The seeds market is projected to register a CAGR of 4.1% during the forecast period (2020-2025). Agriculture is one of the main occupations in South Asian countries, like India, Pakistan, and Bangladesh. Limited land availability and an increasing population are accelerating the market. Specialty seeds, such as hybrid seeds, and genetically modified seeds with high yield and resistance to abiotic stress, are high in demand. Grains represent the biggest portion of daily calorie intake in South Asian countries. Therefore, the demand for grains is going to be one of the most critical drivers of the market studied.
Key Market Trends
Cereal Seeds Dominate the Market
Cereals crops, such as rice and wheat, are the staple food of the South Asian countries, thus making it the most consumed seed. The cultivation of cereals has been continuously growing in the South Asian region. For example, according to FAO, the area under paddy cultivation was 62 million hectares in 2018, which was 1 million hectare more than the previous year. Other cereals that are cultivated in this region are wheat, barley, oats maize, and sorghum. The increasing cereal cultivation boosts the cereal seed market at a significant rate in the future.
India Dominates the South Asian Seeds Market
India, the world's second-largest population, with huge agricultural land dominates the seed market in the Asian region. The adoption of hybrid seeds is one of the prime reasons for the growth of the market in India. The hybrid seed sector witnessed a growth of 15-20% per year over the past decade. The major boost has come from the increased adoption of Bt cotton hybrids, single-cross corn hybrids, hybrid rice, and hybrid vegetables. Cereals are the most widely grown crops in India, and the seed market for the same has been witnessing tremendous growth.
The South Asian seed sector is highly fragmented, and the top nine companies accounted for a small share of the market. In contrast, the rest was accounted for by various other small domestic companies. Companies are highly focused on the introduction of new varieties of seeds during the past five years, which have led them to acquire significant market shares in the seed sector.
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