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Consumption of Biotech Seeds to Grow Steadily owing to Need for Advanced Farming

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Published on : Nov 10, 2016

The global commercial seeds market is highly monopolistic as several leading companies sell products that are less differentiated. The top four companies make the market highly consolidated as they occupy the leading shares. The leading companies operating in the global commercial seeds market are Monsanto, DuPont, Takii, Sakata, KWS, Bayer AgroScience, Syngenta, and Vilmorin. To expand their consumer base and enhance the production units, the manufacturers are entering into special agreements with farmers to buy and supply seeds. Geographically, North America emerged dominant and is expected to maintain a lead until 2018 in both the commercial conventional and genetically modified seeds segments. The growth of the North American commercial seeds market can be attributed to the technological developments that have taken place for the production of high yield crops, the standardization of farming, and use of biotechnology in agricultural activities. 

Production of Genetically Modified Crops to Boost Owing to Growing Employment of Biofuels 

Corn is a key ingredient used in the production of ethanol. The two forms in which ethanol is available is wet milling and dry milling. Yellow corn has been gaining prominence over the last couple of years as a crucial raw material used in the production of biofuels owing to its ecological benefits and efficiency. Corn is used as feedstock for biogas plants in Germany since the post-industrialization era. Similarly, in other parts of Europe, ethanol is added to regular fuel as it does not negatively impact the working of the automobile. Genetically modified seeds are of high economic value in comparison to conventional seeds. However, patent issues are expected to restrain the growth of the market along with concerns regarding the safety of genetically modified crops. 

Maize and Soybean to Dominate Respective Segments

Maize emerged as the dominant crop in the conventional seeds segment owing to its unique ability to grow in extreme weather conditions. Similarly, soybean took the lead in the genetically modified seeds segment and is expected to maintain a lead. The other products in the segments are vegetables, cereals, cotton, canola, sunflower, and sugarbeet.

The global commercial seed market is likely to witness a 9.6% CAGR between 2012 and 2018 touching US$53.3 bn by 2018 from a valuation of US$34.5 bn in 2011.