According to MarketsandMarkets, the global seeds market is projected to reach USD 83.3 billion by 2028 from USD 58.8 billion in 2023, growing at a CAGR of 7.2% during the forecast period. This growth reflects an urgent need to boost global food production as the population continues to expand. With limited arable land and increasing food demand, the focus has shifted toward improved seed varieties that deliver higher yields, disease resistance, and better nutrition.
Changing Landscape of Global Food Production
Seeds are at the core of modern agriculture. Farmers today are demanding high-quality seeds that can withstand climate stress, pests, and soil challenges—ensuring consistent productivity. Innovations in biotechnology and genetic engineering have accelerated the development of genetically modified (GM) seeds. These seeds promise enhanced performance, though they continue to spark discussions about environmental and health implications.
The seeds market size is being shaped by a diverse ecosystem of multinational corporations, regional seed producers, and research institutions—all aiming to balance productivity, sustainability, and profitability in global food systems.
Oilseeds Fueling Growth Through Animal Feed Demand
One of the strongest drivers behind the market’s expansion is the growing use of oilseeds in the animal feed sector. Protein-rich by-products from refining oilseeds—like soybean meal, sunflower meal, and cottonseed meal—are essential ingredients in livestock nutrition. The EU’s ban on Meat and Bone Meal has further pushed demand for vegetable protein alternatives.
As plant-based protein gains global traction, investments in oilseed processing and plant-protein companies have intensified, driving innovation and accelerating market growth. This synergy between food, feed, and plant-based industries continues to strengthen the role of oilseeds in the agricultural economy.
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The Irrigation Challenge: Low Yields in Rainfed Areas
In developing regions such as India, South Africa, and Turkey, limited irrigation infrastructure continues to hinder productivity. Crops like soybeans, sunflower, and groundnuts rely heavily on rainfall, leading to inconsistent yields. Expanding irrigation coverage and introducing drought-tolerant seed varieties are key solutions to bridge this gap.
Groundnut seeds, for instance, thrive under specific temperature and moisture conditions. Without irrigation, yields drop significantly—highlighting the urgent need for modern water management and resilient seed technology to maintain stable output.
Molecular Breeding: A Game Changer for Seed Development
The adoption of molecular breeding is revolutionizing how breeders identify and select desirable crop traits. By using gene-linked markers, plant breeders can now detect and propagate traits such as drought tolerance or disease resistance faster and with higher accuracy than traditional methods.
Countries like China and India are leading in applying marker-assisted selection (MAS) for developing high-yielding oilseed varieties. As molecular breeding evolves, it is expected to play a pivotal role in producing more resilient and productive seed varieties to meet global food and feed demand.
Rising Threat: Counterfeit Seeds and Illegal Trade
Counterfeit and fake hybrid seeds have become a growing problem in many developing regions. Unscrupulous distributors often repackage substandard seeds, misleading farmers with false promises of high yield. This issue not only undermines trust in seed companies but also affects farmer incomes and regional productivity.
Strengthening regulatory oversight and traceability within the seeds market share is essential to combating this challenge and ensuring that farmers have access to certified, high-quality seed varieties.
The Genetic Edge: GM Seeds Leading Future Growth
The genetically modified (GM) seeds segment is forecasted to grow at the highest rate during the next few years. GM seeds are engineered for traits such as pest resistance, nutrient efficiency, and environmental resilience—contributing to higher yields and reduced input costs for farmers. As biotechnology continues to advance, GM crops are expected to become central to sustainable global food security strategies.
Cereals & Grains Remain the Backbone of Global Agriculture
Cereals and grains continue to dominate the market by crop type, particularly across Asia and Southeast Asia. Rising demand for staple foods like rice and wheat, coupled with the push for higher-yielding and nutrient-rich varieties, ensures this segment remains robust. According to the FAO, global grain consumption reached 2.7 billion tons in 2021, underlining the critical importance of cereals in feeding nearly 36% of the world’s population.
North America Leads with Innovation and Export Strength
North America, led by the United States, stands at the forefront of agricultural R&D and biotechnology. The region’s strong base of seed companies, coupled with advanced genetic engineering and robust export infrastructure, positions it as a dominant force in the seeds market trends. North America’s leadership is not only technological but also strategic, supplying high-quality seed varieties to markets across Asia, Africa, and Latin America.
Leading Players Driving the Seeds Industry
The competitive landscape is marked by global leaders such as BASF SE, Bayer AG, Syngenta, KWS SAAT SE & Co. KGaA, Corteva, and Limagrain. Regional players like Advanta Seeds (India), Sakata Seed Corporation (Japan), DLF Seeds (Denmark), and Enza Zaden (Netherlands) are also gaining traction with specialized offerings. These companies are investing in research, partnerships, and market expansion to stay ahead in a rapidly evolving landscape.
The Future of the Seeds Market
The future of global agriculture depends heavily on how effectively the seed industry can respond to environmental pressures, food security demands, and technological advancements. From molecular breeding to precision farming and biotechnology, the innovation pipeline is strong. As the world races to feed 10 billion people by mid-century, the seeds market companies that prioritize sustainability and farmer-centric innovation will lead the next agricultural revolution.
FAQs
1. What is the projected growth of the seeds market?
The seeds market is expected to grow from USD 58.8 billion in 2023 to USD 83.3 billion by 2028, at a CAGR of 7.2%.
2. Which factors are driving market growth?
Rising demand for oilseeds, advancements in biotechnology, and increasing adoption of high-yield and disease-resistant seed varieties are key growth drivers.
3. What challenges does the industry face?
Counterfeit seeds, lack of irrigation infrastructure, and dependence on rainfed agriculture remain major challenges in developing countries.
4. Which region dominates the seeds market?
North America is currently the leading region, driven by innovation in genetic engineering and strong export capabilities.
5. Who are the major players in the market?
Top players include Bayer AG, BASF SE, Syngenta, Corteva, KWS SAAT, and Limagrain, among others.
