Market Trends of onion seed Industry
Higher returns for onion and the availability of hybrid varieties are estimated to drive the onion cultivation, especially in Africa and Asia-Pacific
- Onion is the second most popular vegetable grown globally. The global onion acreage observed an increase of 13.7% from 2017, reaching 6.1 million hectares in 2022, with Asia-Pacific being the major region with the highest cultivated acreage (3.8 million hectares), which accounted for 62.7% of the global onion acreage in 2022.
- In the Asia-Pacific, India and China are the significant countries for onion cultivation, with 1.7 million ha and 1.1 million ha of area, respectively, contributing to 43.3% and 29.8% in 2022. Furthermore, India and China are the largest onion producers globally. The onion acreage declined in India in 2018 and 2019 due to the late arrival of monsoons. However, the acreage is estimated to increase with the government initiatives for higher returns such as Minimum Export Price during hard times, imposition of stock limit on onion traders, ban on exports driving the domestic trade, etc.
- Africa was the second largest region with a share of 23.7% in 2022. The cultivated area in Africa increased by 22.6% from 2017 to 2022 due to the increase in acreage in Kenya, Egypt, and Nigeria during the same period. Kenya has grown onion acreage substantially by 408.5% from 2017 to 2022. The increase is attributed to the adoption of hybrids in cultivation with support from the government of Kenya, such as adopting technologies, innovations, and management practices (TIMPs) to improve the onion value chain.
- Therefore, onion is majorly produced in these regions due to the favorable climatic conditions and higher returns for farmers from international and domestic markets, as it is one of the most consumed vegetables.
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Increasing demand for onion seed varieties resistant to the pink root disease
- Globally, the onion seed market is one of the largest and most consumed vegetable seeds. The increasing demand for onions from consumers has increased the market for onions. Therefore, the need for consistent quality and increased productivity has been improved, and several traits, such as disease resistance, quality attributes, and wider adaptability, are incorporated for efficient performance in the field.
- The major trait in demand from the growers of different countries is disease resistance for pink root disease, fusarium basal rot, and downy mildew to fetch more prices. In India and China, varieties with disease resistance to purple blotch are widely cultivated. For instance, in 2021, Bejo and De Groot en Slot launched the first Downy Mildew resistant shallot from the Seed Innovator. Companies such as Groupe Limagrain and Bayer AG also offer traits resistant to pink root rot and fusarium basal rot.
- The major seed companies, such as Bayer AG, BASF SE, Groupe Limagrain, East-West Seeds, Sakata Seeds Corporation, and Bejo Zaden BV, are developing varieties with a focus on high-yield, long-day storage, attractive colors (either red or white), early or late maturity and wider adaptability traits. Combining multiple disease-resistant traits with quality attributes such as size and color has gained popularity to earn higher profits.
- Benefits such as high-quality onions with high disease resistance, increased shelf life, and product innovations with quality attribute traits are helping to increase the demand for these seeds during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing demand for onion seed varieties resistant to the pink root disease
- Traditional breeding of onion seeds is a time-consuming process. Hybrid breeding held the largest market due to its ability to develop improved traits
