Introduction of High-quality, High-performing Genetically Engineered (GE) Hybrid Seeds to Drive the Global Seeds Market Through 2020, Says Technavio

The report categorizes the global seeds market into three major product segments. They are:

Vendors are increasingly investing in R&D to produce seeds with high-quality traits, which have greater possibilities of improving yield gains. However, the decrease in commodity prices is affecting market value. The stringent patent and licensing agreements are also restricting seed usage; for instance, using a particular seed production method or technique that can be used by a particular vendor and no other reduces the potential to develop and enhance new varieties for new vendors. These conditions are reducing seed diversity and limiting options for farmers. However, the market is expected to grow in the near future, driven by product and process innovations in seed technologies.

Corn and soybean are the largest segments of the global grain seeds and oilseed market. Corn is used in making animal feed for livestock, in the production of ethanol, in sweeteners, and for food starch. Soybean is used to extract oil, as fodder for livestock, and also for direct consumption.

The global fruits and vegetable seeds market is expected to reach USD 16 billion by 2020, growing at a CAGR of over 12%. Presently, the vegetable seeds segment accounts for almost 60% share of the global fruits and vegetable seeds market, owing to the increasing consumption of tomato and pepper seeds.

The global seeds market promises high productivity and profit margins due to the growing popularity of healthier green foods among consumers. Also, with the high disposable income and increasing purchasing power of the global population, the consumption of processed vegetables and fruits is increasing. Hybrid crops are also gaining popularity in recent times, as they have modified traits that result in better taste, color, and shelf life, which is one of the major growth drivers of this market. The significant increase in the international trade of fruits and vegetables, will also have a positive impact on the growth of the market over the next five years.

In order to meet the growing demands for improved quality and modified seeds, most vendors have increased their R&D expenditure. China, the US, France, India, and Brazil are the largest producers of the fruits and vegetable seeds globally.

The global other seeds market is expected to reach USD 8.3 billion by 2020, growing at a CAGR of almost 7%. This market is characterized by a variety of forage, grass, and flower seeds species. The alfalfa seeds segment occupies a significant share of the market. The market has developed in terms of cultivation of herbicides and pest-resistant seeds, and enhancement of their protein and nutrient content. North America and the EU are significant producers of hay and feed products.

“Weak economic conditions and a reduction in profitability in the livestock sector are key concerns for forage seed manufacturers. The changes in climatic conditions are also restricting the supply of forage, grass, and flower seeds in the market however, the market is registering a significant rise in prices with constant fluctuations of demand,” says Mantri.

The top vendors highlighted by Technavio’s research analysts in this report are:

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.