South America Seeds Market Outlook, 2030

The South America region, known for its vast agricultural expanse, is home to some of the world’s largest producers of key crops like soybeans, corn, wheat, and coffee. As such, the seed market plays a vital role in enhancing agricultural output and meeting the ever-growing global demand for food. The demand for high-quality seeds in South America is primarily shaped by the need for crops that are resilient to changing climatic conditions, pest resistance, and high yield potential. The region's seed industry is experiencing a notable shift toward hybrid seed varieties, with farmers increasingly adopting these advanced seeds to maximize productivity and profitability.

This transition is supported by compelling performance metrics, as hybrid seeds demonstrate the ability to increase yields by 10-15% compared to traditional varieties. The region's agricultural sector is leveraging its natural advantages while embracing modern seed technology to strengthen its position in global agriculture. The industry is experiencing significant consolidation through strategic partnerships and acquisitions, aimed at strengthening research capabilities and expanding product portfolios. A significant development in this direction was BASF's acquisition of ASL, a leading melon breeding company, in January 2023, which enhanced their position in the specialty seed segment.

These strategic moves are reshaping the competitive landscape and driving innovation in seed development. Companies are increasingly focusing on building comprehensive research and development capabilities while expanding their geographical presence through such strategic initiatives. In countries such as Uruguay and Chile, where organic farming is gaining traction, the seed market is adjusting to this demand by providing seeds that meet organic certification standards. These organic seeds are highly sought after in both domestic and international markets.

According to the research report, "Europe Seeds Market Overview, 2030," the Europe Seeds market is anticipated to add to more than USD 2.40 Billion by 2025-30. With a population steadily increasing and urbanization trends accelerating, the demand for crops that can be produced efficiently and in large quantities is greater than ever. Additionally, the region's reliance on exports like soybeans and corn demands high-quality seeds that promise high yield and disease resistance, ensuring consistent supply and minimizing losses.

For instance, Brazil, one of the world’s largest exporters of soybeans, has seen a marked increase in demand for genetically modified (GM) seeds that offer improved traits such as drought tolerance, pest resistance, and disease resistance. These advanced seeds are seen as a solution to address climate uncertainties, such as droughts and floods, which can negatively impact crop yields. Globally, South America is the largest producer of soybeans, and the area under soybeans was 61.7 million hectares, with a production of 196.8 million metric tons in 2021.

The major area under soybean is due to increased export value, high global demand from oil processing industries, availability of arable land compared to other major producing countries, and higher profit margins. Furthermore, seed innovations in South America are also focusing on improving traditional seed varieties. Local and regional research institutions are increasingly investing in the development of seeds that are well-suited to the unique climates and soil types found across different parts of the continent.

These indigenous or "conventional" seeds have been improved through traditional breeding techniques, which enhance crop productivity without the need for genetic modification. The development of hybrid seeds that combine the best traits of two parent plants has also been gaining traction in the region. These hybrids typically offer higher yields, better disease resistance, and greater resilience to environmental stressors, contributing to the overall improvement in crop performance.

Market Drivers

• High Global Demand for Soybeans and Corn: South America, particularly Brazil and Argentina, is a major exporter of soybeans and corn, driven by increasing global demand for animal feed, biofuels, and food products. The region’s favorable climate and vast arable land make it a global agricultural powerhouse. The growing population and rising meat consumption in Asia, especially China, have significantly boosted demand for South American soybeans, which are used as livestock feed. This demand has incentivized farmers to adopt advanced seed technologies, including genetically modified (GM) seeds, to enhance productivity and meet export requirements.
• Adoption of Advanced Seed Technologies: The adoption of genetically modified (GM) seeds and biotechnology has been a major driver of growth in the South American seed industry. Countries like Brazil and Argentina have embraced GM crops, such as herbicide-tolerant and insect-resistant soybeans, corn, and cotton, which have improved yields and reduced production costs. This technological adoption has been supported by government policies, private sector investments, and research institutions, enabling farmers to compete globally and increase their profitability.

