Plant Biotechnology Market

Seeds act as the foundation for the progress of the food chain and play a significant role in the sustainability of the agri-food system. Farmers across the globe have been gradually shifting from traditional farming methods to gain higher yields and profit from restricted resource availability. Commercial seeds are one of the major trends in the industry. According to a report published by Syngenta, one of the leading players in the commercial seeds industry, the global seeds market has grown by almost 90% since 2000.In the global seeds market, rice's share is minimal, owing to the high importance of other industrial crops such as cotton, corn, and soybeans. For rice, farmers have been sowing hybrid seeds as opposed to open varietal types in Asian countries such as China and India, which can be reflected in the rising seed replacement rate (SRR) across different Asian countries for paddy. According to the FAO, Asia contributed to 90% of the rice production and consumption in the world in 2021, and hence, FAO has supported many Asian countries in various projects to publicize the use of hybrid rice seeds technology through demonstrations and training. These activities contribute significantly to increasing the SRR across other major rice-producing countries, such as Indonesia and Vietnam. Awareness among farmers regarding the advantages of using certified genetically modified seeds has resulted in high demand for them in the past few years. Although the price of GM seeds is higher than farm-saved seeds, the associated advantages of higher yield and better quality have spurred the growth of this market. Furthermore, various private seed producers have also supported the activities to promote the adoption of GM seeds. FAO-supported initiatives in Asia are promoting hybrid rice seed technology through demonstrations and training, increasing the SRR in major rice-producing countries like Indonesia and Vietnam. The rising demand for GM seeds, due to their higher yield potential and better quality, is expanding the market for biotech-enhanced crops.

The approval process for plant growth regulators is very lengthy due to multi-location field trials and residual effects for synthetic plant growth regulators. Due to the stringent regulatory approval process, the average time taken to bring a new crop protection product to market can exceed ten years and cost more than USD 100 million. Patent protection and exclusivity are critical in helping companies recover the costs of research & development, incentivizing them to make future investments that will lead to continued industry-wide growth. Increased costs due to product development and a greater regulatory period led to increased retail prices, reducing the net profit value for growers. The decreased profit margins cannot help improve the manufacturers' growth in the market. Even for generic products, it can take up to five years to get the product registered. To bring a new, improved biotechnological product to market, manufacturers must undergo a lengthy and expensive approval process with both state and federal regulators. There is currently no clear regulatory framework for these products in many jurisdictions. The regulatory bodies do not have adequate resources and infrastructure to execute the timely registration of products. At times, the rules are not clearly defined, creating interpretation challenges for the regulatory bodies and leading to confusion, thereby adding to the complexities for crop protection chemical companies. This makes it difficult for companies to commercialize new products and brings down investment in research and development. Regulation (EC) No 1107/2009 governs the marketing of plant protection products (PPPs) within the European Union. Prior to their market availability or usage, PPPs must receive authorization in the respective EU country. This regulation establishes the guidelines and processes for PPP authorization.

The public sector is strengthening its network to develop improved varieties of seeds; it is also encouraging the private sector to produce hybrid and disseminating technologies. The public sector, which includes research institutes and government organizations, plays a crucial role in facilitating germplasm research in the private sector and joining hands to promote existing technologies among farmers. The public-private partnership is an agreement between public agencies (federal, state, and local) and private sector entities. Through the partnership, the public and private sectors jointly work toward delivering a service or facilities for the use of consumers. In addition, this sharing of resources helps them in sharing risks and reward potentials in the services and facilities. With agriculture employing over 50% of India's workforce and contributing approximately 17% to the national GDP, sustained growth in the sector necessitates the integration of innovative technologies and modern agricultural practices. The private sector has played a crucial role in driving these advancements, particularly through biotechnology and the development of high-yield seed varieties. A notable example is the adoption of genetically modified BT cotton, which by 2022 led to a 24% increase in yield and a 50% reduction in pesticide usage. This underscores the significant impact of public-private partnerships in enhancing agricultural productivity and sustainability.

New technologies, such as breeding methods, are creating opportunities for new entrants in the market, some of which disrupt the market for larger players. New entrants in the market do not have brand recognition, but the seed prices of these small players are very low compared to those of the established players, which affects the market share of the big players. The easy availability of raw materials for seed products is the key aspect for domestic players; however, finding the distributor and adding a layer to the value chain either reduces the profit margin or increases the product cost. The competition with the domestic players and the new, cheaper technologies available for breeding are challenging the larger players. Low brand loyalty is also one of the key factors challenging the plant biotechnology market for seeds globally.