The worldwide market for organic seeds is estimated to grow at a CAGR of 11.01% between 2017 and 2026. The shift in consumer preferences towards organic and natural products and significantly increasing demand of these products are expected to be the major driving factor of organic seeds industry. The surging demand for naturally derived and processed food products have led to the increasing focus on organic plant breeding and organic farming worldwide. The increasing demand for organic food has urged the need worldwide for a more sustainable agriculture. This have eventually stimulated farmers and consumers to go for alternative production methods including organic farming, which contributes to the resolution of the future challenges of global agriculture. This have already become the preferred land use system in rural areas globally. Several governmental bodies and governments have launched various schemes for promoting organic farming as it secures food ecosystems through eco-functional intensification. The increase in organic farming activities worldwide is the major driving the organic seeds market.
The organic food and drinks industry have been growing significantly and is expanding over ten percent annually. The global industry for organic food and drinks has expanded over almost four fold from 2000 to 20017 and Organic Monitor has projected even higher growth over the next eight years. Suitable management processes associated with the production of these crops reduces cost of production as compared to conventional crop. Associated cost of pesticides and synthetic fertilizers are not relied upon this crop production system. Less investment is required per acre to grow an organic crop. Also, while yields are comparatively lower in organic seeds, but higher prices are generally offered for organic crops eventually resulting higher profit margins. These are some of the other advantages of organic seed and its farming which are expected to drive higher production of these products.
In terms of marketing, the industry participants use direct and indirect marketing techniques and opportunities for organic seeds. The growers of these type of seeds exist at different scales that range from an acre to several hundreds of acres. For the larger growers there has been an established wholesale marketplace with various similar distributions and warehousing services to whatever one can find in any conventional market, along with parallel expectation for the standard count grading and packaging. Though, many smaller scale growers mainly sell their product through several categories of farmers’ market stands, on-farm retail, and through Community Supported Agriculture (CSA) programs. Hence, with these opportunities the organic seeds industry is expected to augment further demand in the next five to six years.
Europe has been the leading market from the past few years. Significantly high demand for organic food in the region has been the primary reason for increasing this category of seed production. The natural food market in the region has been growing at approximately 13% annually. Europe has almost 12.7 million hectors of organic farmland which accounts for 2.4% of the region’s area is organic farmland. Spain is the largest market for organic seeds with organic agricultural land of 1.97 million hectors and is followed by Italy and France. Asia Pacific region is expected to be the fastest growing natural industry owing to extremely increasing demand for these food products. Australia, China and India are the leading nations for organic farming in the region.
Some of the leading market participants in the organic seed industry in terms of seed farming and supply include Renee’s Garden, Baker Creek Heirloom Seeds, Kusa Seed Society, Territorial Seeds Company, Arnica Kwekerij, Mass Plant, Wild Garden Seed, High Mowing Organic Seeds, Fleuren, Vitalis Organic Seeds, HILD Samen, De Bolster, Navdanya, Farm Direct Organic Seeds, Rijk Zwaan, Wild Garden Seeds, Fedco Seeds, Seed Savers Exchange, Southern Exposure Seed Exchange and Johnny’s Selected Seeds.