Cotton Seed Market Size, Share, Industry, Forecast and outlook (2024-2031)

Cotton Seed Market is Segmented By Technology (Hybrids, Open Pollinated Varieties & Hybrid Derivatives), By Application (Cotton Planting, Cottonseed Oil Production, Fertilizer), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, And Africa) – Share, Size, Outlook, And Opportunity Analysis, 2023-2030 

Cotton Seed Market Overview

The Cotton Seed Market report analyzes the global market size, shares, recent trends, competitive intelligence, and future outlook. Cotton seeds are a byproduct of the cotton industry and are used for oil extraction and animal feed. The market is driven by the increasing demand for edible oils and protein-rich animal feed, the growing awareness about the health benefits of cottonseed oil, and the expanding cotton cultivation. In Asia Pacific, the Cotton Seed Market is witnessing significant growth. Key players in the market include Bayer AG, BASF SE, DowDuPont Inc., and other prominent players.

Cotton seeds are seeds of the cotton plant. The mature cotton seeds are brown and weigh about 10 grams. By weight, they are 60% cotyledon, 32% coat, and 8% embryonic root and shoot. They contain 20% protein, 20% oil, and 3.5% starch. The cotton seed contains Vitamin E and K, saturated fatty acids, monounsaturated fatty acids, and polyunsaturated fatty acids. These seeds are used for cotton planting, production, and fertilizer. Cotton is one of the important cash crops of India and plays a dominant role in the industrial and agricultural economy of the country. Seeds play an important role in the growth and development of crops. Increasing demand for cotton seeds for planting, oil production, and fertilizer helps to boost the market growth in the forecast period.

Cotton Seed Market Scope and Summary

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Cotton Seed Market Trends and Dynamics

Growing demand for cottonseed oil helps to boost the market growth of cottonseed

Cotton seeds are commonly used in processed food such as potato chips, cookies and crackers, margarine, mayonnaise, and salad dressing to extend the shelf life of products. Cotton seed oil is also frequently used in the baking of products. It provides a solid fat index for shortening, making baked goods that are moist and chewy. It also helps achieve a creamy consistency in icing and whipped toppings. It is also used in fast food deep frying because it enhances flavor instead of masking it. Increased consumers demand cottonseed oil because it is less costly than other vegetable oils. It is also used in oil lamps and to make candles. It is also used in laundry detergent, insecticides, and cosmetics. Cottonseed oil contains a high concentration of vitamin E, antioxidants, and fatty acids that are useful for skin moisturizing, anti-aging, and anti-inflammatory properties.

Also, an increase in cottonseed oil's health benefits helps boost market growth. Cottonseed oil helps to reduce inflammation. Cotton seed oil only contains 18% of monosaturated fat. Cotton seed oils are also beneficial in the reduced risk of cardiovascular disease. Unsaturated fats in cottonseed oil help to reduce low-density lipoprotein and help increase high-density lipoprotein. It can improve blood pressure and reduce the risk of heart disease and stroke. Cottonseed oil is a rich source of vitamin E, an antioxidant that benefits the skin, including faster wound healing. Vitamin E has also been shown to positively affect skin ulcers, psoriasis, and other skin conditions and injuries. Cotton oil plays an important role in hair moisturizing, preventing protein loss, and protecting against styling and environmental damage. Cottonseed oil contains unsaturated and saturated fatty acids that play an important role in preventing cancer cell growth.

COVID-19 Impact on Cotton Seed Market Growth

Negative impact on the global cotton seed market

The rapid spread Covid 19 has severely impacted the global supply chain. Reduction in the export of cotton hampers market growth. U.S. cotton exports are currently forecasted at 15 million bales, down 1.5 million bales from the April forecast. The decline of global cotton demand hampers cotton seed growth. Trade uncertainty, increased levels of global competition, and economic recession due to the COVID-19 crisis all factor into continued downward pressure on cotton seeds

Major key players in the industry are focusing on creating innovative tactical solutions to deal with urgent crises like the COVID-19 epidemic. Cotton seed farmers require the administration to quickly release updated BT cotton seed costs to avoid a lack of seeds. Major key players in the cotton seed are experiencing a shortage of personnel and raw materials due to the pandemic scenario, which is anticipated to hurt the cotton seed market. 

