According to a “Hybrid Rice Seeds Market, 2020-2027″ report by Fortune Business Insights, the size of the global hybrid rice seeds market is projected to reach 5.43 billion in 2027. The market is also expected to exhibit a compound annual growth rate (CAGR) of 13.32% during the forecast period. In 2019, the value of the market stood at 2.06 billion USD.
Rice is a highly produced and consumed crop that is a staple for nearly 60% of the global population. According to the Food and Agriculture Organization (FAO), the total production of rice across the world in 2018 was 755 million metric tonnes with 90% being produced in Asian countries.
However, the rapidly growing population in the world is pushing the limits of the current production capacity, raising concerns about food security. Industry-leading corporations are encouraged to adopt hybrid rice seeds for better yield. Hybrid rice seeds are seeds produced by crossing two genetically distinct parent rice varieties to create a hybrid with desirable traits, such as higher yield, disease resistance, and better grain quality.
The report estimated that the increasing demand for rice due to its high consumption in many parts of the world is what drives the growth of the hybrid rice seeds market. Additionally, the incorporation of stress tolerance into the high-yielding varieties of seeds is estimated to further strengthen the demand for hybrid seeds.
Fortune Business Insights’s report does acknowledge that producing hybrid rice seeds requires extensive research and development. Getting regulatory approval is also a time-consuming process, and therefore delays the production process. This factor is expected to hinder the growth of the market.
Governments from Asian countries such as China, India, Vietnam, Thailand, the Philippines, and others are collaborating to further increase production. For instance, the Philippine-Sino Center for Agricultural Technology developed four varieties of hybrid rice with the help of grants from China in 2019.
The Middle East and Africa are also anticipated to secure the second-largest hybrid rice seeds market share. This is due to the introduction of the latest technologies in the development and processing of hybrid rice seeds, estimated to enhance production capacity in the region.
Prominent enterprises operating in the global market focusing on strategies such as mergers and acquisitions are also expected to become key players in developing new products.