(Report producer/analyst: Guohai Securities, Yang Renwen, Li Yonglei, Chen Yun)
The era of the bioeconomy is here
Three biotechnology revolutions, leading the subversive changes in the science and technology industry
The first biotechnological revolution was marked by the discovery of the DNA double helix structure by Watson and Crick, and biological research entered the molecular age.
The second biotechnology revolution was marked by the completion of the Human Genome Project, and the exploration of genomics began.
The third biotechnological revolution is marked by the targeted design, modification and even resynthesis of organisms, creating artificial life systems that give them transcendent natural functions, which has great potential and application prospects in all aspects of social production and life.
The era of the bioeconomy is here
Human society has experienced the replacement from hunting and gathering economy, agricultural economy, industrial economy to information economy, and is currently in the mature stage of information economy and the growth stage of bioeconomy.
Marked by the discovery of the DNA double helix structure and the deciphering of the human genome, the development of bioeconomy has passed the gestation stage. It is expected that in the near future, marked by the widespread and cheap application of bio-based products and services, including health care, human economy and society will enter the era of real bioeconomy.
Biotechnology encompasses all areas related to human beings and social development
With the development of computing, data analysis, machine learning, artificial intelligence and bioengineering, biotechnology has continued to advance, making a series of important advances and major breakthroughs, accelerating the evolution into application fields.
At present, biotechnology has covered various fields related to human beings and social development, such as medicine and health, agriculture, food, energy, environment, manufacturing, national security, etc.
Multiple factors promote the rapid development of the industry, and the space for biotechnology is huge
Driven by multiple factors such as environmental, technological, economic, policy and investment, the bioeconomy industry has developed rapidly.
According to the "14th Five-Year Plan" for the development of the bioeconomy issued by the National Development and Reform Commission, the total scale of the bioeconomy during the "14th Five-Year Plan" period has reached a new level. The director of the Center for Innovation-driven Development of the National Development and Reform Commission explained that by 2025, the total amount of the mainland's biological economy is expected to reach 22 trillion yuan, of which the total number of core industries exceeds 7.5 trillion yuan.
Tackling domestic substitution, paying attention to the golden track "water seller"
Biotechnology has spawned the underlying life science tools market
The bottom layer of genetic engineering, cell engineering, microbial engineering and so on is the modification and screening of cells, enzymes, viruses and other organisms, and all need to use the underlying general tools.
In the future, the trillion-dollar emerging market driven by biotechnology will generate a huge demand for underlying life science tools.
Focus on domestic substitution of life science tools
As the underlying support of the biotechnology industry, life science tools are similar to the basic position of chip technology in the semiconductor industry. According to the Huajing Industry Research Institute, mainland scientific research reagents and experimental consumables have long been dominated by foreign leaders, and the localization rate is only about 10 percent.
However, through the continuous efforts of mainland enterprises, local life science tools are gradually growing, and have gradually got rid of the state of complete dependence on imports, especially after the baptism of new crown testing in 2020, and have shown a good trend of overtaking in corners on some tracks.
Scientific research reagents are the cornerstone of the development of new technologies
Scientific research reagents are the support for scientific research and the development of new technologies, showing the characteristics of many varieties, small unit dosage, wide range, high technical content, fast update speed, and strict quality standards.
With the rapid development of science and technology, traditional chemical reagents can no longer meet the needs of scientific research, and many new reagent categories have been produced, such as chemical reagents such as chromatographic grade, electronic grade, standard materials and biological reagents such as recombinant proteins and antibodies.
A wide variety of types, complex and diverse production technologies and high brand recognition constitute high barriers to the scientific research reagent industry.
The technology of the mainland reagent industry is relatively backward
The scientific research reagent market can be divided into chemical reagents and biological reagents according to different natures, among which chemical reagents can be divided into general reagents and high-end reagents. The dosage of general reagents is large, the price is low, and the difficulty of obtaining is small, and there are many varieties of high-end reagents, small dosage, high quality, expensive price, and difficult to obtain.
