Africa Seed Sector Analysis - Growth, Trends and Forecasts (2020 - 2025)

The African seeds market is expected to register a CAGR of 5.6%, during the forecast period (2020-2025). Africa is a minor player in the global seed trade, and approximately 80% of the farmers in the region save seeds for replantation. The seed is one of the most basic and important agricultural inputs. It forms the third-largest inputs market after agrochemicals and farm machinery, globally. In African agriculture, the seed industry is the major contributor to the sustainable food production.

The major factors driving the industry include population growth, urbanization, income growth, and high output prices. Africa has the potential for growth of this industry as high yielding and hybrid crops can increase the productivity and income of the region.

Key Market Trends

Increasing Focus on Nutrition Security

A major threat to Africa is its nutritional insecurity and deficient diet plans. Low access to food, high nutritional requirements, and high agricultural productivity gap are the major problems faced by the African population. Vegetables are important sources of micronutrients and fibers. By utilizing these newly developing vegetable seed varieties, the expansion of home gardens is planned in several countries, with an aim to contribute to the growth of nutritional security in Africa. Africa has the potential for growth of this industry as high yielding and hybrid crops can increase the productivity and income of the region. Thus, the demand for vegetables to meet the nutritional requirement creates a demand for quality seeds.

Increasing Demand for Grains, Oils, and Vegetables

Grains, unlike other foods, have a better shelf life and can be stored for a longer time period. They are also a rich source of carbohydrates and proteins and are energy-dense foods. Currently, they provide 30% of the total calories in an average African diet. Therefore, they are very popular and experience heavy demand across the Asian region. The demand for vegetables in Africa is growing because of the rising population, and an increasing number of people living in the cities demand the vegetables. This growing demand is a sign of positive development for the seed market.

Competitive Landscape

A good number of private companies have flourished in the region after the 2002 governmental liberalization of the seed sector in the country. The African seed market is slightly fragmented. The key players in the market are Monsanto, Capstone seeds, Syngenta Rijk Zwaan, and KWS SAAT SE & Co.

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