Indonesia Seed Market Size (2024 - 2029)

Indonesia Seed Market Analysis

The Indonesia Seed Market size is estimated at USD 0.83 billion in 2024, and is expected to reach USD 1.03 billion by 2029, growing at a CAGR of 4.30% during the forecast period (2024-2029).

Rice is a pivotal staple in Indonesia, significantly influencing the nation's economy. As farmers increasingly recognize the advantages of certified seeds, the demand for these quality seeds is set to surge, promising higher crop yields in the coming years. This growing demand reflects farmers' readiness to invest more in superior seeds. With per capita arable land diminishing, farmers are turning to high-yielding and hybrid seed varieties to boost profitability. Consequently, there's a marked shift among Indonesian farmers from traditional farm-saved seeds to premium packaged seeds, all in pursuit of enhanced returns.

As per the 2023 Indonesia Grain and Feed Annual Report by the USDA, Java accounted for 50% to 55% of the nation's rice production. Sumatra and Sulawesi followed, contributing 20% and 12%, respectively. Notably, about 85% of this rice was cultivated in irrigated paddy fields, hinting at a growing potential for high-yield seed varieties in the future.

Moreover, with opportunities to cultivate corn in the second and third cycles, driven by lucrative corn prices and the adoption of high-yield varieties, projections for 2022-2023 showed corn cultivation to span 3.95 million ha, yielding 12.9 million metric tons. This surge in production, coupled with expanded wet mill capacities and the establishment of new ethanol plants, elevated corn imports to 1.2 million metric tons during 2022-2023, up from 1.165 million metric tons in the previous year.

Additionally, major companies and government entities are bolstering distribution efforts in the seed market, fueling its expansion. For example, in June 2023, the Ministry of Agriculture rolled out 4 metric tons of a new superior rice seed across multiple provinces, including South Sumatra, Lampung, Banten, West Java, Central Java, East Java, South Sulawesi, and West Sumatra. The diverse rice seed varieties distributed include Inpago 9, Inpago 12, Inpago 13 Foriz, Cakrabuana, and Inpari 42. Consequently, heightened awareness of certified seeds, bolstered by increased investments in seed innovations, government backing, and the diverse product offerings of companies, are expected to propel market growth during the forecast period.

Indonesia Seed Industry Segmentation

A seed is a fertilized mature ovule consisting of the embryo, stored material, and protective coats for crop production. The Indonesian seed sector report is segmented by crop type into row crops and vegetables and product into non-GM/hybrid seeds, GM seeds, and varietal seeds. The report offers market estimation and forecasts in value (USD) and volume (metric tons) for the segments mentioned above.