The global hybrid rice seeds market size is projected to reach USD 5.43 billion by 2027 owing to the rising concerns regarding food security worldwide, states Fortune Business Insights™ in its report, titled “Hybrid Rice Seeds Market, 2020-2027”. The report further states that the global market value was USD 2.06 billion in 2019 and is expected to register a CAGR of 13.32% from 2020 to 2027.
Agriculture has been one of the most affected sectors amid the COVID-19 outbreak. Constant reduction of crops and other essential items from inventory, coupled with the prolonged halt of the cultivation in the first quarter of 2020, have raised concerns regarding food security. The hybrid rice seeds market took the blow as well. The market witnessed a lower growth of 9.9% in 2020 as compared to the average year-on-year growth during 2016-2019.
Bayer AG to Introduce Flood-resistant Hybrid Rice Variety to the Indian Market
In December 2019, Bayer AG announced that the company is planning to introduce a flood-resistant hybrid rice variety to the Indian market. The variety has already been launched by the company in Bangladesh and is awaiting regulatory approvals in India. The launch of this innovative product is predicted to be highly successful in India, which is an agriculture-driven nation. In addition, this will help save the huge losses the growers suffer every year because of the floods. For instance, according to the Ministry of Water Resources, between 1953 and 2017, floods have been responsible for damaging INR 1,679 crore worth of crops every year.
Fear of Scarcity to Stem the High Growth of Hybrid Rice Seeds
The global consumption of rice is increasing steadily. According to the United Nations Food and Agriculture Organization (FAO), the total rice production worldwide reached nearly 755 million metric tonnes in 2018. Rising concerns regarding food security owing to the rapidly increasing demand triggered by the stretching global population is estimated to drive the global hybrid rice seeds market growth. The ability of these hybrid seeds to offer comparatively higher yield is anticipated to further strengthen their demand. However, the high cost associated with the development is predicted to limit growth.
3-line Hybrid System Segment Leading by Example
Based on the type, the market is segmented into 3-line breeding systems and 2-line breeding systems. The 3-line hybrid system is projected to lead the global market during the forecast period. The segment held the largest market share in 2019. The ability to increase vigor, resistance to pests, and high-quality are the key factors propelling the segment growth. Based on the size, the market has been divided into long grains, medium grains, and short grains. The medium-sized rice grain seeds are estimated to secure the major hybrid rice seeds market share. The segment growth is attributable to the worldwide popularity of the seeds due to their moist, tender, and slightly chewy texture. The segment held a total market share of 66.15% in the Asia Pacific market in 2019.
High Production Rate from Major Countries to Crown Asia Pacific as Leading Region
Asia Pacific led the global market in 2019 with a market value of USD 1.84 billion. The high production of hybrid rice seeds in countries including China, India, Vietnam, and Thailand is estimated to propel the demand in the region.
The market in the Middle East & Africa is projected to showcase robust growth during the forecast period. The primary factor expected to drive the demand in the region is the introduction of the latest technologies for the development and processing of hybrid rice seeds.
Pioneers Seeking Innovation to Enlarge Production Capacity
Key players operating in the global market are focusing on acquiring companies with cutting-edge technology in order to upgrade their operations. This will help them better analyze the yield and enhance the production capacity. For instance, in January 2019, the International Rice Research Institute (IRRI) teamed up with Computomics GmbH, a Germany-based biotechnology company for utilizing its latest bioinformatics tools to speed up the analysis of rice cultivation and breeding.
Key Industry Development:
In June 2018, Bayer AG announced to acquire The Monsanto Company. This will aid the company to diversify and commercialize hybrid rice seeds in India. Its aim is to become the world’s biggest seed and agro-chemical company.
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