South America Seeds Industry - Growth, Trends, and Forecasts (2020 - 2025)

The South American seed market is estimated to register a CAGR of 7.6% during the forecast period of 2020-2025. The seed industry is the backbone of modern agriculture in South America. Traditionally, the industry was the major contributor to sustainable food production but nowadays with the advancement of the technologies, the industry is contributing to animal feed, bioenergy, and biomaterials production. The seed industry provides the solution to the farmers against various environmental conditions like drought, salinity, disease, and other factors affecting the yield and production of various crops. In the future, the seed companies will continue to invest in techniques like genetic engineering, market-assisted breeding along with traditional breeding for improvement of existing traits and development of novel traits.

Key Market Trends

Increased Revenue Generation in Seed Sector

By crop type, the South American seed industry is segmented into grains and cereals (maize, rice, wheat, and sorghum), oilseeds (soybean, sunflower, cotton, canola, and rapeseed), vegetables (Solanaceae, cucurbit, root and bulbs, brassica and others) and other seeds. Grains and oilseeds form the largest segment of the market, where maize has the largest seed market among grains, and soybean has the largest share among oilseeds. The oilseed sector generated revenue of 2,541.5 million USD in 2019, an increase by 45.72% from 2016. The revenues generated by cereals/grains, fruits and vegetables, and other seeds were USD 4,143.0 million, 510.8 million USD, and 311.0 million USD, respectively (an increase by 42.96%,46.83%, 34.39% increased from 2016).

Increasing Awareness Among Farmers in South America

The global population is increasing by 75 million people each year. South America's population accounts for 5.53% of the total world population with a 0.88% to 1% increase annually. Brazil accounts for 2.73% of the total global population. This factor is expected to boost the demand for food and with limited arable land. There is a huge opportunity for the high yield seeds market. The increasing awareness among farmers concerning the benefits of high-quality seed is also helping to create an ideal market for good seeds.

Competitive Landscape

The structure of the seed industries of Brazil and Argentina is fairly similar to that of the US. The industry seems consolidated and, Monsanto, DuPont Pioneer, and Syngenta are the top three companies. However, there are still 50-60% of small groups in the soybean market and more concentration is expected in the future. Other than the aforementioned companies, Groupe Limagrain, Land ‘O Lakes, KWS AG, Bayer Crop Science, Sakata, Takii, DLF-Trifolium, and Dow AgroSciences are the leading players of the sector.

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