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Rice Seed Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global rice seed market was valued at USD 14.2 billion in 2022 and is projected to expand at a CAGR of 5.9% from 2023 to 2030. Rice is one of the most important staples in the world, with more than half of the world’s population relying on it for daily sustenance. With the rising population, the demand for rice is expected to increase in the future, and the rice seed market is expected to benefit from this rising demand.
The increasing demand for rice seeds is mainly attributed to the rising population and the increasing preference for rice-based diets. Furthermore, the growing health-conscious population is also driving the demand for organic rice seeds. The rising awareness of organic rice among consumers is also expected to propel the market growth. Moreover, the increasing inclination of farmers towards the adoption of advanced technologies such as precision farming is expected to drive the demand for rice seeds.
The increasing demand for improved varieties of rice seeds is also boosting the growth of the market. For instance, in April 2021, Coromandel International Limited launched its improved variety of rice seeds, PR-118, for the Indian market. The new variety is said to have better yield, disease resistance, and other quality traits. Additionally, market players are launching new products to cater to the rising demand for hybrid rice seeds. For instance, in January 2021, the Indian seed company, UPL, launched a new hybrid rice seed, UPL Satyam, which is said to have a better yield and disease resistance.
The growing demand for organic rice is also expected to increase the demand for organic rice seed. With the rising awareness of organic products among consumers, market participants are introducing organic rice seed products. For instance, in April 2021, Indian seed company, UPL, launched a new organic rice seed variety, UPL Swarna, for the Indian market. The new variety is said to have better grain quality and good yield potential.
Furthermore, the rising demand for specialty rice is driving the market growth. The increasing demand for aromatic and specialty rice is providing a lucrative opportunity for market players. For instance, in April 2021, Coromandel International Limited launched its new specialty rice variety, PR-119, for the Indian market. The new variety is said to be high in protein and low in glycemic index. The rising demand for specialty rice is expected to propel the demand for rice seeds in the coming years.
Product Insights
The hybrid seeds segment led the market in 2020 and accounted for a significant share of the market due to their higher yield and better genetic stability compared to traditional varieties. According to a report published by the International Rice Research Institute (IRRI), hybrid varieties of rice accounted for around 20% of the total global production of rice in 2020. Furthermore, rising awareness regarding the importance of higher yields and better quality of produce are some of the key factors driving the demand for hybrid seeds in the market.
The organic seeds segment is expected to witness the fastest growth over the forecast period. Increasing consumer preference for organic and healthy food products coupled with rising environmental concerns are some of the key factors driving the growth of the market. Additionally, increasing awareness regarding the health benefits associated with organic rice is attributing to the growth of the segment. According to an article published by the Organic Trade Association, in 2020, the sales of organic rice exceeded US$ 1 billion worldwide.
Distribution Channel Insights
The supermarkets and hypermarkets segment is expected to hold the major share of the global rice seed products market. This segment captured the largest revenue share in 2022 owing to the growing popularity of supermarkets and hypermarkets as a primary source to purchase products. Consumers prefer to visit supermarkets and hypermarkets due to the availability of a wide range of rice seed products and the reasonable prices. Furthermore, the ability to try and compare the products before purchasing makes it a popular distribution channel.
The online segment is anticipated to expand at the highest CAGR of 8.1% over the forecast period. The increasing availability of rice seed products on e-commerce websites has been driving the sales of rice seed products. The presence of various online retailers offering a wide range of products, discounts, and deals coupled with easy payment options have been contributing to the increasing demand for rice seed products from the online channel. Furthermore, with the increasing penetration of the internet and smartphones, the online channel is expected to witness significant growth in the coming years.
Type Insights
The hybrid seed segment is estimated to account for the largest share of the global rice seed market in 2022. Hybrid rice seed is high yielding and has a short crop cycle time, which increases the yield by up to 30%. The use of hybrid rice seeds is increasing in countries such as India, China, and the Philippines due to its ability to offer higher yields and better quality compared to traditional varieties. Moreover, the increasing demand for hybrid rice seeds from the rice farming sector is also driving the segment.
