The BT cotton market is expected to grow at a CAGR of 4.91% from US$2.971 billion in 2025 to US$3.775 billion in 2030.
BT cotton is a genetically modified cotton prepared from the BT (Bacillus thuringiensis) gene, a soil-dwelling bacterium. Such cotton has a high production yield and exhibits excellent control over insecticides, thereby creating an eco-friendly environment. The ongoing shift towards hybrid cotton varieties, followed by investment in cotton farming, has established a new scope for BT cotton, leading to their production in major nations, namely the United States, China, India, and Australia, to name a few.
However, the costly nature of BT cotton seed, followed by constant pest monitoring and extensive genetics research, makes the whole process very extensive, which can act as an obstacle to its overall market expansion.
Hybrid cotton yields better productivity due to eliminating the emasculation process, further improving the seed layering. Major cotton-growing countries, namely India, China, and the United States, are investing in hybrid cotton to bolster their overall production and quality. According to the USDA’s “Cotton and Product Annual” released in April 2023, the Indian government approved 6 biotech social events and more than 300 hybrid cotton varieties for agro-climate zone cultivation. The same report also stated that since its introduction in 2002, the area under BT had reached 90-93%.
Countries like the United States and China are also implementing new technologies to bolster seasonal cotton production to minimize the growing imbalance between the market supply and demand. According to the U.S. Department of Agriculture, for 2024/2025, global cotton production is estimated to experience a 5% growth, with the total production volume reaching 119 million bales. Hence, the production volume for the United States is anticipated to rise by 4 million bales and reach 16 million bales, showcasing 33% growth.
The cultivation of conventional cotton requires constant pest management, which involves the use of pesticides such as diuron, glyphosate, and tribufos. These are human carcinogens, and when applied to cotton seeds, they have long-lasting effects, which can also be detected in cotton clothing. Such pesticides, besides contaminating the environment, also cause cancer and other neurological diseases.
BT cotton is genetically cultivated without making any extensive use of pesticides, which minimizes the overall damage to the environment. Furthermore, the cryo-protein produced by the BT keeps major pests, such as pink bollworms, away from the cotton plant, further reducing the level of pesticide usage during cotton production. Such high-performance benefits offered by BT cotton are expected to drive its preference over conventional cotton varieties, augmenting overall market expansion in the coming years.
The insecticidal protein used in the development of BT cotton offers certain benefits as it keeps major pests, such as pink bollworms and tobacco budworms, away from the cotton seed. Hence, to further their effect and understand the biologics of such cotton, various research institutes such as the Central Institute for Cotton Research, Indian Council of Agriculture Research, and the USDA are undertaking various research and development activities that drive the future market expansion of BT cotton. Likewise, research studies to study the effect of Cry1Ac protein on BT cotton and its role in pest resistance are also being implemented. Such research studies are expected to define the essence of BT cotton and its applicability in modern textiles, stimulating market expansion.
BT cotton, being a hybrid crop, requires necessary inputs, labor, and equipment. As the crop is seasonal, it further increases the level of risk to ensure appropriate productivity. Seeing the dynamic nature of the external factors, the price of BT cotton is experiencing an upward trajectory, which has increased the overall input cost.
For instance, according to the USDA’s “Cotton and Products Update June 2023”, the Indian government increased the BG-II version of Bacillus thuringiensis cotton hybrid prices by 17% in March 2023 under the “Cotton Seed Price (Control Order 2015”). This escalated the cost of the inputs, especially labor, resulting in a decline in yields.
Though cotton production accounts for major pesticide consumption in some nations, such as India, such cultivation is very sensitive to climate change. Hence, fluctuations in temperature, weather frequency, and moisture, especially during boll and flower development that are harvested for cotton fibers, can hamper the production scale. Furthermore, the diffusion of illegal BT hybrids that aren’t cleared for biosafety can further cause environmental toxicity risk.
The BT Cotton market, region-wise, is analyzed into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The latter is projected to account for a significant market share, fuelled by favorable investment in hybrid cotton production, followed by an ongoing shift towards new cotton varieties.
Major cotton-producing nations, namely India, account for nearly 23% of the global production and have witnessed a constant increase in BT cotton production since their first production began in 2002. The country is the sole nation globally that produces all four cotton varieties, including “G.Hirsutum”, which accounts for 90% of India’s hybrid cotton production.
North America is estimated to grow constantly, fuelled by the strategic collaboration undertaken by research institutes to study the impact of BT cotton on bollworm resistance and the implementation of new technologies for cotton production. Major regional economies, namely the United States, which is also among the pioneers in cotton production, are anticipated to grow positively during the given time frame.
Likewise, Europe is projected to show steady growth. At the same time, other regions, namely the Middle East, Africa, and South America, will have very minimal market share due to the extreme climatic conditions. This has deprived the countries situated in the region of the basic requirement that necessitates BT cotton production.
The BT Cotton market is segmented and analyzed as follows: