Seed Market

Global Seed Market (2023 to 2028)

The global seed market is expected to reach USD 11.25 billion by 2028 from USD 7.17 billion in 2023, growing at a compound annual growth rate (CAGR) of 6.78% during the forecast period 2023 to 2028.

MARKET DRIVERS:

Technological advancements have a profound transformation in the seed market. The emergence of genetic modification (GM) and genome editing techniques has helped in the innovation of seed development. These technologies enable the manipulation of plant DNA, resulting in the creation of genetically modified and hybrid seeds with highly desirable traits. GM seeds are engineered to possess characteristics like pest resistance, drought tolerance, and increased yields, addressing critical challenges in modern agriculture. Hybrid seeds, created through controlled crossbreeding, combine the best traits from different parent plants, resulting in crops with enhanced vigor and productivity. The adoption of biotechnological advances has redefined the seed market landscape as farmers increasingly seek seeds that promise greater resilience and performance. Seed companies invest heavily in research to introduce novel, tailored seed varieties, meeting the growing global demand for sustainable, high-yield agriculture. As technology continues to evolve, the seed market is likely to remain at the forefront of agricultural innovation.

MARKET RESTRAINTS:

Climate change and environmental factors present significant restraints to the seed market, impacting the adaptability and performance of seed varieties. As global temperatures rise and weather patterns become more erratic, seeds must be capable of thriving in changing conditions. Drought-resistant, heat-tolerant, and flood-resistant seed varieties are increasingly essential. Soil degradation poses another threat, as nutrient-poor or contaminated soils require seeds with improved adaptability and nutrient uptake capabilities. Additionally, water scarcity intensifies the need for seeds that can thrive with reduced irrigation, enhancing sustainability in agriculture. Therefore, these challenges have a great impact on development in the seed market. 

Impact of COVID-19 on the Seed Market:

The COVID-19 pandemic had a dual impact on the seed market. Disruptions in global supply chains and logistics led to delays in seed production and distribution, affecting farmers' planting schedules and potentially reducing crop yields. Lockdowns and reduced labor availability also hindered planting efforts. Additionally, economic uncertainties resulting from the pandemic prompted some farmers to cut costs, potentially impacting their willingness to invest in high-quality seeds. Heightened food security concerns prompted an increased interest in home gardening and sustainable agriculture, which led to higher demand for vegetable and garden seeds. Moreover, the pandemic highlighted the importance of resilient and disease-resistant crop varieties, driving research and development in seed technology. It also underscored the need for advanced farming techniques, creating opportunities for precision agriculture and smart seed solutions to gain traction in the post-pandemic world.

REPORT COVERAGE:

This research report on the global seed market has been segmented & sub-segmented based on the crop, availability, seed treatment, seed trait and region.

Global Seed Market – By Crop:

• Field Crops
• Fruit & Vegetable Crops

Field crops often dominate the seed market due to their extensive cultivation and critical role in global food production. They are typically grown in large acreages, providing a consistent and stable demand for seeds. Maize, wheat, and rice, for instance, are staple crops for billions of people and serve as primary sources of calories. High-yielding and disease-resistant field crop seeds are continually in demand to meet global food security needs.

While fruit and vegetable crops occupy a smaller portion of cultivated land compared to field crops, they have experienced increased demand, especially in regions with growing urban populations and consumer preferences for fresh produce. The desire for diverse, nutrient-rich diets has fuelled the seed market for fruit and vegetable crops. Additionally, organic and home gardening trends have boosted the popularity of these seeds.

Global Seed Market – By Availability:

• Commercial Seeds
• Saved Seeds

Commercial seeds have the largest CAGR in the seed market, primarily due to their accessibility and the numerous advantages they offer. These seeds are bred to exhibit specific traits, such as disease resistance, improved yield, and uniformity, which are highly desirable for modern agriculture. Their wide availability and consistency make them the preferred choice for many farmers, particularly in large-scale, commercial farming.

