Genetically Modified Foods Market Size, Regional Outlook, Application Growth Potential, COVID-19 Impact Analysis, Competitive Market Growth & Forecast, 2021 – 2027
Report ID: GMI2220
Global Genetically Modified Foods Market size value is poised to register an impressive gain over 2021-2027 owing to the demand for soybean based products. The cost-effectiveness of genetically modified foods (GMF) will further the technology use. Genetically modified foods are derived from organisms whose DNA has been modified via genetic engineering.
Genetic modification is done to alter the nutrient content of food, to minimize the allergenic potential or enhance the food efficiency production systems. The FDA oversees human and animal foods in the U.S. derived from plants that are developed using genetically modified organisms. Rigorous government regulations on the usage of pesticides in farm products will drive industry growth. Prominently, the majority of modified soy is used for making soybean oil, livestock and poultry. It is also used to make an emulsifier, such as soy lecithin that is present in processed foods, including candy and dark chocolate bars.
Based on type of foods, genetically modified soybean segment will grow at a considerable CAGR through 2027. Soybean utilization for food has gained prominence with the increasing demand to make healthier and vegan food products. Industry participants are expected to invest in genetically modified corn as well, as it can contribute to global food security and reduce poverty.
Corn is used to produce various ingredients sought in processed food and beverages such as corn starch and fructose corn syrup. GMO corn can provide farmers with increased grain yields, reduction in insect damage and enhanced grain quality. For instance, GMO bacillus thuringiensis (BT) corn is used to minimize the need for spraying insecticide yet preventing insect damage.
On the basis of traits, the herbicide tolerance GMF segment will expand at a significant rate during the forecast period 2021-2027. A notable use of herbicide-tolerant crops will provide farmers a pivotal tool to fight weeds and help preserve topsoil. Herbicide-tolerant crops will help reduce the amount of tillage owing to enhanced and flexible weed control. This form of genetic modification will enable healthier crops and higher yields, which in turn, will foster genetically modified foods market outlook.
With respect to region, Asia Pacific genetically modified foods market share will grow at a considerable rate. Emerging countries such as China and India are expected to invest in innovations in GM crops. For instance, China is poised to support research and development in agricultural GMOs. It will help them streamline new technologies and enhance seeds’ exploration and planting efficiency. Besides, the mainland imported around 100.33 million tons of soybeans in 2020, auguring well for crop suppliers.
North America GMF industry share is likely to register a healthy CAGR during the assessment period, with the U.S. and Canada major food markets. According to the U.S. FDA, over 95% of animals used for dairy and meat in the U.S. eat GMO crops. The trend for GM cotton will be pronounced in U.S. food sector. For instance, GM cotton is turned into cottonseed oil and is used in packaged foods such as oily spreads such as margarine and in animal feed.
Major companies in the global genetically modified foods market are BASF (Germany), DuPont (US), Sakata (Japan), Bayer Crop Science (Germany), Syngenta (Switzerland), Group Limagrain (France), among others. Organic and inorganic strategies are expected to gain prominence with mergers & acquisitions, R&D investments and product launches.
For example, BASF is contemplating the launch of more than 30 new projects, such as biological and chemical crop protection, novel seeds and traits, new formulations and digital products by 2029. The company is also planning to invest in R&D for agricultural solutions.
Genetically modified foods market growth response to the COVID-19 pandemic
The coronavirus pandemic has shown a negative impact across most industries. Food producers are expected to witness a dip in soybean production in the U.S. For instance, the rate of North Carolina soybean export witnessed a 50% dip in 2020. Moreover, the USDA projects consumption of soybean oil in Japan to account for 3.4 million tons in 2020-21, a 2.3% plunge compared to the previous year.
The COVID-19 crisis has also created a promising opportunity to redesign farming systems to provide sustainable and healthy foods, stimulating genetically modified foods trends. The use of GMO crops to make corn syrup, cornstarch, canola oil, soybean oil, corn oil and granulated sugar will be noticeable, fostering the global genetically modified foods market outlook.
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