Vegetable Seed Market

Market Overview

The global vegetable seed market size was valued at USD 7,637.8 million in 2022. It is expected to reach USD 12,479.263 million by 2031, growing at a CAGR of 5.6% during the forecast period (2023–2031).

A healthy diet should include plenty of vegetables, which contain different amounts of nutrients. Any disease or disorder, such as obesity and eye issues, can be lowered with a diet high in vegetables. Consuming nutritious non-starchy vegetables like lettuce, spinach, and other vegetables also aids in weight loss. As a result, the demand for vegetables has been fueled by the need to satisfy various dietary and nutritional needs. To meet this rising demand for vegetables, farmers worldwide request high-quality planting seeds.

Market Dynamics

Global Vegetable Seed Market Drivers:

Move Towards Embracing High-Quality Seeds

Vegetable seed demand is still unmet, especially in developing nations like China and India, and it offers multinational corporations a variety of expansion opportunities and a sizable customer base. Due to the global market's potential for vegetable seed export, nations are moving toward embracing high-quality seeds. For instance, the export potential has increased the adoption of high-yielding variants in India.

The markets for hot pepper, eggplant, Chinese cabbage, sweet pepper, sweet pepper seeds, and lettuce seeds are anticipated to grow faster among vegetable types over the forecast period. The increased government involvement is positively influencing the potential for the vegetable seeds market in the region in coordinating the supply chain network of the market for vegetable seeds across several countries to significantly reduce higher transaction costs and the risk associated with it. 

Global Vegetable Seed Market Restraints:

Higher Cost of Various Specialized Operations

Producing specialized seeds like hybrid and genetically modified seeds are more expensive than traditional seed varieties. The cost of specialized operations, such as emasculation and pollination for hybrid seeds and gene-medication techniques for GM seeds, as well as the rising demand for healthy crops for hybrid and GM seeds, are the leading causes of this high price. High-skilled labor is necessary for this technique, which raises the final seed price. Farmers in developing nations need help to afford the high costs of hybrid seeds, which restrains the market by slowing market growth. The seed certification fees increase vegetable seed costs, including processing unit fees, renewal fees, seed selling license fees, validation fees, seed testing fees, field inspection fees, and many others. Due to their smaller R&D investment budgets, local and regional players frequently face competition from MNCs in this area. Due to the market's high reliance on research, such local and regional businesses' reduced R&D spending ultimately impacts the industry's development. When R&D is given less attention, vegetable seed buyers (farmers) frequently end up with seeds identical to traditional seed sources. This deters farmers from purchasing new and improved seeds, limiting the expansion of the market under study.

Global Vegetable Seed Market Opportunities:

Expanding Vegetable Production in Developing Countries

The area dedicated to growing vegetables is expanding in the developing world. The expansion results from the rising demand for vegetables and the favorable financial results for vegetable farmers. Since the markets in developing nations are still untapped, the vegetable seed market's bright future in places like China and India presents a chance for multinational corporations. Vegetable seed demand and the amount of land used for vegetable farming are anticipated to rise. If seed production facilities are investigated, the markets in developing nations are likely to grow more alluring.

Compared to developed countries, these nations have lower labor and farmer costs. This suggests a chance to increase profit realization by decreasing production costs. The companies can concentrate on the newest market innovations thanks to the growing awareness of farmers and the rise in demand for disease-resistant varieties. Therefore, it is anticipated that these factors will open opportunities in the market for current players, giving them a boost for growth throughout the forecast period.

Segmental Analysis

The global vegetable seed market is segmented by vegetable type.

Based on vegetable type, the global market is bifurcated into tomato, cabbage, sweet pepper, lettuce, watermelon, onion, melon, chinese cabbage, hot pepper, carrot, sweet corn, eggplant, and okra.

The tomato segment is the highest contributor to the market and is expected to grow at a CAGR of 4.8% during the forecast period. The most significant vegetable crop is the tomato, widely cultivated in tropical and subtropical climates. It is the vegetable that is grown and eaten most extensively worldwide. China is the biggest tomato producer, followed by India, the United States, Turkey, Egypt, Iran, Italy, Spain, Brazil, Mexico, and the Netherlands. In terms of area cultivated, tomatoes are Indonesia's fifth most significant vegetable crop. Biotechnology tools are used by vegetable seed companies to increase agronomic performance, adapt to climatic conditions, increase disease and pest resistance, and cater to various market segments, such as fresh consumption or processing. The fact that more than 200 diseases and parasites affect tomatoes globally highlights the value of resistant varieties. Therefore, the use of advanced technology in the production of tomato seeds is anticipated to increase during the forecast period.

