Seed Market Will Hit Big Revenues in Future

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.

Market Dynamics

Growth in the use of oilseeds by animal feed manufacturers

The animal feed industry makes effective use of the by-products obtained from the refining of oilseeds into higher-value food materials. Oilseed meals are a major source of proteins and hence is preferred by animal feed manufacturers. The growing demand for vegetable proteins such as soybean, sunflower, cottonseed meals would be one of the factors driving the market for oilseeds. The ban on Meat and Bone Meal (MBM) in the European Union, the feed manufacturers are looking at alternative protein sources due to which the market for seeds would grow.

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Uncertainty in climatic conditions

Climate has a vital effect on agricultural crop production. Weather forecast assumes considerable importance for agricultural activities to plan the agricultural practices such as sowing, irrigation, management of crop diseases & pests, and harvest planning. For instance, common 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. The increasing emission of CO2 and other greenhouse gases such as methane and nitrous oxide are responsible for change in the global temperature and warming. These changes have an adverse impact on oilseeds by causing a reduction in the activity of pollinators.

Demand for healthy and organic processed products

The growing number of health-conscious consumers and the growing awareness about the adverse effects of trans-fatty acids among consumers is expected to improve the demand for food products that contain low trans-fat levels. Manufacturers are developing food products which make use of healthier oils instead of trans-fatty acids. More land is being brought under cultivation at a global level to meet the growing demand for multiple crops which in turn has steered the growth of the seeds market.

Unorganized new entrants with low profit to cost ratio

New technologies such as breeding methods are giving opportunities to new entrants in the market some of which are disrupting the market for larger players. New entrants in the market do not have brand recognition, however, their seed prices tend to remain lesser as compared to that of the established players, this has an impact on the market share of the large players in the market. The ease of raw material availability for seed products is a key deciding aspect for domestic players, however, the task of finding a distributor and adding a layer in the value chain either reduces the profit margin or increases the product cost. Low brand loyalty is one of the key factors challenging the market for seeds, globally.

The cereals & grains segment, by crop type, is estimated to account for the largest market share, by value, in 2019

Cereals & grains are said to account for the largest market share due to factors such as an increase in consumption of cereals & grains as staple foods in various Asian and Southeast Asian countries. The growing international demand has also promoted major cereals & grains producers such as China and India to increase their production. The widespread adoption of crops such as corn from the feed, biofuel, and food industries also drives the growth of this segment.

Asia Pacific is projected to grow at the highest CAGR during the forecast period

Asia Pacific is the fastest-growing region in the seed market owing to the presence of some of the major seed producers in the world such as China and India. Most of the South East Asian countries are also focused on the production of seeds due to the favorable climatic conditions. Owing to the growing demand from the neighboring countries and the regions such as Europe and North America for oilseeds to cater to the biofuel demands of the importing nations, the market for seeds has been growing in the Asia Pacific region.

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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).