A number of factors, such as the rising need for food products, growing population, surging per capita income, increasing demand for transgenic crops, and high yield of biotech crops, are projected to drive the growth of the agricultural biotechnology market at a CAGR of 10.7% during the forecast period (2021–2030). The market generated $39,565.6 million in 2020, and it is expected to reach $106,870.0 million by 2030. Moreover, the market is witnessing a trend of the surging adoption of biofuels, which are produced from agricultural residue and crops.
One of the prime factors aiding the agricultural biotechnology market is the growing population across the globe, which leads to the increasing need for food products. For instance, as per the United Nations Department of Economic and Social Affairs, the world’s population increased to 7.7 billion in 2019 from 6.9 billion in 2010. To feed the huge population, a large amount of food is needed. Thus, advanced biotechnological tools are in demand in the agricultural sector to boost the productivity and offer substantial agronomic, environmental, social, and health benefits to farmers.
Furthermore, on the basis of product, the market is categorized into crop protection products and transgenic seeds. Between the two, the crop protection products category is expected to record the faster growth in the foreseeable period. This can be ascribed to the technological developments in the agricultural domain, which have empowered farmers to involve suitable pest management solutions. Whereas, the transgenic seeds category held the larger market share in 2020 owing to the rising focus of players to improve the efficacy of farming by reducing the effects of external factors on crops.
Thus, the growing population and increasing demand for transgenic crops are expected to propel the market growth during the forecast period.