GMO Testing Services Market

The global GMO testing services market size was valued at USD 1.9 billion in 2021 and is expected to surpass USD 3.8 billion by 2030, expanding at a CAGR of 7.7% during the forecast period, 2022–2030. The growth of the market is attributed to the rising demand for nutritional foods from health-conscious consumers globally and the increasing establishment of government regulations for regular testing of genetically modified (GM) crops.

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Genetically modified organisms (GMO) testing services refer to the process of checking the nutritional level of GM crops, meats, and foods. The GM products are mainly derived through certain modifications of original seeds of crops using various biotechnological methods to ensure a high yield of crops. With the technological advancements in farming practices, farmers especially from developed countries often use GM seeds to increase their crop production. On the other hand, the increasing consumer awareness regarding the safety and quality of nutrition in food or feed samples pushes the demand for testing or verification process of these modified food products. As a result, it becomes a mandatory practice for food producers, especially in developed countries to check the content of nutritional values of their crops. These genetically modified crops are extensively used for various consumption purposes for both humans and animals.

As per the 2020 report by the Food and Agriculture Organization (FAO), nearly 55% of the total global production of maize was used as animal feeds, 20% for other non-food applications, and only 12% used as food products. In 2021, the US stood as the largest genetically modified crops producer, accounting for more than 37% of the total global production that covered several crops including soybeans, cotton, corn, apples, canola, sugar beets, papaya, and potatoes. The US farmers used more than 170 million acres of agricultural land for different GMO crops farming in 2019. As claimed by various scientific communities, the rising production of biotech crops globally aided in the alleviation of various global issues such as food insecurity, poverty & malnutrition, and climate change. However, as many as 39% of consumers in the US still believe that GM foods are less healthy compared to non-GM foods.

Polymerase chain reaction (PCR) and lateral flow strip tests are two major techniques extensively used for testing the quality and nutritional levels of GMO products. The former technique uses DNA-based analysis and the latter test uses protein-based examination to identify the sufficient content of nutrients. The need for genetically modified organisms testing rises due to the rising incidence of cross-contamination of GMOs and non-GMO agricultural products. Key regulatory agencies such as the U.S. Food and Drug Administration (FDA), the U.S. Department of Agriculture (USDA), and the U.S. Environmental Protection Agency (EPA) play crucial roles in the verification process of GMO foods and feed production. These agencies not only check the safety processes of the genetically modified foods for human as well as animal consumption but also monitor the environmental impact associated with the products. On top of regulatory authorities, the key audience of the market includes food manufacturers, GM ingredient manufacturers, and distributors of GM crops.

COVID-19 Impact

Explaining the key market scope, the COVID-19 pandemic had shattered several industries, especially the food & beverage industry that partly induced economic crisis globally. The global GMO testing services market had been adversely impacted due to the sharp decline in the demand for GMO testing services from food manufacturers. Delay in GM food production, impacted by the lack of agricultural laborers, fewer raw material suppliers, and social-distancing norms, imposed by emergency lockdowns hampered the market growth opportunities during the pandemic. Moreover, the temporary shutdown of food processing factories and sudden disruption in the supply chain of the food industry resulted in a sluggish growth rate of the market. Despite the pandemic slowing down the successful commercialization of GM crops, there has been significant growth in genetically modified crops across developing countries such as Bangladesh, Kenya, and Ghana over the years. The increasing demand for genetically engineered crops from farmers, especially from continents struggling with food security presents a key aspect for market expansion in the coming years. 

Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The GMO testing market report has up-to-date insights about market dynamics and market scenario that can shape the overall market performance and output during the forecast period, 2022 to 2030.

Key Trends:

Rising GMO crops production globally

As estimated by various agricultural experts, GM crop production has increased over 100-fold over the last 25 years owing to the widespread practice of using GMO seeds for better yield among farmers globally. As per the 2020 report by the International Service for the Acquisition of Agri-biotech Applications (ISAAA), nearly 190 million hectares of land globally were used for biotech crops in the same year. The report further stated that GM cotton accounted for 79% of global cotton farming in 2019. According to FDA, GMO soybean represented 94% of the global soybean production, GMO cotton accounted for 94% of all cotton plantations, and GMO corn for 92% of the global corn cultivation in 2018. These GMO crops are widely used as food products, feeds for animals, and other product development, especially in the chemical, textile, and pharmaceutical industries.

