South Africa Seed Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.84 Billion |
| Market Size (2029) | USD 1.01 Billion |
| CAGR (2024 - 2029) | 3.92 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Seed Market Analysis
The South Africa Seed Market size is estimated at USD 0.84 billion in 2024, and is expected to reach USD 1.01 billion by 2029, growing at a CAGR of 3.92% during the forecast period (2024-2029).
South Africa's seed industry is integral to the nation's agriculture, impacting food security, boosting crop yields, and driving agricultural innovation. Over the last century, the industry has evolved, now encompassing approximately 107 seed companies under the South African National Seed Organization (SANSOR). South Africa's seed sector is notably more advanced than those in other African countries, primarily serving commercial farmers. With a growing population and rising consumption, the urgency to enhance productivity intensifies, driving up the demand for commercial seeds and propelling the industry's growth.
Increased investment in seeds is significantly propelling the market forward. Data from the Republic of South Africa indicates that seed prices for farmers rose by 6.9% in 2023 compared to the previous year. This increase in seed spending directly fuels the market's growth. Moreover, South Africa's escalating seed exports to various countries further amplify this growth. For example, data from the ITC trade map reveals that the export value of vegetable seeds from South Africa increased from USD 37,878 thousand in 2022 to USD 38,339 thousand in 2023. Such rising export values are set to be a key driver for the market's expansion. The industry is characterized by a blend of multinational corporations and local enterprises, further bolstering market growth. As a result, the increasing demand for both commercial and high-yielding seeds, aimed at enhancing productivity, is set to drive market growth during the forecast period.
South Africa Seed Market Trends
Rising Demand of Hybrid and Certified Seed
In South Africa, the late 20th century marked a notable increase in the use of hybrid seeds, reflecting the global Green Revolution's aim to enhance agricultural productivity through scientific innovation. This change was primarily driven by the objectives of improving food security and agricultural efficiency. Hybrid seeds provided South African farmers with solutions to challenges such as fluctuating climate conditions, soil degradation, and pest infestations. Initially focused on staple crops like maize, the use of hybrid seeds has since expanded to include a variety of crops, including wheat, soybeans, sunflowers, and various vegetables. This expansion of hybrid seed varieties is a key factor driving the segment's growth.
At the same time, the South African seed market is growing, driven by increasing demand for resilient and higher-yielding crop varieties. This demand surge is largely due to the increased production facilitated by these high-yielding varieties. For example, data from the United States Department of Agriculture shows that in 2022, South Africa's oilseed production increased significantly, primarily due to the adoption of higher-yielding cultivars. Similarly, FAOSTAT data indicates that sunflower seed production rose from 678,000 metric tons in 2021 to 845,550 metric tons in 2022. This increase in domestic production has reduced the nation's reliance on imports, enhancing its food security. For instance, cereal imports fluctuated, rising from USD 1,166 million in 2022 to USD 1,339 million in 2023. Consequently, the market's growth is being driven by increased production, with the use of these superior varieties.
Additionally, a stronger emphasis on research and the improvement of quality seeds is further driving the market's growth. In 2023, the ISF World Seed Congress, in collaboration with the International Seed Federation (ISF) and the South African National Seed Organization (SANSOR), hosted an event titled “Shared Roots, Greater Heights”. This event brought together professionals from all areas of the seed industry, including research and development, seed testing, production, and distribution. The initiative aims to improve access to quality seeds in Africa and beyond, promote plant breeding innovations, engage with the value chain, and leverage digital tools to enhance trade. As a result, the increasing adoption, rising production levels, and expanding research initiatives of hybrid seeds are driving market growth during the forecast period.
Grains and Cereals Segment Dominates the Market
In South Africa, grains and cereals are crucial staples, integral to the agricultural sector. They shape dietary habits, boost economic activities, and are embedded in cultural traditions. Key cereals like maize, wheat, and sorghum are essential not only for the nation's diet but also for its economy. Maize is the dominant cereal, serving as a staple and a cornerstone of South African cuisine. While wheat and sorghum are significant, their importance is secondary to maize. The expanding acreage dedicated to grain production drives market growth. According to FAOSTAT, wheat production increased from 523,500 hectares in 2021 to 566,800 hectares in 2022.
The South African government and various organizations continuously work on strategies to enhance crop yields and address the nutritional needs of the population. In 2024, Grain SA partnered with the Ministers of Agriculture and Land Reform & Rural Development. This partnership focuses on grain producers and environmental sustainability, contributing to an inclusive national and rural economy. This supports the development of the grain and cereal segment, raising the usage of seeds and further supporting market growth. Similarly, seed exports from the country also increased during the period. According to the ITC trade map, seed exports from South Africa accounted for USD 76,724 thousand in 2022, rising to USD 91,546 thousand in 2023. This also aids the country’s seed market.