The conventional seed segment is estimated to register the highest CAGR of 6.5% during the forecast period. The increasing awareness among farmers regarding the benefits of using conventional seeds, such as improved yields, disease resistance, and better grain quality, is driving the growth of this segment. Furthermore, the increasing investments in research and development of conventional rice seed varieties are expected to drive the segment.
Regional Insights
Asia Pacific is anticipated to remain the dominant region in the global rice seed market, in terms of revenue, throughout the forecast period. This can be attributed to the high demand for rice as a staple food in the region, as well as the presence of several leading players in the region. In addition, favorable government initiatives, such as subsidies and tax benefits, are expected to drive the regional market growth. For instance, in January 2021, the government of Andhra Pradesh, India, announced the distribution of free seeds, fertilizer, and other agricultural inputs to farmers in the state.
North America is also expected to witness substantial growth during the forecast period. This can be attributed to the increasing demand for organic and sustainable products in the region. In addition, the increasing demand for convenience food and the presence of a large number of health-conscious consumers are expected to drive the regional market growth. For instance, in April 2021, RiceSelect launched a new line of organic and sustainable products in the U.S.
Financial Projections
In this part of the rice seed products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your rice seed products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a rice seed products business comes from the sale of its products in retail outlets and online stores. Other possible sources of profit include the sale of seeds to farmers, bulk buyers, and wholesalers.
Projecting Expenses
In this section, all the regular expenses related to keeping the rice seed products business running will be described. The list of operating expenses includes seed procurement, wages, packaging materials, shipping and fulfillment costs, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the rice seed market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, Mahyco Seeds launched the new rice variety ‘MSR-007’, a high-yielding variety with excellent grain quality and resistance to pests and diseases.
– In July 2022, Bayer Crop Science launched ‘Kedar’, a hybrid rice variety that is tolerant to heat and waterlogging.
– In September 2022, Syngenta launched the hybrid rice variety ‘Pusa Basmati-18’, which has excellent grain quality and high yields.
Some of the prominent players in the rice seed market include:
– Mahyco Seeds
– Bayer Crop Science
– Syngenta
– Advanta India Ltd.
– Rasi Seeds
– Kaveri Seeds
– JK Seeds
– East-West Seed Company
– Rallis India Limited
– Tata Chemicals Limited
Global Rice Seed Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global rice seed products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Rice Seed
– Paddy Seed
– Hybrid Seed
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Organically Grown
– Conventional
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of Product Innovation?
[A]: The rice seed industry is currently in a state of flux, as producers are exploring new methods of production and delivery to meet the needs of a growing global population. With the rise of new technologies and seed varieties, producers are able to boost yields and offer more efficient and cost-effective options for rice farmers. Additionally, the industry is investing in research and development to further enhance seed performance, thus providing a great potential for product innovation.
[Q]: Who are the Key Players in the Rice Seed Products Market?
[A]: The key players in the rice seed products market include Bayer CropScience AG, Dow AgroSciences LLC, Rasi Seeds Private Limited, Kaveri Seed Company, Advanta Limited, Nuziveedu Seeds Limited, Syngenta AG, P. K. Overseas, East-West Seed Co., Ltd., and Mahyco.
[Q]: Which Region Offers the Largest Opportunity for Sales of Rice Seed Products?
[A]: Asia Pacific is expected to be the largest market for rice seed products due to its large population and growing demand for food. India, China, Japan, and Indonesia are some of the major countries in the region that are expected to drive the market growth.
[Q]: What are the factors driving the rice seed products market?
[A]: Rising population, increase in demand for high-quality rice, and increasing government initiatives towards improving the agricultural sector are some of the major factors driving the rice seed products market. Other factors such as technological advancements in seed production, increasing production of organic rice, and growing demand for hybrid rice are also expected to drive the market growth.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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