The animal genetics market involves breeding techniques and genetic fingerprinting to optimize livestock quality and productivity. Demand for animal genetics is increasing as it allows for the selection of desirable traits in livestock like high milk yield in cows, more meat production capability in animals, and disease resistance. Genetic technologies aid in maximizing farm output through higher fertility rates, faster growth rates, and greater feed efficiency.
The global animal genetics market is estimated to be valued at US$ 6.6 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
One of the major opportunities driving the animal genetics market is boosting livestock productivity through genetic selection. With rising global population and increasing demand for food, there is a need to optimize animal production from the limited land and feed resources available. Genetic selection can help breed agriculturally important traits in livestock and enhance their yield potential. For example, selecting dairy cows for higher milk production through genetic evaluation improves farm income. Similarly, developing animal breeds with better meat yield traits supports sustainable meat production. Overall, animal genetics provides a viable solution to address the challenge of feeding a burgeoning global population through increased agricultural productivity from livestock. This presents lucrative growth prospects for companies operating in this market.
Porter’s Analysis
Threat of new entrants: The animal genetics market requires significant R&D investments and capital requirements for establishing new production facilities and distribution networks. These high entry barriers protect the industry from new players.
Bargaining power of buyers: Individual buyers have low bargaining power compared to larger buying organizations such as cooperatives and international meat processing companies. However, buyers can influence the overall market by demanding higher quality or lower prices.
Bargaining power of suppliers: A few dominant global suppliers control the supply of advanced breeding technologies, genetics traits and services. This gives them significant bargaining power over animal breeders and meat producers.
Threat of new substitutes: There are limited substitutes for animal genetics as animal breeding is critical for agriculture and food production. Alternatives like cultivated meat are still in early stages.
Competitive rivalry: The market is highly competitive with the top players competing on the basis of technological advancements, pricing, service quality and larger product portfolios.
SWOT Analysis
Strengths: Growing demand for meat, dairy and eggs drives the need for high performance livestock. Advanced technologies improve animal welfare and product quality.
Weaknesses: High R&D costs pose barriers for smaller players. Regulatory compliance related to genetic modification is complex.
Opportunities: Emerging nations offer strong growth potential. Personalized nutrition leads to customized animal breeding. Advances in genomics and precision breeding widen market opportunities.
Threats: Threats related to disease outbreaks and environmental concerns affect industry outlook. Regulatory hurdles delay commercialization of new technologies.
Key Takeaways
The global Animal Genetics market is expected to witness high growth over the forecast period of 2023 to 2030 supported by rising meat consumption worldwide. The market size is projected to reach over US$ 10 Bn by 2030 from US$ 6.6 Bn in 2024, registering a CAGR of 7.4%.
Regional analysis indicates North America and Europe currently hold the largest shares in the global animal genetics market. However, Asia Pacific is expected to be the fastest growing regional market attributed to rising livestock production to meet meat demand in China and India.
Key players operating in the animal genetics market are Zoetis, Hendix Genetics, Topigs Norsvin, CRV Holding, Neogen and others. These companies are focusing on development of advanced genetic technologies like gene editing, genomics, and reproductive techniques to cater to evolving demand from livestock producers. Genetic test kit manufacturers and DNA services providers are also expanding their portfolios to tap new opportunities.