Furthermore, various international research institutes are actively developing new cereal grain varieties tailored to specific climates and strategically introducing these innovations to the market. For example, in 2023, the International Maize and Wheat Improvement Center (CIMMYT) unveiled three enhanced tropical maize hybrids: CIM22SAPP1-15, CIM22SAPP1-12, and CIM22SAPP2-10. These hybrids are now accessible to both public and private sector partners in South Africa. Such launches from seed breeding programs significantly bolster market growth. Consequently, the expanding grain production areas, combined with government initiatives and the introduction of these new varieties, are propelling market growth during the forecast period.
South Africa Seed Industry Overview
The South African seed sector is moderately fragmented. Companies are highly focused on the introduction of new varieties of seeds. Some of the other strategies followed are mergers and acquisitions, expansion and research to outstand the competition. Some of the leading companies are Monsanto South Africa, Capstone Seeds, Corteva Agriscience, Syngenta Seed S.A. (Pty.) Ltd, and Rijk Zwaan.
South Africa Seed Market Leaders
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Monsanto South Africa
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Corteva agriscience
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Capstone seeds
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Syngenta Seed S.A. (Pvt.) Ltd.
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Rijk Zwaan
*Disclaimer: Major Players sorted in no particular order
South Africa Seed Market News
- November 2023: UPL Limited incorporated the company's subsidiary in South Africa, Advanta Seeds Ltd. The subsidiary established in the country carries out seeds and related business in the region.
- May 2023: Capstone Seeds have developed two genetically modified cultivars such as CAP 9-242RRBT, which is a fast yellow maize hybrid, and CAP 9-569RRBT, a medium white maize hybrid for dry land plantings.
- February 2023: Plant genetics company GDM got approval for the launch of 13 soy plant varieties with new GMO seed technology in South Africa.
South Africa Seed Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Focus on Food Security
4.2.2 Rising Government Supportive Initiatives
4.2.3 Growing Technological Advancements
4.3 Market Restraints
4.3.1 Stringent Regulatory Framework
4.3.2 High Production and R&D costs
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Crop Type
5.1.1 Grain and Cereal
5.1.2 Pulse
5.1.3 Vegetables
5.1.4 Oilseed
5.2 Types of Seeds
5.2.1 Conventional Seeds
5.2.2 Hybrid Seeds
5.2.3 GM Seeds
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Limagrain Zaad South Africa
6.3.2 Syngenta Seed SA (Pty) Ltd
6.3.3 Corteva Agriscience
6.3.4 Capstone Seed
6.3.5 Rijk Zwaan
6.3.6 Sakata Seed Southern Africa (Pty) Lt
6.3.7 Agricol (Pty) Ltd
6.3.8 Bayer AG
6.3.9 MayFord Seeds (Pty) Ltd
6.3.10 East West Seed
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South Africa Seed Industry Segmentation
A seed is a mature ovule containing an embryo, along with stored nutrients and a protective outer covering, called the seed coat used for crop production. The South Africa Seed Market is segmented by the Crop Type (Grain and Cereal, Pulse, Vegetable, Oilseed, and Other Crop Types) and the Types of Seeds (Conventional Seeds, Hybrid Seeds, and GM Seeds). The report offers market size and forecast in value USD for all the above segments.
| Crop Type | |
| Grain and Cereal | |
| Pulse | |
| Vegetables | |
| Oilseed |
| Types of Seeds | |
| Conventional Seeds | |
| Hybrid Seeds | |
| GM Seeds |
South Africa Seed Market Research Faqs
How big is the South Africa Seed Market?
The South Africa Seed Market size is expected to reach USD 0.84 billion in 2024 and grow at a CAGR of 3.92% to reach USD 1.01 billion by 2029.
What is the current South Africa Seed Market size?
In 2024, the South Africa Seed Market size is expected to reach USD 0.84 billion.
Who are the key players in South Africa Seed Market?
Monsanto South Africa, Corteva agriscience, Capstone seeds, Syngenta Seed S.A. (Pvt.) Ltd. and Rijk Zwaan are the major companies operating in the South Africa Seed Market.
What years does this South Africa Seed Market cover, and what was the market size in 2023?
In 2023, the South Africa Seed Market size was estimated at USD 0.81 billion. The report covers the South Africa Seed Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Seed Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Seed Industry Report
Statistics for the 2024 South Africa Seeds market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Seeds analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South Africa Seed Market Report Snapshots
