Seed Market to See Major Growth by 2025

Seed Market: Competitive Landscape, Regional Outlook and Driving Factors

(EMAILWIRE.COM, July 08, 2020 ) The report "Seed Market by Type (Genetically Modified & Conventional), Trait (Herbicide Tolerance, Insect Resistance), Crop Type (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables), and Region (NA, EU, APAC, SA, RoW) - Global Forecast to 2025" The global seed market is estimated to be valued at USD 55.4 billion in 2019 and is expected to reach a value of USD 86.0 billion by 2025, growing at a CAGR of 7.6% during the forecast period. Factors such as increasing application of cereals, oilseeds, and vegetables in the food, beverages, biofuels and the pet food industry alongside growing technological advancements, such as the adoption of hybridization and genetically modified seeds are driving the growth of the market.

By crop type, cereals and grains to account for the largest market share during the forecast period

The market for seeds is segmented, based on crop type, into cereals & grains, oilseeds & pulses, fruits & vegetables, and other crops. The cereals & grains segment is expected to account for the largest market share of the seeds market during the forecast period. Owing to factors such as the widespread use of grains as a staple food in many Asian and Southeast Asian countries. In the past few years, countries such as China have emerged as major exporters of grains to meet the requirement of neighboring economies. Crops such as corn are widely utilized in both the food and feed industries. With the rising market for biofuels, crops such as sorghum are also being produced on a large scale. An increase in awareness for protein- and vitamin-rich diets is driving the demand for fruits and vegetable seeds globally.

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APAC is projected to register the highest CAGR of the seeds market during the forecast period

The Asia Pacific region has been witnessing significant growth in the food processing and feed industries, where the cultivation area of industrial crops such as rice, corn, soybean, and wheat has been gaining better traction. Favorable climatic conditions, coupled with government initiatives directed toward the development of the agricultural sector in most of the countries in the region, is one of the driving factors for the growth of the agricultural inputs market. Other than China, which is one of the largest producers of commercial seeds in the world, countries such as Vietnam, Thailand, Japan, Indonesia, and Australia are the other important seed markets in the Asia Pacific region.

Driver: Rise in the seed replacement rate

The seed replacement rate is defined as the percentage of new seeds procured for production to the total number of seeds used. As mentioned, traditionally, the focus was on production through farm-saved seeds only. However, as the benefits and value enhancement potential of seeds procured from specialized channels became increasingly clear, the resultant rise in the demand for seeds through such channels presents a huge opportunity.

Restraint: Uncertainty in climatic conditions

Climate change plays a vital role in the agricultural industry; it is useful in improving yield and reducing diseases and insect attacks. Uncertainty in the climatic conditions affects the crop yield, which results in the loss of crops.

Climate has a vital effect on various agricultural crop production, and sometimes, climatic factors are the natural factors for the production of some crops. Weather forecast assumes considerable importance for agrarian activities to plan agricultural practices such as sowing, irrigation, management of crop diseases & pests, and harvest planning. For instance, conventional mustard crops grow naturally in mesic temperate regions; these mustard crops are expected to reduce due to global warming and increased aridity. Increased aridity is predicted to reduce the oil concertation and seed yield of rapeseed crops.

Challenge: Unorganized new entrants with low profit to cost ratio

New technologies such as breeding methods are creating opportunities for the new entrants in the market, some of which are disrupting the demand for more significant players. New entrants in the market do not have brand recognition, but the seed prices of these small players are meager as compared to those of the established players, which affects the market share of the big players. The easy availability of raw materials for seed products is a crucial aspect for domestic players; however, finding the distributor and adding a layer in the value chain either reduces the profit margin or increases the product cost. The competition with the domestic players and the new cheaper technologies available for breeding are challenging the more significant players in the seeds market. Low brand loyalty is also one of the key factors challenging the seeds market, globally.

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This report includes a study on the marketing and development strategies, along with a study on the product portfolios of the leading companies operating in the seed market. It includes the profiles of leading companies such as BASF (Germany), Bayer AG (Germany), Syngenta AG (Switzerland), KWS SAAT SE (Germany), Land O’ Lakes (US), Sakata Seed Corporation (Japan), Groupe Limagrain (France), Corteva Agriscience (US), United Phosphorous Limited (India), DLF (Denmark), Longping Hi-tech (China), Rallis India Limited (India), Enza Zaden (The Netherlands), Takii & Co. Ltd (Japan), and Barenbrug Holding B.V (Netherlands).