The influx of severe regulations on the use of chemicals, including synthetic herbicides and pesticides will accelerate the organic seed market forecast. The rising degrees of dietary concerns and the changing consumer spending patterns have led to the increasing need for organic ingredients in food & beverage applications. The growing concerns over genetically modified seeds have also made way for the higher production of organic crops.

There is a significantly surging requirement for organic certified food products across several developed countries, like the U.S., Canada, France, Italy, Germany, and Australia. The rising support from government and agricultural agencies in the form of multiple initiatives, favorable policies, and tax incentives has further bolstered the adoption of organic farming.

Taking a gist of these factors, report by Global Market Insights, Inc. estimates that Organic Seed Market size exceeded USD 3.7 billion in 2020 and is estimated to grow at over 8.3% CAGR between 2021 and 2027.

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Increasing demand for oilseed products

The industry share from oilseed products is expected to amass over USD 500 million by 2027 driven by higher requirements for natural ingredients across the cosmetic sector. Other than helping in extracting edible oil for human consumption, oil seeds also mark extensive presence across the food, pharmaceutical, and cosmetic industries, further complimenting their sales. The rising preference for organic and healthy oil seed-processed products will also favor the market growth.

Health benefits of crop seeds

Crop seed products are recording a higher presence in China, Japan, India, and Indonesia on account of the higher consumer awareness regarding the health benefits of crops. On this note, the demand for organic crop seeds is anticipated to hit a CAGR of over 7.5% up to 2027. The market size of wheat inorganic crop seeds will record more than USD 200 million through 2027 due to the growing intake of organic wheat to produce numerous organic certified products, including pasta, flour, noodles, macaroni, and spaghetti.

Higher presence through cooperatives distribution channels

The organic seed industry share from cooperatives distribution channels is expected to strike 7.5 % CAGR through 2027 owing to the support and training provided to the members to permit the seeds to be produced as per the higher quality standards. These distribution channels also offer safety insurance whilst jointly hiring advisers for creating critical knowledge and capacity on seed quality and testing in order to develop new solutions. The higher number of farmers opting for organic seed will drive the sales of organic seeds in these channels.

APAC to emerge as a major market

The organic seed market in the Asia Pacific will record a 9% CAGR through 2027 owing to the surging health awareness and increasing disposable incomes. The rise in the number of favorable government initiatives has made way for various regulatory norms in the region to support organic farming. For instance, the Government of India came up with numerous initiatives, inclusive of educating farmers, tax incentives, and favorable policies to promote organic farming in APAC.

Leading organic seed companies are keen on strategic initiatives, such as product expansions, mergers, and acquisitions to meet increasing product requirements across the food & beverage industry. For instance, in January 2021, Bayer announced its plans of launching four new hybrid vegetable seeds in 2021 to proliferate its organic seed business.

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Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

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