Cotton Seed Market Segmentation

The hybrid segment accounted for the highest share of the global cotton seed market

Hybrid cotton seeds have 50% more productivity as compared to other varieties. Hybrid cotton seeds have wider adaptability, high resistance to biotic and abiotic stresses, and better fiber quality. It can be developed with comparatively less time frame than other varieties. They offer uniform fiber quality. Some advantages of hybrid cotton seeds are superior fiber properties, superior yield performances, wider adaptability, and good prices for produce. Adopting technological advancement by major key players helps boost seed quality. For instance, Kaveri seeds adopt GMS technology for hybrid cotton seeds. GMS technology helps identify female lines at the seedling state itself. It also helps reduce labor costs by 10-12% and improves profit margins. In February 2022, Bayer revived the plan to introduce new GM cotton seeds in India. In October 2021, Platinum BG2, a new type of hybrid cottonseed by Veda Seeds, gave the highest cotton yields to the farmers. The company’s cotton seed offers high-quality seeds with good yielding capacity.

On the other hand, the market for cottonseed oil production application is projected at USD YY million in 2022 and is estimated to grow at a CAGR YY% during the forecast period (2023-2030) to reach USD YY million by 2030. The cottonseed oil production application held a major share of the cottonseed market. Traditional crude methods and scientific processing can process cotton seeds. Some major key players started new production facilities for cotton oil processing to fulfill consumer demand. For instance, in March 2022, Shree Ram Proteins Ltd set up a new oil refinery to fulfill consumer demand. The company will launch rape seed oil, groundnut oil, and cottonseed oil by the end of January 2023. This new facility helps to increase the company’s turnover.

Cotton Seed Market Geographical Analysis

Asia-Pacific is the dominating region during the forecast period

In 2022, Asia-Pacific had the highest revenue share of almost YY percent. Major cotton-producing countries are India and China. India has the largest cultivation area under cotton in the world and cultivated species, namely, G. hirsutum, G. barbadense, G. herbaceum, and G. arboreum on a commercial scale. India's major cotton-growing states are Punjab, Haryana, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, A.P., Tamil Nadu, and Karnataka. Among the major cotton-producing countries, India and China are the only two in which hybrid cotton is cultivated on a large scale. Some of the major key players in the region follow a merger and acquisition strategy to expand their business. For instance, in December 2021, Crystal Crop Protection acquired the seeds business of Bayer in India, comprising Cotton, Mustard, Pearl Millet, and Grain Sorghum hybrids. This acquisition strengthens the company's business. Major Key players in the region also focused on product launches which helped to boost the market growth in the forecast period. Increasing the demand for cotton seed for oil production in the region also helps to boost market growth.

Cotton Seed Companies and Competitive Landscape

The global cotton seed market is competitive, with the leading players capturing a whopping share in revenues. Longping High-tech, Monsanto, DowDuPont, Nuziveedu Seeds Ltd, Kaveri Seeds, Mayur Ginning & Pressing Pvt. Ltd, Bayer AG, Corteva Agriscience, Maharashtra Hybrid Seeds Co. (Mahyco), and Namdhari Seeds Pvt. Ltd. are focused on technology advances for new launches at affordable prices. The major players are utilizing strategies including acquisitions & mergers, regional expansion, and partnerships to stand out as strong competitors in the market. Increased focus on R&D and new product launches are additional ways the key players improve their market presence. In July 2020, Corteva acquired PhytoGen Seed. With a 53.5% stake before the agreement, Corteva has operated this joint venture in the U.S. The company grows its business of cotton seed products through this joint venture. In February 2022, Bayer planned to plant new GM Cotton Seeds in India. The GM cotton seed variety could reduce cultivation costs in India, increase crop yields, and act as an antidote to the pink bollworm pest. In June 2022, Haryana granted NOC to Mahyco for field trials of the BT cotton variety.

The global cotton seed market report would provide access to approximately 53 market data tables, 41 figures, and 200 pages