Global organic seed market forecast will be largely driven by growing consumer awareness towards various health benefits offered by the products. In recent years, there has been a tremendous shift in consumer preferences towards the consumption of natural foods. High concentration of chemicals in foods can be hazardous to both nature and humans.
The use of natural products also helps address greater challenges such as preservation of agricultural biodiversity. These products help overcome genetic vulnerability in crops and ensure plant genetic diversity. Favorable regulatory framework to encourage organic farming practices will propel organic seed market trends in the forthcoming years.
There is increasing contribution from local fruit producers towards the easy availability of organic products. Growing R&D efforts and investments will play a key role in accelerating the product adoption. In fact, private public investments in natural seed research have increased by almost USD 22 million over the last five years. Organic seed industry share from the fruits & nuts segment will record a 13% CAGR over 2016-2024.
Vegetables have rich anti-oxidant properties that offer a range of benefits and help boost overall health. In organic agricultural practices, seed crops are sown for a longer duration compared to food crops. For the collection of seeds, plants need to complete their entire life cycle. Additional time is required for drying and curing of seeds which helps ensure that optimum quality of seeds.
Vegetable segment in global organic seed market is projected to garner revenues in excess of USD 1.8 billion by 2024. Organic vegetables promote digestive health and provide additional nutritional value. This is due to the fact that organic farming does not make use of harmful chemicals such as insecticides, pesticides, fertilizers and herbicides.
Another massive advantage of organic farming is that non-synthetic foods have better taste, apart from excellent nutritional and antioxidant properties. Rapid expansion of the food & beverage sector in countries including U.S., Germany, China, India, Indonesia and Malaysia will drive the business growth in the near future.
Wholesalers segment in organic seed market will account for over USD 3 billion by 2024. Wholesalers purchase seeds directly from farmers, store them in warehouses and resell them to retailers. Increased disposable incomes of consumers along with growing concerns regarding personal health and well-being is resulting in greater demand for natural seeds. Governments are making significant efforts though cooperatives, agencies, associations and organizations to foster both distribution channel and supply chain system.
China organic seed industry size will register gains of over 13% up to 2024. China natural food industry is booming and recorded sales of more than USD 39 billion during 2015. Governments in China and India are providing supportive regulatory framework to promote the consumption of natural foods, in turn favoring Asia Pacific organic seed market growth.
U.S. organic seed industry share was valued at more than USD 460 million during 2015. This can be mainly attributed to favorable government norms to promote non-synthetic farming due to rising consumer awareness regarding adverse effects of synthetic foods. Europe organic seed industry outlook will be driven by adoption of advanced farming technology as well as better supply chain management in countries including France, Germany, Italy and UK.