Market Challenges

• Regulatory and Trade Barriers:The seed industry in South America faces regulatory challenges, particularly regarding the approval and commercialization of GM seeds. Each country has its own regulatory framework, which can lead to delays in the adoption of new seed technologies. Additionally, trade barriers and export restrictions in some countries can hinder the industry’s growth. For example, Argentina has faced export taxes on agricultural products, which can discourage farmers from investing in high-quality seeds. These barriers create uncertainty and limit the industry’s potential.
• Climate Change and Environmental Concerns:Climate change poses a significant threat to the seed industry in South America. Erratic weather patterns, including droughts and floods, can reduce crop yields and affect seed quality. Deforestation and land-use changes, particularly in the Amazon region, have also raised environmental concerns, leading to stricter regulations and pressure from international markets for sustainable practices. These challenges require the industry to invest in climate-resilient seed varieties and adopt more sustainable farming practices.

Market Trends

• Focus on Sustainable and Climate-Resilient Seeds:A growing trend in the South American seed industry is the development and adoption of climate-resilient and sustainable seed varieties. Seed companies are investing in research to create drought-tolerant, pest-resistant, and high-yielding seeds that can withstand the impacts of climate change. This trend is driven by both environmental concerns and the need to ensure food security in the face of changing weather patterns. Additionally, there is increasing demand for non-GM and organic seeds in niche markets, particularly in Europe and North America.
• Consolidation and Collaboration in the Seed Industry:The seed industry in South America is experiencing consolidation, with major global players acquiring local seed companies to expand their market share and access to germplasm. This trend is driven by the need for innovation and economies of scale. At the same time, there is growing collaboration between seed companies, research institutions, and governments to develop new seed technologies and improve agricultural practices. Public-private partnerships are playing a key role in addressing challenges such as climate change and regulatory hurdles.

Genetically modified (GM) seed types are leading in South America's seed industry due to their ability to enhance agricultural productivity, resist pests and diseases, and adapt to challenging environmental conditions.

South America's agricultural landscape is characterized by vast expanses of arable land, but it also faces unique challenges, including unpredictable weather patterns, soil degradation, and the spread of invasive pests and diseases. GM seeds, engineered to resist these challenges, offer a reliable solution to farmers, enabling them to achieve higher yields and reduce crop losses. For example, glyphosate-resistant soybeans, widely adopted in South America, allow farmers to control weeds effectively without damaging their crops. This has led to more efficient weed management, reduced labor costs, and increased profitability.

Similarly, GM crops like Bt corn, which produce a natural insecticide to combat pests like the fall armyworm, have drastically reduced the need for chemical pesticides, lowering production costs and minimizing environmental impact. These traits are particularly valuable in South America, where pest pressures and weed infestations can be severe, threatening food security and economic stability. Another critical factor driving the adoption of GM seeds in South America is their ability to thrive in challenging environmental conditions. The region's diverse climates, ranging from tropical rainforests to arid plains, require crops that can withstand droughts, floods, and temperature fluctuations.

GM seeds engineered for drought tolerance or improved water-use efficiency have proven invaluable in ensuring stable yields even in adverse conditions. This resilience is crucial for smallholder and large-scale farmers alike, as it reduces the risks associated with climate change and enhances food security. The adoption of GM seeds has also spurred innovation and investment in the agricultural sector, leading to the development of new technologies and farming practices that further enhance productivity and sustainability.

Oilseeds and pulses are growing in South America's seed industry due to their high global demand, adaptability to the region's diverse climates, and their role in sustainable farming practices, including crop rotation and soil health improvement.

South America, with its vast agricultural land and favorable climatic conditions, has emerged as a key player in meeting the world's growing demand for these crops. The region's ability to produce oilseeds and pulses efficiently and sustainably has made it a critical supplier in global markets, particularly as dietary preferences shift toward plant-based proteins and renewable energy sources gain prominence. Countries like Brazil, Argentina, and Paraguay have extensive areas suitable for cultivating these crops, ranging from tropical to temperate zones. For instance, soybeans, the most prominent oilseed crop in the region, thrive in the fertile soils of the Brazilian Cerrado and the Argentine Pampas.

Similarly, pulses like beans and lentils are well-suited to smaller-scale farming systems in regions with less rainfall or poorer soils. This adaptability allows farmers to diversify their production, reduce risks associated with monoculture, and optimize land use. For example, pulses are known for their ability to fix atmospheric nitrogen in the soil through symbiotic relationships with rhizobia bacteria, reducing the need for synthetic fertilizers and enhancing soil health. This makes them an environmentally friendly option for farmers looking to adopt more sustainable practices.

