Animal Genetics Market Report

The increasing focus on developing superior disease-resistant breeds will cushion the market's growth pace. Animal geneticists have discovered traits inside genes that benefit animals’ health, development and ability to consume nutrition. These genetic advancements increase productivity while reducing environmental effects. Over a billion people rely on livestock and animals for food and a living and livestock and animals account for about 40% of global agricultural production. As a result, researching animal genetics in order to find and develop disease-resistant breeds is crucial for the increasing population. Ruminant animals can emit 250 to 500 L of methane per day, according to the National Library of Medicine.

The Journal of Animal Breeding and Genetics claims genetic improvement is an essential strategy for accumulating selection response and may be used to reduce emissions. Another factor supporting market expansion during the forecast period is an increase in R&D activities by scientists in an attempt to generate better food and milk products from livestock animals through genetic modifications. According to a 2018 article by the British Nutrition Foundation, genetically modified cows were expected to produce milk free of allergy-causing protein, making the product suitable for lactose-intolerant people. According to the National Institute of Health, around 68 percent of the world's population suffers from lactose malabsorption. As a result, the modifications are expected to open up new opportunities for animal genetics in the future years.

The rise in per capita meat consumption is offset in part by a shift towards higher-quality products. This involves a shift towards laboratory-based or cultured meat. Consumer preferences and attitudes about meat consumption including its influence on health, animal welfare, the environment and global greenhouse gas (GHG) emissions may shift demand away from animal-based protein. This may have a long-term negative impact on the demand for animal-based protein, limiting the adoption of animal genetics. Excessive use of artificial insemination procedures to boost animal populations concerns creating genetically defective offspring, which will increase the animal’s mortality rate. The strict regulatory requirements of government and animal welfare authorities can limit market expansion. Tough government rules may hinder the animal genetics market through higher compliance expenses, reduced innovation speed, and obstacles for new entrants. Although necessary for maintaining ethical standards and animal safety, these rules can impede progress and pose difficulties for businesses trying to comply with intricate laws, hindering potential market expansion.

The porcine segment is expected to expand rapidly during the forecast period, owing to rising demand for porcine meat globally, notably in the United States and most European nations. This has led to an enormous growth in pork production, which is anticipated to favourably affect this market segment throughout the duration of the forecast period. In accordance with the United States Department of Agriculture (USDA), Livestock and Poultry: Global Markets and Trade, January 2022 report, total pork production in the United States in 2021 was 12,487 thousand Mt, up from 12,568 thousand Mt in 2020, and total pork exported from the United States was 3,175 thousand Mt in 2021, up from 3,215 thousand Mt in 2020. As a result, the strong global demand for pork fuels the demand for high-quality meat and the development of disease-resistant breeds. This will result in a greater use of genetic testing in porcine breeding to exploit human-interesting genetic traits. Therefore, it is anticipated that during the forecast period, this factor will fuel growth in the segment.

Partnerships in Animal Genetics Drive Research and Innovation

Cooperation and alliances within the animal genetics industry are essential for progressing research and development. Businesses often collaborate with research institutions, universities, and industry stakeholders in order to promote innovation and enhance genetic technologies. These partnerships facilitate the exchange of knowledge, assets, and information, speeding up the advancement of cutting-edge breeding methods and genetically elite livestock. For instance, in March of 2023, URUS Group and Genetics Australia teamed up, URUS will have a 60% stake in the JV, while Genetics Australia (GA) will own the remaining 40 %. It will be able to utilize all GENEX products and have access to the PEAK program. Additionally, in January 2023, Zoetis partnered with VAS to improve compatibility between VAS's PULSE platform and DairyComp by incorporating Zoetis's CLARIFIDE genetic and fertility testing. These strategic partnerships also help in gaining entry to new markets and improving the genetic programs' overall effectiveness, ultimately contributing to the expansion and progress of the animal genetics sector.

A significant proportion of the animal genetics market is in North America, owing to the region's high consumption of animal-derived proteins, increasing use of advanced genetic technology and increasing government initiatives. The improved breeding procedures to produce healthy, strong animals capable of using nutrients for effective development and reproduction are the primary drivers for the growth of the market in the region. Furthermore, the rising prevalence of infectious diseases in the animal population, particularly among poultry and porcine, is anticipated to boost demand for advanced biotechnology strategies for developing high-quality breeds. According to the Cattle report released by the US Department of Agriculture's National Agricultural Statistics Service on July 1, 2022, there were 98.8 Mn head of cattle and calves on American farms (NASS). Thus, the country's high cattle production is likely to enhance the market.