Crop Biotech

Enhancing seed and crop traits via biotechnology

Overview

Crop biotechnology (crop biotech) encompasses a range of advanced scientific techniques aimed at enhancing the genetic and phenotypic traits of crops to address challenges related to food security, climate change, and sustainable agriculture. Conventionally, desirable traits for seeds and crops were developed using techniques such as cross-breeding, which were both labor-intensive and time-consuming. Developments in genetic engineering, biotech seed treatment, and synthetic biology aim to create crops that are more productive, disease-resilient, and nutritionally rich, improving crop productivity efficiently and sustainably. 

The increasing global population (and the subsequent demand for food), the decline in arable land, and the increasing prevalence of biotic stress factors drive the need for crop biotech solutions that improve crop quality and yield. The need for nutritionally enhanced food and decreasing crop emissions also play a part. However, progress has been hampered by lengthy and expensive regulatory processes and limited public awareness of the benefits and safety of genetically engineered crops.

Industry Updates

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Market Sizing

The US crop biotech market could reach USD 6.6 billion–8.3 billion by 2028

Conservative case

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Base case

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Use cases


The demand for crop biotech solutions is being driven by the need to enhance crop traits for purposes such as pest resistance, drought tolerance, improved quality as well as higher yields. Due to the industry's specialized focus, most use cases are concentrated within the agricultural products and services subsegment of the consumer staples sector. However, there are also some commercial applications within the chemicals subsegment of the materials sector.

Market Mapping


Gene editing companies are the most prevalent in the industry, followed by precision breeding. However, precision breeding companies tend to offer more commercialized solutions and have more Expansion-stage companies, whereas most gene editing companies remain at the Minimum Viable Product stage. The seed treatment and gene modification segments are dominated by established incumbents, with relatively fewer startups operating in these areas. Some companies, particularly incumbents, are exploring multiple genetic engineering technologies, increasingly shifting their focus from gene modification to gene editing.

The Disruptors


Funding in Crop Biotechnology has predominantly been directed toward gene editing, indicating a strong focus on commercializing this technology. Precision breeding and gene modification follow as the next largest funded segments. Inari stands out as a key player in the gene editing space, which has attracted the most investment. Although synthetic biology has also seen significant funding, it's important to note that startups in this field, such as Ginkgo Bioworks, often extend their focus beyond plant biotechnology into areas like pharmaceuticals, with Ginkgo raising over USD 1 billion. Seed treatment and gene silencing are the least funded segments, with seed treatment driven by industry incumbents and gene silencing still in its early stages of development.

Funding History

Competitive Analysis


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Product Overview
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Incumbents


Key incumbents in Crop Biotech include major seed and agrochemical companies like Bayer, BASF, Syngenta, and Limagrain as well as seed-focused companies such as Sakata Seeds. These incumbents primarily focus on gene modification and seed treatments, but there is a growing trend of testing gene editing techniques, often through partnerships. As a result, many of these players work with multiple technologies and explore various genetic engineering methods. In contrast, companies like Corteva strongly emphasize gene editing technology. Recent acquisitions in the industry were aimed at expanding market reach and diversifying portfolios to strengthen competitive positions.

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Notable Investors


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The addressable US market for Crop Biotech is estimated at USD 18.6 billion

The total addressable market (TAM) refers to the total revenue opportunity available for a product or service, while the actual market is the market size based on revenue projections. 
Our TAM estimate for the US Crop Biotech industry could reach USD 18.6 billion. The TAM estimate is based on the share of crop farms likely to adopt seed treatment and genetic engineering technologies to improve traits and yields. 
The Crop Biotech market encompasses genetically engineering crops through 1) precision breeding, 2) gene modification, 3) gene editing, and 4) gene silencing, alongside other biotechnology solutions like seed treatments and synthetic biology. 
We have estimated TAM values for the precision breeding (USD 10.3 billion), gene modification (USD 4.7 billion), gene editing (USD 1.4 billion), and seed treatment (USD 8.3 billion) segments. The gene silencing and synthetic biology segments have not been sized, as they are still in the R&D stage with a limited number of companies, most of which are in the seed stage. 
It should be noted that crop farmers may use one genetic engineering technique or a mix of them, depending on the type of crop. Therefore, the overall TAM for genetically engineered crops (USD 10.3 billion) is assumed to be the higher of the TAM values for precision breeding (USD 10.3 billion), gene modification (USD 4.7 billion), and gene editing (USD 1.4 billion).    
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