Growing use of hybrid seeds across the world is the primary factor responsible for the growth of the global hybrid seeds market. In order to ensure sustainable agriculture, good-quality seeds play a significant role as they provide aid towards higher productivity. Hybridization technology in agriculture helps to enhance crop production. This technology helps to improve the grain qualities, reduce the incidence of pests, and increase the overall crop productivity.
KEY INDUSTRY DEVELOPMENTS:
In August 2018, BASF closed the acquisition of Bayer’s global vegetable seeds business, mainly operating under the brand Nunhems. The acquired vegetable seeds business comprises 24 crops and about 2,600 varieties.
In November 2018, BASF has opened a new state-of-the-art breeding center for cucumbers at its site in Nunhem. The facility will increase BASF’s capabilities to meet the needs of consumers and the global food value chain with novel vegetable varieties.
Oilseeds and Cereals Are More in Demand Owing to their Large Cultivation
Among crop types, oilseeds and cereals cover a larger share in the global hybrid seeds market. The cultivation of these crops is done on a vast land area across the globe. Under cereals segment, corn and rice account for a major share in the market. Moreover, short duration hybrid seeds are expected to gain higher traction from the benefits associated with their cultivation.
North America Leads Owing to Early Adoption of Technological Advancements
Regionally, North America is anticipated to account for a substantial share in the global hybrid seeds market. In 2018, the region was leading the market. Rising adoption of hybrid technology is driving the market in this region. The market in Asia Pacific registers strong growth. This region, together with Latin America, is expected to create attractive growth opportunities for the global market in the forecast years.
Deteriorating Arable Land Stokes Demand for Hybrid Seeds
Modernization of agriculture such as the introduction of hybrid agriculture is constantly driving the hybrid seeds market. Product innovation which includes advanced hybrid seeds and diet diversification is supplementing the growth of the market. Furthermore, the use of hybrid seeds with advanced features such as seed coatings, pelleting and other traits is increasing the hybrid seed production.
The increasing population is surging the demand for agricultural produce and highlighting the need to increase production. As per the Food and Agricultural Organization (FAO), the global population was 7.63 billion in the year 2018. The organization further revealed that the global population is estimated to reach 8.19 billion by 2025 and around 8.55 billion by the end of 2030. This rapid increase is compelling farmers to adopt hybrid seeds and improve crop production. Moreover, the declining arable land across the world promotes hybrid seed production.
MNCs Merging with Other Seed Companies to Dominate the Hybrid Seed Market
Several multinational companies are acquiring other seed companies to cover a larger part of the global market. With the increasing mergers and acquisitions (M&A), organizations can improve their efficiency and involve in research and development (R&D) activities to meet consumer requirements. Companies are planning to bring innovation in hybrid sees to meet the demand for crop production globally.
For instance, BASF opened an advanced state-of-the-art breeding center in November 2018 in Nunhem. This centre is for breeding cucumbers and its aim is to increase BASF’s capabilities in order to fulfil consumers demand. The company is also planning to increase the global food value chain encompassing novel vegetable varieties.
By Crop Type:
· Cereals (Rice, Corn, Barley, and Sorghum)
· Oilseeds (Canola, Soybean, Cotton, and Sunflower)
· Fruits & Vegetables (Tomato, Cabbage, Chilli & Bell pepper, Okra, Cucumber, and Melons)
· North America (USA, Canada, and Mexico)
· Europe (France, Germany, Italy, Spain, U.K., Russia, and Rest of Europe)
· Asia Pacific (China, India, Japan, Indonesia, Vietnam, and Rest of Asia Pacific)
· South America (Brazil, Argentina, and Rest of South America)
· Middle East & Africa (South Africa and Rest of MEA)