The global custom seed market size will reach USD 2,067,345.1 thousand in 2023. Over the next ten years, the market value will almost double and reach USD 3,991,402.3 thousand by the end of 2033. Global custom selected seed sales are forecast to increase at 6.9% CAGR from 2023 to 2033.
Key Market Shaping Factors
In recent years, factors such as reduction in arable land and rising prevalence of plant diseases have brought custom selected seed industry into limelight. Custom selected seeds are being increasingly used by farmers to produce safe and high-quality products.
Rapid growth of the world population is increasing demand for adequate crop production. This is one of the key factors boosting the global custom selected seed industry.
Adoption of artificial intelligence (AI)-based agriculture solutions is likely to boost the market through 2033. New technologies are being integrated into agricultural practices to improve production and reduce costs. This will positively impact custom selected seed demand.
Favorable government policies in various countries to promote the adoption of custom based seeds will create opportunities for custom selected seed manufacturers.
In addition, increasing investments by leading market players in research and development (R&D) will support market expansion. Key custom selected seed companies are developing disease-resistant seed varieties to meet growing end user demand.
For instance, in May 2021, new tomato varieties with high resistance to Tomato Brown Rugose Fruit Virus were launched by Bayer. Development of these disease-resistant seeds allows farmers to protect their yield and reduce additional spending.
| Attribute | Key Insights |
|---|---|
| Estimated Custom Selected Seed Market Size (2023E) | USD 2,067,345.1 thousands |
| Projected Market Valuation (2033F) | USD 3,991,402.3 thousands |
| Value-based CAGR (2023 to 2033) | 6.9% |
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As per FMI, overall sales of custom selected seeds grew at 6.0% CAGR from 2018 to 2022. Over the next ten years, global demand for custom selected seeds is forecast to rise at 6.9% CAGR.
Rising demand for safe and fresh agricultural products is driving the global custom selected seed market. Growing awareness about the benefits of hybrid seeds will boost sales over the next ten years.
With the changes in consumption patterns of consumers towards healthy and nutritious diets, demand for fresh products has been growing. This has led to increase in land area being brought under cultivation of fruits and vegetables.
For instance, according to data presented by FAOSTAT (Food and Agriculture Organization Corporate Statistical Database), in 2016, global production of tomatoes was around 177.3 million metric tons as compared to 186.9 million metric tons in 2020.
Climate change and low agricultural produce are creating the need to develop new high-yielding hybrid seeds. These seeds can help farmers to increase yields and meet the growing demand for fruits and vegetables. Driven by this, custom selected seed sales are forecast to surge at a healthy pace through 2033.
Rising Government's Initiatives to Provide Growth Opportunities
The global market will benefit from increasing initiatives by government agencies for the agricultural sector. These initiatives include demo classes for proper use of fertilizers, financial assistance, and information about the new range of seeds.
For instance, in April 2021, the United States Department of Agriculture (USDA) invested around USD 330 million in specialty crop grants and other aspects of farming, such as incentives to purchase fruits and vegetables.
Hence, increasing government initiatives and investments in agriculture sector will create growth prospects for the market.
Increasing Emphasis on a Healthy Diet to Boost Market
The global market for custom selected seeds is likely to witness significant growth owing to increasing demand for healthy diets which contain fruits and vegetables.
Fruits and vegetables are not only recommended by healthcare professionals for patients, but also for healthy people of all ages from infants to the elderly. For example, diabetic patients are advised to eat cucumbers, spinach, etc. not only for their nutritional value but also for their potential to control blood sugar levels.
This in turn will elevate demand for high-quality fruit and vegetable seeds over the next ten years.
Technological Advancements in Agricultural Sector to Spur Custom Selected Seed Sales
Rising demand for advanced technologies in agricultural practices to increase crop yields will boost the market. To meet the requirement for more food, agricultural companies and farmers are turning to technologies such as IoT.
Advanced technologies provide critical information about rainfall, soil nutrition, crop yields, and pest infestation. Such type of information is valuable for enhancement of the production. It also offers precise data that can be used to improve farming techniques and product quality.