The mainland reagent industry started late, and there is a certain gap between production technology, application technology and production process and foreign countries. According to the "Research on the Development Strategy of Mainland Scientific Research Reagent Industry" (Zhou Peicai et al., November 2022), at present, the global reagent varieties have reached 200,000, and about 50,000 reagent varieties are regularly in circulation; There are more than 20,000 kinds of reagents commonly used in the mainland, but there are less than 7,000 kinds of reagents that can be independently developed and produced in China, and most of them are low-end products, and there is a serious shortage of high-end scientific research reagent products.
High-end chemical and biological reagents have almost entered the era of giant monopoly
At present, the global scientific service industry has formed a competitive landscape dominated by well-known enterprises such as industry giants Thermo Fisher Scientific, Danaher, Merck and so on.
The giants have strong advantages in brand reputation, product quality and other aspects, with hundreds of thousands of products, spanning the fields of scientific research reagents, experimental consumables and instruments and equipment, with an annual income of more than 10 billion US dollars, almost monopolizing the entire market.
The mainland reagent industry is dominated by small and medium-sized enterprises, which can only focus on the production of a certain type of product in scientific research reagents, lacking one-stop integration capabilities, and the profit margin is extremely limited.
According to "Current Situation, Problems and Countermeasures of Domestic Experimental Reagent Supply Chain" (Liu Hailong et al., November 2018), the mainland's high-end scientific research reagent products, including high-end chemical tests and biological reagents, are basically monopolized by foreign giants, accounting for 90% of the mainland market share.
The mainland scientific research reagent industry is in a period of rapid growth
According to Wise guy, the global laboratory reagent market size is expected to grow from $18.3 billion in 2017 to $29.8 billion by 2025, at a CAGR of 6.3%.
The mainland has entered a critical period of innovation-driven development, and R&D investment has continued to increase, with a compound growth rate of 11.9% from 2017 to 2022, according to the National Bureau of Statistics.
With the support of massive investment, in the next 3~5 years, it is expected that the growth rate of scientific research reagents in mainland China will remain above 10%. According to Frost & Sullivan's statistical forecast, in 2022, the market size of the mainland only biological reagent scientific research field has reached 21.7 billion yuan, and will grow at a compound growth rate of 16.4% to 39.8 billion yuan in 2026.
Experimental consumables are currently dominated by disposable plastic consumables
There are many types of laboratory consumables, including plastic, glass, rubber, metal, etc., among which disposable plastic consumables are currently the most widely used because of the variety of raw materials and low price, easy to use once, easy to surface modification and other advantages.
From the downstream classification, cell culture consumables, molecular biology experimental consumables and microbiology experimental consumables have more demanding performance requirements, such as light transmittance, cleanliness, precision, etc., and at the same time, different applications need to meet different needs, such as surface superhydrophobicity, superhydrophilic, temperature-sensitive reversible superhydrophilic, etc., with high technical content, belongs to high-value products in consumables.
The modification and processing of polymer materials is the core technology
Disposable plastic laboratory consumables are mainly made of polymer materials, and the modification technology and processing technology of polymer materials are the key technologies of the industry. Modification technology can make it have some specific performance in different application scenarios; The precision of processing technology, such as injection molding and extrusion molding technology, determines the product quality and production efficiency of the production process.
From the trend point of view, early glass material was the main raw material for experimental consumables due to the characteristics of smoothness, easy disinfection, and stable physical and chemical properties, and then gradually replaced by disposable plastic consumables due to the development of technology and the improvement of everyone's awareness of infectious diseases. With the expansion of application scenarios and the improvement of the requirements for the physical and chemical properties and biological properties of corresponding products, ordinary high-molecular materials will gradually shift to medical-grade polymer materials, biodegradable materials and other materials with higher biosafety standards in the future.
