PUBLISHER: DataM Intelligence | PRODUCT CODE: 1654714
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1654714
The global drought-tolerant seeds market reached US$ 2,483.2 million in 2024 and is expected to reach US$ 3,921.4 million by 2032, growing at a CAGR of 6.7% during the forecast period 2025-2032.
The demand for drought-tolerant seeds has been growing steadily worldwide, driven by increasing concerns over water scarcity, climate change and the need for resilient agricultural practices. Climate change has emerged as a critical driver reshaping the agrarian landscape globally. Erratic weather patterns, prolonged droughts and extreme climatic conditions have necessitated the development of resilient seed varieties to ensure sustainable food production.
Farmers and policymakers are increasingly focusing on adopting climate-resilient agricultural practices to mitigate the risks associated with climate variability and safeguard food security. For example, in March 2023, the Indian Council of Agricultural Research (ICAR) played a pivotal role in addressing climate-related agricultural challenges. ICAR, through its National Agricultural Research System (NARS), has developed more than 7,200 high-yielding and stress-tolerant varieties of field and horticultural crops.
Additionally, between 2014-15 and 2022-23, it released 407 precision-bred varieties specifically for extreme climatic conditions, including drought, flood, salinity and heat stress tolerance. These advancements have directly contributed to a 4.57x increase in productivity, boosting food grain yields from 522 kg/ha in 1950-51 to 2,386 kg/ha in 2020-21. By addressing the challenges posed by climate change, ICAR demonstrates the transformative potential of research-driven innovation in fostering resilient agriculture.
Dynamics
Rising Incidence of Droughts and Climate Change
The rising incidence of droughts, intensified by climate change, is driving the growth of the drought-tolerant seed market. Climate change is increasing global temperatures, which accelerates evaporation, prolongs droughts and alters precipitation patterns. It has led to an increase in the frequency and severity of droughts, affecting over 55 million people annually and threatening the livelihoods of millions more. By 2030, as many as 700 million people are at risk of being displaced due to water scarcity caused by prolonged droughts.
The agricultural sector, particularly in drought-prone regions, faces significant challenges. Crop failures due to water shortages are common, leading to food insecurity and economic instability. With water scarcity already impacting 40% of the world's population, the demand for drought-tolerant crops is growing. These seeds offer a solution to ensure crop survival in arid conditions, making them essential for regions heavily dependent on agriculture.
Droughts not only impact food production but also strain water resources, increasing the risk of waterborne diseases and health crises, further underscoring the importance of developing crops that can thrive in water-scarce environments. The global trend toward more frequent and intense droughts, driven by climate change, is expected to increase the adoption of drought-tolerant seed varieties, making them a key tool for ensuring food security in the face of climate uncertainty.
In addition to agricultural benefits, drought-tolerant seeds contribute to environmental sustainability by reducing water use, ensuring that crops require less water to grow and supporting resilient farming practices. With climate models predicting a rise in dry spells, particularly in already arid regions, the drought-tolerant seed market is positioned for substantial growth, addressing both environmental and economic challenges related to water scarcity.
Advancements in Agricultural Biotechnology
Advancements in agricultural biotechnology, precision farming, nanotechnology, vertical farming and gene editing are significant drivers for the growth of the drought-tolerant seeds market. As climate change intensifies and droughts become more frequent, farmers face mounting pressure to ensure crop resilience under water-scarce conditions.
As agricultural innovation continues to evolve, the demand for drought-tolerant seeds is poised to grow, driven by the urgent need for climate-resilient farming solutions. These seeds will play a critical role in securing food supply in the face of increasing environmental challenges.
High R&D Costs and Time-Intensive Development
High R&D costs and time-intensive processes are significant restraints for the drought-tolerant seeds market. Developing such seeds requires advanced technologies like genetic engineering and molecular biology to create crops that can thrive under water scarcity. Extensive laboratory research, multi-season field trials and performance evaluations add to the complexity, demanding significant financial and technical resources.
Stringent regulatory requirements further add to these challenges, prolonging the time needed for market entry. Safety assessments and compliance with environmental and health standards require multi-year evaluations, escalating development costs. These regulatory delays particularly disadvantage smaller firms, limiting market participation and innovation in drought-tolerant seeds.
The concentration of R&D capabilities among a few large players further slows innovation and adoption in the market. Smaller companies face financial and technical barriers, reducing competition and availability of these seeds. This dynamic hinders the overall growth potential of the drought-tolerant seeds market despite the increasing need for climate-resilient agriculture solutions.
To overcome these restraints, companies leverage collaborative research initiatives and public-private partnerships to share costs and risks. Streamlining regulatory frameworks and incentivizing innovation can accelerate product development and market entry. These measures could enable broader adoption of drought-tolerant seeds, supporting sustainable agriculture practices globally.
The global drought-tolerant seeds market is segmented based on crop type, end-user, seed type, distribution channel and region.
Growing Consumer Interest in Highly Stable and Resistant to Protein Coagulation Milk
The demand for genetically modified (GM) seeds in the drought-tolerant seeds market is growing due to the increasing need for crops that can withstand water scarcity and unpredictable climate conditions. GM seeds are engineered to offer enhanced resistance to drought, making them highly desirable in regions prone to arid and semi-arid climates. This demand is driven by the agricultural sector's need for more resilient, higher-yielding crops that can maintain productivity under limited water availability.
Additionally, GM seeds contribute to improving food security by enabling consistent crop production in challenging environmental conditions. As climate change intensifies, the market for GM drought-tolerant seeds is expected to continue expanding, offering significant growth opportunities for biotechnology companies and seed developers.
For instance, in May 2024, Bioceres Crop Solutions launched its genetically modified HB4 drought-tolerant wheat seeds in Argentina, making the technology available to agricultural input retailers. In 2023, the company outlined plans to scale up the technology through private agreements with farmers and collaborations with seed multipliers ahead of full commercialization. The launch marks a significant step in expanding the reach of drought-tolerant wheat solutions in key markets.
Rising Demand for Drought-Tolerant Seeds in North America
The demand for drought-tolerant seeds in North America is rising due to the increasing frequency of droughts and unpredictable water availability. Climate change has exacerbated these conditions, particularly in key agricultural regions like the Midwest and Canada, where maintaining consistent crop yields during dry spells is critical for farm productivity.
Farmers are adopting drought-tolerant seed varieties to ensure resilience against water scarcity. These seeds reduce the reliance on irrigation, conserve water and help safeguard yields during drought periods. As environmental concerns and the need for sustainable farming practices grow, drought-tolerant seeds are becoming an essential part of modern agricultural solutions.
For instance, in August 2024, Syngenta's recent launch of its NK Seeds corn portfolio exemplifies this demand, with several hybrids designed for drought resistance. Through substantial investment in R&D, Syngenta continues to develop seed solutions that meet the specific needs of North American farmers, providing them with reliable and sustainable options to address water stress and ensure long-term productivity.
The major global players in the market include Corteva, Bayer AG, Syngenta, UPL, KWS SAAT SE & Co. KGaA, Arcadia Biosciences, Hefty Seed Company, Mahyco, Redwood Seeds and BASF.
The global drought-tolerant seeds market report would provide approximately 70 tables, 64 figures and 201 pages.
Target Audience 2024
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