The global market for seeds is projected to exceed US$112 billion by 2020, driven by the expanding population base, rising focus on food security and robust demand for genetically modified (GM) seeds in developing countries.
This was reported by international research firm Global Industry Analysts Inc. (GIA) which said the GM seeds “constitute the fastest growing market segment” even as traditional seeds continue to account for a major share.
According to the GIA report, major factors driving market growth for GM or Bioseeds include “the need for increased productivity against the backdrop of decreasing arable land, and growing number of people to feed.”
Other studies also showed that the shift to GM seeds among farmers has significantly reduced the use chemical pesticides. Biotechnology processes have led to the development of GM seeds with built-in resistance to pests that have traditionally attacked crops.
“Future growth in the market will come from expanding world population, rising adoption of seed biotechnology across the world, and growing land reclamation for the purpose of agriculture,” the GIA report said.
“Other important growth drivers include the steady progress in the development of drought tolerant seed varieties and stacked seeds that can tolerate pests, weeds and other diseases, surge in home gardening to combat food safety issues, among others,” the GIA report added.
The report noted that advancements in agriculture due to wider GM seed use “are a welcome boon for agriculturists who are often plagued by uncertainties due to low-performing seeds and crops.”
“The acceptance of high-performing hybrid and genetically engineered seeds is increasing steadily,” the GIA pointed out.
The GIA report also noted that Asia-Pacific represents the largest and fastest growing seed market worldwide with a Compound Annual Growth Rate (CAGR) of 12.6 percent.
The GIA publishes more that 1,500 full-scale research report and analyzes more than 40,000 market and technology trends yearly.