The
global commercial seeds market is fairly consolidated with the top
four companies accounting for 55% of the market in 2011. Key players
in the market are agricultural biotechnical corporations who have
extensive research expertise, Transparency Market Research (TMR)
states in its new report. These include: Monsanto, DuPont Pioneer,
Syngenta, Vilmorin, and Bayer AgroScience. Exclusive agreements
between seed companies and farmers are resulting in an intense
competitive scenario within the global commercial seeds market. The
threat of substitutes is likely to remain low as there exists merely
the threat of internal substitution of conventional seeds by
bioseeds. The threat of new entrants is expected to rise from low to
medium over the coming years.
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According
to the report, the global commercial seeds market is expected to rise
from US$43.81 bn in 2015 to US$53.32 bn by 2018. On the basis of
geography, North America, closely followed by Asia Pacific is
expected to lead in the global commercial seeds market. North America
is also expected to remain the dominant segment, accounting for 31%
of the global genetically modified (GM) seeds market. By product, the
maize segment is expected to remain the lead and account for 45.5% of
the commercial seeds market by 2018. The soybean product segment is
anticipated to lead, representing 41.3% of the global genetically
modified seeds (bio-seeds) market.
Increasing
Population Driving Demand for Commercial Seeds
The
growing population is fueling the need for higher agricultural
production, which in turn is driving the demand for commercial seeds.
The growing industrialization across emerging nations has led to a
decline in the available arable land. Since commercial seeds will
continue to remain an important enabler of food security, their
demand is expected to remain steady. Another factor boosting the
market is the rise in the use of bio-fuels. The use of corn for fuels
was over 59% in 2011 and this is expected to increase in the coming
years, thus driving the global
commercial seeds market. The rising demand for maize and soybean
as fodder feed is yet another factor encouraging the growth of the
market.
Patent
and Monopoly Issues to Challenge Growth of Commercial Seeds Market
The
protection provided by patent laws for genetically modified seeds is
projected to provide manufacturers of these seeds with an advantage
in the market, but acts as an entry barrier for several other new
manufacturers. “Small companies that do not have patented seeds are
entering into agreements with larger companies to develop seeds with
a particular trait,” states a TMR analyst. Thus, companies
supplying patented seeds exercise rights over small players and
create a monopolistic situation in the market.
Another
factor that is acting as a challenge is the safety hazards associated
with GM crops. Many of the GM seeds thus, lack commercial viability
as there are high risks involved with the consumption of the modified
DNA that is inserted in the seed. As such, there are several
government regulations that restrict the consumption of crops that
are GM on a large scale.
Rising
Standards of Farming to Fuel Demand for Commercial Seeds
With
traditional farming methods being increasingly being replaced with
modern and scientific approach to farming. Farmers across the globe
are striving to find the best, optimum solution, which will help them
achieve substantial production of crops. This is expected to lead to
a growing use of technology and will provide an immense scope of
opportunity for GM seeds in particular. Additionally, the use of
genetic engineering to modify seeds to carry extra nutrients and make
them resistant to pest attacks will drive the demand for GM seeds,
thus creating an opportunity for growth in the market.
This
information is based on the findings of a report published by
Transparency Market Research titled “Commercial Seeds Market -
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
2012 - 2018.”
The
global commercial seeds market is segmented as follows:
By
Products (Commercial Seeds)
- Maize (Corn)
- Soybean
- Vegetables
- Cereals
- Cotton
- Rice
- Canola
- Others (Sunflower, Sugarbeet)
By
Products (GM Seeds)
- Maize (Corn)
- Soybean
- Cotton
- Canola
By
Region
- North America
- Latin America
- Asia Pacific
- Rest of World (RoW)
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