Additionally, oilseeds like soybeans and sunflowers are often used in conservation agriculture systems, which emphasize minimal soil disturbance, crop diversification, and permanent soil cover to prevent erosion and improve water retention. The economic benefits of oilseeds and pulses also contribute to their growing popularity in South America. These crops are highly valued in both domestic and international markets, providing farmers with lucrative income opportunities. For instance, soybean exports from Brazil and Argentina account for a significant portion of global trade, driven by demand from China, the European Union, and other regions.

Herbicide-tolerant (HT) traits are leading in South America's seed industry because they simplify weed management, reduce labor and production costs, and enhance crop yields, making them highly attractive to farmers in the region's large-scale agricultural systems.

Herbicide-tolerant (HT) traits have become a dominant feature in South America's seed industry, particularly in countries like Brazil, Argentina, and Paraguay, which are major global producers of soybeans, corn, and other cash crops. The primary reason for the widespread adoption of HT seeds is their ability to simplify weed management, a critical challenge in large-scale farming operations. Weeds compete with crops for nutrients, water, and sunlight, significantly reducing yields if not controlled effectively. Traditional weed control methods, such as manual weeding or the application of non-selective herbicides, are labor-intensive, costly, and often less effective.

HT seeds, engineered to withstand specific herbicides like glyphosate, allow farmers to apply these herbicides broadly, killing weeds without harming the crops. This innovation has revolutionized weed management, making it more efficient, cost-effective, and scalable for South America's expansive agricultural landscapes. The adoption of HT seeds has been particularly transformative in the cultivation of soybeans, South America's most important crop. Glyphosate-tolerant soybeans, commonly known as "Roundup Ready" soybeans, were among the first genetically modified (GM) crops introduced in the region and quickly gained popularity due to their ease of use and significant economic benefits.

Farmers can now control weeds with fewer herbicide applications, reducing both input costs and the time required for field operations. This efficiency is especially valuable in South America, where large farms often span thousands of hectares, and labor costs can be high. By simplifying weed management, HT seeds have enabled farmers to focus on other aspects of crop production, further enhancing productivity and profitability. Additionally, by minimizing soil disturbance, no-till systems enhance carbon sequestration, contributing to climate change mitigation efforts. The compatibility of HT seeds with conservation agriculture has made them a cornerstone of sustainable farming practices in the region.

Brazil is leading in South America's seed industry due to its vast agricultural land, advanced research and development in biotechnology, strong government support, and its position as a global agricultural powerhouse, enabling it to produce and export high-quality seeds for diverse crops.

Brazil has emerged as the leader in South America's seed industry, driven by its unique combination of natural resources, technological innovation, and strategic policies that support agricultural development. As the largest country in South America, Brazil boasts an extensive area of arable land, including the fertile Cerrado region and the Amazon basin, which provide ideal conditions for cultivating a wide range of crops. This vast agricultural potential has positioned Brazil as a global agricultural powerhouse, producing and exporting significant quantities of soybeans, corn, cotton, sugarcane, and other crops.

The seed industry is a critical component of this success, as high-quality seeds are the foundation of productive and sustainable farming systems. Brazilian research institutions, such as Embrapa (the Brazilian Agricultural Research Corporation), have been at the forefront of developing improved seed varieties that are tailored to the country's diverse climates and soils. These innovations include genetically modified (GM) seeds with traits such as herbicide tolerance, insect resistance, and drought tolerance, which have significantly boosted crop yields and reduced production costs.

Additionally, Brazil has embraced cutting-edge technologies like gene editing and precision agriculture, further enhancing the quality and performance of its seeds. This focus on R&D has not only benefited Brazilian farmers but has also made the country a major exporter of seeds to other regions. The Brazilian government has implemented policies to promote agricultural innovation, improve infrastructure, and facilitate international trade. For example, regulatory frameworks for GM crops have been established to ensure safety and efficacy while encouraging adoption.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Seeds Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Genetically Modified Seed
• Conventional Seed

By Crop Type

• Cereals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Others

By Availability

• Commercial Seeds
• Saved Seeds

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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