The global seed market size is estimated to be valued at USD 59.3 billion in 2020 and is projected to reach USD 80.9 billion by 2025, recording a CAGR of 6.4%. The increasing population and growing application of cereals, oilseeds, vegetables in the food & beverage, pet food, and biofuel industries are driving the growth of the market.
By type, the seeds industry is segmented into conventional and genetically modified. The genetically-modified seeds are aiding farmers to rise to major agricultural challenges more efficiently and adapt supply to demand more easily by producing more and quality food crops. They also help in reducing agricultural input costs, and these are some of the key reasons for growth in genetically modified crops.
Based on Crop Type
The seed market is segmented into cereals & grains, oilseeds & pulses, fruits & vegetables, and others, which include fiber crops and other commercial crops such as tobacco and medicinal plants. The market for cereals & grains is growing owing to the increased intake of cereals & grains as staple foods. Countries such as China, the US, India, and Brazil, are among major producers of seeds in the world and cater to the demand arising from international markets. Cereals & grains are gaining increased popularity in animal feed and the food industry, which is steering the growth of this market.
With the growing case of pest infestations and pests gaining resistance against single traits, companies are focusing on the research and development of seeds that showcase multiple traits such as herbicide tolerance, drought-resistance, insect-resistance, and stress-tolerance among others.
Some of the major players in the seed market such as BASF SE (Germany), Bayer AG (Germany), Syngenta Group (Switzerland), KWS SAAT SE (Germany), Land O’ Lakes (US), and Sakata Seed Corporation (Japan) are focusing on strategies such as new product launches, collaborations, and acquisitions to expand their global footprint.