GM Soybean Seed Production in the US Industry Market Research Report Now Available from IBISWorld
Demand from biofuel, regulations and rising exports will support GM soybean seed production growth in the next five years. For these reasons, industry research firm IBISWorld has added a report on the GM Soybean Seed Production industry to its growing industry report collection.
Los Angeles, California (PRWEB) September 19, 2013
The Genetically Modified (GM) Soybean Seed Production industry has grown tremendously during the five years to 2013, with revenue expected to increase an average 9.4% per year. “Regulations that support environmental preservation and US energy independence have underpinned demand for biofuel,” according to IBISWorld industry analyst Nikoleta Panteva. Following corn, soybeans are the largest domestic crop used in organically derived fuel. As such, the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 have created a rush of downstream demand. From 2008 to 2013, demand from the Organic Chemical Manufacturing industry (IBISWorld report 32519) has grown at an annualized rate of 2.4% during the five-year period.
However, just as regulations have boosted GM Soybean Seed Production industry performance, they have stifled growth as well. “Consumer distaste for genetically engineered crops has put several measures on the ballot, making it more difficult for GM seed companies to expand their operations,” says Panteva. On the back of weak demand from food processors, industry revenue is expected to be subdued in 2013, growing an anemic 0.8% to $1.6 billion.
During the past five years, imports have also threatened the industry. As the value of the dollar has grown, imports have become relatively inexpensive domestically. As a result, the value of imports are expected to have grown at an average annual rate of 13.3% to $200.0 million. Meanwhile, export markets have dried up as US soybean seeds have become comparatively expensive on the international market; exports have fallen at an estimated annualized rate of 5.6% to $24.1 million.
The GM Soybean Seed Production industry has a high level of market share concentration. Concentration is not expected to change significantly during the next five years. Due to their size and desire to hold a larger share of the market, DuPont and Monsanto will likely acquire smaller companies to expand operations and geographic presence just as they had in the past five years. Garst Seed Co. is another major player in this industry.
The GM Soybean Seed Production industry is forecast to continue on its upward path, growing during the five years to 2018. Demand from biofuel producers will continue to drive revenue growth as renewable fuel standards grow. Moreover, demand from developing economies will also support export growth. Still, consumers' demand for organic food will continue to stifle the industry's opportunities, resulting in slightly subdued growth during the outlook period.
For more information, visit IBISWorld’s GM Soybean Seed Production in the US industry report page.
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IBISWorld industry Report Key Topics
Establishments in this industry manufacture genetically modified (GM) seeds and supply them to farming industries, ranging from corn growers to horticultural producers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/9/prweb11139420.htm