Operating companies have been investing in the production of value-added products to cater to the growing demand. In June 2021, Kagome Co. and NEC Corp. established a joint venture to provide AI-equipped agricultural support systems for tomato processing companies.
According to the company, the newly developed AI technology has resulted in requiring around 20% less fertilizer to yield 30% more tomatoes than the domestic average. Therefore, the use of modern technologies such as AI technology will drive the target market.
Principal Consultant
High Seed Prices Due to Increasing Research and Development Expenses on Quality Seed Development Restraining Growth
The seed industry is one of the most R&D intensive industries. Depending on a company's strategy and method of choice, research & development expenditures vary amongst businesses.
Certain companies are leading the way in developing genetically modified seeds with specific traits (herbicide tolerance and insect resistance), so they can charge a premium amount for seeds.
Hybrid and organic seeds of different varieties of vegetables and fruits, such as tomatoes, also cost more than the average seed price. Farmers can use existing seeds from a previous harvest cycle to reduce their overall spending on seeds. This may negatively impact the growth of the target market.
In addition, illegal seed practices including counterfeit seeds, fraudulent labeling, etc., act as a challenge to the growth of the target market.
| Country | USA |
|---|---|
| Market Share (2023) | 28.4% |
| Market Share (2033) | 26.9% |
| BPS Analysis | (-) 142 |
| Country | China |
|---|---|
| Market Share (2023) | 14.2% |
| Market Share (2033) | 16.8% |
| BPS Analysis | (+) 260 |
| Country | Germany |
|---|---|
| Market Share (2023) | 2.8% |
| Market Share (2033) | 2.7% |
| BPS Analysis | (-) 10 |
Rising Awareness About Benefits of Custom Selected Seeds to Elevate Demand in India
India currently holds a prominent share of the global custom selected seed. Over the next ten years, custom selected seed demand in India is set to rise at a robust pace. This is due to rising adoption of high-quality seeds in India due to growing preferences for healthy foods.
Rising adoption of high-quality techniques of high-yield and high-performance cultivation is likely to fuel growth of the target market. Rising awareness among farmers related to the benefits of using certified/quality seeds will elevate demand over the next ten years.
Farmers across India are gradually shifting their preference towards custom selected seeds. They are willing to pay a higher price for quality seeds. Adoption of these seeds allows them to produce large quantities of high-quality fruits, vegetables, and other crops. This in turn is creating a conducive environment for the custom selected seed industry.
Rising Demand for High-Quality Agricultural Products Making China a Lucrative Market
As per FMI, China will continue to remain one of the most lucrative markets for custom selected seeds. This is due to growing focus of farmers on producing safe and high-quality agricultural products.
China is mainly focusing on investing in the agricultural industry with strategies such as acquisitions and mergers of foreign companies. This plays a vital role for the government to ensure a sufficient supply of food for a increasing middle class with a higher demand for nutrition.
Green channels for certifications were opened for companies featuring an integration of R&D and production and sale to upgrade protection of new seed varieties. This is boosting the growth in the target market.
Further, increasing rewards for scientific research institutes and employees to encourage cooperation with seed companies and promote the transformation of research results will bode well for the market.
In addition, comprehensive seed industry producers are exempt from income tax and can enjoy development funds to introduce new seed varieties.
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Demand to Remain High for Tomato Seeds in the Custom Selected Seed Industry
As per FMI, tomatoes segment held around 55.3% share of the global market in 2022. This is due to rising demand for high-quality and disease-resistant tomatoes worldwide.
When compared to field crops, planting high-value vegetable crops such as tomatoes generate higher revenue and cash flows for farmers. This has prompted companies to develop new varieties of tomatoes.
Rising investments from important regional companies in developing tomato hybrids using advanced breeding technology will boost the target segment.
Controlled Environment Agriculture Witnessing Greater Traction for Different Fruits
Controlled environment agriculture segment is forecast to expand at a significant pace through 2033. This is due to rising adoption of this cultivation technique by custom selected seed manufacturers.
