The South and South-East Asia seeds market is projected to register a CAGR of 5.3% during the forecast period 2020-2025. Several factors such as improvements in the agricultural sector, seed production, trade, and international agreements, along with the developments in seed technology that have increased the momentum of the industry’s growth. Six countries, namely India, Thailand, Indonesia, Vietnam, the Philippines, and Bangladesh are considered as the seed hubs, based on the concentration of production, breeding and processing activities by index companies in these countries, among the Southeast Asian region. The Non-GM/Hybrid Seeds segment has been witnessed to dominate the market owing to the increased demand for food over the past years. To meet this growing demand, the enhancement of crop yield has become a necessity.
The major players in the market are Bayer Crop Science SE, Syngenta International AG, Corteva AgriScience, BASF SE, and Nuziveedu Seeds Ltd among others.
Key Market Trends
Increasing Adoption of Hybrid Seed and Government Support
The willingness and interest to grow hybrid crops are, to a large extent, governed by government legislation and policy in many of the countries studied. Pakistan is both a producer and importer of hybrid crops and products. The Pakistani seed sector is dependent on two key regulations, the Seed Amendment Act 2015 and the Plant Breeders Rights Act 2018. In 2016, the Pakistan National Assembly adopted a Plant Breeders’ Rights Act to encourage the development of new plant varieties and to protect the rights of breeders of such varieties. The Act provides protection for new plant varieties while at the same time respecting the right of farmers to save, use, exchange, and sell farm-saved seeds. This ensures farmers get access to high-quality hybrid seeds alongside being able to use ingeniously produced ones. The rising import of hybrid seeds is a direct impact of these measures. The National Assembly Standing Committee on National Food Security and Research banned the import of genetically modified (GM) seeds of maize, owing to health and environmental issues, in 2019. This may act as a driver for the use of hybrid seeds as an alternative to these GM seeds for keeping the yield constant.
The Non-GM/Hybrid Seeds Segment Dominate the Market
In the South and Southeast Asian region, the demand for food has increased exponentially over the past years. For the purpose of meeting this demand, enhancement of crop yield has become a necessity by maintaining the safety standards by governments. The Philippines is home to the International Rice Research Institute and is one the most prolific users of hybrid rice seed in the region to meet rising demands. Green Revolution in India has promoted the use of hybrid seeds in India. The fast-growing population in the country has increased the demand for domestically produced hybrid seeds compatible with the climate conditions.
Hybrid rice seeds imported to Pakistan are expensive than that produced locally. The limited landholdings of farmers reduce their ability to purchase these hybrid seeds. The Agricultural Innovation Program launched by the government is expected to increase the adoption of hybrid maize seeds by farmers. This is expected to further increase the domestic hybrid seed production in the country. The use of hybrid seeds has been increasing over the years in the south and southeast Asian region with the increasing global demand for organic products and the need for enhanced crop yield in the region. This continued trend is expected to increase the market for hybrid-non-GMO seeds in the region.
South and South-East Asia seed market is fragmented, because of the presence of a large number of local players marketing certified seeds. However, there are segments within the market, which are consolidated such as in maize and vegetables. The major players in the market are Bayer Crop Science SE, Syngenta International AG, Corteva AgriScience, BASF SE, and Nuziveedu Seeds Ltd among others.
Furthermore, increasing investments in the seed market by prominent companies, are further intensifying the growth of the seed market. For instance, in 2016, Sakata Seed Corporation, a Japan-based company, invested USD 138 million in India, to expand its business operations, which helped in escalating the market share in India.
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