The Asia Pacific corn seed market size is expected to reach USD 5.74 billion in 2024 and reach USD 8.55 billion by 2029, growing at a CAGR of 8.3% from 2024 to 2029. It captures 15% of the global market.
The Asia Pacific Corn seeds market is witnessing positive growth in recent years with China at the lead. Other countries like Japan, Indonesia, India and the Philippines are also key players in the APAC. Moreover, the regional market is believed to further expand with China’s permitting the seed varieties of genetically modified corn and soybean for sowing in a step to accelerate production and reduce reliance on foreign or external supplies. In addition, the market in Japan saw the entry of a new red sweet corn. Japan’s foremost red sweet corn known as Yamato Rouge has been cultivated by a manufacturer of seeds and seedlings in Tenri, Nara Prefecture and rapidly became a photogenic food across social media due to its reddish dye which is unlike white and typical yellow sweet corn. This new red sweet corn can be harvested two times annually i.e. in summer and in autumn against the standard sweet corn. Additionally, from the beginning of the Ukraine-Russia war, the market was supported by a variety of supply means for corn.
The rising demand in China and the increased focus on genetically modified crops are driving the growth of the Asia Pacific corn seeds market. China remains one of the largest importers worldwide, hence playing a key part in shaping the demand in the trade equations globally. The country’s government is adopting an active approach to fill the gap between its consumption and production of corn along with eliminating dependence on external suppliers. According to the National Grain and Oils Information Center in China, its maize consumption and yield will keep a swift growth in the coming 10 years. It also stated that the production’s overall rate is likely to surpass the consumption’s gross rate and the space will steadily decrease. This depicts that the demand for corn seeds is slated to elevate during the forecast period.
Another factor propelling the market growth is the impact of climate change which is affecting corn production, while the development of hybrid and genetically modified seeds by the few countries in the region. Likewise, the United States, a major corn exporter is facing extreme heat on its east coast, and on the other hand, unprecedented rains in the main Midwest-producing area and estimates of more precipitative weather have raised concerns of floods on corn and soybean fields, particularly in the Upper Midwest. Simultaneously, Japan, the Philippines and Indonesia in recent years have numerous advances in new corn varieties, ultimately driving the market forward.
The Asia Pacific corn seeds market growth is hindered by the reduction in arable land. Similarly, Uzbekistan published the biggest portion of degraded land i.e. 26.1 per cent in the central region. It also witnessed the highest fall which is to 26 per cent from 30 per cent. Another country India, a key player in the regional market, suffered a loss of 70 million hectares of cropland between 2015 and 2022, especially in the states of Maharashtra and Telangana. As per a study, more than 5 million big trees i.e. 5.6 million to be precise, along with a crown area of around 67 square meters, vanished from croplands alone in the period between 2018 and 2022. The data is disturbing for the market considering that agroforestry plays an important part in providing socio ecological advantages and is a potential weather solution as a carbon fall.
Malaysia and Vietnam present significant growth opportunities for the Asia Pacific corn seeds market. Given the climate change in the APAC in 2023 and so far in 2024, the excessive heat and intense rainfall with several floods disappearing the farmlands coupled with external factors the food inflated went upwards. But, the price of corn is falling, so, according to the USDA, the import of corn by Southeast Asia will surge by 8.7 million metric tons to reach 22.9 million metric tons by 2028-29. This projection further gives a market opportunity for corn production in the region which as a result will help the market to expand. Similarly, price is a major factor influencing the sale of feed ingredients in Vietnam, including feed wheat and corn. In 2024-25, the corn production is expected to be 3.65 million tons from 6.76 million tons last year. The government is planning to import 11 million for 2024-25 and more corn to fulfil the growing consumption of corn. However, the domestic industry continues to be uncompetitive against imports, hence providing an opportunity for the corn seed companies.
The growth of the Asia Pacific corn seeds market is challenged by the lower commodity prices. The reduction in the costs of corn commodities has severely affected the market growth. This further discourages the farmers and compels them to the cultivation of other crops.
Furthermore, unprecedented climatic change events keep impacting the market expansion. As a result, the distribution of corn seeds is usually ineffective and untrustworthy which causes scarcity in some regions. Therefore, making it tough for the cultivators to acquire the varieties they want.
Field corn is the most prevalent type and is highly consumed. This is because of its application in animal food and industrial purposes. The category is dominated by China and India. According to a study, China’s corn cultivation was more than 273 million metric tons, of which mostly was field corn type. It utilises this for industrial uses, animal feed and as a main food. India gained the second spot with 32 million metric tons which is largely field corn. Other nations in Southeast Asia such as Vietnam, Thailand, Philippines and Indonesia are also key consumers of this.
Animal feed continues to command in this category under the Asia Pacific corn seeds market. The segment is driven by the swift expansion of the livestock sector, especially in nations like India, China and Indonesia. Moreover, the escalating consumption of eggs, dairy and meat-based items is leading to higher feed requirements. In addition, the segment’s market share is also rising because it is a major energy source in the making of animal fodder. The livestock breeders owing to its starch level make it a suitable ingredient for swine, poultry and ruminant diets. Whereas, the corn starch segment is closely following behind.
China is spearheading the Asia Pacific corn seeds market. It is expected that in 2024, there will be various ongoing factors which could control the corn prices in the APAC. This is attributable to the country’s policies and demand coupled with supply chain conditions at main sources. However, the country is predicted to move forward because of its diversified suppliers of corn with Argentina, Brazil and South Africa as key exporters in 2023. According to the US Department of Agriculture, it anticipates that in MY 2024-25, corn production by China will be approximately 292 million metric tons which is 1.1% more annually, at the same time local demand is predicted to be 313 million metric tons, elevated about 2% on the year. In the next marketing year, the USDA foresees the further broadening of the gap between supply and demand in China, with consumption surging more quickly than cultivation. Additionally, it is always explored for the lowest price of the corn in the market.
India is another major player in the Asia Pacific corn seeds market. The country is also a major importer, hence providing the opportunity for the industry players. Moreover, for the 2024-25 season, its corn imports matched its exports, which will impact the nation’s commercial dynamics. The increase in consumption from poultry producers and ethanol makers encouraged the nation to acquire more corn from external suppliers in the last season and the ongoing season i.e. 2024/25. As per the US Department of Agriculture, the fall in corn prices worldwide has positioned Indian corn to be not as much competitive. The nation was the major exporter to Bangladesh, Nepal and Vietnam and exported around 2.8 million tons in the season of 2022-23.
Indonesia is an emerging market for corn seeds since it is expected to raise the application for feed production for the marketing year 2024-25. The region’s market share is believed to increase because of the likely surge in corn consumption to 9 million tons in MY 2024-25 after its decline to 8.6 million tons in the 2023-24 season. It can be said that there is huge potential for corn seeds in this country. Apart from these, the lack of domestic corn production has resulted in a steep rise in prices in MY 2023-24 which compelled feed mills to lower the application of corn in the formulation of feed to 38 per cent to 40 per cent. But, presuming the cultivation of Indonesian grain augments next season, feed mills forecast that this number could increase to 48%.
Japan is steadily moving forward in the Asia Pacific corn seeds market owing to its recent breakthroughs in new varieties. Its market size is projected to increase because of the recovery in corn consumption to 3.43 million metric tons in MY 2023-24 from 3.38 million metric tons in MY 2022-23.
Monsanto, DuPont Pioneer, Bayer CropScience, Hefei Fengbao, Pacific Seeds, Syngenta, Nuziweedu Seeds, China National Seeds, DLF Trifolium. These are the market players that are dominate the Asia Pacific corn seeds market.
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