The vegetable seed market is projected to register a CAGR of 5.5% during the forecast period of 2021-2026. Most companies in the Asia-Pacific region reported a negative effect on the demand and sale of sowing seed for all crops amid the spread of the COVID-19 pandemic.
In India, with restricted operations of ports and testing labs, the import of high-quality vegetable seeds has been significantly impacted, forcing farmers to opt for low-quality seeds. However, in mid-2020, an uptake in demand for small seed packs for growing in the garden was observed. A similar trend was observed even in other regions as well.
Asia-pacific is identified to be the fastest-growing market. The demand for vegetable seeds, especially in developing countries, such as China and India, is still untapped and this provides multinational companies various opportunities for expansion and to widen the customer base. Countries are shifting toward the adoption of high-quality seeds, due to the export potential of vegetable seeds in the global market.
By vegetable type, the markets for the hot pepper, eggplant, Chinese cabbage, sweet pepper, and lettuce seeds are expected to witness the fastest growth rate during the forecast period. Vegetable seed companies are using biotechnology tools to develop varieties with improved agronomic performance, adapting to climatic conditions, disease and pest resistance, and adapting to different market segments, like fresh consumption or processing. ​ Therefore, the market is anticipated to achieve a significant growth.
Key Market Trends
Decrease in Per Capita Arable Land
As a result of population expansion and a steady land degradation rate, the per capita land has been declining and is further anticipated to decline in the future. The global per capita land availability was around 0.22 ha in 2005, which reduced to 0.194 ha in 2015 and further to 0.192 ha in 2016. The decreasing per capita availability of arable land is a major concern for global agricultural production. However, it is considered to be a driver for the seed industry.
The reducing per capita arable land, especially in developing countries, is encouraging corporations and farmers to pool their resources, for contract farming and use quality seeds. The increasing contract farming practices help converge a large set of farmers to one point, for seed selection. This maintains a uniformity in the product, thus helping the seller to obtain sustainable demand and augmenting the bulk sale of seeds.
The major players in the market are majorly focusing on research and development activities in order to produce new varieties of seeds that are embedded with the characteristics of high yield with less crop damage.​ For instance, in 2020, Bayer released the final large-scale pre-launch trials of Roma-type tomatoes to which is known to address the Tomato brown rugose fruit virus (ToBRFV).
The trials started in Spetember 2020 in Mexico, included two varieties of Roma-type tomato that claim Intermediate Resistance (IR) to ToBRFV. This will aid in improving the yield in a given piece of land. Thus, the decreasing per capita arable land globally is going to drive the global vegetable seeds market by increasing the production of high-yielding varieties and hybrid variety seeds in various countries.
Asia-Pacific is the Fastest Growing Market
The demand for fresh vegetables has spurred from health-conscious consumers across the region. As agricultural land faces constraint, urban agriculture such as indoor farming and vertical farming practices have been scaling up their operations to address the shortage of domestically grown vegetables. ​The seed market in China is the second-largest in the world, after the United States, and accounts for 21.0% of the global market share. A total of 6,665 new vegetable varieties were registered by the vegetable seed companies in China in 2017. The country requires almost 400,000.0 metric ton of vegetable seeds, annually, to fulfill its vegetable requirements.
According to the Indian Council of Agricultural Research, increasing awareness regarding the consumption of vegetables to meet various dietary requirements and nutritional needs has raised the demand for fresh vegetables, consequently leading to an increase in the area of vegetable production in the country to 10.3 million hectares in 2017 from 10.1 million hectares in 2016. ​ ​In India, most of the vegetable seed companies are focused on the production of tomatoes, cabbage, eggplant, chili, and okra, and cucumber seeds.
Competitive Landscape
The global vegetable seed market is a consolidated market with major players such as Bayer CropScience AG, BASF SE (Nunhems BV), Groupe Limagrain, and Sakata Vegetables Europe S.A.S dominating the market. The companies are majorly involved in mergers and acquisitions (M&A) and new development of hybrid varieties of vegetable seeds in various regions.​ Most companies are concentrating on hybrid vegetable seeds, which are largely backed by patents.
Reasons to Purchase this report:
– The market estimate (ME) sheet in Excel format
– 3 months of analyst support
For sample report please visit : https://www.statzyreports.com/report/sr496562/vegetable-seed-market
Contact Us:
Poojan Dogra
Public Relations Manager
Email : sales@statzyreports.com
Email : info@statzyreports.com
(IN) – +918484035727
(US) – +1415-871-0483
Website : www.statzyreports.com
