Vegetable Seeds Market Size, Share & Industry Analysis, By Type (Open Pollinated Varieties and Hybrid), Crop Type (Solanaceae, Root & Bulb, Cucurbit, Brassica, Leafy, and Others), Cultivation Method (Protected and Open Field), and Regional Forecast, 2024-2032

The global vegetable seeds market size was USD 8.14 billion in 2023 and is projected to grow from USD 8.69 billion in 2024 to USD 15.03 billion by 2032, growing at a CAGR of 6.78% during the forecast period (2024-2032). Asia Pacific dominated the vegetable seed market with a market share of 50.49% in 2023.

The COVID-19 pandemic had slight impact on the supply chain of these seeds, owing to disruption in production and logistics. Based on our analysis, the market growth in 2020 fell by 0.40% from the previous year. The rise in CAGR can be attributed to vegetable seed providers’ continuous effort to ensure that seed supplies for growers is undisturbed and rising consumption of vegetables.

Vegetables are an important part of a healthy diet and different vegetables comprise varied amounts of nutrients. A diet rich in vegetables can help reduce the occurrence of any disease or disorder, for instance, obesity and eye problems. Additionally, eating healthy non-starchy vegetables such as lettuce, spinach, and other vegetables help in weight loss. Thus, the need to meet diverse dietary and nutritional needs has fueled the demand for vegetables. Moreover, farmers across the world are demanding high-quality vegetable planting seeds to meet this rising demand for vegetables.

The COVID-19 pandemic caused a significant disruption in the vegetable seed industry's supply chain. The rising number of patients and the rapid spread of the virus caused governments across the globe to implement several regulations. These regulations, such as lockdowns and others, were designed to limit the spread of the virus. Vegetables were considered as important and were exempted from government restrictions. However, with the closing of borders and limited labor, the industry saw a significant decline in production, creating a supply and demand gap. For instance, as per USDA, due to the pandemic from May 2020 to May 2021, the majority of farmers reported a significant level of food insecurity owing to the decline in access to agricultural inputs such as seeds and seedlings.

Vegetable Seeds Market Trends

Rising Awareness Regarding Benefits of Consuming Vegetables is the Major Vegetable Seed Market Growth Trend

According to the World Health Organization (WHO), approximately 1.7 million deaths in the world are due to a low/lack of consumption of fruit and vegetables. Also, the low consumption of fruits & vegetables is among the top 10 risk factors for global mortality. Thus, including fruits & vegetables in the daily diet could help to prevent major non-communicable diseases (NCD). Additionally, a rise in awareness regarding the benefits of vegetables and the growing health concerns have resulted in the increasing demand for vegetables in developed and developing economies. Thus, growers across the world are focusing on increasing the production of vegetables by using various agriculture inputs, including good quality vegetable planting seeds.

Growth Factors

Demand for Diet-based Nutritional Food to Support Market

The inclusion of vegetables in the diet helps to combat malnutrition and diversify the diet. Dietary diversification helps to balance the diet by enhancing the supply of essential micronutrients that lead to improved health, enhanced thinking ability, and increased efficiency. Moreover, the nutritional richness of vegetables ensures a low-cost remedy for nutritional deficiency in many developing countries. Thus, the growing demand for vegetables worldwide increases the need for improved vegetable production, thereby supporting the growth of the industry.

Rising Adoption of Hybrid Vegetable Seeds is Positively Influencing Market

Hybrid seeds are developed to suit the requirements of consumers and farmers. Hybrid vegetables have a range of qualities such as adaptability, nutrition, taste, yield, color, shape, size, cooking quality, flavor, and shelf-life.

Hybrid seeds are gaining popularity due to its benefits over non-hybrid seeds. The use of hybrid vegetable planting seeds helps to prevent crops from different types of environmental stress such as insects and plant diseases. In addition, these seeds have high yield potential with consistent performance throughout the year. Furthermore, farmers' adoption of hybrid seeds has led to the growth of many seed companies in the last three decades wherein this also binds the companies to supply quality seeds.

RESTRAINING FACTORS

Changing Climatic Conditions to Obstruct Market Growth

Climate change is a major concern for agricultural production across the world. A change in the climatic parameters significantly impacts crop production and the crops are susceptible to diseases and pests. This, in turn, affects crop health and causes deviations in farming practices. Furthermore, research from many decades has shown the seasonal effects of temperature, rainfall, and humidity on disease and its development and growth on seed material, leading to major crop loss. Thus, the change in temperature and a rise in the atmospheric moisture content affect vegetable production

Segmentation Analysis

By Type Analysis

Open-Pollinated Varieties Segment to Emerge as Dominant Segment Owing to their High Usage in Developing Nations

Based on type, this market is divided into open-pollinated and hybrid seeds. When pollination occurs by insect, bird, wind, or other human intervention, it is known as open-pollination. Since there are no restrictions on the flow of pollen between individuals, open-pollinated crops are more genetically diverse. Thus, this causes more variation within the crop and helps it to adapt to local growing conditions and climate.

