Organic Seed Market to Grow at a CAGR of 12.11% During the Forecast Period 2020-2025

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Organic Seed Market

Organic Seed Market size is valued at $2.11Bn by 2019, and is anticipated to grow at a CAGR of 12.11% during the forecast period 2020-2025. The Organic Seed Market growth rate is attributed to the shift in consumer preferences towards organic and natural products and significantly increasing demand of these products are expected to be the major driving factor of organic seeds industry. The surging demand for naturally derived and processed food products have led to the increasing focus on organic plant breeding and organic farming worldwide. Organic seed is a seed produced by the organic farming methods. Organic seeds are manufactured by adhering a set of guidelines, which restricts the use of chemicals or synthetic products. Consumers are fetching more awareness about the quality and safety of the food they eat. From Growing awareness regarding the less use of chemicals in agriculture to the government initiatives regarding the use fertilizers and pesticides in agriculture and growing research & development activities related to organic seeds is anticipated to propel the Organic Seed Market during the forecast period 2020-2025.
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Product Type – Segment Analysis

Vegetables segment held the largest share in the market owing to growing awareness regarding food benefits and increasing product availability, particularly in the developing regions. Furthermore, these product categories account for significantly less in terms of organic acreage. However, on economic terms, these product categories dominated the global market in the recent past. Other vegetation includes forages and pastures. This product category accounts for the highest cultivable acreage compared to other products, is anticipated to propel the market growth. The segment is estimated to grow at a CAGR of 9.13% during the forecast period 2020-2025.
Moreover, concerns regarding chemicals and genetically modified seeds have played a major part in shifting consumer preference; such trends are expected to aid the industry over the forecast period 2020-2025.

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By Geography – Segment Analysis

North America dominated the Organic Seed Market with a share of 37.2% in 2019. The application of Organic Seed has grown rapidly over the last few years owing to the growing organic food demand in these regions.
Asia Pacific is anticipated to witness robust growth over the forecast period, owing to several prominent factors such as rising disposable income, growing health awareness, and favorable regulatory framework. Moreover, governments and agricultural agencies have taken multiple initiatives that include favorable policies and tax incentives to encourage organic farming. Such initiatives coupled with growing awareness regarding food benefits are expected to assist the regional market in the near future. Asia Pacific and Central & South America cater to the growing organic food demand in the developed regions as majority of the produce in the developing regions are to be exported to developed markets such as North America and Europe. China, India, Brazil, Argentina, and Australia are anticipated to lead their respective regional markets over the next five years.

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Drivers – Organic Seed Market

Rising Demand For Organic Seeds:

With growing demand for GMO free products among consumers due to rising health concern is expected to drive the organic seeds market growth. Increasing demand for organic food and beverages fuel by changing consumer buying behaviour, mainly in China, India, Malaysia, and Indonesia. Moreover, increasing awareness towards pesticide and chemical free farming due to environmental concerns is expected to display positive favour in organic seed market size over the forecast period. Supporting government initiative, rules and policies to promote organic farming is anticipated to propel the growth in organic seed market.

Challenges – Organic Seed Market

Fragile Infrastructure of Regulatory Bodies

The major challenge for the market is attributed to the fragile infrastructure of regulatory bodies for organic farming concerning the coexistence of differing agricultural practices i.e. organic, conventional and genetically engineered, which can yield a contaminated crop is anticipated to restrain the growth of organic seeds market in the near future.

Organic Seed Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Organic Seed Market. In 2019, Organic Seed Market share is fragmented by the top ten players present in the market. Organic Seed Market top 10 companies are Johnny’s Selected Seeds, Southern Exposure Seed Exchange, Fedco Seeds, Wild Garden Seeds, Rijk Zwaan, De Bolster, HILD Samen, Vitalis Organic Seeds, High Mowing Organic Seeds, Arnica Kwekerij and others.

Acquisitions/Product Launches

In March 2017, AcanChia decided to work together with HNI Korea and closed an exclusive agent agreement with the company, for its raw materials and processed foods from organic chia and quinoa seeds, as well as cocoa and yacon products.

Key Takeaways

North America dominated the Organic Seed Market with a share of 37.2% in the year 2019.

The factors such increasing demand for nutritional food, innovative production practices, new product offerings, and advent of modernization of agriculture are amongst the major factor projected to impel growth of Organic Seed Market.

Rising incidences of the clean label product with organic labels but some of the prominent food and beverage companies is paving the way for the small market of the organic foods into mainstream market and Market players functioning in the organic seeds market are the key factors owing to the growth in the segment during forecast period 2020-2025.

Related Reports :

A. Organic Sesame Seed Market

B. Seed Coating Market

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