Market Research Reports - Ken Research Commercial Seed Sales in United States

North America Contribute approximately 35% of the Global Seeds and Traits Market: Ken
Research
GM seed segment is the leading market in the US seed industry owing to the increase in
productivity and resistance from pests and herbicides.
The US seeds market is further expected to grow at a CAGR of more than 6% during 2017 –
2022
The report titled “The US Seed Market Outlook to 2022 – By Crop Type (Corn, Cotton,
Soyabean, Wheat, Rice, Grain Sorghum, Oats, Vegetable Seeds), by Open Pollinated, Hybrid
and Genetically Modified Seeds” by Ken Research anticipate a resilient and challenging outlook
for incumbent seed segments such as Corn, soybean and see stable growth in Vegetable seed,
Wheat and Sugarbeet seed space with anticipated growth in GM adoption in the next 5 years.
The US is the largest and the most diverse global commercial seed market, which is followed by
China, France, Brazil and Canada. The seed industry is the US is concentrated among the few big
players though there are over 750 private seed companies engaged in the business with an
offering of over 60,000 seed varieties of planting seeds.
The distribution channel in US seed industry varies between multiple states however it is mostly
led by the dealer channel and retail channel. Seed companies also tend to sell directly to the
farmers in case of large operations. For input providers, channel retailers and dealers are
significant partners as they manage directly the relationship with the farmer.
The US has observed the approval of 195 single trait events in 20 crop species: alfalfa (3
events), apple (3), Argentine canola (20), chicory (3), cotton (28), creeping bentgrass (1), flax
(1), maize (43), melon (2), papaya (3), plum (1), potato (43), rice (3), rose (2), soybean (24),
squash (2), sugar beet (3), tobacco (1), tomato (8), and wheat (1) since 1996. In 2016 itself,
food, feed and cultivation approvals were made for apple (1 event), maize (2) and potato (3).
The GM seed crop area in the US recorded a growth of 3% at around 73 million hectares which
is about 39% of the global biotech area in 2016. GM seed prices differs with trait
stacking/bundling, perceived agronomic conditions in each US region in terms of pest
infestations, rainfall, others and availability of substitute seeds, commodity prices, and farmer
income.
As the biotech seeds adoption rate is rising, the competition in the seed business has become
more challenging. Companies with a high market share in regions which experience significant
acreage shifts could realize more loss than companies with a lower share.