Seeds Market

[326 Pages Report] According to MarketsandMarkets, the seeds market is projected to reach USD 83.3 billion by 2028 from USD 58.8 billion by 2023, at a CAGR of 7.2% during the forecast period in terms of value. As the world’s population continues to grow, there’s a growing need for food to feed and keep up with the ever-expanding population. This necessitates the development of improved seed varieties to improve crop yield and productivity. The market is characterized by a growing demand for high-quality seeds that exhibit traits such as disease resistance, improved yields, and enhanced nutritional value. Technological advancements and genetic engineering have further contributed to the development of genetically modified (GM) seeds, which offer unique benefits but also raise concerns regarding their impact on the environment and human health.

Key players in the seed market include multinational corporations, small-scale seed producers, and public research institutions, all striving to meet the evolving needs of farmers and consumers while ensuring sustainable agriculture practices. Overall, the seed market continues to evolve in response to changing agricultural practices, consumer preferences, and environmental challenges, playing a crucial role in shaping the future of global food production.

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Market Dynamics

Driver: Growth in the usage of oilseeds by animal feed manufacturers

The co-products from refining oilseeds are used by the animal feed industry. Oilseed meal is a source of high protein content. This has led to an increase in the demand for oilseed meals from feed manufacturers. Soybean meal is the most popular soybean meal for animal feed manufacturers due to its high protein content. The growing demand for protein-rich vegetable protein meals like soybean meal, sunflower meal, cottonseed meal, etc., is expected to drive the oilseed market growth over the next few years. Only a small portion of the oilseed is fed as whole seeds to animals. However, the by-product of processing the oilseed is used extensively in animal feed.

Due to the EU ban on Meat and Bone Meal (MBM), it is largely replaced by other protein sources such as soy meal, oilseed meal, cereals, and pulses. According to Agriculture and Rural Development (European Commission), 54% of the total protein material is used in the animal feed sector, which mainly uses soybean meal as a vegetable protein source. This is increasing the demand for oilseeds in the market.

Apart from this, significant investments in plant-based protein companies and the rapid growth of the industry have resulted in increased research, development, and marketing efforts. This has led to the introduction of new and improved plant-based protein products, attracting more consumers to choose these alternatives.

Restraint: Low yield of crops in under-irrigated areas

Largely, the crops produced in developing countries include rice, corn, wheat, groundnut, rapeseed, mustard, soybean, sunflower, and safflower. These products hold a significant share in the global seeds market due to their use in the food, feed, and chemical industries. There is an increased demand for seeds of these crops, which raises the demand for productivity, drought tolerance, and better insect resistance. However, in developing countries such as India, South Africa, and Turkey, the production of crops is mainly dependent on the rains, which reduces productivity.

In order to improve crop production, the following measures are taken into consideration:

• Bringing additional areas under irrigation
• Promoting modern crop technology and better dry farming
• Strengthening the value chain

Due to uncertainty in the climatic conditions, there is an increased need for more irrigated areas for the production of cereal crops and oilseed crops. For instance, groundnut seeds require an optimum temperature of 20 °C (68 °F) to 30 °F (86 °F) and 50–75 mm rainfall. This oilseed is also highly susceptible to damage by frost, drought, continuous rain, and stagnant water. To prevent this, the crops need a typical environment and the proper amount of water for higher yield, which can be achieved through irrigation. Thus, it can be seen that there is low productivity in the fields without irrigation systems than in the fields with irrigation systems.

Opportunity: Molecular breeding in seeds

Gene-tagged markers help reduce the time consumed in selecting the desired genes in progenies and parents. Molecular breeding allows breeders to identify desirable traits more rapidly and accurately than traditional breeding methods. By using molecular markers linked to specific traits, breeders can screen and select plants with desired traits at an early stage, reducing the time required for multiple generations of crossbreeding.

By incorporating molecular markers, breeders can reduce the subjectivity and ambiguity associated with phenotypic selection, making the breeding process more accurate. Molecular breeding helps overcome challenges such as environmental influences, phenotypic plasticity, or traits that are difficult to evaluate visually.

It has been found that genetic engineering and modification are better options for developing improved, disease-resistant oilseed varieties as compared to MAS and other molecular breeding techniques. Apart from company efforts, several breeding programs have been developed for oilseeds using molecular breeding techniques and molecular markers for the gene selection process. China and India are the main countries engaged in using MAS for the development of high-yielding oilseeds. More programs are to be introduced in the near future, which can help in using other molecular breeding technologies for oilseed production.