By the end of 2020, more than 90% of the mainland disposable experimental consumables market was monopolized by foreign countries
Life science research and related biological experiment consumables industry in developed countries in Europe and the United States has a history of more than 100 years, and the consumables products are precise and mature in production technology, and have long-term brand advantages. The mainland disposable plastic biological laboratory consumables market started late compared with European and American countries, and is basically monopolized by imported products.
International leading enterprises, such as Thermo Fisher Scientific, Epender, Avato, Corning, etc., have long dominated the market, and according to the prospectus of Kaishi Biologics, as of the end of 2020, imported brands still occupy more than 90% of the market share.
At present, domestic modified plastics can meet the needs of most low-end and some mid-end consumables, with the continuous improvement of domestic manufacturers' R & D and innovation capabilities, a small number of enterprises have reached the international advanced level of product quality, state-owned brands are expected to gradually achieve import substitution.
The Continental laboratory consumables market is growing rapidly
According to Frost & Sullivan, the global disposable plastic biolaboratory consumables market has grown steadily from a compound growth rate of 5.9% in 2016 to $12.51 billion in 2020. Driven by the commercialization of global medical devices and the optimization of the industrialization environment, it is expected to continue to grow at a growth rate of 7.0% from 2020 to 2025, reaching US$17.59 billion in 2025.
According to Frost & Sullivan, the market size of disposable plastic biological experimental consumables in mainland China has grown rapidly from 5.70 billion yuan in 2016 to 10.97 billion yuan in 2020, with a compound growth rate of 17.8%. With the accelerated growth of biotechnology and scientific research investment, the demand for disposable plastic biological experimental consumables in mainland China will continue to expand in the future. It is expected to continue to grow at a compound growth rate of 20.1% to 27.46 billion yuan from 2020 to 2025.
Microsphere materials are summarized by Science and Technology Daily as one of the 35 neck technologies in the mainland
Microsphere materials are the key raw materials for biomedicine and in vitro diagnostic reagents, according to the "2022-2026 High-performance Microsphere Materials Industry In-depth Market Research and Investment Strategy Recommendation Report" released by the Xinsijie Industry Research Center, the global high-performance microsphere materials market size reached 21.036 billion yuan in 2021, and on the supply side, due to high technical barriers, the global TOP10 market share reached 82.7%, highly concentrated.
Magnetic beads are functional microspheres with higher technical requirements, which refer to small beads formed by wrapping iron and iron oxide nuclei with a certain tissue, which can be adsorbed by magnets and adsorbed (bind) to the target substance through the surface coating. Magnetic beads can not only find a needle in a haystack for trace substances (such as DNA) in highly diluted trace samples, but also meet the increasingly high automation process, which can be widely used in cell isolation, immunoanalysis, enzyme immobilization, magnetron detection, targeted drugs, gene therapy and other fields.
Chromatographic packing is one of the core materials in the separation and purification process
Chromatography technology is currently one of the most effective means of separating complex components, and chromatographic packing materials are the core key of liquid chromatography technology, which plays a vital role in the results and efficiency of separation and purification.
According to "What Stuck Our Necks - Microspheres: The Lightness That National Industry Cannot Bear" (Science and Technology Daily, June 2018), in the production of monoclonal antibodies, the cost of downstream separation and purification accounts for more than 65% of the entire production cost.
According to Markets and Markets, the global market size of the chromatographic packing industry was $1.978 billion in 2018 and is expected to reach $2.993 billion in 2024.
Due to the high underlying technical barriers, the main market share and advanced technology have been monopolized by internationally renowned manufacturers for a long time.
Biotechnology drives the trillion-dollar market
Synthetic biology: the core technology of the biomanufacturing industry
Synthetic biology is an emerging interdisciplinary discipline that combines biology, chemical engineering, informatics, and computational science to replace traditional chemical manufacturing by redesigning and modifying enzymes, cells, or synthetic pathways into cell factories to mimic the reactions of matter within living organisms.
