Seed Market Size, Share, Analysis, Growth Size & Trends 2031

Report Description

The global seed market size was valued at USD 62.5 billion in 2021 and is expected to surpass USD 98 billion by 2030, expanding at a CAGR of 4.3% during the forecast period, 2022–2030. The growth of the market is attributed to the rising demand for quality seeds for high crop yield and the wide popularity of genetically modified (GM) seeds.
 

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Seed can be simply described as the plant embryo that presents a beginning form of the plant life cycle and a major starting stage of agricultural production. A seed is a fertilized embryo that has a high rich in protein, starch, and oil reserves, which supply nutrients to the entire process of plant development. Rice, peanut, wheat, maize, soybean, sunflower, barley, common pea, walnut, common bean, pecan, sorghum, and lentil are key examples of seeds. It plays a crucial role in the economic development of a country and the global economy as a whole as it constitutes a vital ingredient of the entire agricultural and farming system. A successful agricultural practice can be measured in terms of the level of crop production and a high crop yield primarily requires the use of quality seeds. Rapid shrinking of a large portion of the global arable land due to urbanization and industrialization has accelerated the demand for quality seeds that can lead to higher crop production. Most importantly, the proper growth of a plant in a field completely depends on the timely availability of quality and high-yielding varieties (HYVs) seeds to farmers at an affordable price. One key aspect of the rising growth of the seed market is due to the wide availability of treated seeds, which are basically disinfected from seed- or soil-borne pathogenic organisms. These seeds can resist diseases from the soil and uniformity in the growth of plants, which results in better crop yield.

The COVID-19 pandemic outbreak had an adverse impact on the global seed market due to the abrupt disruption in the supply chain and seed delivery to farmers, imposed by emergency lockdown as a part of governments’ efforts to curb the virus spread. This had resulted in the delay of the global crop production level, which is likely to cause an interruption in the subsequent cycles of the overall crop production worldwide. The pandemic had crippled the entire agriculture and its related sector across the globe due to the lack in the availability of quality seed supply to farmers.

Market Trends, Drivers, Restraints, and Opportunities

• Rising demand for foods to meet the needs of the increasing global population and growing popularity of the global sustainable food production system are key factors boosting the market.
• Availability of quality seeds that are suitable to various agro-climatic conditions and favorable government policies to provide various agricultural subsidies to farmers present another key driver of the market.
• Growing demand for seeds from various industries such as animal feed, food & beverage, and biofuels sector is expected to further propel the market in the coming years.
• Increasing cost of R&D programs for the development of HYVs seeds and quality seeds along with the substantial decrease in the proportion of cultivable land globally act as main challenges to the market. These factors are likely to hamper the market expansion during the forecast period.
• Lack of commercialization of hybrid seeds and the availability of counterfeit seeds are further projected to hinder market growth in the coming years.
• Technological advancements for testing seed quality such as molecular breeding in seeds and increasing development of GM seeds conserving genetic diversity are offering various growth opportunities for the market.

Scope of the Report

The report on the global seed market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

High growth rate of production drives the GM segment

Based on types, the global seed market is bifurcated into genetically modified and conventional. The genetically modified (GM) segment held a large market share in 2021 and is expected to expand at a CAGR of 4.7% during the forecast period owing to the high growth rate of the crop production and availability of the seed types at an affordable price to farmers as compared to conventional seeds. Moreover, rising demand for crop-based animal feed along with the reducing costs of using GM seeds for farmers in the harvesting of crops further boosts the segment.

High intake of cereals and grains fuels the cereals & grains segment

In terms of crop types, the market is divided into cereals & grains, oilseeds & pulses, fruits & vegetables, and others. The cereals & grains segment dominated the market, representing nearly 45% of the total revenue of the global food demand in 2021 and the trend is anticipated to continue in the coming years due to the high intake of cereals and grains globally as well as wide production of these crops worldwide. Cereals are widely consumed as a staple diet, especially in developed countries. As per a report published by the Food and Agriculture Organization (FAO) of the United Nations, global cereal consumption is expected to reach 2.9 billion metric tons by 2027. The rapid expansion of the global cereal market is due to the rising production rate in major cereal-producing countries including Canada, the US, China, and India.
 

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Herbicide tolerance segment to register a considerable CAGR

On the basis of traits, the global seed market is segregated into insect resistance, herbicide tolerance, and others. The herbicide tolerance segment is projected to register a considerable CAGR during the forecast period owing to wide adoption of herbicide resistance treatment as it has a natural tolerant ability and offers a high chance of survivability of crops. Wide adoption of better trait seed reduces the use of herbicides and insecticides in farming practice, which present a key driver of the segment. Moreover, several companies are largely investing in the development of GM seeds with better traits, which further propels the segment.

Large governments’ agricultural subsidy propels the Asia Pacific market

In terms of regions, the global seed market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to constitute a key share of the market during the projected period owing to the presence of a large population, which results in the rising demand for agricultural products such as food grains in the region. Increasing awareness about sustainable agricultural practices among farmers and government policies for large agricultural subsidy provisions for farmers further fuel the regional market. On the other hand, the market in North America is anticipated to expand at a rapid pace during the forecast period owing to wide acceptance of high yield seeds among farmers as well as rising demand for grains, fruits, vegetables, and oils.
 

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