Vegetable Seed Market- Eat Healthy
The growth of the global vegetable seed market is majorly attributed to the burgeoning global population and the growing need to provide food to each and every person and so, eradicating hunger at the global level. Another factor that is driving the market growth of vegetable seed worldwide is the growing consumption of fresh fruits and vegetables as people are increasing the amount of fresh food in their diets while reducing the intake of processed food on account of rising prevalence of chronic diseases such as diabetes, obesity, and cardiovascular diseases (CVDs). Obesity and overweight prevalence continue to rise in all regions of the world (source: the State of Food Security and Nutrition in the World Report 2019). Around 463 million adults (age between 20 and 79 years) were living with diabetes in 2019 worldwide and this figure is projected to rise to 700 million by 2045 (source: International Diabetes Foundation). Growing global volume of vegetable exports is another driver which is fuelling the demand for vegetable seeds across the globe.
Mushrooming Global Population
The global population has surged from 6.922 billion in 2010 to 7.674 billion in 2019 (source: World Bank Group). The figure below shows this growing trend for the period 2010-2019:
Global Population Data, in Billion, From 2010 to 2019
Source: The World Bank Group
As the global population is increasing at a substantial rate, the number of people globally who suffer from hunger has also been rising since 2015. As per the United Nations statistics, around 821 million people globally suffered from hunger in 2018. Also, the world is not on the track to achieve Zero Hunger by 2030. As such, this figure is projected to surpass 840 million by 2030. As per the World Food Programmer statistics, more than 130 million people suffer from acute hunger majorly due to man-made conflicts, climate change, and economic downturns. The recent COVID-19 global pandemic outbreak is further projected to double this figure thus, pushing an additional 130 million people at the risk of suffering acute hunger by the end of 2020.
The global vegetable seed market has been segmented on the basis of type, farm type, trait, and geography. On the basis of type, the market has been segmented into solanaceae, brassica, root bulb, leafy, and others. By farm type, the segmentation of the global vegetable seed market has been done as indoor and outdoor. On the basis of trait, the global vegetable seed market has been segmented into conventional and genetically-modified. By geography, the segmentation of the market has been done into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Global Vegetable Seed Market Size, US$ Billion, 2019 and 2025
Source: Knowledge Sourcing Intelligence
The above chart represents the market size of the global vegetable seed market for the year 2019 and 2025. According to the Knowledge Sourcing Intelligence analysis, the global vegetable seed market as valued at US$ 6.440 billion in 2019 and is projected to witness a CAGR 6.26% throughout the forecast period and will reach the total market size of US$ 9.271 billion by the end of 2025. Leafy vegetable segment is projected to experience a noteworthy CAGR between 2020 and 2025. By farm type, outdoor held the larger share in 2019. This dominance is majorly attributed to the presence of large farms across the globe. However, with urbanization and industrialization keep on increasing, indoor segment will witness a higher CAGR during the forecast period. Rising investments in vertical farming is contributing significantly to the growth of vegetable seed market across this segment. In 2019, Berlin-based vertical farming startup, In Farm, raised a US$100 million fund in its Series B investment which was led by Atomico with other existing investors including Astanor Ventures, Balderton Capital, and Cherry Ventures. Also, Intelligent Growth Solutions (IGS), a Scottish vertical farm technology company, received US$6.76 million Series A funding, led by US-based S2G Ventures. Recently, the UAE officials have announced to launch the country’s hydroponic vertical farming company Smart Acres which will be set up in Abu Dhabi and is set to launch in Q3 of 2020. By trait, genetically-modified vegetable seed market is poised to grow at a noteworthy compound annual growth rate. As the cases of pest and insect attacks are rising across various regions due to climate change, the demand for GMO vegetable seeds is also increasing so as to prevent crops while increasing agricultural productivity. However, with the rise in GMO seeds, the use of pesticides is also growing due to which the European Union (EU) region has completely banned the production of GMO crops.
Geographically, Asia Pacific (APAC) remains the major regional vegetable seed market throughout the forecast period on account of rapidly rising agricultural activities, both indoor and outdoor, in countries like China, India, Japan, and Australia. There has been a continuous rise in investments, both public and private, in the agricultural sector in order to combat the growing food insecurity challenge, especially in China and India. North America also accounts for a considerable share in the global vegetable seed market owing to the rising export volume of countries like the United States and Mexico coupled with growing consumption of fresh vegetables in this region as a way of moving towards healthy lifestyle. Middle East and Africa vegetable seed market is projected to grow at a significant compound annual growth rate during the forecast period as countries like Saudi Arabia and UAE are trying to increase their domestic agricultural production in order to reduce their reliance on imports. South America and Europe will also witness a decent CAGR during the projected period.
ABOUT THE AUTHOR:
Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.
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