The global commercial seed market was valued at USD 40.70 billion in 2017 and is anticipated to grow to USD 54.81 billion by 2032, reflecting a CAGR of 2.5%, according to our analysis. In 2017, North America led the market, accounting for 39.82% of the global share.
The rising industrialization is reducing arable land in emerging nations thus adversely impacting the production of crops. However, with government support and increasing awareness about modern farming techniques, it is possible for farmers to increase their crop yield. Such initiatives taken by governments are driving the global commercial seed market. Additionally, crop producers are getting increasing subsidies in order to promote commercial seed production, subsequently ensuring smooth production cycle and seamless crop management. A smooth supply-demand balance ratio is maintained by low initial cost for crop production and this will propel market to grow exponentially in the coming years.
Another major factor fueling the demand for commercial seeds is that farmers are encouraged to use biotech or hybrid crops for better crop production. This was possible because of various initiatives conducted to spreads awareness among farmers on the modern ways of improving crop yield. Crop cultivated using advanced technologies are both insect and abiotic stress tolerant. The rising adoption of innovative farming practices will pave way for the growth of the global commercial seed market.
Information Source:Â https://www.fortunebusinessinsights.com/industry-reports/commercial-seed-market-100078
KEY COMPANIES COVERED IN THE REPORT
- Bayer CropScience (Monsanto)
- Syngenta AG
- DowDuPont
- Sakata Seed Corporation
- Groupe Limagrain
- Land O’lakes
- KWS SAAT SE
- Nufarm
- Adama Agricultural Solutions
- Takii & Co. Ltd.
- Other players
Increasing Use of High-yielding Crops to Increase Demand for Commercial Seeds
The increasing disposable income of consumers is expected to drive higher and unchecked resource consumption, further boosting the demand for commercial seeds to enhance crop yields compared to traditional farm seeds. Advancements in molecular biology, including faster and more cost-effective genetic mapping of plants, are poised to accelerate commercial seed production.
However, the market faces challenges due to low profit margins for major industrial crops such as guar, fiber hemp, cuphea, plantago, sunflower, sugar beet, safflower, potato, rapeseed, maize, jojoba, cassava, oil palm, and peas. Additionally, stringent government regulations on trading specific crops and bans on substances like neonicotinoids may impede market growth during the forecast period. Despite these challenges, the increasing adoption of high-yield, value-added crops is anticipated to positively influence the global commercial seed market.
Promotional Activities about Improved Quality Seeds to Boost Market
While increasing resistance to crop protection products may pose challenges for the market’s future, the cost-effectiveness of seed treatment as a crop protection solution is expected to create significant growth opportunities in the long term. The fruit and vegetable seed segment is projected to generate substantial revenue during the forecast period, driven by the rising popularity of health consciousness and the growing demand for fresh, farm-to-table produce. Additionally, advancements in developing new hybrid vegetable seed varieties are anticipated to accelerate growth in the coming years.
In Asia Pacific, increasing farmer awareness of the benefits of improved seeds is fueling market expansion. This growth is further supported by government initiatives and policies promoting the use of high-quality seeds, positioning Asia Pacific as the fastest-growing region in the global commercial seed market.
Report Coverage
Seeds and planting materials serve as fundamental inputs in crop production. While they constitute a relatively small portion of total agricultural input costs, the effectiveness of other inputs depends significantly on the quality of seeds to ensure optimal productivity. High-quality seeds or planting materials are crucial for sustainable agriculture and play a vital role in achieving food security.
KEY INDUSTRY DEVELOPMENTS
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In June 2019, KWS SAAT SE has signed a binding agreement to acquire Pop Vriend Seeds (a market leader worldwide in spinach seeds and a leading supplier of vegetable seeds) to support the company’s strategic goal of building a long-term position in the growing vegetable seeds.
