Tomato Seeds Market- Industry Insights, Outlook, and Opportunity Analysis, 2017

Posted by anagha on April 30th, 2019

Tomato is cultivated in temperate climates and greenhouses. They are used in various cuisines and have significant demand from the food industry. Increasing demand for various hybrid seeds due to its advantages such as fruit firmness, early maturity, high yield, and flavor is propelling the growth of tomato seeds market. Development of new varieties such as grape tomatoes are also fueling the growth of this market. Also, increasing awareness regarding health benefits of tomatoes such as reduction in risk of cardiovascular diseases, cancer, diabetes, and others has augmented the demand for tomatoes, which in turn is propelling the growth of tomato seeds market. Furthermore, increasing demand for tomatoes by the food processing industry for the production of paste, juice, sauce, ketchup, and others is driving the growth of tomato seeds market. However, perishable nature of tomato seeds and high initial investments are some of the barriers for tomato seeds market.

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Tomato Seeds -Market Taxonomy:

On the basis of product type, tomato seeds market is segmented into:Hybrid Tomato Seeds,Open Pollinated Tomato Seeds,Heirloom Tomato Seeds

On the basis of farming, tomato seeds market is segmented into:Farmland,Greenhouses,Others

Different hybrid, open pollinated, and heirloom tomato seeds are available for different varieties of tomatoes such as cherry tomato, roma tomatoes, beefsteak tomatoes and others.

Tomato Seeds -Market Outlook

North America region is the largest tomato seeds market due to the lucrative demand for tomatoes from the fresh and processed food industry. According to the Vegetables and Pulses Yearbook, 2017, U.S. Department of Agriculture (U.S.DA), total production of tomatoes in the U.S. was 3,129.4 million pounds in 2016. The per capita utilization of tomatoes for processing was 56 pounds per person in 2015, which increased to 61.2 in 2016. Also, per capita utilization of fresh tomatoes was 20.5 pounds per person in 2015, which increased to 21.3 pounds per person in 2016. Furthermore, the U.S. has significant demand for canned tomatoes, which in turn is driving the growth of tomato seeds market. For instance, per capita use of tomatoes for canning in 2015 was 56.3 pounds, which increased to 61.2 pounds.

Asia Pacific is the fastest growing region in tomato seeds market with China being the largest producer of tomatoes, followed by India. Tomatoes have significant demand from the food processing industry in this region. According to the report published by Deutsche Gesellschaft Für Internationale Zusammenarbeit GMBH (GIZ) in 2016, demand for the tomato processed food in India is annually increasing by 30, owing to increasing demand for ketchup, pasta sauce, ready-to-eat products, gravies and bulk supplies to fast food restaurants, hotel chains, and retail food chain. According to the survey conducted by the Associated Chambers of Commerce of India in June 2016, the demand for tomato puree and ketchup has surged by 40% due to surging prices of fresh tomato and trend towards easy-to-cook meals. This growth in tomato processing industry is driving the growth of tomato seeds market.

Demand for tomato seeds is significantly increasing in Europe due to increasing demand for tomatoes by food industry. According to European Commission, approximately 17.9 million tons of tomatoes were produced in European Union in 2016. Italy and Spain were the major contributors and produced two third of the total tomato production in EU.

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The companies operating in the tomato seeds market are adopting various growth strategies such as new product development, merger and acquisition, and partnerships for business expansion. For instances, in 2017, Monsanto Company launched Seminis tomato hybrid seeds. In 2016, Advanta Limited announced partnership with A&M AgriLife Research for the development of seed technology for cash crops such as tomato.

Key players operating in the tomato seeds market include Monsanto Company, Bayer AG, Syngenta AG, Takii & Co. Ltd., Group Limagrain, Advanta Limited, Rijk Zwaan Zaadteelt en Zaadhandel B.V., VoloAgri Group, Sakata Seed Corporation, and Mahindra Agri Solution Limited.


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