Onion Seeds Market Size (2024 – 2030)

The global onion seeds market was valued at USD 2.61 billion and is projected to reach a market size of USD 3.80 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5.5%. 

Onions have been a popular vegetable for centuries. Production of this was extremely important in the past for nutrition and the economy. However, the agricultural sector has undergone some significant improvements in improving the soil, water, weather, and other conditions. Presently, with a string of import-export trade, this market is flourishing. In the future, with the growing population, biotechnological advancements, technologies, and other research activities, this market will see a tremendous expansion. During the forecast period, considerable growth is anticipated.

Key Market Insights:

China produced over 870 thousand metric tonnes of shallots and green onions in 2021, the most in the Asia-Pacific area.

The number of onions produced in India is predicted to have been slightly above 31 million metric tonnes in the fiscal year 2023.  When it came to onion output during the measurement, Maharashtra and Karnataka came out on top.

The number of dried onions produced in Egypt in 2021 was almost 3.31 million metric tonnes. This was an increase from almost three million metric tonnes in 2017.

The market for seeds, which includes onions, in Latin America was valued at 5.29 billion dollars in 2020 and is projected to grow to 7.82 billion dollars by 2025.

Up to 40% of world crops are destroyed by pests, resulting in losses of $220 billion. To tackle this, precision agricultural practices, integrated pest management, and other biotechnological processes are being emphasized.

Onion Seeds Market Drivers:

Global demand for onions is helping with market success.

India, China, the United States, Egypt, and Turkey are the top onion-producing countries. Production of these vegetables helps strengthen the economy by raising trade activities. With the global population reaching 8 billion, the demand for consumption has increased. Onions are a major part of the diet in many regions. They are used in a variety of cuisines due to the taste and flavor they impart. Besides, changing lifestyles have resulted in an upsurge in takeout and dining. The number of eateries and dining places has seen a drastic rise over the years. Additionally, these vegetables are popularly used by roadside franchises and other small businesses. This has further increased sales. Furthermore, governmental initiatives and schemes have propelled an augmentation in the rate along with quality improvement.

Advancements in seed technology are contributing to the growth.

Biotechnology and genetic engineering have become integral parts of agriculture. Several breakthroughs have helped improve seed quality. This includes better resistance to pests and weather, disease management, greater yield, etc. Besides, these genetic and hybrid crops have been developed to have a better nutritional profile. Educational campaigns have played a huge role in getting acceptance from a majority of the population about the validity of the new man-made and other artificial seeds. Furthermore, several progress have been made regarding the technology. Improved water facilities, soil quality, agricultural practices, sustainable methods, and robust growth have aided the growth. Several R&D activities are being undertaken to further broaden human understanding.

Onion Seeds Market Restraints and Challenges:

Weather conditions, pest control, quality, and cost are the main issues that the market is currently experiencing.

Climate conditions have been a huge barrier for the market. Changes in weather patterns, temperature, rainfall, and other unpredicted events can affect production. Onion seeds need hot, dry summers and thrive best on silty or sandy soils with good water-holding capacity and a steady water supply. It is anticipated that this factor may hinder the timely supply of onion seeds. Secondly, pest management is a concern. Even though there are various technologies, genetic uniformity in vegetables can lead to resistance to pests, causing significant losses for farmers and nations. Thirdly, ensuring seed quality, germination rates, and other factors can be challenging. Furthermore, with the ongoing inflation, onions are the most popular vegetable, thereby raising their rates by a huge amount. This can demotivate consumers, resulting in them making other choices. Apart from this, the technologies used and the new agricultural practices can drain the farmers financially, preventing them from growing these crops.

Onion Seeds Market Opportunities:

Research and developmental activities have been providing the market with an ample number of possibilities. Through various genetic modifications, benefits like environmental resistance, quality, nutrition, and pest resistance are imparted. The promotion of hybrid varieties helps with crop performance and an increased yield. Increasing demand for organic farming is helping the market. This has a minimal impact on the environment and has a healthy nutritional profile. Furthermore, the adoption of smart technologies is facilitating better crop monitoring and resource usage. Apart from this, governmental initiatives to increase production through various investments are creating an elevation.

ONION SEEDS MARKET REPORT COVERAGE:

Onion Seeds Market Segmentation: By Form

• Organic

• Conventional

The conventional segment is the largest segment in the market. This is because of factors like affordability, wider availability, historic significance, faster and higher yield, varieties, and taste. However, the organic segment is the fastest-growing owing to rising awareness about the environment, harmful chemicals and pesticides, the increasing prevalence of diseases, demand, cost-effective solutions, and nutritional content.

