Onion Seed Market

Market Overview

The global onion seed market size was valued at USD 2,488.40 million in 2022. It is projected to reach USD 4,300.81 million by 2031, growing at a CAGR of 5.6% during the forecast period (2023-2031).

The demand for onion seeds is anticipated to rise as people become more aware of their health benefits, which will fuel market expansion on a global scale. For instance, onion seeds contain sodium, calcium, iron, and potassium. Additionally, the oil extracted from onion seeds is used to treat asthma, diarrhea, and dyslipidemia, in which the blood's lipid levels become abnormally high. Onion seeds grow best in silty or sandy soils with a high water-holding capacity and a reliable water supply, but onion seed cultivation needs hot, dry summers.

Market Dynamics

Global Onion Seed Market Drivers:

Increased Area Under Onion Harvesting

According to numerous studies, the greater palatability and nutritional advantages of onions are driving up demand for them on a global scale. Accordingly, China, India, the United States, Egypt, and Turkey are the top onion producers in the world market. Additionally, the production of onions fell in China and India in 2020 due to limited planting and unfavorable weather. The export of onions and onion seeds from India was put on hold, and prices rose on the domestic market. This decline led to a 40% fall in onion yield in 2020 across several other countries, including Spain.

Additionally, the area harvested under onions has remained unchanged, with only a slight rise in production over the past few years. As farmers are being pushed to produce more due to the increased demand for onions worldwide, there is a demand for high-quality, pest- and drought-resistant onion seeds. High-yielding and hybrid varieties can meet the demand to produce more from the shrinking per capita arable land to earn higher returns. This trend urges farmers to turn away from traditional seed sources in favor of packaged seeds that offer better returns.

Increasing Research and Development for New Varieties

Over the past few years, the global demand for onions has increased. Onion cultivation, however, has difficulties due to unfavorable meteorological conditions and a shortage of fertile land. The need for strong, resistant, and robust cultivars suited for growing in challenging environmental circumstances, like dry weather, has increased due to these agronomic issues in the key producing countries. Major market companies and government institutions are concentrating on research and development efforts to create new types of seeds with high yields, robustness, and compatibility for challenging climatic circumstances.

Global Onion Seed Market Restraint:

Adverse Climatic Conditions in Producing Countries

Climate-friendly conditions are necessary for the development of seeds. But during the past few years, production has been low in many producing countries due to unfavorable meteorological circumstances. Unseasonal rains in India in January 2020 impacted seed production, which decreased the amount of seed available to farmers for sowing. Due to the country's low supply, onion seed costs also increased. Over the past few years, the Netherlands has had dry weather during the growing season, which decreased the nation's supply of onions. For instance, the country experienced an atypical increasing season with an arid spring, which led to low productivity. The rain eventually started falling, stabilizing yields that would have been devastating. However, the Netherlands' dry weather hinders yields and leads to escalating quality problems, which may inhibit the country's market expansion in the years to come.

Global Onion Seed Market Opportunities:

Growing Onion Demand and Rising Exports

One of the most popular vegetables consumed worldwide is the onion. Onions are popular due to their flavor and nutritional benefits, including high levels of vitamins, minerals, and trace elements. The Netherlands is one of the world's top producers and suppliers of onions. Due to their flavorful, long-lasting, and high nutritional value, Dutch onions have become increasingly popular over the last few years. Dutch onions are particularly in demand in West Africa and Europe. Another significant global supplier of onions is China. 2019 saw a substantial increase in the demand for premium onions in Asia-Pacific nations. 2020 saw minimal demand because of the epidemic; however, after the lockdowns were lifted, demand from the local market and catering industry continued the boom. Due to India's 2021 export prohibition, there was also a rise in demand from Southeast Asia.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global onion seed market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.2% during the forecast period. Some regions in China, like Gansu, Inner Mongolia, and others, recently made significant investments in the production of onions. In comparison to 2019, these two regions' cultivation increased by 15% to 20% in 2020. As a result, the demand for oil seeds increased in these regions during the study period. The yellow dwarf virus has caused some of the nation's onion-growing areas to experience a fall in yield. As a result, the nation's onion farmers may demand virus-resistant onion seeds in the upcoming years. This could cause the market to rise significantly. One of the biggest onion producers in the nation is Shandong. As a result, to expand their market potential in China, multinational corporations are concentrating on the Shadong region.