Challenge: Commercialization of fake hybrid seeds and counterfeit products

According to ISF, there has been a rise in illegal seed practices such as falsified seeds, fraudulent labeling, intellectual property violations, and regulatory violations. Incidents of counterfeit labels and seed sacks being sold in developing countries have become more frequent in recent years. Low-income farmers cannot afford to buy seeds in large quantities. This creates an opportunity for the seller to split the bags, resell them in small batches, and sell them in bulk. This creates an opportunity for contamination. In Uganda, for example, the illegal seed industry deceives farmers by selling seeds that promise high yields but do not germinate. Fear of counterfeiting among small farmers makes commercial seeds a seemingly unviable option. As more farmers are adopting hybrid seeds for high yield and improved quality production, it has been observed that the mediators in the supply chain have been selling spurious hybrid seeds to farmers, while some of them are also being involved in dealing with counterfeit products.

Seeds Market Ecosystem

Prominent players in this market include established and financially stable seed producers. These companies have been in the market for several years, with diverse product portfolios, cutting-edge technology, and strong global sales and marketing networks.

The market for genetically modified seeds is projected to grow at the highest CAGR during the forecast period, owing to the increased demand from farmers for biotech crops, which have higher levels of productivity and profitability.

Genetically modified seeds have the potential to significantly increase crop yields compared to conventional seeds. They are engineered to produce higher yields by improving traits such as disease resistance, nutrient utilization efficiency, and overall plant health. Higher yields are crucial to meeting the growing global demand for food and ensuring food security. The seed industry invests heavily in research and development to develop new genetically modified seed varieties. These investments drive innovation in seed technologies, leading to the development of improved and more effective Genetically modified seeds. The continuous advancements in biotechnology and genetic engineering techniques contribute to the growth of the genetically modified seed segment.

Cereals & grains accounted for the largest share in 2022 in by crop type segment, owing to the increased use of cereals & grains in Asian and Southeast Asian countries.

The market situation for cereals has been marked by an abundance of supplies and slower growth in demand. However, the growth of this market is driven by improvement in yield and increased use in food-related applications. The developed and few developing countries would continue to remain the chief exporters of cereals, thereby catering to the growing demand from the food and feed industries. The FAO reports that, in 2020–2021, the world’s grain consumption increased by 11 million tons, reaching 2.7 billion tons, or 2.4% more than in 2019–20. A significant staple food for 36% of the world’s population is cereals like wheat.

North America is expected to dominate the market during the forecast period.

North America, particularly the United States, is a global leader in agricultural research and development. The region has a strong foundation in biotechnology and genetic engineering, which has led to the development of advanced seed technologies. The presence of leading seed companies and research institutions in North America fosters innovation, enabling the development of high-quality and high-performance seeds. Also, North America is a significant exporter of agricultural products, including seeds. The region's high-quality seeds are sought after globally, and North American seed companies have established strong international market presence. The export opportunities contribute to the region's dominance in the global seeds market.

Key Market Players

The key players in this include BASF SE (Germany), Bayer AG (Germany), Syngenta (Switzerland), KWS SAAT SE & Co. KGaA (Germany), Corteva (Indiana), Limagrain (France), Advanta Seeds (India), Sakata Seed Corporation (Japan), DLF Seeds A/S (Denmark), Enza Zaden Beheer B.V. (Netherlands), Rallis India Limited (Mumbai), FMC Corporation(US), TAKII & CO., LTD. (Japan), Royal Barenbrug Group (Netherlands) and Longping High-Tech (China). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

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Scope of the Report

The study categorizes the seeds market based on by type, crop type, trait, and region.

By Type

• Genetically Modified
• Conventional

By Crop Type

• Cereals & grains
  • Corn
  • Wheat
  • Rice
  • Other cereals & grains
• Oilseeds & pulses
  • Soybean
  • Canola
  • Cotton
  • Other oilseeds & pulses
• Fruits & vegetables
  • Solanaceae
  • Cucurbits
  • Brassicas
  • Leafy vegetables
  • Roots & bulbs
  • Other fruits & vegetables
• Other crop types

By Trait

• Herbicide tolerance
• Insect resistance
• Other traits

By Region

• North America
• Europe
• Asia Pacific
• South America
• Row (Africa and Middle East)

Recent Developments

• In April 2023, Bayer revealed an investment of overall 60 million euros from 2023 onwards in its corn seed production facility in Pochuiky, Ukraine. With this, the life sciences company emphasizes its commitment to Ukraine and strengthens its Crop Science business in the country, contributing to rebuilding the economy.
• In February 2023, Corteva launched ‘Optimum GLY Conala.’ It is an advanced herbicide-tolerant trait technology for canola farmers. Optimum GLY canola will be offered for commercial planting in Canada and the United States through Corteva Agriscience seed brands Pioneer and Brevant seeds.
• In August 2022, Bayer AG, Bunge, and Chevron U.S.A. Inc. (Chevron), a subsidiary of Chevron Corporation, signed a shareholders’ agreement in connection with Bayer’s acquisition of a 65 percent majority ownership of the winter oilseed producer CoverCress, Inc. (CCI). The remaining 35 percent of CCI will continue ownership under Bunge and Chevron.
• In February 2022, BASF’s vegetable seeds business developed a tearless onion variety which was launched at supermarkets in France, Germany, Italy, and the United Kingdom.

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