Americas Seeds Market

Americas Seeds Market Overview (2023 to 2033)

According to the recent report by Future Market Insights (FMI), the Americas seeds market is estimated to stand at US$ 14.06 billion by 2033. Over the forecast period, the market is assessed to trail at a CAGR of 8%. For the year 2023, FMI has estimated the market to be worth US$ 6.51 billion.

Market Drivers:

• Surge in demand for genetically modified crops and protein meals.
• An upward trend of chronic illnesses and micronutrient deficits is propagated by the busy and fast-paced lifestyles of people living in urban areas.
• Combination of factors, including growing buzz around plant-based drinks and meats, heightened acceptance of a vegan diet, and a rise in flexitarian consumers.
• Growing concerns surrounding weight due to the rise in the obese population across the globe have pushed the demand for the vegetarian diet. Additionally, the cost-efficiency of plant-based food is also propelling the product’s sales.
• Increasing demand for staple crops like rice, wheat, and soybean.

Revolutionary Technological Innovations Fostering Americas Seeds Market

Commercial seeds are gaining worldwide demand. As a result, the production process is undergoing mechanization and technological advancements. Along with that, the adoption of several agricultural practices is also facilitating market growth. Various technological improvements in the market include the use of sensors and drones for seed monitoring and planting and the deployment of robotics for seed research and development and other applications. Agricultural activities can also be seen employing the Internet of Things (IoT), hydroponics, and urban farming.

Farmers are also hiring robotic conglomerates to boost their productivity. Take for example, in June 2020, three autonomous tractors and planters were used for seeding purposes on 500+ acres of land soybeans in Northwest Iowa, the United States farm. In other news, a Chicago-based robotic farming firm, named Sebanto, assisted Bellcock Farms to plant seeds with the help of remote-controlled utility tractors. These utility tractors were successful in pulling five-row planters. Many more farmers in Illinois and Iowa, further hired companies to assist in robotic planting.

Soaring Meat Alternatives Market Propelling the Demand for Soybean-based Seeds

Since the demand for soybean is rising, the staple crop of soybean is being sown increasingly. The surge in demand can be attributed to the growing awareness regarding soybean’s high protein quotient and solubility. Owing to the soluble and insoluble fiber content present in soybean, it is being extensively employed in protein shakes, weight management meals, and sports nutrition. Soybean acts as a key ingredient in the aforesaid food concepts.

Due to the meat-like texture of soybean, the product is used as a meat replacement food to develop soy-based tempeh. In the United States, the consumption of meat substitutes and sports nutrition are soaring. As a result, the country represents an attractive market for the relevant markets. The broad base of consumers and manufacturers in the country has also stimulated the demand for soybean crops in the country. Consequently, the country is observing heavy plantations of soybean.

2018 to 2022 Americas Seeds Demand Outlook Compared to 2023 to 2033 Market Forecast

The market generated a revenue of US$ 6.03 billion in 2022. Going forward, the market is set to expand at a CAGR of 8% to reach US$ 6.51 billion in 2023. By 2033 end, the market is anticipated to attain a valuation of US$ 14.06 billion.

The market is being driven by the availability of quality American seeds on online platforms at reasonable prices. Various companies in the market are focusing on assisting farmers and growers by providing seed and seed-related items.

FMI has analyzed and carved out some key factors that are expected to propel market growth across different periods.

Predicted Growth of Americas Seeds Market Over the Forecast Period

Nandini Roy Choudhury

Principal Consultant

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Segmentation Division of Americas Seeds Industry:

GMO Seeds to Generate Significant Revenue Over the Forecast Period

The GMO section grabbed a share of 68.5% of the global market revenue by the end of the historical period. Going forward, the market is expected to maintain its dominance on account of various benefits associated with the use of GM seeds. These seeds help in boosting the crop yield and minimize the requirement for pesticides and other chemicals. As a consequence, the use of GMO seeds can result in overall cost-efficiency for farmers. In addition to this, the use of these seeds also lessens the environmental impact generated by agriculture. All the aforementioned factors are enhancing the demand for GMO seeds.

Surging demand for food, bolstered by the expanding global population, is a key factor driving the GM seeds market. Additionally, the increasing demand for biofuels is also proving to be beneficial for segment growth.

The conventional section is predicted to register a CAGR of 4.7% over the forecast period. The extensive history of safe use of conventional seeds is aiding the segment's growth. Due to the well-established record of conventionally bred crops’ safety, traditional seeds are witnessing a rise in adoption. Contrary to conventional seeds, GMO seeds are a fairly new technology and are observing an ongoing debate about their safety.

Growing Significance of Herbicide-tolerant Seeds to Bolster Segment Growth

The herbicide tolerance section held a revenue share of about 53% in the year 2022. The use of herbicide-tolerant (HT) seeds has gained significance as farmers are now increasingly relying on these seeds to ward off weeds and enhance overall crop yield. The adoption of GMO herbicide-tolerant harvests, in particular, has considerably increased in recent decades. Some extensively grown crops, including soybeans, corn, and cotton, are accessible in herbicide-tolerant varieties.

