Growing demand for nutrient-rich packed food along with advancements in food & beverages sector is driving global food biotechnology market outlook. As consumers are inclined to buy food that ensures quality, nutrition, good shelf life as well as taste, F&B companies are investing in genetically-modified plants and animals for inclusion in food products. Growing concern regarding to usage of pesticides and herbicides due to changing climatic conditions and farming loss is prompting farmers to grow genetically-modified crops.

Food insecurity in developing countries is increasing with growing population, however, advancement in food biotechnology may transform crop yield dynamics. A widespread crop pest, European corn borer, claims 7% of the sector's corn deliver every year. Although, incorporation of a genetically-modified corn has saved US farmers in Nebraska and Iowa around $1.7 billion in fighting this pest over the last decade.

Growth of transgenic crops

Transgenic vegetation is genetically-modified crop utilising recombinant DNA technology. Transgenic plants/crops have become a choice of farmers across the world due to several advantages such as weed resistance, pest resistance, drought resistance, and high yield. Other factors such as low production, reduced labour cost and requirement for chemicals, pesticides and better economic gains will positively impact its adoption rate.

Moreover, rise in subcontract agreements between farmers and private firms to augment genetically- modified crops production may foster food biotechnology market size. Transgenic crop segment is estimated to grow at 9% CAGR in terms of revenue up to 2025.

With lifestyle changes, consumer dietary patterns are also changing and huge demand for processed items food items have been witnessed. In 2018, global processed-food industry accounted for 80% of agricultural products in the developed countries for processed packaged food, generating revenue of US$3.2 trillion.

The consumers are now inclined towards packaged food with good nutritional values owing to rising health concerns. This is prompting food & beverage companies to utilise high-quality functional ingredients in processed food, which in turn will create lucrative opportunities for food biotechnology industry players in the coming years.

In 2018, North America food biotechnology market held more than 29% of the global share and is likely to gain momentum over the coming years. More than 60% of the American diet consists of highly processed foods, and the preference is guided by taste and convenience. Around 70% of the processed food available in the US is manufactured using genetically-modified ingredients. Even 93% of the cotton, soy and corm cultivated in America is genetically-modified.