US bioeconomy in food, agriculture, and manufacturing could reach $416B by 2030
The U.S. bioeconomy in food, agriculture, and manufacturing could reach an economic potential of more than $400 billion by 2030, nearly double its current direct economic impact, according to a new report from the Biotechnology Innovation Organization (BIO) and consulting firm Kearney.
BIO and Kearney contend their “groundbreaking” report is the first quantification of the impact of the food, agriculture, and manufacturing biotechnology sector on the U.S. economy.
“The base case estimate for 2025 current value of food, agriculture, and manufacturing biotech in the U.S. is $237B,” the report states. “The low case estimate for 2030 value of food, agriculture, and manufacturing biotech in the U.S is $295B, and the high case estimate is $416B.”
Currently, the U.S. bioeconomy contributes approximately $210 billion in direct economic impact (excluding healthcare), with indirect benefits pushing the total impact beyond $830 billion while supporting 430,000 jobs across various industries, the report finds.
By 2030, biobased products could generate up to $291 billion in economic impact, while plant and animal biotechnology is projected to contribute $56 billion to the U.S. economy. The biotechnology animal segment, the use of biotech to improve animal health and produce medical therapies, is increasing at a 10% compound annual growth rate, according to the report.
“The power of biotechnology in food, agriculture, and manufacturing plays a pivotal role in fostering long-term economic growth and enhancing our national security,” John Crowley, CEO of BIO, said in a statement.
Sylvia Wulf, Interim Head of BIO’s Agriculture and Environment Center of Excellence, in a statement said the report’s findings “underline the urgency of public policies and investments that will unlock the bioeconomy’s full potential.”
With China aggressively pursuing a strategy to become the world’s leader in biotech, industry stakeholders have increasing called for the U.S. to invest in biomanufacturing to maintain its global dominance.
“The People’s Republic of China intends to win the age of biology and is making significant investments and shrewd policy decisions with the intent to outpace the United States,” the bipartisan National Security Commission on Emerging Biotechnology (NSCEB), created by Congress, warned in its interim report last year.
NSCEB, which will provide a final report to Congress in 2025, is examining whether existing or new governmental tools and incentives are needed to stimulate industry investment in infrastructure and biomanufacturing capacity.
The Information Technology & Innovation Foundation (ITIF), a nonprofit public policy think tank in Washington, D.C., argues that the U.S. “should support the passage of legislation similar to the CHIPS Act for the biopharmaceutical industry, including allocating at least $5 billion to states to provide incentives for the establishment of new biomedical production facilities.”
China has developed a comprehensive national strategy to bolster the innovation capabilities of its domestic biotechnology industry, according to ITIF, which noted that nine of the top 10 Chinese biotech companies have established overseas operations in more than 15 countries, including R&D centers and manufacturing sites.