GM food market size to grow by $40.6bn by 2027.
The genetically modified or GM food market size is estimated to grow by $40.6 billion from 2022 to 2027, according to a recent report by Technavio.
The market is estimated to grow at a CAGR of 6.58%, driven by high demand for crop production.
One of the major reasons for the significant growth of the genetically modified food market is due to aspects such as these crops producing higher yields, resisting pests and diseases, and tolerating environmental stresses, which can help farmers to grow more food with fewer resources.
For instance, according to the Food and Agriculture Organization (FAO) of the United Nations, global food production needs to increase by 70% by 2050 to meet the needs of the growing population.
Thus, with minimal water and other resources, farmers will need to produce more food on the same amount of land. Therefore, there will be a growing adoption of genetically modified crops to improve the output by farmers, which in turn will fuel the GMO Food Market growth during the forecast period.
According to the report, the market is dominated by the US, with an 83.66% share, followed by Canada and Mexico. In 2021 and 2022, herbicide-tolerant soybean acreage increased slightly to 95%. Herbicide-tolerant cotton acreage expanded from approximately 10% in 1997 to 56% in 2001 before reaching a high of 94% in 2021.
Due to mergers and acquisitions as well as rapid research and development activities, there has been a significant transition in the genetically modified food market in North America and the advancement and adoption of biotechnology at a greater level. Therefore such factors are anticipated to fuel the global genetically modified food market during the forecast period.
Major trends driving growth in the GM food market
In terms of other trends driving the market, the rise of veganism, coupled with a rising consumer expenditure and a desire to have exotic vegetables all year round, will drive growth, as will the price premium on non-GM foods
However, the majority of people are also more health-conscious, and there is a rising concern about the health factors of food products. The purchasing decision of non-genetically modified food products is usually based on their costs. For instance, over half of the consumers in the US have concerns about genetically modified food products, but they are not aware of the health effects.
It is expected that there will be a shift in consumer choice for genetically modified food products with the continuous increase in the pricing of non-genetically modified food products. The major causes for this are that the pricing is fair, and the health effects of genetically modified food are not clear to most consumers. Therefore, the adoption of premium pricing of non-genetically modified food products will fuel the growth of the global Genetically Modified (GMO) Food Market during the forecast period.
Major challenges hindering the market growth of GM food
An increase in demand for organic food products will be a major challenge that may impede the global genetically modified food market during the forecast period. A rise in the number of health-conscious individuals, growing environmental concerns, and government support toward awareness and the use of organic products are fueling the rising demand for organic food products. Further, some of the advantages of organic food products are they are free from synthetic pesticides and genetic modification and petroleum-based fertilizers.
Similarly, aspects such as rising concerns for enhancing health and growing consumer awareness about organic food advantages are propelling the demand for organic food products among consumers when compared to genetically modified food products.
The significant factor which fills the demand of health-conscious customers is the growth in the distribution of genetically modified food to the retail sector. For instance, popular supermarket chains such as Wal-Mart and Costco in the US are expanding their offerings of organic food. Therefore such factors are anticipated to impede the market during the forecast period.
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