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The global animal agriculture industry is under immense pressure to meet the rising demand for meat and dairy products while coping with climate change and sustainability challenges. Animal genetics plays a pivotal role in improving livestock productivity, efficiency, disease resistance and welfare. Genetic selection and testing helps breed high quality chickens, pigs and cattle that provide higher yields of meat, milk and fibers in an environmentally sustainable way.
The Animal Genetics Market is estimated to be valued at US$ 6.6 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030.
Animal genetics products include semen, oocytes and embryos, genetically engineered animals, genotyping services and others. These products help in animal breeding improvement programs aimed at increasing production performance, enhancing feed efficiency, and improving product quality. It also helps identify disease resistant traits and reduces calf and piglet mortality rates.
Key Takeaways
Key players operating in the Animal Genetics are BS Global (US), Groupe Grimaud (France), Zoetis (US), Hendrix Genetics (Netherlands), Topigs Norsvin (Netherlands), CRV Holding (Netherlands), and Neogen (US). The global meat consumption is projected to grow significantly in developing nations of Asia Pacific and Africa due to rising incomes, western influence, and rapid urbanization. Increasing pork consumption in China is a major driver of animal genetics market growth. Major animal genetics companies are actively expanding in key markets like Brazil, China and Southeast Asia to tap the rising demand.
Growing demand in the livestock industry for high performance animal genetics is creating significant opportunities for animal genetics companies globally. Genetic evaluations and genomic testing allows for accelerated genetic improvement in livestock. Advancements in genotyping and DNA sequencing technologies is further fueling the adoption of animal genetics products and services. Increased focus on sustainable intensification of agriculture also presents opportunities for growth of the animal genetics market during the forecast period.
The animal genetics market is experiencing immense consolidation with biggest players focusing on increasing their production capacity and product portfolio through acquisition strategies. For example, in 2022, Zoetis acquired animal genetics company “VetCor” for $192 million to strengthen its business in Brazil and Canada. The shift towards genomics-based precision livestock breeding from conventional animal breeding techniques is one of the major trends being witnessed in the animal genetics market currently. Genomic selection paired with reproductive technologies enables more rapid genetic improvement and offers custom breeding programs for farmers and breeders.
Porter’s Analysis
Threat of new entrants: Low barrier due to high initial capital requirements for developing new breeds and stringent regulations.
Bargaining power of buyers: Moderate due to availability of alternatives and concentration of few large buyers.
Bargaining power of suppliers: High dependence of breeders on genetics companies and suppliers of feed, semen and embryos have some control over pricing.
Threat of new substitutes: Low threat as animal breeding has few substitutes and switching costs for farmers are high once established with particular breeds.
Competitive rivalry: Intense competition among major players to gain market share through new product development, collaborations and mergers & acquisitions.
The largest geographical region for the animal genetics market in terms of value currently is North America, accounting for over 30% share of global revenues. Established cattle farming industry as well as prominent presence of key players are driving higher adoption of advanced animal genetics products in the region.
The Asia Pacific region is expected to witness the fastest CAGR during the forecast period on account of increasing population, rising meat consumption and growing dairy demand from China and India. rise of organized agriculture and awareness about benefits of advanced genetics are encouraging greater usage of high quality animal breeding services in Asian markets. Countries like India, China, Australia and New Zealand are likely to be at forefront of APAC market for animal genetics.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
