|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The seed market is projected to register a CAGR of 6.6% during the forecast period (2022-2027).
The COVID-19 pandemic significantly affected the production, certification, distribution, and cost of seeds in the initial months. Facing this adversity played a fundamental role in developing resilient agricultural sectors and food systems in the least developed countries. There was a shortage of personnel for the production, transportation, and documentation processes, accompanied by a contraction in the market for plants and seeds, which created problems in producing seeds for international trade and made accessing high-quality seeds of modern varieties for domestic agriculture difficult.
Growing demand for grains, oils, and vegetables, rapid adoption of biotech crops, and the decreasing per capita farmland are the major drivers for the market over the medium term. The need to produce more from the decreasing per capita arable land to get higher returns can be possible with HYVs and hybrid varieties. This trend has encouraged farmers to shift their focus from conventional seed sources to packaged seeds that promise better returns.
Hybrid seeds exhibit a higher demand due to their built-in genetic buffering to withstand the biotic and abiotic stresses (such as moisture stress and salinity) compared to varietal seeds in the market.
North America is the largest geographical segment of the market studied. The growing demand for grains, oils, and vegetables is a significant driver for the seeds market. The United States is the major market for seeds in the region. Asia-Pacific is the fastest-growing and second-largest market for seeds. In Asia, the demand for food has increased exponentially over the past years. Crop yield enhancement has become necessary to meet this demand, thus boosting the market studied.
Scope of the Report
A seed is the ripened fertilized ovule of a flowering plant containing an embryo, capable normally of germination to produce a new plant. For the purpose of this report, seeds have been defined as the seeds for sowing at the farmer level. In this report, market sizing has been considered at the farmer's level.
The seed market is segmented by product (transgenic hybrids, non-transgenic hybrids, and open-pollinated varieties), crop type (grains and cereals, pulses and oilseeds, commercial crops, vegetables, and other crops), and Geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers the market size and forecast in terms of value in USD million for all the above segments.
Key Market Trends
Need for Improving Productivity Amid Growing Demand for Food Crops
Grains constitute a major portion of world food demand (49%), and it will remain so till 2050. According to an OECD-FAO report, global cereal consumption is projected to increase from 2.6 billion metric ton in 2018 to 2.9 billion metric ton in 2027, attributed to the growing demand for cereals for food and feed purposes. The per capita food consumption of cereals is anticipated to increase at a faster pace compared to the previous decade, as higher per capita use of maize, rice, and other coarse grains is only partly offset by the slower growth of wheat.
The decreasing per capita availability of arable land is considered to be a driver for the seed industry. The need for producing more from the decreasing per capita arable land to get higher returns can be possible with the use of HYVs and hybrid varieties. Across major agricultural countries, such as the United States, China, India, and Brazil, farmers are increasingly adopting transgenic seeds for both yield benefits and other non-yield traits. For instance, 92% of India's area under cotton production was sown with transgenic cotton with insect-tolerance traits. Thus, to meet the increasing demand for grains, oils, and vegetables, governments of various countries have been promoting sustainable farming practices, thereby bolstering the adoption of commercial seeds over the forecast period.
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Asia-Pacific is the Fastest-growing Region
Asia-Pacific is recording rapid growth in the seed market as it houses the two major agricultural countries, India and China. Asia-Pacific is also the fastest-growing geographical segment in the seed market. The region is witnessing increased hybrid adoption and rising seed replacement rates in key crops, such as rice, maize, and vegetables. Growth prospects remain high for hybrid rice in the region. China is one of the major rice producers globally. In recent years, it started exporting rice seeds to other countries. For instance, in 2020, it exported 500 metric ton of hybrid rice seeds from a seed company in east China’s Jiangsu province to Pakistan to help ensure Pakistan’s grain yield. It is estimated that about 33,333 ha of land will be planted with those seeds.
The Indian seed industry is one of the most mature seed industries in the region. The private and public sectors play an equally important role in seed production and distribution. The private sector in India is growing primarily due to increasing investments in R&D, acceleration in the use of hybrid seeds with various technological components, such as seed treatments, and rising international trade. The hybrid seed penetration in the country is high in cotton (90%), corn (60%). However, penetration is still very low in major cereals, such as paddy and wheat (<5%).
On the other hand, increasing demand for processed vegetables in domestic households and the foodservice industry boosts the vegetable seed industry. India is also known as one of the major exporters of vegetable seeds globally.
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The seed market is a consolidated market, with few major players dominating the market. The major players in the market are Bayer CropScience SE, Syngenta International AG, Corteva AgriScience, Groupe Limagrain, and BASF SE. These players focus on R&D, a large product portfolio, a wide geographical presence, and an aggressive acquisition strategy. Mergers and acquisitions have been a major strategy adopted by players like Bayer to capture a higher market share.
In January 2021, Bayer unveiled four new varieties of Seminis® vegetable seeds during the Pragathi Diwas event held in Bengaluru, India. These varieties include ‘Anshuman’ in tomato, ‘SVHA9093’ in hot pepper, ‘Bazlet’ in cucumber, and ‘Himgauri’ in cauliflower.
In August 2020, Syngenta Seeds completed the acquisition of Sensako, a South African seed company specializing in cereals.
In March 2020, Corteva Agriscience opened a new multi-crop, multipurpose research center in Szeged, Hungary, to develop ground-breaking and sustainable agricultural solutions for farmers across Europe and worldwide.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Transgenic Hybrids
22.214.171.124 Insect-resistant Hybrids
126.96.36.199 Herbicide-tolerant Hybrids
5.1.2 Non-transgenic Hybrids
5.1.3 Open-pollinated Varieties
5.2.1 Grains and Cereals
188.8.131.52 Maize (Corn)
184.108.40.206 Other Grains and Cereals
5.2.2 Pulses and Oilseeds
220.127.116.11 Other Pulses and Oilseeds
5.2.3 Commercial Crops
18.104.22.168 Other Commercial Crops
22.214.171.124 Roots and Bulbs
126.96.36.199 Other Vegetables
5.2.5 Other Crops
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
188.8.131.52 South Africa
184.108.40.206 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Bayer CropScience SE
6.3.2 Syngenta International AG
6.3.3 Corteva Agriscience
6.3.4 Groupe Limagrain
6.3.5 KWS SAAT SE & Co. KGaA
6.3.6 UPL Limited
6.3.7 BASF SE
6.3.8 Land O'Lakes Inc.
6.3.9 Sakata Seed
6.3.10 Takii Seed
6.3.11 East-West Seed International
6.3.12 Rijk Zwaan Zaadteelt en Zaadhandel BV
6.3.13 DLF Seeds And Science
6.3.14 Royal Barenbrug
6.3.15 Maison Florimond Desprez
6.3.16 MAS Seeds
6.3.17 Euralis Semences
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. ASSESSMENT OF THE IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Seed Market market is studied from 2017 - 2027.
What is the growth rate of Seed Market?
The Seed Market is growing at a CAGR of 6.6% over the next 5 years.
Which region has highest growth rate in Seed Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Seed Market?
North America holds highest share in 2021.
Who are the key players in Seed Market?
Bayer Crop Science, Groupe Limagrain, Corteva Agriscience, BASF SE, Syngenta International AG are the major companies operating in Seed Market.