Global market for genetically modified foods set for major expansion

Global Market for Genetically Modified Foods Set for Major Expansion

New York – July 17, 2024: The global market for genetically modified (GMO) foods is projected to significantly increase in value by USD 46.8 billion between 2024 and 2028, according to a report by market research firm Technavio. This growth, estimated at a compound annual growth rate (CAGR) of 7.07%, is attributed to the rising demand for higher crop yields and ongoing advancements in gene-editing technologies.

Key Drivers

A principal factor driving the expansion of the GMO food market is the premium pricing of organic, non-GMO products. Although health-conscious consumers express concerns about the safety of genetically modified foods, the lower costs associated with GMO products make them a more attractive option. In the US, despite a lack of clear evidence on the health effects of GMOs, a significant portion of the population remains sceptical. As organic food prices continue to rise, consumers are likely to pivot towards more affordable GMO alternatives during the forecast period.

Technological Innovations and Market Dynamics

The GMO food market has seen significant innovations, particularly in gene technology and genome editing. Modified crops such as herbicide-resistant soybeans and insect-resistant corn aim to boost agricultural efficiency and reduce reliance on chemical pesticides. Enhanced nutritional profiles of GMO foods, such as iron-enriched bananas and vitamin-fortified rice, illustrate how biotechnology can address global nutritional deficiencies.

However, the market is not without its challenges. Increased consumer interest in organic, non-GMO foods poses a potential threat. Organic products, sought for their perceived health benefits and lower environmental impact, are becoming more prominent in retail and restaurant sectors, especially in developed countries. Government initiatives supporting organic farming through subsidies and research further bolster this trend. Consequently, heightened demand for organic produce could dampen the growth of the GMO food market.

Concerns and Challenges

Alongside consumer mistrust, there are broader implications of GMO foods that the market must address, such as potential health risks, ethical considerations, and environmental impacts. Mechanisms for comprehensive labelling and public education are necessary to mitigate these concerns. Moreover, the advent of new gene-editing technologies raises additional questions about food safety, potential allergens, and antibiotic resistance.

Market Segmentation

The GMO food market is segmented by product type, geographical regions, and crop types:

• Product Type: Includes herbicide tolerance (HT), insect resistance (IR), and stacked traits (ST).
• Geography: The market covers regions including North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa. APAC is expected to contribute 35% to market growth.
• Crop Types: Comprises vegetables, fruits, and animal products. Modified vegetables, in particular, are touted for their higher yields, pest resistance, and resilience to extreme weather conditions.

Future Outlook

Despite structural challenges and consumer pushback, the GMO food market is poised for substantial growth. Key players in the industry, such as BASF SE, Bayer AG, and Syngenta Crop Protection AG, continue to invest in innovative solutions to enhance the genetic profiles of essential crops. The development of new gene technologies and the increasing necessity for food security in various regions suggest a dynamic shift towards greater adoption of genetically modified foods.

Conclusion

While the genetically modified food industry faces significant hurdles, including growing consumer preference for organic alternatives and ongoing public health debates, technological advancements and economic factors are driving its expansion. The market’s ability to navigate these challenges will determine its trajectory over the coming years.