VEGETABLE SEED MARKET ANALYSIS

The global vegetable seed market size was valued at US$ 7,255 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.8% from 2023 to 2030. Growing investment by private sector for vegetable seed market coupled with the increasing demand for fresh vegetables are key factor propelling market growth. Moreover, advancement in the vegetable seed technology and availability of more variety in crop are other key factors propelling market growth. Furthermore, favorable government policies is further anticipated to augment market growth.

Global Vegetable Seed Market: Regional Insights

Based on geography, the global vegetable seed market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, North America is expected to dominate the global vegetable seed market over the forecast period owing to the growing demand for high-yielding, hybrid, and disease-resistant varieties of vegetables in the region. The vegetable seed market in the United States was valued at US$ 1,277.6 million in 2022, and it is expected to reach US$ 1,830.33 million in 2030, registering a CAGR of 4.6% during the forecast period.

Asia pacific is also expected to witness fastest growth in the global market over the forecast period owing to the high consumption of fresh vegetables in countries like China and India. According to the Coherent Market Insights analysis, the seed market in China is the second-largest in the world, after the United States, and accounts for 21% of the global market share. A total of 6,665 new vegetable varieties were registered by the vegetable seed companies in China in 2017. The country requires almost 400,000 metric tons of vegetable seeds annually to fulfill its vegetable requirements.

The vegetable seed market in India was valued at US$ 655.2 million in 2022, and it is expected to reach US$ 931.76 million in 2030, registering a CAGR of 4.5% during the forecast period.

Figure 1. Global Vegetable Seed Market, By Region 2022

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Global Vegetable Seed Market Drivers:

Government support for vegetable seed market

Government policies and regulations that include the export and import duties imposed on seeds in the Southeast Asian countries showed a positive impact on the seed market. For instance, crop seeds were exempted from VAT, i.e., no output VAT was charged on the supply of crop seeds in the Southeast Asian countries during 2018-2019. Sales or importation of seeds and seedlings were exempted from duties in these countries.   

Increasing innovation in seed technology to propel market growth

During the past two decades, adoption of a variety of genetically engineered traits has led to accelerated acreage and yield in many agricultural areas. These include: i) single-pest resistant varieties with Bacillus thuringiensis (Bt) proteins and ii) herbicide-tolerant cultivars. These innovations have benefited farmers and food producers in terms of better quality seeds and enhanced agro-biodiversity, and increased yields per unit area.

Global Vegetable Seed Market Opportunities:

Increasing investment from the private sector in vegetable seed market is expected to serve major growth opportunities. Spending from the private sector is important to improve the resources and expertise in the vegetable seed breeding programs across the globe. These investments can increase the research and development activities that can meet the changing demands of farmers and consumers for types of vegetables produced.  Moreover, the availability of more varieties in crop can present more opportunities for farmers in the domestic and international market.

Growing area under cultivation of vegetable is projected to provide bright market opportunities. The developing nations are experiencing an increase in the area under cultivation of vegetables due to increasing demand for vegetables and the positive returns to the farmers. For instance, Thailand has 0.5 million hectares of land under vegetable production, with sweet corn, tomato, eggplant, melons being the major vegetable crops grown in the country.

Global Vegetable Seed Market Trends:

High-nutrition fruits and vegetables gaining traction in market

The advancement in vegetable seeds is a result of the rising demand for high-nutrition fruits and vegetables. Analysts believe that the demand for these vegetables will continue to grow as more people seek out healthy and nutritious foods. Vegetables are rich in vitamins, minerals and fiber, which are essential for healthy living. Vegetables have a significant role in maintaining good health and preventing chronic diseases like cancer. They also help prevent the onset of age-related diseases, such as heart disease, and are a key source of protein and essential amino acids in the diet.

Incorporation of artificial intelligence (AI) in seed breeding is a recent trend

Some seed companies are using artificial intelligence (AI) to make breeding decisions for their vegetable crops. This technology allows the company to collect data about plants, their growing conditions, and what they are doing at each stage of the plant's life cycle. These data can then be used to improve the plant's performance and help it produce healthier, more productive vegetables.

