Seed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Seed Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

· The global seed market is expected to witness a CAGR of 6.2% over the forecast period (2021-2026).

· The COVID-19 pandemic seriously affected the production, certification, distribution, and cost of seeds in the initial months of the pandemic. 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 available for the production, transportation, and documentation processes, accompanied by a contraction in the market for plants and seeds. This created problems in producing seeds for international trade and made access to 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. 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, owing 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.

· In 2020, North America was 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 a necessity to meet this demand, thus boosting the market studied.

· As demonstrated by Bayer CropScience, Corteva AgriScience, and Syngenta, the leading seed companies dominate the market by emphasizing the production of seeds that are drought tolerant, heat tolerant, disease tolerant, etc.

Key Market TrendsNeed for Improving Productivity amid growing Demand for Food Crops

Grains constitute a major portion of world food demand (49%) and 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. This is 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.

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.

Asia-Pacific is the Fastest Growing Region

Asia-Pacific dominated the global seed market as it houses the two major agricultural countries, India and China. Asia-Pacific is also the fastest-growing geographical segment in the global 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 a total of 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 hectare of land will be planted with those seeds.

On one hand, increasing demand for animal feed has been the major driver for the growth of the maize segment of the market in the region. On the other hand, increasing demand for processed vegetables in domestic households and the foodservice industry boosts the vegetable seed industry.

Competitive Landscape

The global seed market is a consolidated market. The major players in the market are Bayer Crop Science SE, Syngenta International AG, Corteva AgriScience, Groupe Limagrain, and KWS SAAT SE & Co. KGaA, among others. These players focus on R&D, a large product portfolio, a wide geographical presence, an aggressive acquisition strategy.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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