Grain Seed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The grain seed market is projected to register a CAGR of 6.4% during the forecast period (2020-2025). Asia-Pacific is the largest market for cereals and grains seeds and is expected to remain dominant during the forecast period.

• In developing markets, there has been a noticeable improvement in seed replacement rates over the past decade, especially in the case of cereal crops. For example, in the case of India, the seed replacement rates in maize (corn) stood at almost 80% in the crop year 2017-2018.
• The increase in seed replacement rates has been a result of increased usage of hybrid seed. In China, it has been estimated that the area under hybrid rice constituted almost 60% of the total planted area under the crop.
• The market faces imminent challenges in terms of attaining regulatory approvals for the adoption of genetically modified food crops in significant markets, such as the European Union and India. Approvals for various GM traits can provide an inorganic fillip to the growth in the market over the forecast period.

Scope of the Report

The report covers the seeds used for sowing for major cereal crops, including those for minor cereals and millets. The crops covered in the scope of the report includes rice, wheat, maize (corn), and sorghum, which are the four cereal crops grown on the majority of the global arable land. Other cereals included in the scope are minor cereals and millets such as pearl millet, finger millet, etc. The scope of the report excludes seeds used for forage, such as forage maize (corn), forage sorghum, etc. Moreover, other row crops such as pulses, oilseeds, cotton, and sugarcane, among others, are beyond the report scope.

The market has also been segmented based on technology to cover all the major technologies used in the manufacturing of grain seeds, including genetically modified technology.

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Key Market Trends

Need for Increased Productivity to Satisfy the Rising Demand for Food

The demand for food is governed by human population growth, economic growth, livestock population, and animal feed. With the rising population coupled with higher demand for food is creating the need to increase productivity as the urbanization is resulting in decreased cultivable land area. For instance, according to the Food and Agricultural Organization, in 2016, the area under cultivation of cereals was 733.06 million ha, which decreased to 728.09 million ha by 2018, globally. Additionally, the global cereal yield was 41,131 hg/ha in 2017, which decreased to 40,694 hg/ha in 2018. To increase the productivity within the available cultivable area, use of quality seeds has a prominent role in giving better yield.

With the rising concern over the adverse climatic conditions, pest, and disease incidence, various varieties that would show tolerance have been released into the market, which ensures the crop establishment, thus giving a higher yield. For instance, in 2018, Bayer has launched a hybrid rice seed, Arize AZ 8433 DT with strong inbuilt tolerance to Brown Plant Hopper (BPH) and Bacterial Leaf Blight (BLB). BPH is the most destructive pest in rice-growing areas of India, and it has caused considerable losses to farmers in the 2017 Kharif season.

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