Major Drivers:

Rising consumers’ concerns regarding the safety of GM foods consumption

Some of the key concerns raised by consumers and research institutes are the safety issues associated with GMO products for human consumption. As per some analysts’ claims, the consumption of GM foods might have adverse impacts on health as these foods can transfer high antibiotic resistance, allergenicity, and toxicity, which would lead to some serious health conditions. The increasing events of food fraudulent activities such as massive substitutions of non-GM with GM ingredients, forged labeling, and false or misleading claims from food producers and distributors boost the demand for food authenticity testing. Moreover, the rising consumer awareness for healthy and nutritional products further pushes the expansion of GMO testing services. 

Growing demand for products having GMO-free certificates

A "GMO-free" certificate is mainly issued by competitive or competent regulatory bodies after conducting a series of rigorous testing processes. The certificate is given to those products that are confirmed with the absence of GMO in the production but it does not guarantee the accidental presence of GM ingredients. Many major companies adopt food authenticity techniques as a key approach to have a competitive edge and differentiate their products from other rivalries. The growing demand for GMO-free certified products from the health-conscious population globally and increasing implementation of legislative bills such as GMO labeling law and robust regulatory compliance to strengthen the verification process of food products fuel the market growth. As per the EU legislation, any products containing at or above 0.9% GMO are to be labeled as “containing GMO”. As per new regulations by the Food Safety and Standards Authority of India (FSSAI) on November 15, 2021, all food products containing GEO ingredients of one percent (1%) or more shall be labeled with “Contains GMO/Ingredients derived from GMO”.

Existing Restraints:

Exclusive patent control of GMO seeds

The patent for the development of GMO seeds and its license for business operation worldwide is exclusively controlled by key biotechnology companies. The limited access from few commercial companies in the operation of GMO seeds is the result of patent control by biotechnology companies in the distribution of their engineered biotech seeds. It poses a major threat to farmer sovereignty globally and the call for banning GMO production acts as a key restraining factor that can hamper the market growth during the forecast period.  

Emerging Challenges:

Lack of uniform regulations and absence of strict implementation  

Despite several food safety laws and regulations globally, the strict implementation of these laws is lagging, especially in developing countries. The domestic agriculture regulations are not uniform across countries and the business operations of GMO products are subject to the existing trade relationship and negotiations between export and import countries. As a result, slow regulation enforcement is likely to delay the regular food verification or authenticity testing processes, which can hamper the market growth in the coming years.

Major Opportunities:

Expansion of biotech research and advancements in farming technology

With the increasing nutritional demand and the growing need for a sustainable food production system and sustainable agriculture practices, the investments in biotech research for GMO products have been intensified by several key players. The major food-producing companies have extensively conducted research to develop innovative and high-quality biotech seeds to increase nutritional content in their products and boost the disease resistance capacity of seeds. The increasing demand for various high-nutritious processed foods has further pushed the food manufacturing companies to obtain advanced GM crops. Moreover, the technological advancements in the farming practice and various government subsidies to farmers across developed and developing countries help in the production of GM crops to a large extent.  

Scope of the Report

The report on the global GMO testing services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Polymerase chain reaction segment to expand at a significant growth rate

Based on technology, the global GMO testing services market is divided into polymerase chain reaction, lateral flow devices, and ELISA tests.

The polymerase chain reaction segment accounted for more than 40% share of the global market in 2021 and is expected to continue its domination in the market during the forecast period. The polymerase chain reaction technology is considered to be the most effective testing technique available and has superior performance over protein-based analysis as it provides accurate and reliable results within a short time period. The PCR technique is a DNA-based analysis that can easily detect species by examining the presence of degenerated nucleic acids and also determining their gene sequences. Having superior features, DNA analysis is widely used to identify meat or fish species and also other GMO products including cheese. Moreover, multiple PCR tests can be conducted at the same time to detect DNA for various animals including cattle, hogs, goats, sheep, horses, and camels in a single run. Rising demand for high-efficacy of DNA analysis over protein analysis and technological advancements in PCR techniques are key factors driving the segment growth.

