The South America Seed Treatment market is estimated to grow at a CAGR of 7.5% during the forecast period. Soybean, Corn/maize are the major type of crop for seed treatment applications in South America, estimated to account for 34% in 2019. Seed treatment can be defined as the application of chemical ingredients or biological organisms to the seed that enables in suppressing, controlling, or repelling plant pathogens, insects, or other pests that attack seeds, seedlings, or plants. Increasing the use of GM seeds for both soybean and corn in Brazil and Argentina is also increasing the demand for advanced technology, i.e. biological methods of treating the seeds, and therefore biological seed treatments are projected to witness double-digit growth in the coming years.

Key Market Trends

Increasing Demand For Treated Seeds

In South America, the cultivation of soybean and corn has experienced significant growth in the past few years. Brazil is the largest producer of both soybean and corn in South America. Being one of the major soybean producers, the adoption of seed treatment for soybean and corn was very high. In fact, seed treatment with fungicides has been practiced as one of the inexpensive methods to control seed and soil-borne pathogens in the country. The usage of fungicide-treated seed has increased drastically in the last few years. According to the research paper released by Universidade Estadual do, Norte do Paran?, in 2017, nearly 98% of the seeds of soybean sown in the region, were treated with fungicides. It was estimated that nearly 35-38% of soybean seeds are treated with neonicotinoid insecticides, 34-35% with fipronil, and 18-20% of producers use the commercial mixture of imidacloprid and thiodicarb.

Brazil Is Dominating The Market In South America

In Brazil, seed treatment is either done ’on-farm’ or through the Industrial seed treatment which is carried out before sowing of seeds. Seed treatment is one of the major solutions by the farmers in recent days to control seed-borne diseases, acting as a crucial factor for the pervasive adoption of seed treatment at the farmer level. Soybean and corn are the two major crops grown in Brazil. According to a news article, in 2016, approximately 98% of soybean and corn seeds are treated with the seed treatment chemicals to control insect and pest damages caused to the seeds. This indicates that most of the farmers are adopting seed treatment to increase seed germination and yield across the country. Soybean and corn being the major crop grown in Brazil, they contribute more to the seed treatment market. In 2018, Soybean holds a major share in the market followed by corn and other crops. Huge increases in acreages for soybean and corn in South America in recent years have opened up new business opportunities for companies operating in the industry.

Competitive Landscape

The seed treatment market is highly consolidated. Several big players, like Syngenta International AG, Bayer Crop Science 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 massive potential for expansion during the forecast period, with advantages, like environmental sustainability and lesser regulations for development, and the launch of new products.

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