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Global Horticulture Industry

The global horticulture industry (segment of the agricultural product business) is being fuelled by increasing consumer demand for high quality products along with soaring seed demand to cater to a rapidly expanding global population. Consumers are demanding quality for money, especially when it comes to flowers. Commonly used for day-to-day home decoration in the past, flowers are playing an increasingly important role in the occasions sector, with increasing numbers of consumers opting to give flowers to mark celebrations such as anniversaries or retirement parties.

Growth in the global seed market is being facilitated by the approval of genetically engineered and hybrid seeds by states and institutional bodies. Genetically modified seed use is rising due to increased seed prices worldwide. While not enough research has been carried out to make genetically modified seeds the number one option for farmers, they are gaining in popularity and may pose a threat to small farmers unequipped to match genetically modified seed manufacturers.

Horticulture Sector Key Market Segments

Demand for cut flowers continues to grow due to changing consumer attitudes, rising disposable income following the global recession, the increasingly popularity of online trading, and greater quantities and varieties of flowers for sale. Flower marketing is also playing a role in boosting sales through promotional tactics, reports Global Industry Analysts. The global cut flowers market is increasingly competitive.

Cut flower exporters from emerging countries are evolving to represent a greater share of the overall market, encroaching on developed regions’ market share. Flower growers are seeking to maintain market share by stepping up flower production and quality. Growers are also diversifying and concentrating more on innovation. Following the reduced spending of the economic recession, costs have been rising and prices stagnating due to diminishing grower margins. Growers have, therefore, been focusing on cost leadership through scaling up, product specialization and bulk production.

Global Industry Analysts forecasts the global seed market will be worth $47 billion in 2015. Factors driving demand include food demand, rising population, higher farming standards, biotechnology practices in seed development, hybrid seeds, high-end biotech crop varieties and demand for pest-resistant seeds.

Genetically modified seeds sell at premium prices, while affording farmers economic advantages. The worldwide seed industry is expected to continue growing due to evolving global farming standards. Biotechnology is giving rise to new and high-end varieties to boost market value. The genetically modified crops market segment is forecast to record strong growth. Biotech crop acreage grew to almost 335 million in 2009, with close to 15 million farmers located throughout 25 nations adopting biotech crops. Emerging lines of genetically modified crops are boasting higher nutritional value and improved pest protection.

The US dominates the genetically engineered crop market, with the largest total acreage. The market is highly competitive, with a mix of large and small outfits forced to compete through product performance, research and development, and by obtaining and protecting intellectual property rights. Successful companies operating in the global seed industry include Bayer Crop Science, Syngenta, Monsanto and DuPont.

The global biotech seed market is expected to record yearly growth of almost 26% between 2011 and 2013, according to research from Koncept Analytics. Demand will continue to grow as the global population rises. The need to feed growing numbers of people is encouraging research and development to find better varieties of both traditional seeds and new genetically engineered seeds.

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Parent industry: Agriculture
Related industries: Agricultural Products, Livestock, Agricultural Input, Agricultural Technology

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