Organic seed market to witness a substantial CAGR of 12.5% over 2016-2024, Retail distribution chann...
Organic seed market to witness a substantial CAGR of 12.5% over 2016-2024, Retail distribution channel to expand exponentially
Publisher : Fractovia | Published Date : April 2017 | Price : $4500Request Sample
In response to the unprecedented consumer demand for natural non-synthetic food, organic seed market is expanding rapidly. As per a report by Global Market Insights Inc., “Global organic seed industry holding a billion-dollar share is expected to triple its revenue record in less a decade span, by surpassing USD 5.4 billion by 2024 at a CAGR of 12.5% over the period of 2016-2024.” Recent studies and growing heath awareness has helped in redirecting consumer preference toward organic food sector. Furthermore, favorable government initiations in serving consumer better understandability about the legitimate products available, along with better value chain mainframe is expected to impel rapid propulsion of the overall organic seed industry.
U.S. Organic Seed Market Size, By Crop, 2013 - 2024 (USD Million)
Below is the market overview based on crop variation, distribution channel, and regional outlook over 2016-2024
Cover crop seed production will witness a strong demand in coming time frame. Increasing consumer knowhow about the nutritional benefits of these types of organic seeds coupled with ample product availability especially across Asia Pacific belt will further boost the market outlook. Crop organic seed market is anticipated to grow lucratively at a CAGR of 11% over the forecast span. Vegetable sector is forecast to dominate the overall industry share by accounting for almost 33% of the global revenue over the coming seven years. Organic seed industry for fruits and nuts will also exhibit a potential growth prospect with a striking double digit annual growth rate of 13% over 2016-2024. Local production of these kinds of organic seeds is playing a crucial role behind higher penetration of organic seed market.
Based on the distribution channel, the industry is segmented among retailers, wholesalers, and cooperatives. Organic seed market through wholesalers accounted for maximum share (60% of the total volume) in 2015 and is expected to cross over a revenue of USD 3 billion by 2024.Wholesalers basically buy seeds from farmers in lump sum amount, pile them up in warehouses and finally resell the seeds to retailers. Retailers in the coming time frame are slated to observe a steep upswing in the growth curve, with the highest annual growth rate of more than 13.5% over the period of 2016-2024.
Geographically, North America organic seed market will be a prime region sharing the global landscape, driven by U.S. as a major revenue pocket. With the recent biotchnological breakthroughs, farmers are inclined to more ecofriendly solutions, which in turn is fueling the regional market. Asia Pacific is another prominent region participating actively in the market. Large scale adoption of modern day hi-tech integrated farming methods that are leading to higher productivity, consumers’ growing interest on high nutrition content foods, and relentless research activities on biotechnology are the major factors driving APAC organic seed market. China being a prominent regional revenue contributor, is foreseen to grow substantially at a CAGR of 13% over the period of 2016-2024.
Organic seeds’ comparatively higher cost than synthetic one is expected to act as a road block for the overall market growth. High demand-supply gap, Lack of adequate knowledge, and lower awareness are some of the other challenges that are faced by the market participants. However, better value chain infrastructure and wide distribution network will provide lucrative growth opportunities for the industry to prosper in the years ahead. Prominent players of organic seed market include Wild Garden Fedco, Rijk Zwaan, and Seed Saver Exchange.