The countries with the highest sweet pepper production were China, Mexico, Turkey, Indonesia, and Spain. Globally, China, India, and Mexico are the top importers of processed sweet pepper. The United States is the sixth-largest producer in the world, and production is rising quickly. Over time, the nation's reliance on imported sweet pepper has grown. California is the biggest producer in the United States, followed by Florida, Georgia, New Jersey, North Carolina, Ohio, and Michigan. Due to recent cultural exchange, growers have become more interested in growing sweet peppers due to the market's increased demand, particularly in nations like Indonesia, Malaysia, the Philippines, Vietnam, and Thailand. Mexico is the largest supplier of sweet peppers to the United States, with Canada coming in second. In comparison to its imports, the United States exports less.

Regional Analysis

The global vegetable seed market is segmented by region: North America, Europe, Asia-Pacific, South America, and Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.9% during the forecast period. After the United States, China has the second-largest seed market in the world, with a share of the market of 21%. With a market share of 60%, 66%, and 90% of the Chinese vegetable market, multinational corporations control most of the tomato, eggplant, and sweet pepper seeds produced in China. Chinese varieties are used in almost 85% of the vegetable crop seeds planted in China, and local suppliers control the market for these seeds. The top exporters of vegetable seeds to China are Japan, Thailand, the U.S., Denmark, Italy, Korea, Chile, Israel, Australia, Peru, and France.

Furthermore, the top four exporters—Japan, Thailand, the United States, and Denmark—account for 65% of China's total imports of vegetable seeds. The most common vegetable seeds imported by China are radish, carrot, tomato, sweet pepper, cabbage, and eggplant. The growth in market value is anticipated to continue being higher than the growth in market volume due to the rising demand for high-value seeds. The countries importing vegetable seeds from China are the United States, Malaysia, the Netherlands, Korea, Japan, Italy, France, India, Spain, and Germany. As a result, it is anticipated that during the forecast period, the growing demand for vegetables in the nation and the release of new vegetable seed varieties on the market will propel the studied market in China.

North America is expected to grow at a CAGR of 5.7% during the forecast period. The most popular seeds are sweet pepper, lettuce, and tomato hybrid varieties. California, North Dakota, Idaho, Michigan, Minnesota, Washington, and Wisconsin are among the most important markets in the region for vegetable seeds. Broccoli and spinach are two of the most widely produced veggies in the Golden State. Farmers in the United States account for 42% of the primary market for hybrid vegetable seeds. Many American farmers favor hybrid, high-yielding, and disease-resistant vegetable types. Therefore, there is a critical need for increased production. It is anticipated to expand the nation's market for vegetable seeds during the period.

In Europe, 31% of the vegetable seeds imported by Japan and the Netherlands are from Italy. Most vegetable seeds from Italy are cabbage, peppers, tomatoes, and cucumbers. Vegetable seed export value and volume are anticipated to show positive trends over the forecast period due to the nation's rising domestic production of vegetable seeds. The most common vegetables grown in the country are tomatoes, lettuce, chicory, cabbage, carrots, pumpkins, squash, and gourds. Europe's top producer of tomatoes in Italy. 32% of all tomatoes in Europe in 2017 were grown in Italy. The principal tomato-growing areas are Emilia Romagna and Campagna in the south, Puglia in the north, and Sicily. Increasing production in the area suggests rising sales of vegetable seeds. As a result, increasing vegetable production and critical player involvement is anticipated to propel the Italian vegetable seed market during the forecast period.

In South Africa, the main vegetable crops grown are sweet corn, potato, tomato, eggplant, melons, cucumbers, cabbage, cauliflower, coriander, radish, lettuce, spinach, peppers, onions, and beans. South Africa currently dominates the market for vegetable seeds in Africa. The top 10 multinational seed goliaths control more than 85% of the vegetable seed market in South Africa, where it is highly concentrated. The South African market of vegetable seed is expected to expand in the upcoming years due to rising company competition, research, and the introduction of new seed varieties into the nation.

South America's largest market for vegetable seeds is Brazil. The Brazilian vegetable seed industry is 67% owned by just ten multinational seed companies. The market share held by local and government organizations is below 33%. The new hybrid and open-pollinated varieties of premium seeds grown in the United States are in high demand. Onions, carrots, and watermelons are examples of vegetable crops that Brazilian farmers favor hybrid seeds over OPV. Following the nation's recovery from the recession in 2015, the demand has been driven by the country's expanding middle-income household sector's need for increased agricultural output. The main vegetable seeds exported from Brazil are tomatoes, cucumbers, beans, melons, cabbage, cauliflowers, peppers, tomato, and lettuce. Therefore, it is anticipated that the sale of hybrid vegetable seeds will rise during the forecast period due to the rising demand for vegetables in the nation and the introduction of high-quality hybrid vegetable seeds.

Recent Developments

• November 2022- Bayer purchased German biotech startup Targenomix.

• September 2022- A global commercial and R&D partnership between Syngenta Crop Protection's Seedcare business and Bioceres Crop Solutions, a pioneer in biological crop productivity solutions, benefitted customers looking for cutting-edge biological seed treatment solutions.