New Delhi, July 22, 2020: Growing demand for nutrient-rich packed food along with advancements in food & beverages sector is driving global food biotechnology market outlook. As consumers are inclined to buy food that ensures quality, nutrition, good shelf life as well as taste, F&B companies are investing in genetically modified plants and animals for inclusion in food products. Growing concern regarding to usage of pesticides and herbicides due to changing climatic conditions and farming loss is prompting farmers to grow genetically modified crops.
Food insecurity in developing countries is increasing with growing population, however, advancement in food biotechnology may transform crop yield dynamics. A widespread crop pest, European corn borer, claims 7% of the sector’s corn deliver every year. Although, incorporation of a genetically modified corn has saved U.S. farmers in Nebraska and Iowa around 1.7 billion dollars in fighting this pest over the last decade.
U.S. Food & Drug Administration estimates that area under biotech vegetation production increased by 4.7 million hectares in the year 2017 due increasing food demand in developing economies and higher commodity prices for consumable products. Growing preference for genetically modified crop production in to cater to rising food demand will further fuel food biotechnology market expansion through 2025.
Growth of transgenic crops
Transgenic vegetation is genetically modified crop utilizing recombinant DNA technology. Transgenic plants/crops have become a choice of farmers across the world due to several advantages such as weed resistance, pest resistance, drought resistance, and high yield. Other factors such as low production, reduced labor cost and requirement for chemicals, pesticides and better economic gains will positively impact its adoption rate.
Moreover, rise in subcontract agreements between farmers and private firms to augment genetically modified crops production may foster food biotechnology market size. Transgenic crop segment is estimated to grow at 9% CAGR in terms of revenue up to 2025.
Evolving consumer dietary patterns
With lifestyle changes, consumer dietary patterns are also changing and huge demand for processed items food items have been witnessed. In 2018, global processed-food industry accounted for 80% of agricultural products in the developed countries for processed packaged food, generating revenue of USD 3.2 trillion.
The consumers are now inclined towards packaged food with good nutritional values owing to rising health concerns. This is prompting food & beverage companies to utilize high-quality functional ingredients in processed food, which in turn will create lucrative opportunities for food biotechnology industry players in the coming years.
Increased demand for processed and packaged food in the U.S.
In 2018, North America food biotechnology market held more than 29% of the global share and is likely to gain momentum over the coming years. More than 60% of the American diet consists of highly processed foods, and the preference is guided by taste and convenience. Around 70% of the processed food available in the U.S. is manufactured using genetically modified ingredients. Even 93% of the cotton, soy and corm cultivated in America is genetically modified.
Growing demand for processed & packaged products owing to hectic schedules and busy lifestyle will bolster the regional growth. U.S. is the largest producer of genetically modified crops for commercial purposes will support global food biotechnology developments. The demand for high-quality & premium beverages is also increasing due to rising disposable income. Moreover, emerging middle-class population in developing countries due to rapid urbanization and their increased spending in indulgences will fuel the implementation of biotechnology solutions in beverage sector.
Source: –https://www.gminsights.com/industry-analysis/food-biotechnology-market
Corporate Comm India (CCI Newswire)