The open-pollinated varieties is the largest market due to its higher adoption in developing nations. In addition, open-pollinated varieties are produced in the unregulated market by farmers and local producers

By Crop Type Analysis

Solanaceae Segment to Remain Dominant in Coming Years Due to its High Adoption Worldwide

Tomatoes, potatoes, eggplant, and pepper are the major crops in the Solanaceae family that have high demand across the world. The growth of the Solanaceae segment is primarily driven by the growing investment by vegetable seed manufacturers to develop high-quality seeds such as hybrid tomato. Hybrid tomato has the highest adoption in the U.S. and India. Moreover, tomato is the dominant vegetable seed in the Solanaceae family due to its high seed replacement rate of 99.3%.

By Cultivation Method Analysis

Protected Cultivation Segment to Exhibit High Growth Stoked by Their Increasing Preference

The protected cultivation includes producing vegetables in temperature-controlled environments such as greenhouse and hydroponics. The demand for cultivating seeds in the protected environment is growing due to the varied benefits offered by protected farming such as climate control, improved crop efficiency, and low agriculture input requirements.

The open field segment occupies a large share due to its high adoption in countries such as India, South Africa, and other African countries where the farmers cannot afford the cost of setting up a protected cultivation.

REGIONAL INSIGHTS

Asia Pacific currently holds the largest vegetable seeds market share and is predicted to retain its position throughout the forecast period. The growing agriculture industry, rising awareness regarding the health benefits of vegetables, and increasing area under horticultural crops are the major factors driving the market in this region. China and India are the key countries in the region that report high vegetable production and consumption. Moreover, China is a leading market in the world and these factors would support the dominance of the region in the global market.

The Europe market will showcase considerable demand on account of rapid advancements in the breeding technologies that result in the development of high-quality vegetable planting seeds. The Europe market is projected to register 6.85% growth rate during the forecast period from 2021 to 2028. In addition, the region is the key producer of fruits & vegetables and the growth is derived from increased international trade in vegetables. These factors are anticipated to further boost the market in this region.

The North American market reported significant growth during the foreseeable years. The vegetable planting seeds industry is highly determined, with high demand for vegetables in the U.S., Canada, and Mexico. Moreover, the demand for hybrid seeds of tomato, lettuce, and sweet pepper is growing in the country, thereby fueling the market in the U.S. 

Brazil dominates the South American vegetable seeds market, owing to the rising inclusion of vegetables in their daily diet. Additionally, Brazil, Peru, and Chile are the leading seed exporters in the region generating high revenues from the exports. 

The market in the Middle East & Africa is driven by a rising area under vegetable cultivation and increasing awareness regarding consumption of vegetables regularly. The growing middle class population in Africa also supports the growth of the region. Turkey is a key market for vegetable planting seeds in the region, and its sales are driven by high demand in local and foreign markets.

List of Key Companies in Vegetable Seeds Market

Key Players Focusing on Novel Product Launches to Gain Prominent Market Share

The acquisitions in the seed industry have led to the significant consolidation of this market. After the acquisition of Monsanto, Bayer reported being the largest player in this market. Groupe Limagrain, Syngenta, BASF, and Rijk Zwaan are the other major players in the market. Multinational companies are investing in innovative breeding tools and techniques to meet the downstream customer requirements such as higher nutritional values and better taste.

In August 2018, BASF acquired Bayer’s global vegetable seeds business, which is mainly operating under brand Nunhems. The acquisition provided BASF with 24 crops and 2,600 varieties of vegetable seeds.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Ludwigshafen, Germany)


• Syngenta AG (Basel, Switzerland)


• Groupe Limagrain (Saint-Beauzire, France)


• Bayer AG (Leverkusen, Germany)


• Rijk Zwaan Zaadteelt en Zaadhandel B.V (De Lier, Netherlands)


• Sakata Seed Corporation (Kanagawa, Japan)


• Takii & Co., Ltd (Kyoto, Japan)


• Enza Zaden BV (Enkhuizen, Netherlands)


• East-West Seed (Nothaburi, Thailand)


• Bejo Zaden B.V. (WARMENHUIZEN, Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• July 2023: Syngenta, one of the prominent players in the agriculture inputs industry, announced the acquisition of Feltrin Sementes, a vegetable seed company based in Brazil. The move would help expand the range of products that the company can offer across the globe.


• February 2022: BASF’s vegetable seeds business announced the launch of its new tearless onion variety. The products would be available in supermarkets in France, Germany, Italy, and the U.K.


• September 2021: Bayers announced plans to expand its vegetable seed offering under its segment called Vegetables by Bayers. The new segment would include organically produced seeds.


• January 2021: Bayer showcased four new varieties of vegetable seeds namely, Anshuman, SVHA9093, Bazlet, and Himgauri at an event, Pragati Diwas. The event was held in Chikaballapur near Bengaluru, India.


• April 2020: Sakata Seed America, a subsidiary of Sakata Seed Corporation acquired U.S. based lettuce seed company, Vanguard Seed. This acquisition would allow the company to introduce new lettuce varieties in the market.

REPORT COVERAGE

The global vegetable seeds market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, type, crop type, and cultivation method. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth in recent years.

Report Scope & Segmentation