Organic seeds are formed using bio fertilizers, organic manure, and bio pesticides, thus having less chemical impact on the environment. The global organic seed market was USD 1753.41 million in 2018 and is estimated to reach USD 4020.13 million by 2025 at a CAGR of 12.58% during the forecast period.
Growth by Region
North America and Europe together held more than half of the organic seed demand in 2018 with North America dominating due to the growing organic food demand in the regions. Asia Pacific is likely to witness the highest growth owing to increasing awareness regarding benefits offered by organic seed particularly in China and India.
Major Drivers and Restraints
Increasing disposable income and rising market penetration are the main factors aiding the organic seed market particularly in the developing markets of Asia Pacific and Central & South America. Technological developments, better value chain management and extensive distribution network are a few areas which provide ample growth opportunities to the industry participants over the forecast period. High organic seed cost is projected to act as a major deterrent for market growth and development. High demand-supply imbalance, lack of awareness, and lower awareness regarding organic food products are some other challenges faced by market participants. Unavailability of high quality and certified organic seeds is another noticeable factor that is predicted to negatively impact the regional as well as global market over the next seven years.
Industry Trends and Updates
Increasing health consciousness and environmental awareness have caused a shift in consumer preferences towards organic food. Thus, such trends are expected to complement the organic seed market in the near future.