Mexico Vegetable Seeds Market- Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Mexican vegetable seeds market is projected to register a CAGR of 5.2% during the forecast period (2022-2027). The COVID-19 crisis and the measures taken to combat it have shown several impacts on the Mexican vegetable seed production market. The pandemic has affected the mobility of labor for field operations, such as land preparation, rouging, disease and pest management, post-harvest practices, seed processing, packaging, and storage, which has impacted the vegetable seed production market.

The increasing awareness regarding the consumption of vegetables to meet various dietary requirements and nutritional needs has boosted the demand for vegetables in the country, consequently leading to an increase in the need to enhance the area of vegetable production and yield. On the supply side, farmers are growing a wide range of vegetables, as vegetables are short-duration crops that have multiple harvests, resulting in a better cash flow for the farmers. Most of the vegetable seed companies in the country are focused on the production of various vegetable seeds such as tomato, cabbage, onion, hot peppers, and cucumber seeds, among other seeds. Vegetable seed companies are using biotechnology tools to develop varieties with improved agronomic performance, adapting to climatic conditions, disease and pest resistance, and adapting to different market segments, like fresh consumption or processing.​ Therefore, the market is anticipated to achieve significant growth. As agricultural land faces constraints, urban agriculture, such as protected farming and vertical farming practices, has been scaling up its operations to address the shortage of acreage under domestically grown vegetables, therefore creating demand for vegetable seeds.

Key Market Trends

Increased Vegetable Demand From International Markets

According to the ITC trademap, the country's vegetable export increased by 11.87%, from USD 6,697,858 million in 2017 to USD 8,444,312 million in 2020. The United States, Canada, Turkey, Japan, and Spain are the country's major importers of vegetables. Among all the countries, the United States accounts for 96% of vegetable imports. The trade agreement, NAFTA, and its location near the United States are the prime reasons for such huge exports of vegetables to the United States. Other prominent trade partners for vegetable import include Canada, Chile, Argentina, and Spain. Accordingly, the country's vegetable production was also increasing gradually from 14.2 million tons in 2016 to 15.2 million tons in 2019. The growing export potential of vegetables has put pressure upon the farmers to produce more to meet the domestic as well as international vegetable demand. This has further resulted in the need for quality vegetable seeds to enhance the yield and productivity while the decrease in the arable land. According to the United States Department of Agriculture, the country's vegetable production is concentrated in Sinaloa, Zacatecas, Guanajuato, and Chihuahua. Most export vegetables come from Sinaloa, which majorly produces vegetables such as tomatoes, cucumbers, bell peppers, eggplant, and squash. Also, regarding the rising export potential of vegetables in the country, various players in the market are developing different vegetable seeds that are disease resistant. A large portion of the country's vegetable-growing community prefers hybrid, high-yielding, and disease-resistant varieties of vegetables. Thus, the rising export potential for vegetables has resulted in rising demand for quality seeds that are pest- and disease-resistant and are tolerant to adverse climatic conditions for enhanced yield.

Onion Segment Dominates the Market

The onion segment of the market is the largest segment among other types of vegetable seeds in the country. Onion is one of the economically important vegetable crops, with about 1.4 million metric ton cultivated in 47.95 thousand hectares of land in 2019. Owing to the rising consumer demand, the production is also rising while creating the manufacturers' market potential to develop varieties with different traits.

Onion is mainly produced in the states of Tamaulipas, Chihuahua, Zacatecas, Baja California, Puebla, Michoacán, and Guanajuato, together accounting for more than 70% of the national area under onion cultivation. Although there are various onion varieties cultivated, dry onions form the mainstay of production in these regions. The production of onions in Tamaulipas has grown significantly over the years, making it among the country's top onion producers of white, yellow, and red onion varieties. There are many varieties, such as Texas Super Sweet, that grow well in these regions. Other varieties include Red Creole, White Bermuda, and Yellow Granex.

Competitive Landscape

The Mexican vegetable market is highly consolidated, with major players such as Bayer Crop Science AG, Vilmorin, Syngenta, and BASF SE dominating the market. The players are increasing their investment in research and development to develop new products. Acquisition, expansion, and partnership are some other strategies adopted by these players to gain market share and strengthen their market share.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.