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The global seeds market size is estimated to grow by USD 27.60 billion at a CAGR of 6.73% between 2022 and 2027. The market is experiencing significant growth, driven by several key factors. There is a rising demand for biofuels, prompting increased cultivation of energy crops and driving the demand for seeds tailored for biofuel production. Furthermore, substantial investments in agricultural research are fueling innovations in seed technology, leading to the development of high-yielding crop varieties that can thrive in various environmental conditions. These advancements are not only addressing food security concerns but also contributing to sustainable agriculture practices worldwide. As a result, the market is witnessing steady expansion, with a focus on meeting the evolving needs of the agriculture industry and supporting global efforts towards renewable energy production. This research and growth report also includes key market drivers, trends, and challenges during the forecasted period.
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The market is witnessing notable advancements driven by various factors. Stress-tolerant crop varieties and nutrition-giving cultivars are gaining traction, addressing concerns regarding climate change and food security. Biotech crops, including maize, cotton, soybeans, and canola, are increasingly in demand for their enhanced traits and resistance to environmental stressors. Moreover, the market is witnessing growth in the production of staple crops like alfalfa, squash, eggplant, sugar beets, potatoes, papaya, and apples, catering to diverse nutritional and agricultural needs globally. These developments underscore the market's resilience and its pivotal role in sustaining agriculture and food production amid evolving environmental challenges and changing consumer preferences.
The market is fueled by diverse inputs like meat and bone meal (MBM), soy meal, and oilseed meal, alongside cereals and pulses. Plant-based protein companies are thriving, aided by innovations in seed coating and pelleting, ensuring premium seed varieties. Accommodative regulatory stances spur the development of stress-tolerant and nutrition-rich crop varieties through biotechnology. Key crops include maize, cotton, soybeans, canola, alfalfa, and more. These advancements address agricultural needs sustainably, utilizing wastelands for agricultural purposes while conserving natural resources. With support from organizations like FAO, the market witnesses steady growth, catering to the demand for nutritious and resilient crops worldwide. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for biofuels is notably driving market growth. Biofuels are sourced from energy crops such as wheat, soybean, corn, rapeseed, and sugarcane. The focus on the use of biofuels has increased in recent years to reduce the global consumption of fossil fuels and limit pollution. Therefore, in developed countries, the consumption of conventional fuels is declining, whereas the consumption of alternative fuels is increasing.
According to the International Energy Agency (IEA), a 1.5% increase in the share of cropland for biofuels from 2004 to 2030 is expected globally. The land used for the production of biofuel feedstocks under these projections is anticipated to rise to 11.6% in the EU and 5.4% in the US and Canada by 2030. Certain countries in APAC, Latin America, and MEA are also expected to drive the demand for biofuels. With the increase in the demand for and production of biofuels, the demand for seeds required to produce biofuels is expected to rise. Therefore, the rising demand for biofuels will fuel the growth of the market during the forecast period.
Innovations in seed technology are a key trend shaping the market. Manufacturers across the world are developing innovative seed technologies to meet the growing demand for food production. These technologies improve production yields and nutrition profiles, decrease the costs of production, and offer value-added traits. Innovative seed technologies are tested to be in tandem with ongoing global trends.
The cultivation of GM seeds provides high resistance to pests and insects. For example, in East Africa, private seed companies are working on a new herbicide-coated maize seed variety to help the seed gain resistance against Striga, a parasitic weed. KSC sells StrigAway through a partnership with Feed the Future and the African Agricultural Technology Foundation (AATF). Such developments are expected to provide opportunities for the development of seed standards, which will drive the growth of the market. Most leading vendors have trademarked their seed technologies. These factors will spur the market growth and trends during the forecast period.
The rise in seed prices may impede market growth. Seed breeding is expensive and increases the cost of seeds. The use of advanced technologies for cultivation increases the cost. For instance, each year, Monsanto increases the overall prices of its seeds by 5%-10% to provide seeds with modified traits at premium prices. The costs of commercialization of these products with international legal protection also increase seed costs.
The advent of genetically engineered crops has led to an increase in seed monopolization by large biotechnology companies, which drives seed costs. As a result, conventional and non-GM seeds have been pushed out of the market. Vendors that have a stronghold over the market can determine the prices. Moreover, the agricultural inputs sector has also been witnessing concentration. Hence, farmers in underdeveloped and developed countries find it difficult to purchase seeds, which affects the overall demand. Such factors will hamper the growth of the market during the forecast period.
