Alfalfa seeds market

The global alfalfa seeds market was valued at US$ 799.7 Mn in 2022 and is expected to exhibit a CAGR of 7.1% over the forecast period (2023-2030) to reach US$ 1,389.5 Mn by 2030. Various factors, such as increased population, rising income levels, and demand for quality agricultural seed, are expected to the drive market growth. Rise in livestock production is expected to increase the demand for alfalfa seeds. In addition, the growth in the livestock population will increase the demand for better forage crops. Moreover, the increased demand for dairy products is expected to create lucrative growth opportunities for the market in the near future.

Global Alfalfa Seeds Market - Impact of Coronavirus (COVID-19) Pandemic

Alfalfa seeds are a key component of resilient value chains, and COVID-19 has had a significant impact on their production, distribution, and cost. The availability and cost of transportation due to a decrease in commercial flights and labor shortages in production and transportation, as well as a decrease in the market volume for plants and seeds, have also caused challenges in the production of alfalfa seeds for international trade.

Figure 1. Global Alfalfa Seeds Market Value Share (%), By Application, 2022

Global Alfalfa Seeds Market: Drivers

• Growing industrial livestock production due to the increasing demand for meat products: According to United State Department of Agricutural in Foreign Agricutural Service Delhi forecasts carabeef  (which is derived from the Asian domestic water buffalo) and beef in bovine production to increase in 2022 to approximately 4.5 million metric tons (MMT), an increase of nearly seven percent from the market year (MY) 2021 estimate of 4.2 million metric tons
• Increasing adoption of hybrid seeds: Increasing adoption of hybrid seeds is again projected to augment the market growth. For instance, on January 28, 2021, Bayer, a vegetable seeds business, planned to extend its mini packs across the entire range of its Seminis hybrid seeds and provide smallholder farmers with greater choice in cultivating their own vegetables. Bayer will extend these mini packs to urban markets to cater to kitchen and hobby gardeners and encourage people to grow their own vegetables.

Global Alfalfa Seeds Market: Restraints

• Need for large quantity of water for irrigation: The need for large quantities of water for irrigation is expected to hamper market growth of the alfalfa seed. Moreover, a lower yield than other forage crops is another key factor expected to restrict the market growth.
• Counterbalance: Water use is high in alfalfa since it has a long growing season, a deep root system, and a dense canopy of vegetation. The amount of water needed for alfalfa production is a function of temperature, wind, humidity, and the amount and intensity of light. Overwatering spoils the seeds, so it is necessary to help the plant recover from overwatering, by repotting it and improving the soil type in which it is growing.                       
• Low awareness among farmers across developing countries: Low awareness among farmers across developing countries is also expected to negatively impact market growth over the forecast period. Most countries are not well aware of forage crops and its advantages. They are still following the traditional techniques to feed their livestock.
• Counterbalance: The farmers in developing countries like India are still following the traditional farming practices since the methods have been passed down through generations and have become a part of cultural and spiritual traditions. There are several reasons why the farmers are not using modern techniques, such as lack of access to finance, lack of infrastructure, cultural and traditional practices, climate and soil, and government policies. All these need to be taken into consideration for creating better market growth for alfalfa seeds and promoting sustainable and profitable farming practices.

Global Alfalfa Seeds Market: Trends

• Growing popularity of hay: The growing popularity of hay is expected to contribute to the market growth of alfalfa seeds. Hay is affordable and highly preferred by farmers from all income groups. Expanding dairy and meat industries worldwide are driving the demand for alfalfa hay, hence fueling the growth of the alfalfa seeds market.
• Increasing disposable income of consumers: The changing lifestyle of consumers and their increasing disposable incomes are expected to boost the market growth over the forecast period. The increasing use of alfalfa in cattle feed is a growing trend that encourages key players to offer new products and adopt business strategies in the global alfalfa seeds market.

