VEGETABLE SEED MARKET ANALYSIS

Market Challenges And Opportunities

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 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