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Stacked segment has huge growth potential

In terms of traits, the market is segmented into herbicide tolerance, insect resistance, and stacked.

The stacked segment accounted for a key market share in 2021 and is projected to expand at a significant growth rate during the forecast period owing to the wide popularity of the stacked testing method for crops and foods. Gene stacking involves a hybrid process of combining two or more genes to produce a single plant having multiple traits. The stacked plant normally offers the expression of both herbicide tolerance and insect resistance genes due to the combination of two parent plants. Unlike mono-trait crops, stacked crops are able to develop wider agronomic characteristics that offer high resistance against several farming conditions related to diseases, insect pests, and environmental hardships. Since these crops can be used for farming in extreme or irregular climate conditions, these stacking trait crops have the ability for high productivity. 

As per the estimation made by ISAAA, a sizeable 80.5 million hectares of arable land were used for biotech stacks crop farming, which accounted for nearly 42% of the biotech crops plantation worldwide in 2018. Moreover, as many as 89% and 80% of acres of land were employed for cotton and corn plantations respectively using stacked seeds in 2019, as estimated by the US Department of Agriculture. However, the high cost associated with the stacked trait testing acts as a key restraint for the segment growth.

Corn segment to account for a large market share

Based on crop types, the global GMO testing services market is categorized as rapeseed/canola, tomato, soy, potato, corn, and others.

The corn segment constituted a sizeable share in 2021 and is projected to account for a large market share in the coming years owing to the increasing consumer awareness regarding the health benefits of corn. The crop is rich in various nutritional values including a high content of fiber, minerals, proteins, carbohydrates, lipids, and a variety of vitamins such as vitamins A, B, E, and K. GMO-derived corn is widely consumed as a cereal grain and used as a key item for various meals including breakfast, instant foods, bakery, and snacks while it is majorly used as cattle feed for animals. Moreover, the annual production of corn globally remains high as the farming of the crop is suitable for various climate environments.      

The rapeseed/canola segment is a fast-growing crop type and is likely to expand at a significant growth rate during the forecast period owing to the rising demand for canola oil and plant-based nutritious oil globally. GMO canola produces omega-3 fatty acids, which are not naturally present in canola seeds, and the oil extracted from the seed is considered to be highly healthy. Canola oil is primarily derived from the seeds of the plant called “rapeseed” which is known for its ability to resist herbicide and other seed diseases. The oil is widely used in various food applications including salad dressings, processed cheese, and non-dairy products such as chips, cookies, and pastries. Canada is a major producer of oilseed and exports over 70% of its overall production to the US each year.   

Meat & meat products segment to register a considerable CAGR

On the basis of food types, the market is segregated into infant food, meat & meat products, bakery & confectionery, food additives, breakfast cereals & snacks, and others.

The meat & meat products segment accounted for a key market share in 2021 and is projected to register a considerable CAGR during the forecast period owing to the rising demand for processed meat products and increasing rate of meat consumption, especially in Europe and North America. The segment growth is further attributed to the increasing approval from government organizations and agencies toward numerous animal experiments to determine toxicity levels and antibiotic resistance transfer in meats. As per the article published in February 2022, by the US Food & Drug Administration (FDA), over 95% of the animals reared in the animal husbandry sector are fed GMO crops in the US. The wide adoption of GMO testing for meat & meat products including sausages, bacon, ham, salami, meatloaf, cutlet-mix, corn beef, and chicken-n-ham.

The breakfast cereals & snacks segment held a key market share in 2021 and is anticipated to account for a considerable market share during the projected period owing to the wide consumption of cereals for various breakfast items. A variety of breakfast cereals, which are labeled natural have ingredients from GM crops including canola, soybeans, sugar beets, and corn. Most of the breakfast cereals available in the US are made from corn and sugar beets, which are the products of bioengineered crops.

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North America to dominate the market

In terms of regions, the global GMO testing services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America held a major market share in 2021 and is expected to register a CAGR of 7.3% during the forecast period owing to the growing demand for nutritional and healthy free-from foods among a large pool of health-conscious population in the region. North America is currently one of the largest producers of GM crops and the strict adoption of GMO labeling foods by manufacturers, to meet the demand from importing countries further boosts the regional market growth. Moreover, the presence of key global players in the region and the rise of independent agencies regulating the business operation of free-from foods are key factors driving the regional market.