Furthermore, major onion-producing states include Maharashtra, Karnataka, Madhya Pradesh, Gujarat, Bihar, Andhra Pradesh, Rajasthan, Haryana, and Telangana. Onion seeds are in high demand throughout the nation. The varieties found in India include Agrifound Dark Red, Agrifound Light Red, NHRDF Red, Agrifound White, Agrifound Rose, Agrifound Red, Pusa Ratnar, Pusa Red, and Pusa White Round. Yellow onion cultivars in India include Tana F1, Arad-H, Suprex, Granex 55, HA 60, and Granex 429, all acceptable for export to European nations. Due to rising bulb prices on the domestic market and worries about a seed shortage before the upcoming sowing season, the government immediately banned the export of onion seeds. Agricultural universities and businesses are concentrating on introducing new products to grow the market.

North America is expected to grow at a CAGR of 5.00% during the forecast period. Hybrid onions account for roughly 90% to 95% of production in the United States because they are more homogeneous for desired features and consistently produce higher yields than open-pollination species. Traditional plant breeding methods have generated both hybrid and OP onions. More than 70% of the country's land is used to produce onions, with Tamaulipas, Chihuahua, Zacatecas, Baja California, Puebla, Michoacán, and Guanajuato making up the majority of that area. Although many different types of onions are grown, dry onions remain the foundation of production in these areas.

Tamaulipas is now one of the top states in the nation for producing white, yellow, and red onions, thanks to a considerable increase in onion production over the years. 90% of the domestically produced onions are white, 7% are purple, and 3% are yellow. 88% of production is used for fresh consumption, while 12% is used for processing (seasoned, seasoned, flaked, dried, granulated, chopped, or sliced). These elements are causing the nation's market for white onion seeds to expand. Mexico's onion crop is grown in the autumn-winter (AW) and spring-summer (SS) cycles. Eighty percent of the acreage is irrigated, and twenty percent is watered by rainfall, ensuring a year-round supply of fresh vegetables. Some onion types in the nation resistant to pink root include Buffalo, Cardinal, Caribou, NuMex Starlite, Ibex, and Nikita. In addition, some of the spring-planted cultivars with solid demand in Mexico include Aspen, Caballero, Utopia, Armada, Navigator, and Vega.

In the Russian market, onions of superior quality are becoming more expensive. As a result, throughout the study period, farmers in the nation began to choose high-yielding cultivars, which is anticipated to intensify over the forecast period. One of the most popular cultivars from the Cora Seeds firm in Russia is Elenka. It is a hybrid with four thick peel layers and a distinctive bronze color. This indicates that the bulb is exceptionally durable, a feature highly valued in Russia. The onions can be kept in units in stacks that are 6-7 meters high. Elenka is renowned for its rustic appearance, rounded shape, and well-liked hue among customers and merchants. The nation is heavily dependent on imports for its supply of onion seeds. As a result, businesses have several opportunities to grow their presence in Russia.

Additionally, the FAO reports that since 2017, the average output of the onion crop has been continuously declining. For instance, the average production of onions in 2017 was 43.35 metric tons per hectare, but due to the rise in pests and illnesses, it fell to 40.16 metric tons per hectare. Therefore, there is a lot of room for businesses to introduce disease- and pest-resistant onion seed varieties in the UK in the upcoming years. Most of the onions produced in the UK are grown on sandy soil types in the counties of Suffolk and Norfolk. Along with being the driest, this region of the nation is ideal for cultivating onions.

