Published: Sep, 2016
With similar market shares, the leading forage seed producers, Allied Seed LLC, S&W Seed Co., and Hancock Farm & Seed Co. Inc., are embroiled in intense competition, finds a study published by Transparency Market Research (TMR). These players are aggressively focusing on developing their distribution channels to expand their reach across the world. Strategic partnership with local distributors in emerging economies is likely to emerge as a key trend among leading participants in this market over the next few years, states the research report.
According to TMR, the global forage seeds market is likely to increase at a CAGR of 8.40% during the period from 2014 to 2020 and present an opportunity worth US$17.5 bn by the end of the forecast period. Alfalfa seeds have been reporting a higher demand than other forage seeds and are likely to continue doing so over the forecast period, notes the study.
Asia Pacific to Surpass Europe in Near Future
The study also presents a geographical analysis of the worldwide market for forage seeds and identifies North America, Asia Pacific, Europe, and the Rest of the World as the key segments of this market. North America and Europe have been leading the demand for forage seeds across the world. North America surfaced as the key consumers of forage seeds in 2014 acquiring more than one-third of the overall market. Analysts at TMR project this region to maintain its dominance throughout the forecast period.
Europe stood second in 2014 with a share of 28.5%. Asia Pacific, however, is expected to surpass Europe, claiming the second position over the next few years. The increasing demand for quality meat, fueled by the rise in disposable income of consumers, is anticipated to boost the demand for forage seeds in Asia Pacific in the near future.
Growing Awareness Regarding Benefits of Forage Crops to Impact Demand for Forage Seeds Positively
The growing health-consciousness among consumers has greatly influenced their eating habits. “A significant rise in the consumption of meat has been observed the world over the last few years,” says the author of this study. Forage crops, when added to livestock feed, increase their protein level, resulting in high-quality milk, meat, and other livestock products. These crops also improve their reproduction capacity, increasing the yield.
With the rising awareness regarding the benefits of forage crops, their demand is witnessing a significant surge across the world. In order to cater to this amplified demand, agriculturists are increasingly utilizing high-yield forage seeds, leading to remarkable growth in the global market.
Availability of Forage Substitutes to Limit Demand for Forage Seeds
Though the global market for forage seeds will report a considerable rise in the coming years, the availability of healthier forage substitutes, such as hay and beet pulp, is likely to obstruct the growth trajectory of this market in the coming years. As these substitutes reduce the dependency on alfalfa and ryegrass forages, they are also gaining substantially from the disparity between demand and supply of forage feed across the world.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Global Forage Seed Market - Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020.”
The global market for forage seeds is segmented into:
By Product Type
- Others (Including lablab, fescue etc.)
By Livestock Type
- Others (Including aquaculture etc.)
- North America
- Asia Pacific
- Rest of the World (RoW)
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