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Global Micropropagation Market - Outlook and Forecast 2022-2027
The global micropropagation market is projected to reach a value of USD 2.8 billion by 2027, exhibiting a compound annual growth rate (CAGR) of over 10% during the forecast period. This growth is attributed to the increasing interest in homegrown production and the plant tissue culture market. Cultivators are establishing their own laboratories to independently grow plants, thus driving the demand for homegrown production and in-house labs. This, in turn, contributes to the expansion of the micropropagation market. Additionally, the horticulture and agriculture sectors are driving the demand for disease-free plants, and advancements in cell culture technology are further expected to propel market growth.
The popularity of medicinal plants in India, the United States, and other developed and developing countries has also contributed to the growth of the global micropropagation market. In recent years, there has been significant attention given to tetrahydrocannabinol (THC) and low THC varieties of cannabis for medical and food purposes.
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USD 1.5 billion in 2020
Crop Type, End-User, Sales Channel, Container Type, and Region
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Micropropagation is increasingly being utilized for plant vegetative propagation, involving the careful selection of plant tissue from mother plants grown under laboratory conditions to produce new plants. This technique offers lucrative opportunities for farmers and horticulturists to produce plant clones using cell culture technology. Apart from cloning plants, micropropagation is also employed for producing pathogen-free plants, in vitro culture, cryopreservation, and other applications. Vendors in the micropropagation market can produce and export various crops, including ornamental flowers, bananas, tomatoes, and corn. The market is witnessing exponential growth due to factors such as greenhouse horticulture, high demand for disease-free and hybrid plants, and increased production of tissue-cultured industrial and food crops.
Consumers prefer crops grown through micropropagation techniques, leading to increased production of high-quality planting materials. This rise in production, particularly of tissue-cultured industrial and food crops, is expected to drive the growth of the micropropagation market. Furthermore, farmers are benefiting from cultivating new crops on previously unused lands, thereby diversifying their income and promoting sustainability. The cultivation of industrial and food crops through micropropagation technology plays a crucial role in meeting this demand. The micropropagation market also sees growth in the cultivation of medicinal plants, particularly cannabis, which has medical, industrial, and nutritional applications.
The Covid-19 pandemic has had a significant impact on the agriculture industry, resulting in a global decline in the demand for ornamental plants. For example, in 2020, due to lockdown restrictions, over 400 million Dutch flower buds remained unsold. The horticultural sector has faced challenges such as market fragility, import-export crises, labor shortages, and reduced demand for flowers and food products. The pandemic has disrupted logistics and supply chains, leading to increased prices of fruits like oranges, avocados, and blueberries in Europe. Livestock production, horticulture, and planting and harvesting activities have also been disrupted. Closure of food processing research laboratories has hindered the culture of plants by micropropagation specialists. However, increased investments in research and development for advanced technology aim to ensure a secure food source for home garden plants and businesses.
The ornamental market is highly active and internationalized, with breeders, growers, and retailers. In Europe, most ornamental plants are produced outside the continent, primarily in Kenya, Ethiopia, and Israel, and then imported back into Europe. Germany dominates the European market for ornamental plants. Additionally, the use of cannabis for medicinal purposes is gaining importance in the market for micropropagation of hemp tissue culture. Therefore, the development of medicinal plants into crops is being encouraged across the European region.
The demand for organic fruits and vegetables, driven by the desire for healthier choices, has prompted many individuals to cultivate their own produce using micropropagation techniques. The establishment of a sterile culture area and greenhouse, in compliance with standard measures, can be easily set up at home. Hence, the growing interest in homegrown production and the plant tissue culture market is expected to drive the growth of the micropropagation market in the forecast period.
One significant challenge for the expansion of the tissue culture business is the high cost associated with micropropagation. Large-scale micropropagation requires substantial space to accommodate the hundreds of millions of plants produced in the laboratory. Consequently, factors such as the rapid increase in production and equipment costs are expected to hinder the growth of the micropropagation market during the forecast period.
