The seed treatment market (henceforth, referred to as the market studied) was valued at USD 4.93 billion in 2018, and it is expected to register a CAGR of 9.8% during the forecast period (2019-2024). In 2018, Europe is the largest geographical segment of the market studied and accounted for a share of around 33.2% of the overall market. By application techniques, seed dressing is the largest segment of the market studied and registered a 37.3% share of the global market in 2018.
- Various regulations and government agencies are encouraging the use of seed treatments because seed treatment offers effective seed protection from pathogens, insects, and other pests, in addition to contributing to the healthy and uniform stand establishment of a variety of crops produced.
- The seed treatment market is driven by increasing awareness among the farming community, increasing demand for food grains, and economic growth among countries, among other factors.
- Innovation in seed treatment technology is important to combat the problem of climate change, develop resistance toward certain agrochemicals, and stay ahead of competitors. Hence, more seed industries are focusing toward forging new collaborations and the introduction of new products, in order to take advantage of innovations in both biology and chemistry of new seed treatment technologies. For instance, DowDuPont Inc. had launched three critical seed treatment products for farmers in Canada and the United States in 2017.
Scope of the Report
The corporations in seed treatment operate in B2B, as well as B2C business format. Environmental concerns regarding the use of chemical seed treatment agents have been gaining ground, in recent times. Due to this, the market for biological seed treatment agents, that are free of toxic chemicals and provide treatment options on par with or even better than chemical agents, has been in high demand, over the past few years. Multiple seed banks are being managed by the governments of developing countries, at national, as well as village level, in order to store seeds that are properly treated by seed treatment chemicals, hence preventing the rotting of seeds.
Key Market Trends
Increase in Cost of High-quality Seeds
High cost associated with hybrids and genetically modified seeds is one of the significant factor driving the growth of the seed treatment market, globally. Seed treatment is being increasingly considered by farmers as a mode to protect investments made on good quality seeds, due to an increase in regulatory issues relating to fumigation, as well as the foliar application of pesticides. Replanting of seeds, due to poor germination and insect attack is expensive. Moreover, the high cost of labor requirements is associated with the overall cost. Thus, seed treatment is an effective solution for farmers because good quality seeds lead to better produce. Owing to the fact that most of the GM seeds are costly and treated with biological and chemical treatments, there is an increase in area of cultivation of GM crops, which is positively affecting the growth of the seed treatment market. For the past five years, developing countries have planted more biotech crops, 19 developing countries planted 54% (99.6 million hectares) of the global biotech hectares, which boosts the demand for more biotech seeds.
Europe Dominates the Seed Treatment Market
In 2018, Europe witnesses the highest share in the seed treatment market and Spain has the largest market for seed treatment, followed by France, Germany, and Russia. A significant part of the organic crops produced in Spain is mainly used for exporting to other European countries, and increasing demand for the organic farming market in Europe is increasing the demand for the non-chemical seed treatment products. The demand for treated seeds is high in Germany, as cereal crops, like maize, barley, and fruits and vegetables, like grapes and sugar beet, are cultivated on a large scale in the country. Ban of GMO seeds, demand for higher yield, and the government’s discouragement in use of chemical products in the region, are encouraging the use of the biological seed treatment products.
The seed treatment market is highly consolidated. Several big players, like Syngenta International AG, Bayer CropScience AG, and few others, occupy a major portion of the market studied, having a diverse and increasing product portfolio. Companies are focusing majorly on new product launches, mergers, and acquisitions, which help in increasing their market shares. The development of bio-based seed treatment products has a massive potential for expansion during the forecast period, with advantages, like environmental sustainability and lesser regulations for development, and launch of new products.
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