Market Trends of grain seed Industry
Increased demand for grains for consumption and from food and feed industries led to increased area under cultivation
- The grains and cereals segment dominated global cultivation, covering an expansive 1 billion hectares in 2022. Wheat, corn, and rice emerged as the primary grain crops, witnessing widespread cultivation. Between 2017 and 2022, the cultivation area saw a 1.9% uptick, primarily driven by the rising global demand for grains as staple foods.
- Wheat is the leading grain crop, occupying approximately 20.5% of the total grain crop area in 2022. It thrives as a staple food in temperate and subtropical regions. Asia-Pacific, buoyed by favorable climates and robust demand from consumers and the processing industry, held the largest wheat cultivation area.
- Corn is also one of the major grain crops, accounting for 209.0 million hectares in 2022. Its cultivation area witnessed a 4.3% surge from 2017 to 2022, propelled by heightened demand from the food and feed industries. Corn finds its footing across tropical, sub-tropical, and temperate climates, with variants like field corn, sweet corn, popcorn, and baby corn. In 2022, Asia-Pacific and North America, commanding over half of the global acreage, i.e., 51.9%, emerged as the powerhouses of corn production.
- Rice, claiming 15.3% of the global grain crop area in 2022, saw its cultivation area inch up from 162.6 million hectares in 2017 to 165.3 million hectares in 2022. Asia-Pacific reigned supreme as the global rice producer due to abundant rainfall during the summer and monsoon seasons, thus creating an ideal rice-growing environment.
- This surge in cultivation areas is projected to fuel the growth of the seed market in the coming years, aligning with the rising demand.
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The demand for disease-resistant rice, as it remains a staple food, and for corn with disease resistance and enhanced adaptability is rising to cater to the expanding needs of farmers
- Rice consumption in Asia-Pacific is significant, with people in the region typically having it as a daily meal. China and India stand out as major global rice producers. Given the changing climate, seed companies are increasingly focusing on developing drought-tolerant varieties, responding to a surge in demand from growers. In 2022, China faced drier conditions than usual, further fueling the demand for drought-tolerant seeds. In a notable move, Corteva Agriscience introduced its brand, Brevant, to the Indian market in 2020, featuring traits like wider adaptability and drought tolerance.
- The United States, Mexico, and China are key corn producers on a global scale, with corn being a lucrative crop for growers due to its high profitability. Traits such as weed control, enhanced grain quality, early maturity, lodging resistance, and adaptability to diverse agro-climatic conditions are in high demand. Industry leaders like Bayer AG, KWS SAAT SE & Co. KGaA, and Syngenta are delivering seed varieties that offer resistance to diseases like early rots and leaf diseases, which are critical for increasing yield, especially in the absence of effective sprays or other control methods. In Asia-Pacific, growers also prefer traits that influence corn's physical attributes, such as kernel color, stalk height, and grain count per cob.
- Factors like water scarcity, pest challenges, and disease outbreaks are expected to drive the introduction of new seed varieties and fuel market growth in the coming years.
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Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing demand for disease-resistant wheat seeds and sorghum with wider adaptability traits is expected to increase the yield and drive the market's growth
- The increasing demand for high-quality hybrid seeds, which offer improved yields, is driving the growth of hybrid breeding in the global grain seed market
