Biotechnology Market Size

Biotechnology Market Size

Biotechnology Market size was valued at around USD 497 billion in 2020 and is projected to grow at a CAGR of over 9.4% between 2021 and 2027. Ongoing innovations and development associated with molecular biology has led to an advent of novel scientific disciples including genomics, metabolomics and proteomics. Growing use of biotech solutions has facilitated the development of therapeutic proteins and other drugs. The rising prevalence of chronic diseases has fuelled the need for drug discovery and development. It is used increasingly in other industrial sectors also due to the extensive nature of the application. The rising usage in agriculture pertaining to the growing demand for organic products is also contributing to the market growth.

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Biotechnology is an interdisciplinary, innovative field that utilizes living organisms, biological systems, or derivatives to modify or develop processes and outcomes for producing healthcare-related products and therapeutics. It has profound impact on different sectors such as medicine & pharmaceuticals, genomics, production of food & chemicals, and others. It has comprehensive and significant use in solving critical challenges related to health & well-being, food & energy supply, and environmental protection.

Biotechnology and associated products are required to meet regulatory guidelines and pre-set standards. The major federal agencies in the U.S., responsible for monitoring essential parameters are the Animal and Plant Health Inspection Service (APHIS), the U.S. Environmental Protection Agency (EPA), and the U.S. Department of Health and Human Services' Food and Drug Administration (FDA). The Co-ordinated Framework for Regulation of Biotechnology demonstrates the federal system for assessment of products designed utilizing modern biotechnology. This framework relies upon existing laws developed to protect public health and the environment.

The U.S. government has established new policies, regulations, and compliances to implement laws for biotech products. The FDA monitors safety and efficacy of pharmaceutical products, human food and animal feed. EPA monitors pesticides, including plants containing plant-incorporated protectants to secure public safety. And the APHIS with the help of its Biotechnology Regulatory Services (BRS) program, regulates development of specific organisms produced using genetic engineering that can potentially pose a risk to population health. Thus, the biotechnology products and services are regulated by a host of regulatory authorities that may slowdown the development and commercialization of the products. Furthermore, certain amount of risk related to genetic data may hinder the biotech industry growth.

The emergence of COVID-19 pandemic is an unprecedented health concern across the world and has adversely affected the biotechnology market. Outbreak of SARS-CoV-2 has resulted in shutdown of vital sections of global economy, disrupted the supply and distribution network, halted the supply of raw materials and has put restrictions on movement of goods, thereby impacting the industry progression.

Despite of the pandemic there has been a substantial increase in investments in the biotech sector owing to the provision of safety against SARS-CoV-2 virus. For instance, growing interest in biotech companies was observed since the onset of COVID-19 pandemic, with investors investing more than USD 13 billion in biotechnology companies, in 2020 globally. It provided opportunities for the pursuit of novel scientific activities, particularly in biotechnology. Extensive investments in the industry accelerated development of innovative new drugs, gene therapies and vaccines in essential therapeutic areas.