Market Trends of soybean seed Industry
South America is the leading soybean-producing region, and Brazil and India are the major countries with the highest growth potential in the world
- Soybean is one of the major oilseed crops cultivated in the world. In 2022, soybean cultivation was spread over 132.1 million hectares, which accounted for 45.6% of the global oilseed acreage. The usage of soybean oil as a biofuel has increased the demand for soybeans as an alternative to petrochemical raw materials. South America is the leading producer, which accounted for 47.9% of the global area under soybean cultivation in 2022 and observed a consistent increase of 10.8% from 2017 to 2022. Brazil is the leading soybean producer, accounting for 30.6% of the global soybean acreage in 2022. Argentina is also one of the major countries where the acreage fluctuated during the historic period owing to climatic conditions such as drought. Moreover, soybean is an input-intensive crop demanding higher amounts of water, agrochemicals, and soil.
- North America was the second-largest region, with a majority of the acreage under soybean being concentrated in the United States, which accounted for 26.7% of the global soybean acreage in 2022. The demand from China's oilseed industries is driving the region's soybean market. In Asia-Pacific, 22 million hectares of soybeans were cultivated in 2022, which accounted for 16.7% of the global acreage. India was the major country in the region, accounting for 56.2% of the region's soybean acreage in 2022. The annual increase in MSP prices, announcing stock limits to control prices, and demand from oil seed mills and crushers are estimated to drive the soybean acreage in the country faster compared to other countries.
- Therefore, industrial applications of soybeans and government initiatives for favorable market prices are estimated to drive the soybean acreage in major producing countries.
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The higher demand for soybeans from various industries drives the demand for seeds with insect-resistant, herbicide-tolerant, and disease-resistant traits to boost the yield
- Soybeans are majorly cultivated in countries such as the United States, Brazil, and China due to favorable weather conditions. Traits such as disease resistance, drought tolerance, and high yielding and high oleic content have been gaining popularity due to changes in the climate and soil conditions with high demand for soybean from oil processing companies and preventing southern-stem canker, root-knot nematode (RKN), and Phytophthora sojae. For instance, Land O' Lakes has seed varieties under the brand Enlist and Roundup Ready to meet the growing demand for improved seed varieties. Furthermore, other major companies such as Corteva Agriscience, KWS SAAT SE & Co. KGaA, Land O’Lakes, Burrus Seeds, and Syngenta AG offer these seed traits.
- Disease-resistant traits are widely used by growers, and resistance to Diaporthe, Phytophthora, Sclerotinia, and other diseases are very popular and widely cultivated. As these diseases cause significant yield losses during field conditions, resistant varieties avoid the diseases and increase their productivity. For instance, PR91M10 by Corteva Agriscience and TMN Sinema by RAGT Group provide resistance to Diaporthe, Phytophthora, and Sclerotinia.
- Other traits, such as tolerance to drought, lodging, wider adaptability, early-medium maturity, tolerance to methyl herbicides, and tolerance to moisture stress, with high-yielding characteristics, are used globally. The introduction of new hybrid seed varieties by companies with higher resistance to viruses and high demand by processing industries are the factors expected to help in the growth of the soybean seed market during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Transgenic breeding techniques dominated the market studied as they are approved in major soybean-growing countries in North America and South America