Synthetic biomanufacturing generally uses starch, cellulose, carbon dioxide and other renewable carbon resources as raw materials, processing and synthesizing chemicals, pharmaceuticals, food, bioenergy, and biomaterials.
It has the characteristics of clean, efficient and renewable, which can reduce the impact of the industrial economy on the ecological environment and help the low-carbon transformation of medicine, food, energy, materials, agriculture and other industries.
Synthetic biology has the advantages of low cost and low energy consumption
Biomanufacturing based on synthetic biology is an important way to achieve carbon neutrality and a major opportunity to break through the bottleneck of petrochemical raw materials. Synthetic biology manufacturing reduces energy consumption from three links: raw material end, production link and product extraction.
According to "Biomanufacturing Industry is the Key Development Direction of Bioeconomy", taking 1,3-propanediol as an example, compared with traditional chemical methods, the biological fermentation method can save 37% of costs, reduce CO2 emissions by 63%, and reduce energy consumption by about 30%.
The ecological coverage of synthetic biology industry is huge
The development and growth of synthetic biology itself benefits from the integration of a variety of technologies, from the perspective of the industrial chain, upstream organism design enterprises mainly provide underlying technology and application support, such as DNA sequencing/synthesis/storage, gene editing, protein design and catalysis, representative enterprises include Twist, Novozyme, Zymergen, etc.; The middle and downstream enterprises are responsible for the production and manufacturing of the application side, such as chemicals, medicine, food and other fields, and representative enterprises include Cathay Biotechnology, Huaheng Biotechnology, BioNTech, Jiabiyou and so on.
Synthetic biology has developed rapidly and the market space is broad
Synthetic biology and its applications continue to penetrate in various fields and create great economic value. According to BCC Research, the global synthetic biology market reached $5.320 billion in 2019 and is expected to reach $18.885 billion by 2024, with a CAGR of 28.8% from 2019 to 2024.
In terms of application fields, the medical and health field has led the commercialization of synthetic biology, and the market segments in the chemical, food, agriculture, and consumer goods fields have a high growth rate. The market size of the chemical sector is expected to grow from $1.110 billion in 2019 to $3.747 billion in 2024, with a CAGR of 27.5%.
Sub-regionally, the global synthetic biology market is dominated by North America and Europe, with global market shares of 58.5% and 23.6% respectively in 2019, and Asia-Pacific region accounted for 15.1% of the global market share in 2019.
Bio-based materials: a vast blue ocean that is about to set sail
Bio-based materials refer to materials that use biomass as raw materials or/or through biological manufacturing. According to the forecast of the mainland's "14th Five-Year Plan" bioeconomic development plan, 35% of petrochemical and coal chemical products can be replaced by biomanufactured products in the next ten years.
According to the strategy report "Bioeconomy Agenda for 2030" released by the Organisation for Global Economic Cooperation and Development, it is predicted that about 35% of the world's chemicals and other industrial products will come from biomanufacturing in 2030, of which 20% of petrochemicals (about US$800 billion) can be replaced by bio-based products, but the current substitution rate is still less than 5%, which is nearly US$600 billion higher than the market in 2020. Driven by the low-carbon economy, the trillion-yuan blue ocean market is poised to take off.
Platform compounds have high economic value
At present, the raw materials of bio-based materials are mainly lignin, cellulose, starch, polysaccharides and vegetable oils, which are converted into bio-based monomers by biosynthesis and other methods, and further processed to obtain bio-based material products.
Some important monomers, such as lactic acid, succinic acid (succinic acid), furfural, lysine, etc., have both product and raw material functions, also known as "platform compounds". Platform compounds can synthesize a series of products with market size and high added value, and have high economic value.
Global bio-based material production capacity has steadily increased
Driven by downstream demand, the global production capacity and diversity of bio-based materials have steadily increased. According to the Institute of Petroleum and Chemical Industry Planning, in 2020, the total global production capacity of bio-based materials reached 2.111 million tons/year, accounting for about 1% of the global plastic production capacity (about 370 million tons/year in 2020).
