrict exports. Alternative natural and organic farming methods pose competition.
Key Takeaways
The global genetically modified seeds market is expected to witness high growth over the forecast period supported by increasing food demand and advances in biotechnology.
Regional Analysis: North America dominated the market in 2023 owing to large acreage under GM crop cultivation in countries like US and Canada. The US is the largest producer and exporter of GM seeds globally.
Key players operating in the genetically modified seeds market are Bayer CropScience, BASF SE, Syngenta, and JR Simplot Co. Syngenta leads the market followed by Bayer. These major players invest heavily in R&D to develop new seed varieties offering herbicide tolerance and insect resistance traits. Opportunities lie in emerging markets of Asia Pacific and Latin America where GM crop adoption is rising.
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