Global Vegetable Seed Market - Segmented by Vegetable Type, and Geography- Growth, Trends, and Forecast (2018 - 2023)
The Global Vegetable Seed Market was valued at USD 8,452.5 million in 2017 and is expected to register a CAGR of 9.4% during the forecast period (2018 - 2023). The Europe seed market represents 20% of the global seed market. It is the third largest seed market after North America and Asia-Pacific. The European Union is the largest region, in terms of R&D expenditure on vegetable seeds.
Vegetable seeds with high growth prospects are - hot pepper, eggplant, Chinese cabbage, sweet pepper, and lettuce. These vegetable seeds are projected to record a CAGR of over 11%, over the forecast period. The tomato, cabbage, sweet pepper, and lettuce segments account for shares of more than 30%. The tomato seed segment accounts for the largest share, followed by sweet pepper, lettuce, and cabbage. In 2015, by value, the Netherlands, United States, France, China, and Chile were the major exporting countries, whereas, the Netherlands, United States, Mexico, Spain, and Italy were the top importing countries for vegetable seeds, global
The Fastest Market Growing Segment by Vegetable Type - Tomato
Tomato seeds form the largest segment in the vegetable seed market, accounting for a share of 10.7% of in 2015. Tomato is the most important vegetable crop, grown extensively in tropical and sub-tropical climates. It is the most-widely grown and consumed vegetable in the world. China is the largest tomato producer, followed by India, the United States, Turkey, Egypt, Iran, Italy, Spain, Brazil, Mexico, and the Netherlands. Vegetable seed companies are using the help of biotechnology tools for improving agronomic performance, adapting to climatic conditions, disease and pest resistance, and adapting to different market segments, like fresh consumption or processing.
Increasing Demand for Hybrid Seeds
The Indian domestic vegetable seed industry is expected to double, to around USD 1,179 million, over the next five years. According to ICRA, this growth is expected to be driven by 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. Developing countries accounted for around 54% of the global biotech hectares, compared to the 46% of industrial countries. The increasing awareness regarding the consumption of vegetables, in order to meet diverse dietary and nutritional needs, has caused a rise in the demand for vegetables. Among all the vegetable seeds, cabbage (100%) and tomato (99.3%) account for the highest seed replacement rate. Currently, only 20% seeds used by the farmers are of good quality, whereas, the remaining 75% of demand is being catered to by the saved seeds of farmers, from the previous season.
High Production Cost
The development and popularization of vegetable seeds is lower than that of oilseeds. The main reason for the low popularity of vegetable seeds is high seed cost. Hybrid vegetable seed production involves expensive manual operations, which lead to high production costs. Other factors influencing the cost of hybrid vegetable seed production include - raising healthy crops for hybrid seed production, extra expenditure, emasculation and pollination, and post-harvest operations. Post-harvest operations, such as seed extraction, drying, fungicide treatment, and packaging also lead to additional costs. Farmers in developing countries cannot afford the high prices of hybrid seeds, leading to sluggish market growth.
Key Developments in the Market
- Mar 2018, the domestic vegetable seed industry in India is to double its production as usage of hybrid seeds is increasing.
- Aug 2018, BASF has acquired the vegetable seed business of Bayer mainly operating under the brand Nunhems.
Major Players - Monsanto, Groupe Limagrain, Syngenta International AG (Switzerland), Nunhems BV, Rijk Zwaan Holdings BV, Sakata Seed Corporation, Advanta Seeds, Takii & Co Limited, East-West Seed International, Enza Zaden BV, Bejo Zaden BV, Jiangsu Chia Tai Seeds Co. Ltd, Namdhari Seeds, Origene Seeds, BHN Seeds, Nongwoo Bio Co Ltd, Known-You Seed Co Ltd.
Reasons to Purchase the Report
- To have an understanding of the fastest growing regions in the vegetable seed and growth trends during the forecast period
- The report outlines drives, restraints, and trends that are currently effecting the market
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The report covers in-detail insights about the competitors’ overview and company share analysis
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in Excel)
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