The global organic seed market is expected to be valued at approximately USD 1.6 billion in 2015 and it is expected to grow at approximate CAGR of over 14 % over the forecast period of 2016 to 2024.
Growing health consciousness and environmental concerns are expected to remain a key driving factor for market growth over the forecast period. Raising demand of organic seed is owing to negative health issue related to hazardous chemicals in the agriculture industries.
Environmental concerns about chemical consumption in conventional agriculture are a key driver and it is expected to assist such farming for the next eight years. Favorable government regulation is also anticipated to drive the market growth.
Private investment and government initiatives are expected to play an important role in the organic seed market. Organic food consumption and awareness regarding health consciousness are increasing the demand.
Restraints for organic seed market are the high cost of seeds and availability of genuine seed. Escalating seed price by the industry participants are the major reasons for the high cost.
Lack of awareness regarding organic food products and high demand-supply imbalance are expected to offer lucrative growth opportunities in the organic seed market. Better value chain management, wide distribution network, and technological advancement are the few areas which offer ample of growth opportunities to the industry participants over the next eight years.
The challenges in organic seed market are climate change, resource depletion and increasing population needs ongoing development in the agriculture industry, including new innovation in plant breeding can reduce these issues in the near future.
These food products exhibit superior properties such as nutritional values and high antioxidants. The chemicals used are pesticides, insecticides and fertilizers for the conventional resources but these organic seeds are chemical free, pesticide free and insecticide free products.
The organic seed market has been segmented on the basis of products such as field crops, vegetables, nuts & fruits, and other vegetation. Nuts & fruits and vegetables are anticipated to witness significant growth over the next eight years.
Other vegetation such as pastures and forages are expected to have a moderate growth over the forecast period. In developing region growing food awareness and product, availability is expected to increase positive demand in the market.
Certified organic seeds are expected to create a positive impact across local and global market over the next eight years. Concerns regarding genetically and chemically customized seeds have played a major role in shifting consumer preference and to assist industry regarding growing trend.
There is substantial supply-demand imbalance resulting exponential demand growth over the forecast period owing to low buyer bargaining power and high supplier bargaining power.
Organic seed availability is very low because there is a very small investment in these programs. There is a sudden need to prevent our genetic resources for the upcoming future generations while ensuring farmers have ample seed varieties to feed their communities today.
North America is expected to have significant growth for the next eight years. In 2014, North America has the overall market revenue of 35.7%. Some of the factors to drive the market in this region are the technological advancement and awareness regarding health consciousness. Asia Pacific is having the second largest market share.
Asia Pacific is expected to witness significant growth due to increasing demand of organic seed market. Some of the factors increasing demand are favorable government regulations, increasing health consciousness and disposable income.
Agriculture association and government have taken several initiatives which include tax incentives and favorable policies to support organic farming. Such initiatives taken are going to increase the demand for next eight years.
Central and South America and Asia Pacific are supplying the increasing organic demand to the developed countries. The majority of food products produced is imported to the developed countries.
India, China, Argentina, Australia and Brazil are anticipated to drive the organic market for the next eight years.
Some of the leading market participants include Fedco Seeds, Seeds of Change, Johnny’s Selected Seeds, Seed Savers Exchange, High Mowing Organic Seeds, Vitalis Organic Seeds, HILD Samen, Wild Garden Seeds, Navdanya, Maas Plant, Southern Exposure Seed Exchange, Arnica Kwekerji and De Bolster.
Industry participants are investing in R&D for the innovation and development of new organic food products. These investments are expected to drive the agriculture industry for the next eight years.
Research Support Specialist, USA