Brazil has a strong onion farming industry, but the prevalence and severity of downy mildew are restricting production. One of the most prevalent diseases in southern Brazil is the downy mildew disease brought on by Peronospora destructor in onions. According to a report, the nation lacks any commercially available disease-resistant cultivars. The emphasis on research and development for marketable disease-resistant onion varieties may fuel the country's market growth. 696,840 metric tons of onions are produced annually in Argentina over 27,214 acres of land. The central onion-producing regions in the nation are the north and south of Buenos Aires province, which has 8,000 hectares of medium onions, and the west (Rio Negro), which has 2,500 hectares.

Short-day cultivars are primarily grown in the northern regions for the local market. At the same time, intermediate and long-day variants are planted in the southern and western regions for domestic and foreign markets. In 2020, the nation will export 191,540 metric tons of onions to Chile, Brazil, Paraguay, and Uruguay. Onion production and export have recently faced difficulties in the country due to several issues, including logistical, economic, climatic, and soil-related diseases. On the land, onions are typically preserved beneath the plastic. Onions must be dried on the ground and preserved if they are grubbed by unexpected rains. The quality of onions is harmed by climate changes, such as the nation's constant rain and storms and inappropriate storage conditions.

Segmental Analysis

The global onion seed market is segmented by type.

Based on type, the global onion seed market is bifurcated into green bunching onion, short-day white, short-day yellow, short-day red, short-day pink bulb, intermediate-day white, intermediate-day yellow, intermediate-day red, intermediate-day pink bulb, long day white, long day yellow, long day red, and long day pink bulb. 

The short-day white segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.8% during the forecast period. Yellow onions may be cultivated anywhere worldwide because they are simple to grow and do well in various soils and climates. However, China, India, the United States, Egypt, Iran, and Turkey are the leading nations producing yellow onions globally. The best type of onion to use for caramelizing is the yellow variety. It has a fantastic flavor and enhances the flavor of many dishes, including soups, tomato sauce, and various other gourmet foods. Washington is the primary source of yellow onions in the United States.

The National Onion Association estimates that yellow onions make up around 87% of all production, with red onions making up 8% and white onions 5%. Several types planted in the nation include Texas Early Grano, Rio Bravo F1, Primo, Cipollini Yellow, and 1015Y Texas. Due to its sweet flavor, crispiness, and mild spice, Texas Early Grano Onion is the most popular type for home growers. This disease-resistant type provides the best seed for home gardeners. The only program in the nation releasing onion cultivars is the New Mexico State University's (NMSU) active and open onion breeding program. The NMSU project focuses on the yellow varieties because they make up the majority of shipping merchandise. The biggest producer and consumer of short-day yellow onions is Mexico. The NMSU study emphasizes the development of improved varieties with disease-resistant traits.

The major onion-producing nations in the world include China, India, the United States, Egypt, Iran, and Turkey. However, yellow onions may be cultivated anywhere in the world because they are simple to grow and do well in various soils and climates. According to the National Onion Association, the production of long-day yellow onions alone accounts for 85% of all onion production in the United States. Long-Day Yellow onions are excellent for both raw and cooked applications. They take on a rich, dark brown color while cooking and impart a tangy-sweet flavor to the French onion soup. Some popular long-day yellow onions include Yellow Sweet Spanish Utah, Yellow Granex PRR, Yellow of Parma, Yellow Spanish, Airoso, Anillo, Arcero, Campero, Granero, Joaquin, Montero, Oloroso, Pandero, Ranchero, Sabroso, Valero, and Vaquero.

Furthermore, the demand for yellow onion seeds is increasing. It is expected to grow throughout the forecast period as urban farming becomes more popular among urban consumers in developed and developing nations. Due to this demand, numerous e-commerce sites, including Amazon and Alibaba, sell various yellow onions kinds.

Recent Developments

• February 2022- BASF’s vegetable seeds business developed a tearless onion variety launched at supermarkets in France, Germany, Italy, and the United Kingdom. The yellow onion variety constitutes a breakthrough in vegetable innovation and is a real game changer as the first tearless onion available to the market.
• June 2022- Seminis was working with parental or new crosses of onion. As a result of this line of research, they developed the SV993 variety for harvesting in May, which stood out for its production, resistance to disease, and ‘medio grano’ color, according to Enrique Montrull, Onion Key Account Manager at Bayer.