"Yield Higher Revenue with our Exclusive Insights "

Hybrid Rice Seeds Market Size, Share & COVID-19 Impact Analysis, By Type (3-line Breeding Systems and 2-line Breeding Systems), Grain Size (Long Grains, Medium Grains, and Short Grains), and Regional Forecast, 2020 – 2027

Region : Global | Format: PDF | Report ID: FBI104926

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global hybrid rice seeds market size was USD 2.06 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with hybrid rice seeds witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 9.9% in 2020 as compared to the average year-on-year growth during 2016-2019. The market is projected to grow from USD 2.26 billion in 2020 to USD 5.43 billion in 2027, growing at a CAGR of 13.32% in the 2020-2027 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


Hybrid rice is a type of rice obtained by breeding two different parental lines to significantly out yield other rice variants. It was first introduced in China in1970 as an initiative to curb the impending famine in the country. Hybrid rice helps in filling the yield gaps and increases the yield potentials, enticing farmers in the seed market. This aids the farmers in generating higher incomes as well as contributes to achieving food security for the ever-increasing global population. The rising adoption of hybrid rice by the farmers due to its improved heterosis that increases the yield by 20-25% than the conventional rice is projected to enhance future growth in the upcoming years.


Border Closures and Transportation Delays amid COVID-19 to Affect Growth


The global outbreak of the COVID-19 pandemic has resulted in lockdowns and border closures, which has impacted several industries. Supplier quality discrepancies and underperformance of logistics service providers are among the main reasons for the supply chain discrepancies. However, according to the International Seed Federation (ISF), the impact of COVID-19 was slightly less on the seed industry as seeds are considered among the essential agriculture items and were allowed to function in the lockdown with appropriate safety measures. Various countries such as India, the U.S., and Japan enabled harvests with subsidized procurement of farm machinery as farm laborers were unavailable. For example, the government of India set up special cargo and courier services for the movement of essentials such as seeds to ensure farmers can continue to grow crops and grains and prevent food shortage amid COVID-19 and in the long run.


LATEST TRENDS


Request a Free sample to learn more about this report.


Hybrid Rice Seeds Attaining Food Security to Propel the Market Growth


According to the United Nations Food and Agriculture Organization (FAO) 2019 data, the global rice production accounted for nearly 755 million metric tonnes in 2018, with around 90% being produced in Asian countries. Recent technologies have led to the development of hybrid type of rice seeds that produce 20-25% higher yields and offer increased resilience to abiotic and biotic stress conditions, requiring fewer inputs such as water and pesticides. With an increasing population across the world, the demand for rice is also surging in the market as rice acts as a staple food for ~60% of the global population. Thus, rice yield per unit area has also grown to meet this growing demand and serve rice to several end-users. The government and various research institutes are collaborating to come up with new hybrid rice variants and promote their utilization by the farmers. For instance, in September 2019, the International Rice Research Institute (IRRI) and African Agricultural Technology Foundation (AATF) signed a four-year partnership agreement to help farmers in Africa to increase their rice productivity and income by adopting good quality rice seeds and sustainable agronomic practices.


DRIVING FACTORS


Increasing Consumption of Rice Globally to Augment Hybrid Rice Seeds Market Growth


According to the Food and Agriculture Organization (FAO), rice provides 27% of the dietary energy supply, 20% of the dietary protein, and 3% of the dietary fat to nearly 33 developing rice-consuming countries. Global rice consumption is witnessing robust growth, which is driven by factors, such as high population and economic growth in the developing countries. According to the report published by Organization for Economic Co-operation and Development 2019, Asia Pacific and Africa are the two major consumers of rice worldwide. The report also states that the global consumption of rice is projected to increase by 67 million tonnes by 2028. Thus, farmers are intensively focusing on increasing rice yields with their limited lands, which is anticipated to further boost the adoption of hybrid seeds in the market.


