Seeds are the primary category of agricultural inputs in that they majorly decide the overall quality and quantity of farm produce. Seeds when sowed in proper growing media are germinated to form plants. The need for improving the yield and quality of products led to the demand for the seed production industry. Vegetable seed production evolved as a major sector in the agricultural inputs market with large-scale business operations across the globe. The production and sales of vegetable seeds have been rapidly growing with increasing vegetable farming acreage and awareness of hybrid seeds. Farming communities are shifting from self-farm procurement to hybrid seeds owing to growing awareness
The global vegetable seeds market valued USD 5.8 billion in 2019 and is estimated to reach USD XX million by 2017, growing at a CAGR of ~6.8%
Development of hybrid vegetable seeds
The growing demand for vegetables coupled with the increasing population and shifting dietary preferences towards fresh farm-grown products is the primary factor driving the growth of the vegetable seeds market globally. The increasing awareness regarding the consumption of vegetables, to meet diverse dietary and nutritional needs, has caused a rise in the demand for vegetables.
Vegetable farming has been constantly growing both in terms of acreage and yield. Penetration of protected agriculture practices such as a greenhouse, hydroponics, and aquaponics led to the growth of the vegetable seeds market. Vegetables are the largest food category grown in these structures. Furthermore, indoor farming/urban farming is another key driver for the market, increasing sales around the year. The development of hybrid seeds increased the growth venues for the vegetable seeds market. According to ICRA, the key to improving the adoption of hybrid seeds lies in ensuring the availability of quality seeds, bridging the awareness gap in farmers regarding better techniques, and developing supportive infrastructure. Vegetable seeds market growth is supposed to be driven by the increased use of hybrid seeds. The number of hectares under biotech crop production increased from 179.7 million in 2015, to about 185.1 million in 2016 as per ICRA. Among all the vegetable seeds, cabbage (100%) and tomato (99.3%) account for the highest seed replacement rate. Globally investments in research and development are increasing to develop hybrid seeds.
Genetically modified (GM) seeds have been the major point of conflict among seed growers, farmers, consumers, and governments. The health and environmental impact of GM seeds led to their partial or complete ban in several countries, particularly in Europe
Solanaceae is the dominating crop category globally
The global vegetable seeds market has been segmented by crop type into Brassica, Cucurbit, Leafy Vegetables, Root Vegetables, Solanaceae, and others. Solanaceae is dominating the global vegetable seeds market owing to its high presence of widely cultivating vegetables which includes tomato and potato across both developed nations and developing nations. Increasing consumption of Solanaceae family vegetables in the daily dietary intake coupled with growing commercial utilization of respective vegetables in the processing of different food products is additionally driving the global Solanaceae vegetable seeds market during the forecast period.
The Solanaceae seeds market is estimated to grow at a CAGR of 7% during the forecast period (2020-2027) to reach a market value of USD 4.1 billion by 2027. The solanaceae segment is holding a share of over 40% in the global vegetable seeds market in 2019
China and India led Asia Pacific as the largest vegetable seed consumer
By geography, Asia Pacific is dominating the global vegetable seeds market, accounting for over 38% of the global sales revenue in 2019. China and India are leading in the production of vegetables globally with the U.S. and Turkey following far behind in terms of volume production.
The Asia Pacific market for Vegetable Seeds was valued at USD 2,417.52 million in 2019 and the market is estimated to grow at a CAGR of 8.34% during the forecast period to reach a market value of USD 4,295.19 million by 2027. China, India, and Japan are the key markets with high demand for seeds in terms of consumption (volume) in this region. The high demand for food in these regions has surged advances in seed technology to provide high-quality seeds with increased productivity. Food security is a cause for concern, which drives the need for hybrid seeds with modified characteristics. However, a number of regulations are imposed on the cultivation of GM crops because these crops require extensive water resources and might cause health and environmental hazards. The lack of awareness of the benefits of the latest crop production technologies in many countries of this region can also have a negative impact on the growth of the market in this region during the forecast period.
The global vegetable seed market is highly competitive and is fragmented with the presence of multiple players all over the world. East-West Seed International Co. Ltd., Syngenta AG, BASF SE, Bayer, Rijk Zwaan Zaadteelt en Zaadhandel B.V., Groupe Limagrain, Enza Zaden B.V., Bejo Zaden B.V., Takii Seeds, and Sakata Seed Corporation are considered as the top players in the market. The leading players in the market are focusing on launching new products, giving satisfactory services, and improving customer company relations to strengthen their presence in the market.
COVID-19 Impact: Vegetable sales declined by volume in 2020. Likely to rebound in 2021
Agriculture is one of the least affected industries by the COVID-19 pandemic as the majority of agricultural practices is spared from lockdown restrictions under essential industries. However, restrictions on social activities and freight challenges resulted in a negative market scenario. Supply chain disruptions caused by travel restrictions are the primary factor for the decline of the market size in 2020. Europe is the largest exporter of vegetable seeds globally with countries such as the Netherlands, Denmark, Italy, and France exporting to countries across the world. These countries imposed strict lockdowns for most of the months in 2020 with the spread of novel coronavirus. This has posed a negative impact on the sales of vegetable seeds. Most of the global vegetable seed companies posted negative sales during the time. For instance, the revenue from vegetable seeds for Bayer, Vilmorin & Cie, and BASF declined by 13%, 3.5%, and 1.3% during interim business operations in 2020
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