Since herbicide-tolerant seeds allow farmers to efficiently and effectively use herbicides, they are favored for agricultural activities. In addition, these seeds help reduce the overall labor and resources required to control weeds. As per the recent statistics from USDA, the amount of domestic soybean acres grown with HT seeds has steadily grown over the years. From 1997 to 2014, domestic soybean land planted with HT seeds has consistently grown. Later on, the percentage share of domestic soybean acres sown with HT seeds remained almost stable, reflecting 95% in 2021 and 2022.

Insecticide Resistance Section to Thrive at a Robust Pace

The insecticide resistance segment, over the forecast period, is expected to represent a CAGR of 8.1%. The rising deployment of tactics to incorporate insecticide resistance in crop seeds for protection of seeds from pests is augmenting segment growth. A few of the tactics include traditional plant breeding methods, genetic engineering techniques, and the utilization of coatings or treatments to guard seeds against pests. The insect-resistant crops consisting of genes from Bacillus thuringiensis, a soil bacterium, have been available in the United States since 1996. Such kinds of crops generate insecticidal proteins that ward off pests.

Wide Cultivation of Soybean to Contribute towards its High Market Share

The soybean segment is currently leading the crop type category. In 2022, the same segment accounted for a revenue share of the market which exceeded 83%. Wide cultivation of this crop across numerous parts of the globe, such as North and South America, is supporting segment growth. Brazil, the United States, and Argentina are some leading soybean-producing countries.

Wheat Segment to Trail at a Significant CAGR

The wheat segment is projected to assume a robust CAGR over the stipulated time frame. Wheat is one of the integral staple crops across the globe, which satiates almost one-third of the global food demand. Following the World Economic Forum, the United States is recorded to be the fourth leading wheat-producing country, with an aggregate of 1.2 billion tons witnessed from 2000 to 2020. The country contributes a total of 8.4% towards global wheat production.

In addition to this, the Observatory of Economic Complexity (OEC) recorded the United States and Canada as the second and third dominant exporters of wheat in the year 2020. Canada and the United States exported wheat worth US$ 7.13 billion and US$ 7.04 billion in 2020, respectively.

Geographic Forecasts

The United States, Argentina, and Brazil constitute key seed markets within the Americas. The United States market is chiefly driven by the increasing existence of key players and inventive product strategies employed by them. Companies are also considering collaborations and partnerships for further seed research. Moreover, the increasing focus by key players on introducing transgenic seeds is pushing the GMO seeds market growth in North and South America.

The increasing density of few budding players and extensive engagement of global key players in the United States has been catalyzing the seeds market. The high concentration of market participants has resulted in extreme rivalry, as a result, pushing up the prices of traits and seeds.

The United States is considered one of the leading seed markets in the world and significantly contributes towards the growth of the North American seed market. As per the USDA, in 2021, soybean production amounted to about 4.44 billion bushels, increasing by 5% from 2020. The harvested area also witnessed a rise of 5% from 2020. The data reflects the increasing demand for soybean seeds in the United States.

In Brazil, GM soybean seeds are forecast to observe strong growth. This can be credited to the surging product launches by key players. In 2020, for instance, Bayer introduced transgenic soybean seed varieties made with the help of Intacta 2 Xtend technology. These seeds were used with traits like high weed pressure and resistance toward insects. A surging inclination for seeds with insecticide resistance traits in Brazil is aiding regional growth.

Braving the Market Competition: How Key Players Can Leverage the Popularity of Plant-based Foods?

The seeds industry had observed healthy growth in the bygone years and is expected to keep up the momentum over the forecast period. The market growth is propelled by technological improvements taking place in rice breeding. Additionally, the surging demand for soybeans and crops is directly intertwined with that of plant-based proteins. The soaring soybean cultivation has pushed the demand for seeds, particularly in countries like Argentina, the United States, and Brazil, where the cultivation of soybeans is heavily concentrated.

The soybean seeds market in Central & South America, and North America is competitive, supported by the presence of several key players and innovators participating in the market. On the contrary, the wheat and rice seeds market is somewhat fragmented.

Key tactics employed by active players include collaborations, new product launches, and partnerships. Companies are releasing new items and executing product innovation to meet the rising demand for seeds from growers and farmers.

Listed Below are the Strategic Initiatives Undertaken by Leading Manufacturers:

• In November 2022, Bunge and Advanta Seeds UK came into a partnership to obtain a 20% stake separately in SEEDCORP HO. With this investment, the companies aim to enlarge their reach in Brazil and invigorate their product portfolio to deliver farmers with integrated solutions.
• In August 2022, RiceTec Inc., launched RT3202, the first-ever medium grain hybrid, developed specifically for the southern United States market.

A Few of the American Seed Companies include:

• Bayer AG
• BASF SE
• Corteva Agriscience
• Advanta Seeds
• Syngenta Corporation
• Rice Tec, Inc.
• Lima grain
• Florimond Desprez
• AgReliant Genetics, LLC
• SLC Agrícola

Scope of Report

Americas Seeds Market by Category

By Type, the Americas Seeds Industry is segmented as:

• GMO
• Conventional

By Trait, the Americas Seeds Industry is categorized as:

• Herbicide Tolerance
• Insecticide Resistance
• Others

By Crop Type, the Americas Seeds Market is bifurcated as:

• Rice
• Soybean
• Wheat

By Region, the Industry of Americas Seeds is segmented as:

• The United States
• Brazil
• Argentina
• Peru
• Colombia
• Paraguay
• Chile