The term controlled environment agriculture (CEA) refers to several farming approaches that use technology. Simple shade structures, hoop houses, greenhouses, and complete indoor or vertical farms are all possible using CEA.
The most cutting-edge systems have completely automated closed-loop lighting, water, and ventilation systems. Common practices such as covering field-grown crops with plastic film, using nets or shade structures, and using aquaponics systems, which combine fish or aquaculture with plant production, are also included in CEA.
With less water and other inputs required, CEA has the potential to produce high-quality food close to consumers. Several fresh tomatoes, herbs, and leafy greens that we eat are already being grown in greenhouses, shade structures, and other controlled conditions. Greens grown entirely under lights in enclosed indoor systems are also becoming more widely available.
CEA allows companies to protect crops from outdoor elements. Rising demand for high-quality seeds and changes in climatic conditions are likely to encourage companies to shift towards CEA over the next ten years.
Key custom selected seed manufacturers are launching new products to cater to the growing demand for a variety of seeds. They are also adopting strategies such as mergers, acquisitions, partnerships, & collaborations to expand their presence
For instance:
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 2,067,345.1 Thousand |
| Projected Market Size (2033) | USD 3,991,402.3 Thousand |
| Anticipated Growth Rate (2023 to 2033) | 6.9% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Thousands for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Russia, Benelux, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, Rest of the World |
| Key Segments Covered | Seed Type, Cultivation Method, Variant, Region |
| Key Companies Profiled | USA Agriseeds; Emerald Seed Company; Hazera Seeds USA Inc.; East West Seed Co.; Antaris Seeds S.L.; Bozhou Swanf Natural Product Co., Ltd.; Shanghai Touchhealthy Biotechnology Co., Ltd.; Hebei Shuangxing Seeds Co., Ltd.; Beijing Mantian Seeds Co., Ltd.; Bayer Group, Clover Seeds; AreoFarms; Durga Seed Farms; Genesis Seeds Ltd.; Nirit Seeds Ltd.; Sandia Seed Company; Tyler Farms; Anseme Srl; Tokita Seeds Co., Ltd.; Asia Seed Co., Ltd; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is valued at USD 2,067,345.1 thousand in 2023.
From 2018 to 2022, the market registered a CAGR of 6.0%.
The market shall reach USD 3,991,402.3 thousand in 2033.
Rising demand for high-quality agricultural products makes China a lucrative market.
AreoFarms, Durga Seed Farms, and Genesis Seeds Ltd. are key market players.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Global Market Demand (in Value in USD Thousands) Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Market Background 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Seed Type 6.1. Tomatoes 6.2. Peppers 6.3. Cucumbers 6.4. Lettuce 6.5. Spinach 6.6. Strawberries 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Cultivation Method 7.1. Open Field (OF) 7.2. Controlled Environment Agriculture (CEA) 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Variant 8.1. Commodity 8.2. Premium 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia 9.6. Oceania 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Market Structure Analysis 18. Competition Analysis 18.1. US Agriseeds 18.2. Emerald Seed Company 18.3. Hazera Seeds USA Inc. 18.4. East West Seed Co. 18.5. Antaris Seeds S.L. 18.6. Bozhou Swanf Natural Product Co., Ltd. 18.7. Shanghai Touchhealthy Biotechnology Co., Ltd 18.8. Hebei Shuangxing Seeds Co., Ltd. 18.9. Beijing Mantian Seeds Co., Ltd 18.10. Bayer Group 18.11. Clover Seeds 18.12. AreoFarms 18.13. Durga Seed Farms 18.14. Genesis Seeds Ltd. 18.15. Nirit Seeds Ltd. 18.16. Sandia Seed Company 18.17. Tyler Farms 18.18. Anseme Srl 18.19. Tokita Seeds Co., Ltd. 18.20. Asia Seed Co., Ltd. 18.21. Others (As per request) 19. Assumptions and Acronyms Used 20. Research Methodology
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Custom Selected Seed Market
