Commercial Seeds Market is anticipated to Grow by 10% CAGR Over the Forecast Period, 2012 To 2020: Hexa Research

Decreasing arable land along with growing population is anticipated to fuel the “Global Commercial Seeds Market” growth over the next five years.

“Commercial Seeds Market” – Growing population leads to increasing food demand which is expected to witness a rapid growth in commercial seeds market. Rapid urbanization across the globe has led to decrease in farmable land which requires high productivity in the limited available area. Commercial seeds are segmented on the basis of their type as biotech seeds and conventional seeds. The major conventional seeds include maize, cereals, soybean, vegetables, canola, rice and cotton.

Biotech/Genetically Modified seeds are engineered to exhibit to enhance insect resistance property and shelf life. Growing concern towards hybrid seeds usage and regional governments favorable regulations for biotech seeds use are projected to drive the commercial seeds market growth over the forecast period. Government supports such as subsidies incentives and loans to farmers in various Asia Pacific nations to increase agriculture products yield are expected to bolster the market growth. Technology advancement in seeds which improves product yield and also protects from insect attack is also responsible for the market growth.

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As a result of worldwide acceptance, various crops are being developed under biotech seeds segment which is also anticipated to support the market growth. Growing technical support to the farmers particularly in Asian countries for high yield has shown significant growth in the market. However these seeds have witnessed negative impact such as soil erosion, poisonous weed creation and threats to some species. This is expected to hinder the global market growth over the forecast period.

Conventional seed dominated the global commercial seed market accounting for over 53% of the total consumption in 2013. Maize seeds contributed to the highest demand followed by soybean and vegetable accounting for over 44% of the total demand in 2013. Maize is anticipated to sustain the largest market and cotton is expected to witness fastest growth over the next five years.

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Biotech seeds are projected to attain fastest growth accounting for over 10% CAGR over the forecast period. Soybean was the dominant market accounting for over 43% of the total revenue in 2013. Increasing soybean demand for biofuel production is anticipated to boost the market in the near future.

North America was the largest commercial seeds market accounting for over 31% of the total revenue in 2013. This is owing to existence of major market players in the region and growing technical advancements to develop low cost processing methods. No regulations on export and import have also supported the market growth. Latin America is anticipated to witness fastest growth accounting for 7.5% CAGR over the forecast period. It is also projected to dominant biotech seed segment in the near future accounting for 11% CAGR. Asia Pacific is anticipated to witness considerable growth accounting for 7.4% CAGR over the foreseeable future. This is because of growing population leading to increasing consumption in the region particularly in China and India.

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Many acquisitions and mergers have taken place in the market since 2001. This has led to considerably consolidated market. Future trend is expected to lead the market towards oligopolistic scenario owing to further acquisitions and mergers of small existing participants. The major market players include DuPont Pioneer, Monsanto Company, Syngenta Interntional AG and Vilmorin & Cie SA, Bayer Crop Science and DOW AgroSciences.

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