Tomato Seeds Market to exhibit a CAGR of 7.5% from 2017 to 2024

  • Analysis
  • 05-March-2018

Seed is one of the most basic and important input for vegetable cultivation as quality of seed accounts for 25-30% of productivity. Tomato seeds are required to grow the plant Solanum Lycopersicum commonly known as tomato plant which produces tomato, a vegetable which is often red in colour. Tomato is consumed variedly (including raw) as an ingredient in many dishes, sauces, salads, and drinks. Hence, it is the predominantly cultivated and consumed vegetable worldwide. As per the report available with  “Global Tomato Seeds Market Research Report - Industry Analysis, Size, Share, Growth, Trends And Forecast 2017 to 2024 this market is anticipated to grow at a CAGR of 7.5 %. The global tomato seeds market was valued at USD 887.5 MN in 2017 and is expected to cross USD 1,470.0 MN by 2024. Numerous varieties of tomato (such as Beefsteak tomatoes, Plum tomatoes, Slicing or "globe" tomatoes, Grape tomatoes, Campari tomatoes, Tom berries, Oxheart tomatoes, Pear tomatoes, and Cherry tomatoes) are widely grown in temperate climates and greenhouses across the world. Tropical and sub-tropical atmospheres are apt for its smashing growth.

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Tomato production depends on tomato seeds which constitute the largest vegetable segment turning up opportunistic market for its growth. Fruit firmness, early maturity, high yield, and flavour are some of its attributes results in increasing demand for a range of hybrid seeds. Hybrid seed usage across the emerging economies and rising preference for new varieties such as grape tomatoes, in matured markets, are catalysing the advancement of this sector. Additionally, rising demand and expanding cultivation, worldwide, will boost the growth trend of the market. Reduction in risk of cardiovascular diseases, cancer, diabetes and others are the health advantages of consuming tomato. Therefore, tomato seeds market is propelled by the spreading awareness about health benefits of tomato.

United States has surfaced as the most matured market in terms of adoption of fresh tomato seeds. Sustainability of its growth relies on introduction of innovative strategies as well as expansion of new varieties with superior tastes. Government programs lead to a large adoption rate for hybrid seed among smallholder growers in the African region. U.S., Canada and EU are mature markets regarding acceptance of hybrid and high yielding seeds.  These markets are confronting a rise in demand for new and improved categories of tomato such as mini plum/snack tomatoes. The preference for plum tomatoes with good quantity of flesh is growing owing to its use in canned food.  Asia-Pacific region is growing rapidly in tomato seeds market. China is the largest producer of tomatoes followed by India. Inflating cultivation (particularly in China and India) including adoption of hybrid varieties having better disease and draught resistance properties emerged as utmost driver of the market growth in Asia-Pacific. Food processing industry demand for the tomatoes will foster the market growth in this region. Domestic consumption and exports are the two main purposes for tomato seed production in India and China.

The companies involved in tomato seeds production are relying on various growth strategies such as product development, mergers and acquisitions, and partnerships for business expansion.
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High cost of seeds leading to higher investment in the sector and extremely perishable nature of the seeds are supposed to restrict the mounting graph of the global tomato seeds market in the upcoming years. Besides, scepticism from farmers concerning newer varieties is also expected to hinder the pace of growth. Alternatively, high gains on investment are evolving opportunities and attracting growers, globally, to adopt hybrid tomato seeds.

Some of the significant market participants are Advanta, Bayer CropScience, East-West Seeds, Limagrain, Monsanto, Rijk Zwaan, Sakata, and Syngenta.
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