Proliferating Demand for Stress Adaptable Rice to Drive the Market


Sustainable rice cultivation is challenged by various abiotic and biotic stresses. This has led to the incorporation of stress tolerance in high-yielding varieties and has been proven to be a very effective approach for developing these varieties that can cope with such situations. This is increasing the demand for hybrid rice and mitigating the losses caused by the stress factors. The hybrid seed manufacturers of rice are also laying emphasis on technological advancements for developing seeds that are resistant to microbial infestations and generate higher-yields in a comparatively short span of time than the inbred varieties, which is anticipated to drive the growth. For instance, in January 2018, Bayer AG launched Arize AZ 8433 DT hybrid rice seed with dual attributes including tolerance to drought and Bacterial Leaf Blight and Brown Plant Hopper diseases.


RESTRAINING FACTORS


Regulatory Hurdles and High R&D Costs to Hamper Growth


The full-fledged adoption of hybrid rice is held-back by the factors such as longer regulatory approvals and their high research and development costs. The regulatory approvals are time-consuming due to the frequent changes in law enforcement and amendments, which are regulated by the new rules and regulations laid down by the government. For instance, in India, in 2019, a seed bill was passed, which threatens the seed sovereignty and freedom along with undermining the rights of the farmers. Such factors lead to clashes between the farmers and the government; thereby, hampering the overall seed sector. The high R&D cost is another reason hampering the market performance. Thus, the overall hybrid rice seeds development and manufacturing is a long and costly process that acts as a major restraint in its market growth.


SEGMENTATION


By Type Analysis


To know how our report can help streamline your business, Speak to Analyst


3-line Breeding System to Emerge as the Dominant Segment Due to its Stability


On the basis of type, this market is segmented into 3-line breeding systems and 2-line breeding systems. The 3-line hybrid breeding system is accounted for holding the major share as it’s the most widely used breeding system due to its proven attributes in increasing vigor, resistance to pests, and high-quality. The benefit of this system comprises the ability to maintain stable male sterility throughout the process. However, there are a few shortcomings for this hybrid rice seed breeding system, which led to the development of a 2-line breeding system. This segment is witnessing significant traction among growers as several studies have proved that 2-line breeding systems have a yield advantage of 10% over the 3-line but the higher cost of research and development results in slow growth in the market. However, the technology is expected to grow at a decent pace during the forecast period 2020-2027.


By Grain Size Analysis


Medium Grain Size Segment to Exhibit High Growth Owing to its High Consumption


The medium-sized rice grain seeds are expected to hold the major share owing to their worldwide popularity, especially in Asian countries, due to their moist, tender, and slightly chewy texture. The cultivation of medium grain rice seeds in countries, such as Thailand, India, and China, is higher. At the same time, the countries, such as the U.S. and the UAE, prefer the consumption of long grain rice. According to the United States Department of Agriculture (USDA) data, in 2018, the long-grain rice category held 70% of the market share in the U.S. as it is the most consumed and produced rice variety in the country. Thus, the long grain rice exhibits significant potential to grow in the upcoming years.


REGIONAL INSIGHTS


Asia Pacific Hybrid Rice Seeds Market Size, 2019 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


Asia Pacific leads the global hybrid rice seeds market and is anticipated to remain the same in the forecast period due to the increasing demand and consumption of rice in the region. Countries, such as China, India, Vietnam, and Thailand, are among the major producers of rice. Hence, they hold the larger chunk in the global rice seed market.


The adoption of hybrid rice seeds technology in the region has been supported by the government as agriculture contributes to a major share in the region’s economy. The government is encouraging the farmers to cultivate hybrid rice by promoting sustainable farming through assistance, tax incentives, and exemptions, and providing these hybrid seeds at a subsidized price. Several collaborations between the government and private organizations are being initiated to increase hybrid rice production. For instance, in 2019, China and the Philippines started a rice-breeding program. The Philippine-Sino Center for Agricultural Technology (PhilSCAT), with the help of grants from China, has developed four varieties of hybrid rice. These varieties have successfully passed the Philippine rice cooperative tests and are set to be launched in the market. Such factors have helped in creating a positive image of hybrid rice seeds technology in the region, which is anticipated to further boost the market performance.


To know how our report can help streamline your business, Speak to Analyst


The Middle East & Africa is projected to hold the second-largest share in the market. The consumption of rice in various African countries and Saudi Arabia has emerged as a market trend. Various technologies such as artificial intelligence (AI) are being utilized for obtaining improved results in the hybrid type of rice seeds. For instance, in January 2019, the International Rice Research Institute (IRRI) teamed up with Germany-based biotechnology company Computomics GmbH for utilizing its latest bioinformatics tools to speed up the analysis and advances in rice cultivation and breeding. Such initiatives are expected to augment key regional growth in the forthcoming years. North America and Europe are witnessing substantial growth in the market as the demand for rice products is increasing gradually in the regions.