Within the region, the US is dominating the market due to the large consumers’ spending on high nutritional foods and high consumption of diverse processed foods including meat & meat products, impacted by increasing consumer awareness regarding healthy food products. In the US, the FDA normally conducts a series of tests to ensure the available GM foods are safe for human and animal health. As per the ISAAA’s report, the US remained the largest producer of biotech crops worldwide, having employed nearly 71.5 million hectares of land, and Brazil, trailing the US, farmers employed about 52.8 million hectares of land for biotech farming in 2019. As reported by Reuters in July 2022, a key global importer of wheat, Brazil tested a variety of drought-resistant GMO wheat with a view to becoming a self-sustainable country for staple food crops.

The market size in Europe is anticipated to expand significantly during the projected period owing to the strict governments’ regulations for GM food safety testing, impacted by the rising consumers’ concerns regarding the safety of GM foods. Complying with European Union (EU) regulations, the testing is widely approved across several major economies of Europe including the UK, Spain, Germany, and France to ensure GM foods are safe for consumption and contain the required nutritional levels as per the standards set by regional food regulatory authorities. Furthermore, increasing demand for non-GMO and free-from foods, which are available in sweets and appetizers by a large section of the health-conscious population in the region further fuel the market growth in Europe.

Segments

The global GMO testing services market has been segmented on the basis of

Technology

• Polymerase Chain Reaction
• Lateral Flow Devices
• ELISA Test

Traits

• Herbicide Tolerance
• Insect Resistance
• Stacked

Crop Types

• Rapeseed/Canola
• Tomato
• Soy
• Potato
• Corn
• Others

Food Types

• Infant Food
• Meat & Meat Products
• Bakery & Confectionery
• Food Additives
• Breakfast Cereals & Snacks
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Intertek Group Plc.
• Monsanto (Bayer AG)
• EnviroLogix
• Thermo Fisher Scientific Inc.
• Bio-Rad Laboratories, Inc.
• Mérieux NutriSciences Corporation
• Bureau Veritas SA
• SGS SA
• ALS Limited
• Eurofins Scientific SE
• TÜV SÜD AG
• Microbac Laboratories, Inc.
• Genetic ID NA, Inc.
• OMIC USA Inc.
• EMSL Analytical Inc.

Competitive Landscape

Key players competing in the global GMO testing services market are Intertek Group Plc.; Monsanto (Bayer AG); EnviroLogix; Thermo Fisher Scientific Inc.; Bio-Rad Laboratories, Inc.; Mérieux NutriSciences Corporation; Bureau Veritas SA; SGS SA; ALS Limited; Eurofins Scientific SE; TÜV SÜD AG; Microbac Laboratories, Inc.; Genetic ID NA, Inc.; OMIC USA Inc.; and EMSL Analytical Inc. Some of these major companies operating in the market have adopted a series of business development strategies including mergers and acquisitions, entering into partnerships and collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.

With the presence of several key players, the global GMO testing market is fragmented, and global market leading players such as Monsanto, SGS SA, Microbac Laboratories, and Intertek Group Plc. are looking for the development of innovative services and enhancing their global presence. Some of these major companies are expanding their operations in countries such as the US and the UK as these countries have strict regulations regarding food testing techniques and food producers are in strict regulatory compliance.

• In May 2022, the Purdue University Ag-Celerator program invested USD 100,000 into agritech startup, NanoBio Designs LLC, which developed a genetic detection system for verifying GMO seeds from grain distributors and seed suppliers.
• In April 2022, a US-based GMO testing solutions provider and a global market leader, EnviroLogix conducted a sensitive test for GMO corn, Enogen Corn, which is widely used in the ethanol and cattle feed manufacturing industries. Refiners of North Dakota aimed at securing up to 16 million bushels of corn, which represents nearly 4% of the total corn production of the state.
• In 2020, the US Federal Court banned the use of Monsanto’s toxic pesticide, dicamba, and put a halt to several GMO crops using that pesticide as it transferred several toxic elements into other neighboring farming fields.