1 Executive Summary

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

1 EXECUTIVE SUMMARY

The global commercial seed market is expected to generate revenue amounting to USD 62.90 billion in 2020, and is projected to reach USD 100.36 billion by 2026, growing at a CAGR of 8.10% over the forecast period. Increasing population and rise in demand for food grains is driving the demand for the commercial seed market. Increase in demand for biofuels to increase production of crops such as corn, rice, and wheat among others is driving the market growth. Also, increase in seed replacement rate, organic farming, and the advent of molecular breeding technology in seed are some of the major factors expected to drive the market growth during the forecast period.

Rising awareness for protein- and vitamin-rich diets across various regions including North America, Europe, Asia Pacific, and Central & South America is further projected to propel the market growth for commercial seed. According to the World Resources Institute (WRI), significant strategies must be adopted to reduce the greenhouse gas emissions from agricultural production to tackle climate change. The increasing number of health-conscious among consumers, along with growing awareness about the adverse effects of trans-fatty acids is expected to propel the market growth during the forecast period. However, the uncertainty in climatic conditions are likely to hamper the market growth over the coming years.

FIGURE 1 GLOBAL COMMERCIAL SEED MARKET SNAPSHOT

Global Commercial Seeds Market Size – Forecasts to 2026

The commercial seeds market is valued at USD 62.90 CAGR% [2019-2026] = Billion in 2020 and is projected to reach USD 100.36 8.10% Billion by 2026, at a CAGR of 8.10%

USD The market in Asia Pacific region is expected to grow at a 100.36 high CAGR between 2019 and 2026 USD Billion 62.90 Billion The key players in the global commercial seeds market include: Groupe Limagrain (France), Takii & Co., Ltd. (Japan), BASF (Germany), Land O’ Lakes Inc. (U.S.), Syngenta AG (Switzerland), DLF (Denmark) and Rallis 2020 2026 India Limited (India) among others

Source: Global Market Estimates Research & Consultants

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

FIGURE 2 GLOBAL COMMERCIAL SEED MARKET SEGMENTATION SNAPSHOT

Global Commercial Seeds Market

• By Trait By Type By Crop Type • Herbicide-Tolerance • Insect Tolerance • Others • Cereals & Grains • Abiotic Stress • Conventional • Oilseeds & Pulses Tolerance • Genetically Modified • Fruits & Vegetables • Diseases Resistance • Others • Modified Product Quality • Stacked Traits

Source: Global Market Estimates Research & Consultants

The global commercial seed market is segmented on the basis of trait into herbicide-tolerance, and insect tolerance among others. The others segment is further segmented into abiotic stress tolerance, diseases resistance, modified product quality, and stacked traits. The others segment is expected to hold the largest market share in the global commercial seed market during the forecast period. Growing preference of multiple stacked traits are driving the market growth.

On the basis of crop type, the global commercial seed market is segmented into cereals & grains, oilseeds & pulses, and fruits & vegetables among others. The cereals & grains segment is expected to hold the largest market share during the forecast period. Growing consumption of cereals and grains across the globe is expected to propel the market growth during the forecast period. The oilseeds & pulses segment is projected to grow at a significant CAGR during the forecast period. Increasing cooking oil manufacturing companies along with growing food industry are the major factors driving the market for oilseeds segment. Growing use of grains as a staple food across the developing nations including India, China, Japan, and South Korea among others is driving the market growth.

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

On the basis of type, the global commercial seeds market is segmented into conventional and genetically modified. Conventional segment is estimated to hold the largest market share in the commercial seeds market. Conventional type includes seeds of cotton, maize, cereals, and vegetables, among others. Increased demand for organic products, easy & cheap availability and the emergence of hybrid seeds leads to the growth of this segment. Genetically modified segment is also anticipated to witness considerable growth over the forecast period. Genetically modified seeds are seeds with better genetic material and provide high yields. These seeds result in low production costs, reduces the use of pesticides, and fewer pest problems, which in turn increases its demand, and hence the growth of the market.

FIGURE 3 GLOBAL COMMERCIAL SEED MARKET: REGIONAL ANALYSIS

Global Commercial Seeds Market

Middle East & Central and North America Europe Asia Pacific Africa South America

China UK India UAE Brazil US Germany Japan Saudi Arabia Rest of Central Canada France South Korea Rest of Middle and South Mexico Italy Rest of Asia East & Africa America Rest of Europe Pacific

Source: Global Market Estimates Research & Consultants

On the basis of region, the market of commercial seed is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. The North America region is expected to dominate the market over the coming years. The growing demand from the agriculture industry is driving the market growth in the region. The presence of leading manufactures such as Monsanto, Dow AgroSciences, DuPont, and Arysta LifeScience among others is driving the market growth in the region.

