Summary

The Thailand seed market was at USD 682.8 million in 2020, and it is anticipated to register a CAGR of 5.4% during the forecast period (2021-2026). In order to deal with the COVID-19 pandemic, several restrictions were put in place in Thailand initially to contain the virus from spreading. However, the government implemented various strategies to maintain food security and the availability of labor in the country. Hence, the Thailand seeds market is assessed to observe a moderate impact of the COVID-19 epidemic in 2021.

The favorable factors making Thailand an attractive hub for seed production are suitable geography and weather, which ensures seed production all year, skilled farmers, infrastructure, rising investments in the seed sector by foreign agencies, and excellent connectivity. The rising seeds demand by regional markets and farmer preferences, requiring specific plant characteristics and disease resistance varieties, are driving the seed market over the long term. However, some factors, such as the unavailability of required capital for fruit crop production in the country and the new government regulations,​ are expected to restrain the market growth during the forecast period.

The Thai seed industry is among the most well-established in the Asia-Pacific region. Many organizations, including the Thai Seed Trade Association and the Seed Association of Thailand, along with the Ministry of Agriculture, are working toward developing Thailand into a seed production hub. In 2017, a partnership was established between East-West Seed Company and the Thai government to invest in R&D activities for the development of new varieties of quality seeds and cultivars for producing quality output.

Key Market Trends

Rising Investments in the Seed Sector Driving the Seed Export Market

The Thai seed industry is among the most well-established in the Asia-Pacific region. Over the past few years, foreign investment, especially for the R&D of new varieties, hybrid seeds, has immensely increased in the country. In 2016, East-West Seed donated THB 1 (USD 28,000+) million for the new bioinformatics program at the Center for Agricultural Biotechnology (CAB), at Kasetsart University Thailand. In 2017, a partnership was established between East-West Seed Company and the Thai government to invest in R&D activities for the development of new varieties of quality seeds and cultivars for producing quality output. In 2018, HM Clause inaugurated its new R&D station in Khon Kaen, North East of Thailand. The station is supporting breeding for hot and humid markets of the world for tomato, hot pepper, cucumber, watermelon, melon, and tropical sweet corn. Besides breeding and disease screening, this station supports generation advancement, speed to market breeding, and adaptation trials of other vegetable crops. The rising investments in the seed sector have also pushed the country to export various seeds. Thus, this is further expected to enhance the Thailand seed sector.

Rice Dominates the Thai Seed Market

Thailand is among the leading supplier of rice in the South Asia region. Thai rice is renowned for its quality, including white rice and Thai fragrant or jasmine rice. White rice is primarily produced in the Central Region, whereas jasmine rice predominates in the Northeast Region. The northern region contains almost one-third of the land area of Thailand. According to the FAO, the rice production in Thailand was recorded at 32.4 million metric ton in 2018. The unfavorable weather conditions in the country, such as floods and drought, are the major constraint to rice production in Thailand.

At present, the Thai rice market is dominated by Open Pollinated Varieties (OPVs). However, the combined efforts of the government and the private companies in Thailand are expected to boost the hybrid seed market in the country in the coming years. Recently, in 2020, the new high-yield soft variety of rice called RD 79, or Kor Khor 79, has been introduced by the Rice Department, Thailand. RD79 has been designed to resist disease and tolerate drought better than the country’s traditional grains. Hence, the development of new rice varieties is expected to bridge the yield gap in the country and secure the place of Thailand as a leading rice supplier.

Competitive Landscape

The Thailand seed market is moderately concentrated, with the major players constituting a share of 40% in 2020. While only a small number of seed companies in Thailand conduct their R&D, their investments have driven competition in the market for higher-quality varieties. Some of the key leading companies are East-West Seed (Thailand) Co. Ltd, Chia Tai Co. Ltd, Syngenta Thailand, Pacific Seeds (Thai) Ltd, and Pioneer Hi-Bred (Thailand) Co. Ltd.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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