Onion Seeds Market Segmentation: By Type

• Red Onions

• White Onions

• Others

Based on type, red onions are the largest in the global onion seed market. Red onions are known for their mild to sweet flavor, vibrant color, culinary usage, versatility, longer shelf life, and consumer demand. The rich color of red onions is attributed to plant pigments called anthocyanins, which belong to the flavonoid family. These might offer protection against specific cancer types and diabetes. However, white onions are considered to be the fastest-growing segment. They are gaining attention because they are less pungent and have a smooth texture. They are popularly used for garnishing. White onions offer a variety of health advantages and a distinctive nutritional profile. These onions are a fantastic source of fiber, plant components, vitamins, and minerals. Health benefits include better bone health, control of blood sugar, and a lower chance of developing several malignancies.

Onion Seeds Market Segmentation: By Breeding Technology

• Hybrids

• Open Pollinated Varieties

Hybrids are both the largest and fastest-growing segment in this market. Increased use of hybrids is linked to uniform bulb size, lesser odor, resilience to disease, good yielding, long shelf life, uniform color, wider adaptability, and easy storage.

Onion Seeds Market Segmentation: By Distribution Channel

• Supermarkets/Hypermarkets

• Specialty Stores

• Online Retail

• Others

The largest growing distribution channels in the market are supermarkets and hypermarkets. They own a larger proportion of the market than 55% overall. This is because of reasons like presence, originality, authenticity, accessibility, availability, historical significance, in-person communication, and visual examination. The ongoing digital revolution is driving the fastest growth in online retail. Roughly 35 percent of the market is contributed by this segment. Due to increased consumer awareness and the availability of a wide range of options, more and more customers are selecting online delivery services. Customers may simply place orders at the convenience of their own homes. This makes it easier for residents of rural and remote places to get necessities. Additionally, shipping both domestically and internationally is made easier, which boosts the economy.

Onion Seeds Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

With a roughly 30% share in 2023, Asia-Pacific has the largest market. This is due to several factors, including the presence of important companies, financial expansion, accessibility, facilities, research and development efforts, demand, technical advancements, a larger labor pool in agriculture, and the industry's rapid growth. Countries like China, India, Pakistan, and Bangladesh are the top three. However, because of its booming economy, rising investments, governmental participation through programs, expansion of developing companies, global operations, R&D activities, and skilled workforce, North America is the area with the fastest growth, with countries like the United States and Canada being the top-ranked countries. This region is very popular for its hybrid varieties. This area accounts for around 26% of the total. European countries like the Netherlands, France, the United Kingdom, and Italy have a major presence in this market owing to bulk production, sustainable farming practices, and research institutes.

COVID-19 Impact Analysis on the Global Onion Seeds Market:

The outbreak of the virus hurt the market. The new norm was lockdowns, movement restrictions, and social isolation. This hindered the supply chain, transportation, and logistics. As a result, import-export trade activities were affected. There was uncertainty, leading to tight financial budgets. Many people lost their jobs. This caused an economic downfall. Besides, most of the funding was shifted towards healthcare applications. Farmers faced trouble maintaining the necessary conditions for growth. There was a closure of many factories and institutes. Research activities were on hold or delayed because of this. As per a report by Business Standard, in Vinchur mandi in Lasalgaon, Asia's largest spot onion-selling market yard, the price of the crop has dropped to the lowest level of the season, Rs 3 per kg, due to farmers' desperate attempts to sell the late Kharif variety of onions during the pandemic. However, during the second half of the pandemic, people started to adopt technology. E-commerce helped the market with sales and thereby, with profit generation.

Latest Trends/ Developments:

The companies in this market are motivated to achieve a higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. Companies are also spending heavily to improve existing creations and technologies while maintaining competitive pricing. This has further resulted in increased enlargement.

Global market expansion is supporting upward growth. This involves identifying areas with a larger consumption and those that are unable to produce these vegetables due to various reasons. Additionally, digitalization is being emphasized. Online retail forms a major segment in sales and distribution. Local farmers and vendors are encouraged to focus on having an online presence to generate more profits.

Key Players:

1. Monsanto (Bayer)

2. Syngenta AG

3. BASF SE

4. Advanta Seeds (UPL)

5. Bejo Zaden

6. Rijk Zwaan

7. Sakata Seed Corporation

8. Takii Seed

9. East-West Seed International

10. Enza Zaden

In February 2022, a tearless onion type created by BASF's vegetable seeds division is currently available in stores in France, Germany, Italy, and the United Kingdom. Being the first tearless onion on the market, the yellow onion variety is a true game changer and represents a milestone in vegetable innovation.

In June 2021, a high-yielding onion seed variety was introduced by NAFED (National Agricultural Cooperative Marketing Federation of India Ltd.) through its seed production program in Maharashtra with a base of 600 farmers. The Federation wants to use state governments, cooperative societies, and FPOs to provide farmers with these low-cost and high-yielding onion seeds.

Between January 2021 and April 2021, in the southern Thai provinces of Ranong and Phang Nga, the East Forum Foundation gathered seeds of the endemic water onion (Crinum thaianum), grew them in nurseries, and out-planted them in streams in collaboration with more than 300 community members, schoolchildren, and government representatives. Raising awareness of the plants that are unique to southern Thailand and are crucial in halting erosion during monsoon season floods was the goal of the project.