The global vegetable seeds market has been growing consistently over the past few years. Rising health consciousness coupled with increasing awareness about the health benefits of fruits and vegetables is driving more people to include more vegetables in their diets. This is positively impacting the demand for vegetable seeds globally. Moreover, declining cultivable land is also prompting farmers to maximize yield from smaller areas by using high quality hybrid and genetically modified seeds. As a result, seed companies offering high-yielding vegetable seeds varieties are witnessing tremendous growth in their businesses. The global vegetable seeds market was valued at $8.5 billion in 2018 and is expected to grow at a CAGR of over 7% during 2019-2024.

High Growth Segments in Vegetable Seeds Market

Seed companies are focusing on developing hybrid varieties of popular vegetables which have high demand. Some of the key segments which are experiencing strong growth include tomato seeds, chili/pepper seeds, cucurbit seeds, leafy Vegetable Seed , and root & bulb vegetable seeds. The demand for tomato seeds and chili/pepper seeds has increased manifold over the past few years due to their widespread uses in sauces, soups, salads and various food preparations. Seeds of vegetables such as cucumber, zucchini, pumpkins and squash are also in high demand due to increasing consumption of salads and exotic mixes. Leafy vegetables like spinach, cabbage and lettuce provide important nutrients and their seeds are progressively getting popular among commercial vegetable growers. Seeds of carrots, radishes, beets, onions and garlic which are commonly used in several cuisines are also witnessing steady uptick in sales.

Changing Growing Patterns and Preference for Hybrids

Traditionally, farmers have been reusing their saved seeds for successive seasons. However, this trend is changing fast due to superior performance and yields associated with hybrid seeds. More farmers globally are willing to pay a premium for high quality F1 hybrid vegetable seeds that can withstand adverse conditions and churn out higher outputs using same or lesser inputs. Seed companies are also catering to varied growing patterns and offering seeds suited for different seasons of cultivation. They are developing hybrids resistant to diseases that may spread at particular times of year in different geographical regions. Seeds for rooftop gardens and vertical farming are gaining traction in urban spaces. Overall, hybrids now account for over 70% of the total commercial vegetable seeds sales globally which offers massive growth opportunities.

Asia and Americas Lead Adoption of Proprietary Seeds

While North America currently leads the vegetable seeds industry in terms of revenues, Asian countries are the prime movers of growth. The vegetable seeds markets in China, India and Southeast Asia are expanding at a double-digit rate yearly basis. This is attributed to growing population and rising disposable incomes in these regions which are boosting vegetable consumption. Asia and Americas together generate over 65% of the global demand for vegetable seeds. On the other hand, adoption of proprietary seeds in Europe has reached saturation levels due to strong traditional practices of reusing old seeds. However, seed companies are still finding pockets of growth from certain innovative crops and organic segment there. South America is also rapidly warming up to hybrid vegetable seeds use, making Americas an attractive geographical market overall.

Innovation is the Mantra for Future Growth

With increasing competition, seed companies are innovating continuously to retain existing customers and attract new ones. They are developing more disease and stress tolerant vegetable varieties with superior color, texture, taste and nutritional profiles. Technologies like genome editing are shortening product development cycles and bringing novel traits to farmers faster. Seeds with additional consumer benefits like prolonged shelf-life are in demand. With growing health consciousness, many firms are offering certified organic and Non-GMO Project Verified seeds varieties as well. Digital technologies are also revolutionizing distribution and making seeds purchasing more convenient for all stakeholders. On the whole, the vegetable seeds market remains highly innovative and disruptive, holding immense potential for exponential expansion in the Asia-pacific, Americas and worldwide over the coming years.

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