The global alfalfa market is expected to record a steady CAGR of 5.2% during the forecast period (2018 – 2023). North America holds the largest market share of nearly 30% and it is expected to retain its position throughout the forecast period. However, Asia-Pacific is likely to witness the fastest growth during the forecast period. The US dominates a large portion of the alfalfa exports market and is the second largest exporter after Spain. The dairy product prices have been declining for the last two years, thereby, reducing the market for use of alfalfa in the dairy segment. On the other hand, the demand for alfalfa has surged from the Middle East and Asia, which has resulted in a rise in the export of alfalfa.
Drought Affects the US Alfalfa Production
The US is one of the largest producers of alfalfa and alfalfa hay. In 2016, the production was largely affected by drought and cold, with the production going down by 1% in the country. California, one of the largest producers of alfalfa in the country, experienced an 8.5% decline in the production owing to severe drought conditions. The Californian production of alfalfa is also expected to be affected by the regulations on groundwater in the state, which will lead to a decline in alfalfa production, owing to the water requirements of the forage crop.
New Crop Varieties Driving the Market
New varieties, like low-lignin alfalfa, are expected to increase the popularity of alfalfa among the growers as it is expected to give higher quality forage with the same amount of harvest. S&W seeds, one of the leading seed companies, introduced 45 new varieties of alfalfa seeds developed for multiple pest resistance, forage quality, and yield. The company aims to capture a larger market through this development and it also aims to become the go-to provider for alfalfa seed.
Reasons to Purchase this Report
- Identify the dominating and the fastest growing regions in the global alfalfa market and their growth trends during the forecast period
- The report outlines drives, restraints, and trends that are currently affecting the market
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
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