The market is segmented based on various factors, including crop type, end-user, sales channel, container type, and region.
Segmentation by Crop Type:
Agriculture and Vegetables
Segmentation by End-Users:
Segmentation by Sales Channel
Segmentation by Container Type
Test Tube & Petri Dishes
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Netherlands
APAC – China, Japan, India, Thailand
Latin America – Brazil, Mexico
Middle East & Africa – South Africa, Saudi Arabia
The horticulture sector was the primary source of revenue in 2021, contributing to a substantial market share of 42.30%. This segment is projected to exhibit significant growth at a CAGR of 11.04% throughout the forecast period. The expansion of sustainable agriculture practices and growing awareness of the medicinal properties of plants are key factors propelling market growth.
In 2021, the micropropagation technique emerged as the dominant method employed by farmers for crop cultivation, a trend expected to persist in the foreseeable future. Micropropagation has gained widespread popularity in the agricultural industry, driven by the need to address food scarcity challenges in developing economies with limited arable land and rapidly increasing populations. This factor has significantly contributed to market expansion.
Europe stood as the prominent geographical segment in the global micropropagation market in 2021, capturing a significant revenue share of 37.91%. Meanwhile, the Asia-Pacific (APAC) region held the second-largest market share in 2021, accounting for 30.39% of the revenue. APAC is anticipated to grow at a CAGR of 8.99% during the forecast period. The region’s growth is attributed to advancements in greenhouse horticulture techniques and the accelerated development of indoor farming facilities across various countries, bolstering industry growth.
Prominent industry participants in the market comprise RIVERS BIOTECH, AGRIFOREST BIO-TECHNOLOGIES, BOOMS PHARMA, AGRISTARTS, and others. The market is characterized by fierce competition among vendors. Key players are presently placing considerable emphasis on the adoption of disease-free plants, driven by the growing traction towards sustainable farming practices. To address this trend, industry participants are widely implementing micropropagation techniques across various product portfolios. This approach is favored due to the escalating use of pesticides in agriculture.
Key companies profiled in this report include Rivers Biotech, AgriForest Bio-Technolgies, Booms Pharm, Agristarts, Caisson Labs, Dark Heart Industries, PlantMedia, Segra International, Phytocultures, Tissue Grown Corporation, Knight Hollow Nursery, Phytoclone, Lifeasible, Deroose Plants.
Recent Industry Developments
In the year 2021, Dark Heart Industry made an announcement regarding the establishment of its research and development facility in Davis, California. This strategic move aims to provide customers with technologically advanced products and enhanced features through science-based solutions and innovations.
Furthermore, in 2020, Dark Heart expanded its operations by introducing a production and research facility spanning an impressive 70,000 square feet in Half Moon Bay, California. This expansion was undertaken to increase plant production, with an annual capacity of approximately 1 million plants.
Additionally, in 2021, Agriforest secured funding from the Canada-BC Agri innovation program. The funding is aimed at supporting Agriforest’s efforts in producing disease-free hazelnut plants, further contributing to advancements in the agricultural sector.
Key Questions Answered
WHAT IS THE PROJECTED SIZE OF THE GLOBAL MICROPROPAGATION MARKET BY 2027?
The projected size of the global micropropagation market is USD 2.8 billion by 2027.
WHO ARE THE LEADING VENDORS IN THE MICROPROPAGATION MARKET?
The leading vendors in the micropropagation market include Rivers Biotech, AgriForest Bio-Technologies, Booms Pharm, Agristarts, Caisson Labs, and Dark Heart Industries.
What ARE THE PRIMARY DRIVERS OF GROWTH IN THE MICROPROPAGATION MARKET?
The primary drivers of growth in the micropropagation market are the increasing demand for homegrown production and laboratories, advancements in technology within the micropropagation industry, and the availability of low-cost options for tissue culture technology.
WHICH REGION WILL HOLD THE LARGEST MARKET SHARE BY 2027?
By 2027, Europe is anticipated to hold the largest market share in the micropropagation industry.