Market Trends of seed Industry
Increased demand for grains, cereals, and oilseeds from the processing industries and demand from households is driving the acreage
- Globally, the grains and cereals segment was the largest cultivated segment, with an area of 1.1 billion hectares in 2022. Wheat, corn, and rice are the major grain crops cultivated extensively globally. The area under grains and cereals cultivation increased by 1.9% between 2017 and 2022. This increase was mainly due to increased demand for grains as staple foods in most of the countries. Wheat is the major grain crop, and it accounted for around 20.5% of the total grain crop area in 2022. It is cultivated mainly in temperate regions and subtropical regions as a staple food crop. Asia-Pacific had the largest area under wheat cultivation because of the favorable climatic conditions and demand from consumers and the processing industries.
- 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, reaching 289.6 million hectares. This increase was mainly due to increased demand for oilseeds globally with attractive prices.
- The area under forage crop cultivation reached 80.4 million ha in 2022. Among the forage crops, alfalfa is a dominant crop in terms of cultivation area. It accounted for 39.2% in 2022. This is because of alfalfa's capacity to produce abundant amounts of protein and attractive forage under various weather and soil conditions.
- Therefore, an increase in the demand for crops for consumption at home and by processing industries has helped increase the cultivation area and is estimated to drive the market's growth during the forecast period.
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Increasing demand for fodder in livestock farming is driving the usage of forage seeds with disease resistance, wider adaptability, and early maturity traits
- Alfalfa and forage corn are the major forage crops because of their benefits to livestock rearing, such as more digestibility and high protein. They also allow farmers to attain higher yields with good quality. Wider adaptability for alfalfa was the largest adopted trait as there have been weather changes, increased demand for early maturity, and low lignin content in a single product to minimize the usage of different inputs. Additionally, wider adaptability was the most adopted trait in the global market, especially in South America, as it had a regional market share of 35.4% in 2022. It is the most adopted crop because of the changing agro-climatic conditions, field stress, and growing crop cultivation in different regions.
- Companies such as Bayer, DLF, and Barenbrug have introduced many varieties of alfalfa and forage corn, such as Alfalfa (DKC 3218, DKC 3204, Debalto, and Marcamo), as well as forage corn (Daisy, Fado, and Power 4.2). These varieties can withstand diverse environmental conditions, adapt to various soil types, and withstand field stress and heat conditions. The EU Commission's REFORMA project (2016-2020) aimed to develop advanced breeding techniques and introduce new alfalfa cultivars.
- There is an increase in the demand for seeds with early maturity and high starch content traits as they offer a shorter growing period, allowing farmers to harvest earlier. High starch content in forage corn enhances its nutritional value for animal feed. Therefore, the companies are expected to produce such varieties in larger quantities during the forecast period.
- To prevent the increasing losses from diseases and increase productivity in a shorter period, the seeds with traits such as disease resistance and early maturity drive the market.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Asia-Pacific and Africa held the most significant areas under vegetable cultivation due to the favorable agroclimatic conditions
- High yield losses in cotton, caused by bollworms, weeds, and leaf diseases, drive the demand for insect-resistant and disease-tolerant varieties with quality attributes
- 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
- 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
- High demand for cabbage seeds with black rot resistance and good quality traits for pumpkin are boosting the seed market
- 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
- The increasing demand for fungal and viral disease-resistant, high-yield potential tomato, and cucumber seeds is driving the vegetable seed market
- Hybrid breeding technique is the most utilized technique for developing both row and vegetable crops due to its ability to develop desired quality seeds and their acceptance globally