KEY INDUSTRY PLAYERS


Companies Embarking Upon Strategic Acquisitions and Partnerships for Business Fortification


The market is moderately consolidated with the presence of a few prominent global players.  Companies, including Syngenta AG, Bayer AG, Nath Bio-Genes Ltd., UPL Ltd., RiceTec, Inc., and Biostadt India Ltd., are concentrating on business partnerships, collaborations, and strategic acquisitions for their business fortification and diversifying their product portfolio by introducing new products in the market. For instance, in January 2019, RiceTec, Inc., announced the acquisition of rice seed assets of Ganga Kaveri Seeds of Hyderabad, which will help the former company to utilize superior rice seed genetics of Ganga Kaveri for launching new hybrid rice variants in India.


LIST OF KEY COMPANIES PROFILED:



  • Syngenta AG (Switzerland)

  • Bayer AG (Germany)

  • UPL Ltd. (India)

  • Nath Bio-Genes Ltd. (India)

  • Nirmal Seeds Pvt. Ltd (India)

  • Biostadt India Ltd. (India)

  • Yuan Longping High-tech Agriculture Co., Ltd. (China)

  • Wuhan Comega Seed Co., Ltd. (China)

  • Nuziveedu Seeds Ltd. (India)

  • RiceTec, Inc. (United States)


KEY INDUSTRY DEVELOPMENTS:



  • June 2019: RiceTec, Inc. and Benson Hill, a crop improvement company announced the licensing agreement between the companies for using Benson Hill’s technologies by RiceTec for its research and development of hybrid rice operations.

  • June 2018: The Monsanto Company was acquired by Bayer AG which will aid in diversifying and commercialization of hybrid rice seeds in India.


REPORT COVERAGE


An Infographic Representation of Hybrid Rice Seeds Market

To get information on various segments, share your queries with us



The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments in the market. Along with this, the report includes an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key hybrid rice seeds industry trends.


Report Scope & Segmentation










































  ATTRIBUTE



   DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion)



 By Type




  • 3-line Breeding Systems

  • 2-line Breeding Systems



By Grain Size


 




  • Long Grains

  • Medium Grains

  • Short Grains



 


 


 


 


 


By Geography




  • North America (By Type, Grain Size, and By Country)

    • The U.S.

    • Mexico



  • Europe (By Type, Grain Size, and By Country)

    • Russia

    • France

    • Italy

    • Spain

    • Hungary

    • Rest of Europe



  • Asia Pacific (By Type, Grain Size, and By Country)

    • China

    • India

    • Japan

    • Vietnam

    • Bangladesh

    • Indonesia

    • Thailand

    • Philippines

    • Malaysia

    • Rest of Asia Pacific



  • South America (By Type, Grain Size, and By Country)

    • Brazil

    • Argentina

    • Colombia

    • Rest of South America



  • Middle East and Africa (By Type, Grain Size, and By Country)

    • South Africa

    • Turkey

    • Saudi Arabia

    • Rest of ME&A





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 2.06 billion in 2019 and is projected to reach USD 5.43 billion by 2027.

Growing at a CAGR of 13.32%, the market will exhibit promising growth in the forecast period (2020-2027).

The 3-line breeding system is expected to be the leading breeding segment type in the market during the forecast period.

Increasing global consumption of rice is the key factor boosting the market growth.

Syngenta AG, Bayer AG, Nath Bio-Genes Ltd., UPL Ltd., RiceTec, Inc., and Biostadt India Ltd. are some of the key players in the market.

Asia Pacific dominated the market share in 2019.

The medium-sized rice grains are likely to be most widely consumed worldwide.

Strategic partnerships, collaborations, and acquisitions are the key market trends.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
Hybrid Rice Seeds Market Size, Share and Global Industry Trend Forecast till 2026
  • Feb, 2021
  • 2019
  • 2016-2018
  • 152

    CHOOSE LICENSE TYPE

  • 4850
    6850
    8850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . More info.
X