Global Vegetable Seed Market Restraints:

High seed upfront cost to hinder market growth

Cost is one of the key factors negatively impacting the vegetable seed market growth. These seeds are very costly, especially hybrid ones, owing to the involvement of more labor and other inputs. These costs are projected to include the cost of seeds packaging, processing and the marketing costs associated with selling.

Negative impact of the Covid-19

The outbreak of the COVID-19 pandemic had led to the lockdown across various nations, resulting in the temporary halt in various agricultural activities. This has negatively impacted the global vegetable seeds market           

Figure 2. Global Vegetable Seed Market, By Type 2022

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Global Vegetable Seed Market Segmentation:

The global vegetable seed market report is segmented into type and geography

Based on type, the market is segmented into Tomato, Cabbage, Sweet Pepper, Lettuce, Watermelon, Onion, Melon, Chinese cabbage, Hot Pepper, Carrot, Sweet Corn, Eggplant, and Okra. Out of which, Tomato is expected to dominate the global market over the forecast period. Tomato is widely grown and consumed crop worldwide. China is the largest tomato producer, followed by India, the United States. The tomato segment of the market studied was valued at US$ 977.9 million in 2022, and it is expected to reach US$ 1,412.11 million in 2030, registering a CAGR of 4.7% during the forecast period.

Cabbage segment is also expected to witness significant growth in the near future and this is owing to the high production of cabbage in China due to increasing consumption. The cabbage segment in the vegetable seed market was valued at US$ 441.3 million in 2022 and is expected to reach US$ 682.41 million in 2030, registering a CAGR of 5.6% during the forecast period.       

Global Vegetable Seed Market: Key Developments

In June 2021, Bayer launched India’s first-ever yellow watermelon variety, the Yellow Gold 48, under its Seminis brand of high-yielding vegetable seeds. After two years of local trials, the yellow watermelon variety has been commercially introduced in India. With ‘Yellow Gold 48’, watermelon growers can benefit from enhanced yield potential, better disease & pest tolerance, and higher returns.

In December 2020, Bayer launched mini vegetable seed packs for the home garden segment in India. The minipacks were launched for bitter gourd, bottle gourd, okra, and beans. Bayer was anticipated to gradually extend its mini packs across the entire range of its Seminis hybrid seeds.

In November 2020, Bayer CropScience Limited signed a partnership with BigHaat, a leading Agri-input e-commerce platform, to enable the last-mile delivery of Bayer’s seeds directly to the farmers’ homes.

In February 2018, Bejo and Limagrain announced a licensing deal on traits in vegetables. Under the agreement, the parties provide each other the right to use plant material that falls under the scope of several of their patents for breeding and commercial purposes in vegetables. The agreement thus increases the possibilities for both companies to develop new and improved vegetable varieties using each other’s innovations.

In June 2018, Groupe Limagrain inaugurated a new R&D station in Khon Kaen, Thailand. The station supports breeding for hot and humid markets of the world for tomato, hot pepper, cucumber, watermelon, melon, and tropical sweet corn. Besides breeding and disease screening, this station supports generation advancement, speed-to-market breeding, and adaptation trials of other vegetable crops.

In January 2020, Syngenta launched vegetable seeds of Easy-Broq brassica, baby plum tomato, and a Champion cabbage product line, reducing wastage at every point of the supply chain and being resilient to climate change.

In February 2020, Syngenta came up with sweet pepper varieties seeds, which offer a year-round supply, and the best resistance package suitable for conventional or organic agriculture.

Global Vegetable Seed Market: Key Companies Insights

The global vegetable seed market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global vegetable seed market are Bayer CropScience AG, Groupe Limagrain, Syngenta AG, BASF SE (Nunhems BV), Rijk Zwaan Zaadteelt En Zaadhandel BV, Sakata Seed Corporation, UPL Limited (Advanta Seeds International), Takii & Co. Limited, East-West Seed International Ltd, Enza Zaden BV, Bejo Zaden BV, and Namdhari Seeds

*Definition: Seeds are the embryonic stage of a plant. They consist of a small plant with a root, stem, and leaves, as well as endosperm and a protective covering, the seed coat. They are also a source of nutrients for the plant that develops from the seed. Seed quality is essential for successful vegetable production. It is a key to growing healthy crops and preserving the varieties of crop.