The Asia-Pacific seed treatment market is estimated to register a CAGR of 7.1%, during the forecast period (2020 - 2025).
Seed treatment is defined as the application of chemical ingredients in seeds, in order to ensure seed protection. This treatment can be done by suppressing, controlling, or repelling plant pathogens, insects, or other pests that attack seeds, seedlings, or plants.
Additionally, it enables seed enhancement by improving their performance post-harvesting and conditioning them before they are sown. Seed-applied technologies, such as inoculants, herbicide safeners, micronutrients, plant growth regulators, seed coatings, and colorants, among others, can also be applied to the seed.
The chemical seed treatment methods segment occupied a major share (91.17%) in the Asia-Pacific seed treatment market, while the rest 8.89% of the market share is occupied by the non-chemical/biological treatment methods segment.
Key Market Trends
Increase in Cost of High-Quality Seeds is Driving the Market
- High cost, associated with hybrids and genetically modified seeds, is a major 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.
- The cost of seeds is expected to increase, owing to an increase in the demand for high-quality seeds, with desirable agronomic traits. Both companies and farmers are ready to spend on seed treatment solutions, in order to preserve high-quality seeds.
- According to USDA estimates of 2017, corn seeds cost about 300% since 1995, while the yield grew by only 35%. Farmers are trying to cut down operating costs by selecting seeds that do not require multiple doses of chemicals. The initial protection of these engineered seeds is ensured by using seed treatment products.
China Dominates the Market
- China is the largest country, in terms of consumption of seed treatment chemicals, especially for maize, and holds a market share of 93.3%. Whereas India stands second, with a market share of approximately 6%.
- In China, the demand for seed treatment chemical agents is estimated as USD 130.77 million in 2016, and it is projected to reach USD 229.44 million by 2020, maintaining a CAGR of 11.9% during 2015 - 2020, which is the highest in Asia-Pacific.
- The chemical seed treatment segment occupies a larger market share of 90%, while the non-chemical seed treatment segment is the fastest, registering a CAGR of 21.28% in the forecast period.
- Corn, wheat, and soybean are the most important crops in the Chinese market, followed by cotton. Corn is the most important raw material for feed production in China and occupies the largest market share in the seed treatment market.
- Seed treatment is high in Northern China, where major production of corn and wheat takes place. The rate of seed treatment is also found to be higher in large farmlands in the country. However, due to the cheaper cost dimension, fungicides are used more in quantity. Due to the changing weather conditions and through biological mutations, several crop-threatening pests have become resistant to chemical agents that are in pesticides.
- Furthermore, as the combination of chemical agents are displaying more success in compacting the pests, there is an increasing drive for chemical treatment products combining insecticides and fungicides.
Some of the key companies in the market are ADAMA Agricultural Solutions Ltd, BASF SE, Nufarm Limited, and Rallis India Limited, among others. The key players are focusing to expand their business in Asia-Pacific. The leading players in this market adopted various strategies, to strengthen market opportunities and increase their market shares. Acquisitions, agreements, and joint ventures are the major strategies adopted by the major players.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support