It is estimated that by 2025, the global production capacity of bio-based materials will reach 2.871 million tons/year, with a compound growth rate of 6.3% from 2020 to 2025. Among them, bio-based degradable materials will maintain a high growth rate, accounting for more than 58% of the global bio-based material production capacity (1.227 million tons/year) in 2020, and its proportion is expected to increase to 62.7% by 2025, with a compound growth rate of 8.0%.
The industry competition is sufficient, mainly the leader in the subdivision field
Globally, Asia is an important production center for bio-based materials. According to the "Countermeasures and Suggestions for the Development of Mainland Bio-based Materials Industry" (Wei Xun et al., April 2022), in 2020, the production capacity accounted for 46% of the global bio-based materials, followed by Europe and North America, accounting for 25% and 17% of the production capacity respectively.
The market competition in the bio-based materials industry is relatively full, and the competition pattern of enterprises is dominated by leaders in subdivided fields. BASF, Dow, DuPont and other chemical giants have long been committed to the research and development of bio-based materials, which has strongly promoted the commercialization of bio-based materials worldwide.
At present, mainland bio-based materials are still in their infancy, but with the help of policies, key enterprises such as Cathay Biotechnology, Huaheng Biotechnology, and Hisun Biomaterials have also emerged, most of which are leaders in subdivided fields.
The market size of bio-based materials is accelerating
With the promotion of policies and the continuous breakthrough of core technologies, the market scale of bio-based materials has accelerated. According to Markets and Markets, driven by China, India and India, the global bioplastics market will grow from 74.1 billion yuan in 2021 to 205.7 billion yuan in 2026, with a CAGR of 22.7%. According to data from Gongyan.com, in 2021, the market size of bio-based materials in mainland China will reach 19.92 billion yuan, with a year-on-year growth rate gradually increasing from 8.6% in 2018 to 16.2%.
According to the "Countermeasures and Suggestions for the Development of Mainland Bio-based Materials Industry" (Wei Xun et al., April 2022), from the perspective of downstream applications, bio-based materials are mainly used in the packaging field, accounting for 47% of the global demand for bio-based materials, followed by catering, textiles and agroforestry, accounting for 12%, 11% and 8% respectively.
Driven by policies, there is a vast space for bio-based materials
Current bio-based materials are mainly subject to higher selling prices
Compared with bio-based materials and traditional plastics, the performance of current major bio-based materials such as PLA is comparable to that of traditional plastics, and the increase in permeability is mainly subject to higher prices.
According to the average market transaction price data disclosed by the Degradable Plastics Special Committee in 2021, the market price of polylactic acid is 2.5-29,000 yuan / ton, while the market price of traditional plastics PE, PS and PP is 0.8-14,000 yuan / ton.
The use of non-grain raw materials and the improvement of process flow are the key development directions of the industry
The development of bio-based materials generally looks at policies in the short term, and costs in the long term, and the decline in costs mainly depends on technological progress: on the one hand, from the raw material end to get rid of the dependence on food biomass, the core is to use innovative means to process biomass raw materials other than food; On the other hand, improving the production process, pursuing high atomic economic reactions and low-energy efficient separation are the eternal goals of material synthesis.
Biofood: Artificial meat is changing the table
Artificial meat refers to meat that is artificially created rather than provided by breeding animals, which is not only energy-saving and environmentally friendly, but also solves the problem of food shortage that accompanies population growth.
Artificial meat is divided into plant-based artificial meat and cell-based artificial meat: plant-based artificial meat is the use of plant protein through the integration of fiber structure and flavor substances to simulate the taste of meat; Animal-based artificial meat is usually made by isolating stem cells or tissues from animals and proliferating them into primordial fibrous tissues that resemble muscles.