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

FIGURE 4 GERMANY FRUIT & VEGETABLE PRODUCTION (2015-2018) Vegetable & Fruit Production (2015-2018) 4000 3500 3000 2500 2000 1500

1000 Volume('000 Tons) 500 0 2015 2016 2017 2018

Fresh Friuts Fresh Vegetables

Source: Global Market Estimates Research & Consultants

FIGURE 5 PRODUCTION OF MAIN CEREALS, EUROPE (2008-2018)

Production of main cereals, Europe (2008-18) 160

140

120

100

MILLION MILLION TONNES 40

0 2008 2010 2012 2014 2016 2018

Common wheat & spelt Grain maize & corn Barley Oats Rye & Maslin Others

Source: Global Market Estimates Research & Consultants

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

Asia Pacific region is expected to grow at a high CAGR during the forecast period. Growing developments in the agriculture industry and increased awareness among farmers are driving the market growth in the region. The growing trend of organic farming in the developing economics such as China, India, Japan and South Korea is further propelling the market growth in the Asia Pacific region. The market for commercial seeds in the region is majorly dominated by China, India, and Japan. Growing number of population coupled with technological advancement in the field of agriculture industry, are some of the major factors influencing the market growth of seed coating. According to National Bureau of Statistics (NBS), China's agriculture sector has seen rapid growth over the past 70 years, with grain output expanding 4.8 times. According to a recent survey, China's grain output grew at an average annual rate of 2.6 percent from 1949 to reach 658 billion kg in 2018. According to the data published by India Brand Equity Foundation (IBEF), during 2019 crop year, food grain production was estimated at a record 283.37 million tons. In 2020, Government of India is targeting food grain production of 291.1 million tons.

FIGURE 6 % SHARE OF CROPS IN INDIA

Area Share of Crops

11.0% Rice 23.0% 6.0% Wheat

Cereals 2.0% Pulses

Oilseed

14.0% Sugarcane Cotton

16.0% Others

15.0%

13.0%

Source: Global Market Estimates Research & Consultants

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

FIGURE 7 GLOBAL COMMERCIAL SEED MARKET DYNAMICS: DEMAND SIDE ANALYSIS

• Growth in the usage of commercial seeds • Increase in pesticide usage at the global level

• Government Regulations • Price fluctuations in oilseeds

• Demand for healthy and organic processed products • Public-private partnerships in varietal development

• Commercialization of fake hybrid seeds and counterfeit of products

Source: Global Market Estimates Research & Consultants

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

FIGURE 8 TECHNOLOGICAL TRENDS IN GLOBAL COMMERCIAL SEED MARKET

Genetically Modified Rice Varieties

Seedless Hybrid Variants

Growing trend of hydroponic methods

Source: Global Market Estimates Research & Consultants

In July 2019, KWS launched six new hybrid corn varieties in the Brazilian market. This helped the company expand its customer base in the Brazilian market.

In July 2019, BASF launched a new melon variety named Santa Claus melon (Piel de Sapo) to expand its Galkia range.

In June 2019, KWS SAAT SE signed an agreement to acquire Pop Vriend Seeds (Netherlands). This would help the company to enter the vegetable seeds market.

In February 2019, Bayer entered a licensing agreement with KWS SAAT SE (Germany) for the innovative weed control system Conviso Smart, for its sugar beet varieties.

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

FIGURE 9 FOUR QUADRANT COMPETITOR POSITIONING MATRIX

1. Monsanto Company 2. Syngenta 3. Vilmorin SA 4. KWS SAAT SE 5. Bayer AG 6. DowDupont 7. Rijk Zwaan Zaadteelt en Zaadhandel B.V. 8. Sakata 9. TAKII & CO., LTD. 10. Land O’Lakes Inc. 11. DLF 12. Rallis India Limited 13. Groupe Limagrain 14. Other Companies

Note: The following illustrations are for representation purposes only

The companies are placed in the respective quadrant on the basis of revenue, employee count, global footprint, and their existing clientele. The companies are classified into Leaders, Challengers, Visionaries, and Niche Players. These categories are defined as follows:

 Leaders: These companies typically cater to present requirements and are capable of meeting future requirements as well. The companies listed in this category are mostly large producers who are also leaders in terms of undertaking several strategies including investments, R&D, and expansions among others.  Challengers: These companies typically dominate a particular region and have a positive growth in their key markets. However, they fall short as compared to “Leaders” and “Visionaries” in certain areas such as research & development and rate of adoption of new technologies & trends.  Visionaries: These companies are in line with the industry trends, but are not considered as leaders in meeting the market demand. The suppliers listed under this category have lesser capacity and financial capabilities than those mentioned under “Leaders”.  Niche Players: These companies have focus on small business segments, i.e., small geography or a particular industry. These players do not invest much in expansion or innovation strategies.

EXECUTIVE SUMMARY– GLOBAL COMMERCIAL SEED MARKET SIZE & ANALYSIS - FORECASTS TO 2026

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