Vegetable seeds market size has grown substantially in last five years. In 2019, the industry is estimated to be valued over US$ 7.4 billion in 2019. This accounts to 10.8% of total seeds market revenue. In 2018, 1.2 billion metric tonnes of vegetable was consumed worldwide. By 2028, vegetable consumption is expected to increase by 34%, owing to increase in population and rising per capita income in developing regions. In another ten years, the industry will gradually shift to consolidation since the demand for hybrid seeds has increased over traditional seeds. Shift in market structure is primarily attributed to limited arable land and rising consumers. Hybrid seeds is necessary to support the human ecology. As such, leading companies will be able to expand its business reach and generate higher revenue during the forecast period.
While there exists huge revenue potential, global vegetable seeds market dominance is expected to be threatened by China based competitors, who are gradually shifting up on value chain. Mergers acquisition and partner with regional distribution channels is another major trend that will shape the industry in another ten years.
Leading Export Markets: North America and Western Europe Accounted for 71% of Total Vegetable Seed Export
Western Europe and North America accounted for 71% of total exported vegetable seeds in 2018. Netherlands accounted for 41% of the total exports in 2018. This corresponds to marginal decline in percent share as compared to that in 2013. Italy and U.S. stands next to Netherlands in terms of exports. While China and India are leading consumer of these seeds, majority of the seeds produced is consumed with marginal fraction exported worldwide. Africa, though accounted for marginal share, is emerging as preferred export destination. Cheap human resource and vast land availability has created favorable ecosystem for vegetable seeds to flourish. The region will witness further increase in share during the forecast period.
Digitization to Play Key Role in Sales of Vegetable Seeds Worldwide
Companies are shifting from traditional trial processes to a concrete data analytics based agri-support. Digitization, a integrated solution based on mathematics, data, genetics, breeding and agronomy, helps end-user to enhance crop performance by offering best possible solution. Data driven solutions is a part of R&D that helps company understand the pertaining issues and thereby offer optimize solutions. Companies have increased R&D spending as a measure to boost digital drive. This is expected to directly drive the vegetable seeds market growth worldwide.
- In 2018, BASF invested US$ 760.9 million in agricultural solutions R&D. This is 11% of total agricultural division sales. The company invested in plant breeding and seed traits research. The research team total capacity has increased to 1,600 employees at 17 locations worldwide post Bayer acquisition.
- In 2016, Bayer announced its plan to invest US$ 224 million in digital farming by 2020. The company aims to develop data infrastructure so as to give agriculture based recommendations to farmers. This will help farmers to take smarter decisions and optimize crop yield.
- Syngenta conducts vegetable seed research at various locations of U.S. including California, Naples, Woodland and Gilroy, Washington, Pasco, Plainfield, Wisconsin, New York, Minnesota, and Florida. The company invests around US$ 1.3 billion on R&D each year.
Focus on Emerging Economies to Boost Vegetable Seeds Market Sales
Globally, Asia Pacific dominated in vegetable production in 2018. China and India collectively accounted for 728 million metric tons of vegetable production. China produced 15X higher vegetables than U.S. – third major destination for vegetable production. While China and India dominated the global vegetable production, much of the seeds are procured through traditional means. There exists a huge market opportunity for players engaged in vegetable seeds value chain. Changing agriculture landscape and increasing population will demand seeds of superior quality. Major companies have sensed the demand and are working to capitalize the unstructured market. Besides Asia Pacific, industry players are also focusing on Latin America and Africa region.
- In 2018, Syngenta registered 6% sales growth of seed business in South Asia. The company is strengthening its presence in Asia to cater to growing demand in the region. While the company is fairly doing good in the region, it witnessed a series of challenges in the region. Low vegetable prices and competition from regional vendors is a major challenge to company seed business growth. The company, however, witnessed strong sales growth in Latin America owing to rise in vegetable production in Brazil and Mexico. In 2018, Syngenta acquired the global seed business of Nidera from Nidera B.V. Acquisition is expected to strengthen company presence in Latin America vegetable seeds market.
- In May 2019, Bayer announced its plan to build Latin America largest seed factory in Chile. Factory will help Bayer to lower the operational cost and capture a major chunk of untapped Latin America market.
Global Vegetable Seeds Market Size Analysis and Industry Opportunity: By Region
Globally, Asia Pacific vegetable seeds market dominated the global share where China and India are the major players in the region. The region accounted for 59% of global share in 2018. Growth in the region is attributed to large population base, higher adoption of hybrid seeds and digitization to improve agricultural yield. China and India are registering double digit growth and will continue to maintain the momentum throughout the forecast period. Agrarian culture and varied regional climate are also another factor driving the sales of vegetable seeds in the region.
Western Europe vegetable seeds market stands next to Asia Pacific with 28% share. Over 6,500 seed companies are operational in the region with majority of them having small scale business operations. Latin America and Africa accounts a meagre share, however, are expected to register significant growth over the next ten years.
Global Vegetable Seeds Market Size and Forecast: Competition Landscape
Some key Vegetable Seeds market players are:
- BASF SE
- Bayer CropScience Ltd.
- Dow AgroSciences
- National Seeds Corporation Limited
- Rasi Seeds (P) Ltd.
- Nirmal Seeds Pvt. Ltd.
- Kaveri Seed Co. Ltd.
- Syngenta AG
By Product Type:
- Chinese Cabbage
- Sweet Pepper
- Hot Pepper
- Sweet Corn
By Seed Type:
By Distribution Pattern:
- On Trade
- Convenience Stores
- Farmer Associations
- General Stores
By Seed Treatment:
What Will You Discover in the Report?
- An in-depth analysis of the Vegetable Seeds market across regions – North America, Latin America, Western Europe, Central and Eastern Europe, Asia Pacific, Middle East, and Africa.
- How the Vegetable Seeds market sales is expected to grow throughout the forecast period.
- How geopolitical policies and technological changes will affect the Vegetable Seeds market in near future
- Where the stakeholders should invest to generate higher profit margins
- How consumers (end-users) will reflect to the Vegetable Seeds industry during the forecast period
- Who are the Vegetable Seeds industry leaders and what are the key initiatives taken by them for long term growth
Who will benefit from the Report?
- Vegetable Seeds Industry Suppliers
- Vegetable Seeds Industry Manufacturers
- Consultants and Analysts
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