While saved seeds have been historically significant, their dominance has diminished over time. Modern agriculture increasingly relies on commercial seeds because of their advantages in terms of disease resistance, improved yields, and predictability. However, saved seeds are still popular among organic and sustainable agriculture practitioners, as they may better suit local conditions and are often considered more in line with traditional, non-industrial farming practices.

• Treated
• Untreated

Treated seeds segment is leading with the dominant market share. Treated seeds are more dominant in modern agriculture, particularly in conventional, large-scale farming. The primary reason for their dominance is the perceived economic benefits and risk reduction associated with pre-treatment. Treated seeds are typically more reliable in terms of disease and pest protection, leading to potentially higher yields and reduced crop loss.

Untreated seeds are favored for organic farming, as they follow the principles of organic agriculture, which minimize the use of synthetic chemicals. While they are less common in commercial agriculture, they still remain popular among home gardeners, small-scale farmers, and those who prioritize sustainability and environmental considerations.

Global Seed Market – By Seed Trait:

• Herbicide-Tolerant
• Insecticide Resistant
• Other Stacked Traits

Herbicide-tolerant seeds have been more dominant and hold the largest CAGR in the seed market, particularly for crops like soybeans and maize. The convenience of weed control through herbicides has driven their popularity. Glyphosate-tolerant crops have been widely adopted, although concerns about herbicide-resistant weeds have emerged as a challenge.

Insecticide-resistant seeds have also gained second significant traction over revenue share as they offer an effective and environmentally friendlier means of pest control. 

Stacked traits, combining multiple benefits in one seed, are increasingly being developed to address multiple challenges simultaneously. They can provide comprehensive protection and convenience to farmers. 

Global Seed Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

The Asia Pacific region holds a prominent share of the global market, with countries like China and India being major players. Due to its substantial population and high agricultural demand in these countries, Asia Pacific is a dominant market for both field crops and vegetable crops. The adoption of hybrid rice and other high-yielding seeds is a notable trend in this region.

North America, particularly the United States and Canada, has been the second dominant player in the global seed market due to the extensive use of advanced seed technologies, including genetically modified (GM) crops. High levels of mechanization, a favorable regulatory environment, and substantial agricultural land contribute to North America's dominance. 

Europe has a diverse seed market, while GM crops have faced more regulatory restrictions in Europe compared to North America; the market emphasizes non-GMO, organic, and specialty crop seeds. Certain European countries, such as France and Germany, are prominent in seed production and research, emphasizing traditional and sustainable farming practices.

Latin America has seen significant growth in the seed market, with countries like Brazil and Argentina becoming key players. The region is known for its substantial production of GM soybeans, maize, and cotton. Favorable climatic conditions and an emphasis on export-oriented agriculture contribute to Latin America's dominance in certain crop varieties.

The Middle East and Africa region exhibits diversity in its seed market. Some countries with favorable climates, like South Africa, have substantial seed industries. The region is witnessing increased demand for drought-tolerant and disease-resistant seeds due to changing climate conditions. Traditional and staple crops are often grown alongside specialty crops.

KEY MARKET PLAYERS:

Monsanto Company (Now part of Bayer AG), Bayer AG, Syngenta AG, Corteva Agriscience (Formerly DowDuPont), BASF SE, Limagrain, KWS SAAT SE, Groupe InVivo, Sakata Seed Corporation, Enza Zaden, Rijk Zwaan, Burrus Seed Farms, Land O'Lakes, Inc. (WinField United), Takii & Co., Ltd., DLF Seeds, Emerald Seed Company, Delta Seeds, Gansu Dunhuang Seed Co., Ltd., Nunhems (Bayer Crop Science)

RECENT HAPPENINGS IN THE MARKET:

• In 2023, Bayer Crop Science continued to invest in research and innovation, introducing new seed varieties and traits to enhance crop productivity and resilience.
• In 2022, Syngenta AG worked on sustainable agricultural practices and the development of seeds that require fewer natural resources and have a reduced environmental impact.
• In 2023, Corteva Agriscience focused on expanding its seed portfolio, including advanced traits and technologies for pest and disease resistance.