The global agricultural biotechnology market consists of a large number of manufacturers and increasing competition in the market. Americas and Asia-Pacific are hubs for major companies that have been generating maximum market share which has turned these regions into developed markets for agricultural biotechnology. These companies have expanded their distribution units in various other regions as well. Moreover, there are other small- and medium-scale players that generate revenue from local markets.
There are numerous players operating in this market all over the globe. Most of these players exist in the American and Asia-Pacific region. There are a huge number of medium and small market players operating in the market which offers agricultural biotechnological products and thus the market shares of these players are much differentiated.
Corteva Agriscience, Arcadia Biosciences, Bayer, Eurofins Scientific, and Evogene Ltd are some of the major players in the global agricultural biotechnological market, contributing large market share market.
Arcadia Biosciences, a major agricultural biotechnological company, based in US, manufactures products in areas such as arcadia specialty genomics, and agricultural productivity in the field of agricultural biotechnological. Also, the company has a strong geographical presence in the market across the globe. The company focuses on inorganic and organic growth strategies to maintain its position in the market. For instance, November 2019, the company completed the regulatory review process and received approval for its HB4 drought and herbicide-tolerant soybeans from the Paraguayan Minister of Agriculture, through the National Commission for Agricultural and Forestry Biosafety. Thus, the company aims to expand its presence in the South American region.
Corteva Agriscience is a long-standing player in the global agricultural biotechnological market. It is directly present in more than 50 countries and covers all major regions such as North America, Asia-Pacific, Latin America, Europe, and the Middle East & Africa.
Bayer AG is another leading player in the global agricultural biotechnological market. The company constitutes a strong distribution network and aims to capture maximum space in the market in the coming years. The company employs a strategy of maintaining the quality of the products by maximum investment in research and development which helps the company in maintaining its market position. The company’s Bayer AG opened the application window for its Grants4Traits and Grants4Biologicals. Opening of this application offers scientific support to develop novel solutions, including gene editing targets, which will help to achieve higher yield and safety in crops.
Threat of New Entrants
The threat of new entrants is moderate in the global agricultural biotechnology market. Any manufacturing company trying to enter the market is required to accept or abide by the regulatory standards. However, the budget required for research and development of GM crops is medium compared to the other industries. Moreover, if a company desires to survive in the market, it must introduce innovative products in the market. The presence of huge opportunities in the market has increased the threat of new entrants to the market.
Bargaining Power of Suppliers
The bargaining power of suppliers in the agricultural biotechnology market is low. In this market, the suppliers are the manufacturers of genetically modified (GM) crops. The market has the presence of many local and international companies that supply raw material for agricultural biotechnology. Furthermore, increasing demand from research institutes and entry of multinational agricultural biotechnology companies in the market is further expected to keep the bargaining power of suppliers low. The presence of large number of suppliers would cater to the needs of the customers which will lead to intense competition between the existing suppliers which thereby keep the bargaining power of suppliers low.
Threat of Substitutes
The threat of substitutes in the global agricultural biotechnology market is moderate. Any threat from a close substitute product is measured to have a high impact on the market. The threat of substitutes arises when the buyers or the customers in the market can accomplish the end-result using other similar products. Although there is a medium number of replacements or the presence of alternative products in the market, which eliminates the threat of substitute.
Bargaining Power of Buyers
The bargaining power of buyers is moderate in the global agricultural biotechnology market. The farmers utilizing GM crops and seeds are the buyers of the market. The number of buyers in the market is rising due to the high income from the GM crops for the buyers. Besides, the pricing factor also plays a vital role in the bargaining power of buyers in the market as some buyers are price and brand sensitive and might prefer particular products from certain companies.
Intensity of Rivalry
The degree of competition in the global agricultural biotechnology market is moderate to high. The moderate degree of product differentiation among existing players increases the intensity of rivalry in the market. Companies involved in the market are trying to develop cost-effective products to make product differentiation. To overcome the competition, players are engaged in developing a process to lower their manufacturing costs. Moreover, the players are also developing advanced techniques for differentiating their products from their rivals, which encourages competition to gain maximum market share.