Figure 2. Global Alfalfa Seeds Market Value Share (%), By Region, 2022

Global Alfalfa Seeds Market: Market Segmentation

• The global alfalfa seeds market is segmented into application and region Under the application  agriculture has dominated with a market share of 90% followed by food and others. Dormant alfalfa seeds are mainly used in agriculture. They can be combined with other seeds to improve their germination and survival rates. They are often used as soil amendments to provide nutrients, such as nitrogen, phosphorous, potassium, and sulfur, to improve soil structure.
• They can be used as flavor enhancers in baked goods as well as in some beverages like beer. They can also be used as flour for baking breads, pastries, crackers, and pasta products, and they can even be used to create ice cream flavors like root beer float. When consumed with meals that are high in satiety and low in glycemic load, it helps to reduce the risk of rapid break-down of carbohydrates. Alfalfa is rich in dietary fibers, which helps regulate bowel movements and lowers cholesterol levels, thus improving constipation.

Global Alfalfa Seeds Market: Regional Analysis

Regionally, Europe is to dominate the global alfalfa seed market over the forecast period. The  Europe region is accounted for the largest exporter and importer worldwide. According to the Coherent Market Insights analysis, the U.S. is the world’s largest exporter and importer of alfalfa seeds. Its imports represent 17.7% of the world’s imports of alfalfa seeds, while its exports represent 33.6% of the global exports of alfalfa seeds. With the increasing demand for dairy products, the Asia Pacific region is expected to witness the fastest growth rate over the forecast period. This growth is mainly due to the growth in livestock population, which requires the expansion of the forage crop area. Moreover, the increasing demand for quality agricultural seeds is also fueling the growth of this market. In addition to this, increasing awareness about the nutrition levels of alfalfa is likely to boost the market growth over the forecast period.

Global Alfalfa Seeds Market: Recent Developments

• In 2020, Calyxt, Inc., a plant-based synthetic biotechnology company, announced that it has entered into commercial terms with S&W Seed Company for the exclusive license of quality alfalfa seeds in the U.S. and other select geographies. This is the company's first commercial trait licensing arrangement, and sales predictions in the U.S. suggest that the trait may produce more than US$10 million in licensing revenue over the patient’s lifetime.
• On October 5, 2020, Barenbrug, a producer and marketer of grass seeds and related products, acquired Jacklin Seed Company, U.S.A has been frontrunner in grass seed production and processing for many years. Jacklin Seed has been a pioneer in grass seed production and processing for many years. This has helped the company expand its product range.
• In July 2020, Barenbrug entered into an agreement with Nuseed Pty Ltd, is a global agricultural innovator which enabling a transformation of select crop into the renewable and traceabal sourceof lower carbon energy and plant-based nutrition and also to license Nuseed Pty Ltd, sunflower germplasm collection, as well as perform Research and Development Barenbrug also obtained licenses for Nuseed’s sunflower sales, distribution, and forage-sorghum as well as grain sorghum. This increased the company’s market presence in Australia.
• In July 2020, Royal Barenbrug Group, a company active in the research and development of grass seed worldwide, established a new laboratory for climate-resistant grass products in Nijmegen country. This new laboratory is a part of the company's three centers of excellence for seed enhancement.

Global Alfalfa Seeds Market: Key Companies

The global alfalfa seeds market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing Research and Development and efforts by value chain participants. Moreover, key players are adopting business growth strategies in order to expand their presence on the regional and global bases. Some of the key players in the global alfalfa seeds market are Alforex Seeds LLC, DLF International Seeds, DuPont Pioneer, Dyna-Gro Seed, Forage Genetics International, Lacrosse Seed, LG Seeds, Monsanto Company, S&W Seeds Company, and Allied Seed LLC.

*Definition: Agricultural seeds play an important role in livestock production. Alfalfa seeds are rich in protein and vitamins. They also provide high yields per hectare. They are also known for their ability to improve the soil structure. Alfalfa seeds are also used in many foods including baked goods and ice cream. They are also used as flavor enhancers. Recently, agricultural seed companies have developed improved products that can increase the livestock production.

Detailed Segmentation:

• Global Alfalfa Seeds Market, By Application
  • Agriculture
  • Food
  • Others
• Global Alfalfa Seeds Market, By Region
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa