Market Trends of oilseed Industry (seed for sowing)
Soybean dominated the area under oilseeds due to the increased demand from the feed sector, increase in export margins, and reasonable prices
- Oilseeds accounted for 18.4% of global row crop acreage (1.5 billion hectares) in 2022. Soybeans accounted for most oilseed acreage, followed by rapeseed and sunflower. The area under cultivation for oilseeds increased by 9% between 2017 and 2022 and reached 289.6 million hectares in 2022, which is mainly due to increased demand for oilseeds with attractive prices. Globally, South America and North America had the largest share of soybean cultivation acreage, which accounted for 76.4% in 2022. However, the acreage of the soybean fluctuated due to poor market prices in these regions.
- In Asia-Pacific, the area under soybean cultivation was 16.2 million hectares in 2017, which increased to 19.2 million ha in 2022. The increase in the area was due to the increased demand from the livestock feed sector, an increase in export margins, and convenient prices in the domestic and international markets. The acreage is estimated to increase during the forecast period.
- Sunflowers are one of the major oilseed crops cultivated globally. Europe accounted for a large portion of the acreage in global sunflowers. Between 2017 and 2022, the area under cultivation of sunflowers increased by 21.5%. Farmers in Hungary, Bulgaria, the Czech Republic, and Slovakia led this trend because sunflower seeds were selling for high prices.
- Asia-Pacific is the major region in the other oilseed segment. The area under other oilseeds cultivation was 32.7 million hectares in 2022. The increased demand for groundnuts, castor, linseed consumption, and affordable prices on both domestic and foreign markets are estimated to drive the acreage in the region. Thus, increased demand from processing industries and higher prices for oilseeds are estimated to drive the seeds market during the forecast period.
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The increasing demand for sunflower oil and the higher demand for soybean from various industries drive the need for disease-resistant, wider adaptability, and high oleic and linoleic content varieties
- Soybean seed is majorly cultivated in countries such as the United States, Brazil, and China due to favorable weather conditions. Traits such as disease resistance, drought tolerance, high yielding, and high oleic content have been gaining popularity due to changes in the climate and soil conditions with high demand for soybean from oil processing companies and preventing southern-stem canker, Root-Knot Nematode (RKN), and Phytophthora sojae. For instance, Land O' Lakes has seed varieties under the brand Enlist and Roundup Ready to meet the increasing demand for improved seed varieties. Other major companies such as Corteva Agriscience, KWS SAAT SE & Co. KGaA, Land O'Lakes, Burrus Seeds, and Syngenta AG offer these seed traits.
- Sunflower is one of the major oilseed crops widely cultivated. In the United States, 10%-20% of sunflower production is used in shelled kernels, whole seeds, and nut and fruit mixes containing sunflower seed. Kernels are also used in processed foods, such as granola bars and bread. The demand for seed varieties with improved traits is expected to increase during the forecast period. Moreover, high oil content with oleic and linoleic has significant demand. The demand for sunflower oil is increasing after a ban on palm oil. Thus, the high oil content increases the demand for crops such as sunflowers and increases the higher income returns. Products such as 65A25, P62LL109, LG 50760 CL, and Xi Arko by companies such as Corteva Agriscience, Groupe Limagrain, and Syngenta AG contain this trait.
- The availability of new hybrid seed varieties by companies with advanced traits, such as higher resistance to viruses and high demand by processing industries, is expected to help in the growth of the market during the forecast period.
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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 sunflower oil and the higher demand for soybean from various industries drive the need for disease-resistant, wider adaptability, and high oleic and linoleic content varieties
- Transgenic breeding is highly used in the global oilseed market due to the high acceptance of genetically modified organisms and advancements in breeding technology
