Commercial Seed Market Size, Share and Industry Analysis By Product Type (Genetically, Modified Seeds, Conventional Seeds), Crop Type (Cereals, Oilseeds, Fruits & Vegetables) and Regional Forecast 2018-2032

The global commercial seed market size was valued at USD 40.70 billion in 2017 and is projected to reach USD 54.81 billion by 2032, exhibiting a CAGR of 2.5% based on our analysis in the existing report. North America dominated the commercial seed market with a market share of 39.82% in 2017.

The global agri-input industry has witnessed a significant change in the current decade due to a large number of merger and acquisition activities. Global agrochemicals (including pesticides and seed) were a consolidated industry, and recent mergers & acquisitions have led to further consolidation of the industry. A combination of key industry players such as Bayer-Monsanto, ChemChina-Syngenta, and DowDupont have significantly changed the industry structure, competition level, investment trend, and supply-demand dynamics.

The market grew 6.63% in 2017 over 2016 due to the significant rise in areas under genetically modified crops. The increasing use of certified seeds due to the commercialization of farming professions and the benefits of reliable and improved seed varieties among crop producers are projected to support seed market growth during the forecast period from 2018 to 2025.

Other key factors supporting the market growth include government investments to enlarge agriculture productivity to meet domestic food security and seize opportunities in the global trade market and continuous efforts of all the industry stakeholders to achieve global food security.

Increased awareness among farmers regarding the use of hybrids and biotech crops is projected to drive the global commercial seed market trend. Recent seed technologies with various beneficial traits, such as high yield and improved quality, animal feed, abiotic stress tolerance, and insect resistance, are projected to motivate farmers to opt for them in place of farm-saved seeds for crop cultivation.

Segmentation

"Genetically modified seeds to dominate and witness strong growth in the forecast period"

Currently, genetically modified crop seeds account for more than 50% share in the commercial seed market share, and increasing area under the GM crops and acceptance of GM crop output by various regions is expected to further support the growth of the market. As per the International Service for the Acquisition of Agri-biotech Applications (ISAAA), the area under GM crops increased by 8.7% in 2017 and a major contribution came from countries such as the U.S., Canada, and India. At the same time, there is a significant rise in area under GM crops is witnessed in countries such as Sudan, Vietnam, Chile, and Bangladesh.

Growing acceptance of GM crop produce and launch of seeds having various beneficial traits factors are projected to support the strong growth of the genetically modified crop seeds market during the period from 2018 to 2025.

Regional Analysis

"Fruits and vegetable segment is projected to witness strong growth"

The market is currently dominated by the cereals crop segment (which accounts for nearly one-third of the global market share) due to the large area under cultivation with the use of commercial seeds including conventional and genetically modified seeds. Developing countries are majorly revolving towards the cultivation of genetically modified cereal crops such as corn is projected to support the cereal crop segment to maintain the largest share during the forecast period.

The fruits and vegetable seed segment is projected to witness strong growth during the projected period due to huge demand from increasingly health-conscious consumers. The development of new hybrid vegetable seed varieties is projected to support the strong growth of the crop segment during the forecast period.

North America region followed by the Asia Pacific are the two largest markets for commercial seed in 2017, and they are expected to account for a significant proportion of the market in the forecast period as well. The Asia Pacific region accounts for a major share in the cultivation of agricultural crops, and the majority of the source of the crop for seed is farm-saved seeds. Increasing awareness levels among the crop producers about the benefits of improved seed usage (seed replacement ratio) and governing bodies promotional activities regarding the usage and supply of improved seeds are projected to drive the increasing demand for the commercial seed Industry.

Key Market Drivers

"Bayer CropScience and DowDuPont to Dominate the Commercial Seed Market"

With recent merger and acquisition activities, Bayer CropScience and DowDuPont are likely to dominate the global commercial seed Industry. Combined R&D capabilities and products in the pipeline are to support these companies to continue to hold a strong market share in the global commercial seed Industry.

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

Report Coverage

Seeds or planting materials are basic inputs in the production of crops. It has a relatively low share in the total input cost in agriculture, but other inputs are contingent upon the quality of seed for being optimally productive. Good quality seed or planting material is the essential input for sustainable agriculture and in achieving food security.

The seed industry, with its affiliated institutions and services together, constitutes the seed system or seed sector. The commercial seed industry scenario differs in developing and developed nations. Multinational companies have played a prominent role in the seed industry of developed countries, although traditional small and medium-sized companies and cooperatives still hold some market share. The seed industry in developing countries is generally less commercialized, and multinational companies are taking advantage of the opportunities.

Private companies tend to concentrate on profitable crops, especially those in which hybrids exist. The low-value, self-pollinating cereals and legumes do not generally attract private investments and are either ignored or left in the hands of government agencies. Seed companies R&D activities are focused mainly focused on key criteria such as higher yields, higher disease and pest resistance, and improved performance in adverse conditions.

The commercial seed market report provides qualitative and quantitative insights on the commercial seed industry and a detailed analysis of market size and growth rate for all possible segments in the market. The market is segmented by type and crop type. On the basis of type, the commercial seed industry is categorized into genetically modified seeds and conventional seed crops. Based on the origin, the global market is segmented into cereals, oilseeds, fruits and vegetables, and other crops. Geographically, the market is segmented into five major regions, which are North America, Europe, Asia Pacific, South America, and Middle East & Africa. The regions are further categorized into countries.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the product launches, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, trade analysis, and key industry trends.

Scope & Segmentation

KEY INDUSTRY DEVELOPMENTS

• 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.


• To enter the sunflower seed market and to expand its portfolio, BASF signed a distribution agreement with a leading European sunflower seed company (Euralis Semences) in June 2019.