Mainland artificial meat is in the blue ocean stage, and the market is relatively fragmented
From a regional point of view, Europe, the United States and the Asia-Pacific region are the world's major artificial meat markets, according to Research and Markets, in 2020, Europe, Asia-Pacific and North America plant-based artificial meat market size accounted for 35%, 30% and 20% of the global proportions respectively. According to IRR statistics, in 2019, the top four companies in the global artificial meat market share are all American companies, accounting for about 69% of the global market share.
The mainland artificial meat market is still in the blue ocean stage, the competition pattern is relatively scattered, and the product technology can benchmark against the international advanced level only Shenzhen Zhouzero, Beijing Zhenrou and other start-up enterprises. Attracted by the huge market prospects, traditional food giants have also left, but they are still in the stage of cooperative research and development, and as the artificial meat market gradually matures, it may reshape the competitive landscape.
Artificial meat is in the industry introduction period
For artificial meat, technology is the core competitiveness, the current artificial meat technology can not simulate a variety of meat taste, in the sensory performance and nutritional value still need to be improved.
Especially for cell meat technology, the entire industry has not yet formed a mature and stable technical route, and for China, there is still a big gap between the process and Europe and the United States.
In addition, the current price of artificial meat is not enough to attract ordinary consumers, consumer habits are difficult to change in the short term, and there are gaps in industry supervision are also problems in the current artificial meat industry.
The global plant-based meat market is expected to exceed 100 billion yuan
The research and development of plant-based artificial meat is relatively fast, and it has entered the stage of commercial production, and at present, the price of some well-known brand plant-based meat products on the market is only slightly higher than that of traditional farmed meat. According to Markets and Markets, the global plant-based meat market reached US$16 billion in 2021 and is expected to reach US$27.9 billion by 2025, with a compound annual growth rate of 15%. According to Euromonitor, China's plant-based meat market will reach US$14.2 billion by 2025, more than half of the global market.
The cost of animal-based artificial meat has decreased nearly 100 times from hundreds of thousands of yuan per kilogram first cultivated abroad in 2013 to the current level of 1,000 yuan. However, there is still a distance from large-scale market promotion, and it is still in the laboratory stage.
Biomedical materials: Recycled materials have a lot to offer
The market for biomedical materials is vast
Biomedical materials, also known as biomaterials, are a new type of high-tech materials used to diagnose, treat, repair and replace human tissues, organs or enhance their functions, and are a deep integration of materials science, biotechnology and clinical medicine. Biomedical materials belong to the category of medical devices, and in 2020, the market size of biomedical materials in mainland China will be close to 500 billion yuan, accounting for about half of the medical device market. According to Roland Berger, the size of the mainland medical device market is expected to reach 958.2 billion yuan in 2022, with a compound growth rate of about 17.5% from 2015 to 2022, which has jumped to become the world's second largest market excluding the United States.
The global high-end market is an oligopoly
Due to high technical, qualification and financial barriers, the global high-end market for biomedical materials has formed an oligopoly situation. Large-scale companies with technological advantages, such as Johnson & Johnson, Medtronic, Simmer Holdings, Stryker, B. Braun Medical and other multinational companies occupy most of the global market.
The market scale of the mainland biomedical materials industry is growing rapidly, but most enterprises are still in the stage of small-scale development. According to the statistics of Chengdu Institute of Science and Technology Development Strategy, at present, 80%~90% of the biomedical material achievements in the mainland are still in the research and development stage, enterprises basically produce medium and low-end products, and 70% of high-end products rely on imports. However, with the continuous enhancement of research and development capabilities, some biomedical materials such as cardiovascular stents, occluders, bio-type dural patches, and bone wound repair devices have been imported.
Biomedical materials are evolving to regenerative biomaterials that promote tissue regeneration
The development of biomedical materials has evolved from simple inert supports in the early days to bioactive materials that can promote tissue regeneration. The early ability to promote tissue regeneration comes from the active substances added to the material rather than the material itself.
The third generation of biomedical materials combines the two independent concepts of bioactive materials and degradable materials, carries out molecular modification on its base, binds to cytointrins, induces cell proliferation, differentiation, and synthesis and assembly of extracellular matrix, thereby initiating the body's regeneration system.