The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
The product segment of the market encompasses a wide range of seed varieties tailored to meet diverse agricultural needs and address emerging challenges in modern farming practices. These include cereals, pulses, and oilseed meal, essential components of livestock feed such as Meat and Bone Meal (MBM) and soy meal. In response to the growing demand for plant-based protein sources, plant-based protein companies are increasingly investing in seeds for crops like soybeans and pulses. Additionally, advancements in biotechnology have led to the development of premium seeds with traits such as stress tolerance and enhanced nutrition, contributing to improved crop yields and resilience against environmental factors. Seed coating and pelleting technologies play a crucial role in optimizing seed performance and ensuring successful germination and establishment. Moreover, accommodating regulatory stances have facilitated the adoption of biotech crops and the introduction of novel seed varieties designed to thrive in diverse agricultural landscapes, including previously untapped wasteland areas. The Food and Agriculture Organization (FAO) recognizes the significance of seed diversity and sustainable agriculture practices in maximizing natural resources and enhancing food security. With continuous innovation and research, the market continues to evolve, offering farmers access to high-quality seeds that support sustainable agricultural practices and contribute to global food production.
The market share growth by the conventional seeds segment will be significant during the forecast period. Unlike GM seeds, conventional seeds are not hybridized. They are grown in conventional systems using synthetic fertilizers and harsh pesticides.
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The conventional seeds segment was valued at USD 33.50 billion in 2017 and continued to grow until 2021. In regions such as North America and the European Union (EU), GM foods were considered unsafe. Therefore, some countries introduced a partial ban on the import of grains produced from GM seeds. However, these factors will be beneficial for the conventional seeds segment growth during the forecast period. The demand for organic farming is growing, which is increasing the demand for conventional seeds. They are typically grown through natural breeding methods. They are also more affordable and have better adaptability to different growing conditions. Therefore, the demand for conventional seeds will increase during the forecast period, which will drive the growth of the segment.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
China and India have the largest populations in the world. Hence, they are major markets in the region. These countries have large areas of agricultural land, and the high food consumption is high. Governments of these countries are taking initiatives to improve the quality of seeds and productivity. In addition, the issue of food security drives the demand for hybrid seeds with modified characteristics. These factors will drive the growth of the market in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BASF SE - The company offers FiberMax Cotton seed, InVigor Canola seed, and Stoneville Cotton seed.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market is a vital component of agricultural ecosystems, providing essential resources for sustenance and growth. It encompasses a diverse range of products crucial for agricultural purposes, including Meat and Bone Meal (MBM), soy meal, and oilseed meal for nutritional supplementation. These are complemented by staple crops such as cereals, pulses, and soybean meal, which form the foundation of diets worldwide. Emerging trends see the rise of plant-based protein companies, spurred by an accommodative regulatory stance and supported by organizations like the FAO. Innovation in seed coating and premium seeds is driving the development of stress-tolerant and nutritionally rich seed varieties, enhancing agricultural productivity and sustainability. Biotech crops like soybeans, alfalfa, and potatoes further contribute to global food security by offering resilience and improved yields in diverse environments.
The market plays a pivotal role in addressing agricultural challenges and fostering sustainable food production. It encompasses a diverse array of offerings, including cereals & grains, which serve as dietary staples for billions worldwide. Innovation in seed technology enables cultivation even in the wasteland, transforming barren landscapes into productive farmland. Techniques like seed pelleting enhance germination rates, facilitating the growth of recent crops with improved vigor. Breeders focus on developing stress-tolerant crop varieties and nutrition-giving crop varieties, leveraging natural resources to combat climate uncertainties. From nutrient-rich squash and eggplant to energy sources like sugar beets, papaya, and apples, the market continues to evolve, ensuring the resilience and diversity of agricultural systems.
The market witnesses a constant evolution driven by a myriad of factors. Recent crop demands prompt heavy investments in R&D, fostering quality seed innovation to meet evolving agricultural needs. However, challenges persist, with the proliferation of counterfeit products and false hybrid seeds, leading to increased costs and concerns over harmful health effects from dangerous chemicals. Addressing these issues, the market sees a surge in the organic trend, driving organic market growth. Technological advancements aid companies running seeds in achieving cost reduction and quality enhancement to maximize yield in a sustainable way. The market spans various categories, including Fruits & Vegetables, Oilseeds & Pulses, and cereal production, offering treatments such as treated and non-treated options to combat soil-borne diseases and enhance crop resistance.
The market research and growth report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Market Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.73% |
Market growth 2023-2027 |
USD 27.60 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.7 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, India, France, and Brazil |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adaptive-Seeds LLC, Baker Creek Heirloom-Seeds, BASF SE, Bayer AG, Corteva Inc., East West Seed Group, Florimond Desprez Co., Fruition Seeds LLC, Groupe Limagrain Holding, Harris Seeds, JK Agri Genetics Ltd., KWS SAAT SE and Co. KGaA, LIDEA France, Rijk Zwaan Zaadteelt en Zaadhandel BV, Royal Barenbrug Group, Sakata-Seed Corp., Seed Needs LLC, Syngenta Crop Protection AG, Takii and Co. Ltd., and UPL Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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