Bio-agriculture: China is entering the era of molecular breeding
Plant molecular breeding refers to the breeding technology of introducing foreign genes into plants without sexual reproduction, inducing genetic variation, so as to select and breed excellent varieties with purposeful traits.
With the release and promotion of mainland transgenic engineering plants in the field, plant molecular breeding technology has become an important direction for the development of plant breeding.
Internationally, breeding is divided into four classic stages, and at present, some developed countries have gradually entered the breeding 4.0 era, while the mainland is still between the "2.0 era" and the "3.0 era" dominated by hybrid breeding and molecular technology-assisted selection.
In the future, with the relaxation of the supervision of gene editing and other technologies and the advancement of gene sequencing technology, the industrialization process of molecular breeding in mainland China will be further accelerated, further spawning the demand for underlying life science tools.
Biological breeding reduces costs and increases efficiency, opening up growth space
Industrial planting of biological breeding can significantly reduce the production cost of corn, wheat, soybean and other crops, increase the yield level and increase farmers' income. Taking the data from China and the United States as an example, the yield of corn and soybeans on the mainland in 2020 was less than 60% of that of the United States, and the gap continued to widen between 2010 and 2020.
According to the United Nations, as of November 15, 2022, the global population has reached the 8 billion mark. According to the Food and Agriculture Organization of the United Nations, it is expected that in 2025, the global population will reach 10 billion, and traditional breeding alone can no longer meet the growing population's demand for food, and the industrialization process of biological breeding is accelerating.
According to IHS Market, the global commercial seeds market grew 7.1% from 2020 to US$47.242 billion in 2021, of which total GM seed sales increased by 11.6% to approximately US$21.8 billion, accounting for 46% of the commercial seed market sales.
According to IDTechEx Research, the global biotech seed market is expected to grow significantly by 57% from $28.2 billion in 2020 to $44.3 billion in 2031.
The global seed industry is highly concentrated
Globally, the traditional seed industry has completed head integration through mergers and acquisitions, and according to the world, the top five companies monopolize more than half of the global market share. According to Syngenta Group China's research statistics, large multinational seed giants such as Bayer, Corteva and Syngenta Group invest at least 10% of their annual R&D turnover, and their leading edge continues to deepen.
Among them, Cortivar has 1/4 of the world's molecular breeding patents in the field of corn and has mastered more than 60% of germplasm resources. Bayer and Syngenta's transgenic breeding technology is a global leader and highly competitive.
At present, mainland breeding is dominated by scientific research institutions, and according to the "2022 White Paper on the Development of China's Agricultural Molecular Breeding Industry" released by Yiou Consulting, more than 90% of China's scientific research achievements have not been industrialized.
Under the model of mainly scientific research institutions, mainland seed enterprises are small in scale and scattered, and in 2021, the market share of the top five enterprises is only about 12%.
Risk Warning
Changes in industry policies beyond expectations: At present, the biotechnology industry is highly consistent with the development direction of the country, but if the industry policy changes significantly, it may adversely affect the downstream demand of the industry and the decision-making of enterprises in the industry.
New technology research and development is not as expected: Biotechnology is a multidisciplinary frontier technology, many technologies are still in the research and development stage, if the development of new technologies is not as expected, it may adversely affect its application.
Domestic substitution does not meet expectations: At present, many fields of biotechnology, such as underlying life science tools and biomedical materials, are still monopolized by foreign enterprises, and if domestic substitution is not as expected, it may be unfavorable to the sales of enterprises.
Changes in the international situation beyond expectations: If the international situation changes beyond expectations, it may adversely affect upstream supply, downstream demand and related technical support in biotechnology-related fields.
Downstream demand is less than expected: Many areas of biotechnology, such as bio-based materials, are replacement needs, and if the demand does not meet expectations, it may adversely affect the sales of enterprises.
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