The seed treatment market in Brazil is estimated to register a CAGR of 9.1%, during the forecast period (2020-2025).
The major driving factors for the market are the increasing adoption rate of genetically engineered seeds in the country and the rising production level of quality soybean for both domestic consumption, human and livestock, and the export market. These factors have given a boost to the seed treatment market in Brazil in recent years.
The market share analysis of the study concluded that the market was consolidated with a few international players occupying a major portion of the market through a diverse product portfolio. Some of the major players in the Brazilian seed treatment industry include Syngenta, Bayer CropScience, BASF SE, Corteva Agriscience, Advanced Biological Marketing, and Nufarm Limited, among others.
Key Market Trends
Rising Adoption of GM Seeds
Brazil, one of the largest food baskets in the world, has registered a steep rise in the adoption of genetically modified crops, with the total area under transgenic crops amounting to 50.2 million hectares in 2017, as revealed in a study by International Service for the Acquisition of Agri-biotech Applications (ISAAA). Cotton, soybean, and corn are the major biotech crops prevalent in Brazil. The area under GM crops further rose by 1.1 million hectares in 2018, thereby, leaving a wider scope for the seed treatment market to capture potential space in the expansion in treating seeds on a massive scale. For instance, Bayer would reportedly launch the INTACTA 2 XTEND seed technology, which allows the genetically modified soybeans to be treated with dicamba without being harmed, in Brazil during the 2021-2022 cropping season. As a result, the surging area under genetically engineered seeds in Brazil is anticipated to lead to rapid penetration of seed treatment products, thereby, driving the market, during the forecast period.
Increasing Production of Soybean
Soybean, one of the largest growing crops in Brazil, has been witnessing a rapid rise in its production, from 86,760.5 thousand metric ton in 2014 to 117,887.6 thousand metric ton in 2018. The area harvested also rose by 12% from 30,273.7 thousand hectares in 2014 to 34,771.6 thousand hectares in 2018. Further, a competitive Real driven by the devaluation of the currency against the US Dollar, is expected to boost soybean prices by almost 10% in the export market, further encouraging farmers to raise the level of production in the country. Moreover, a growing need for high-quality domestic ingredients for livestock feed in the country is anticipated to play a vital role in driving soybean production. These factors would prove beneficial for the seed treatment industry in the coming years. In light of the rising demand, BASF launched Bomvoro, an efficient solution for the treatment of soybean seeds, in Brazil, in 2018.
The market for seed treatment in Brazil is consolidated with a few global players leading the market with a highly diversified product portfolio and several acquisitions and agreements taking place while vying for an expanded foothold in the industry. Some of the major players in the Brazilian seed treatment industry include Syngenta, Bayer CropScience, BASF SE, Corteva Agriscience, Advanced Biological Marketing, Nufarm Limited, and Valent Biosciences Corporation, among others. The emergence of various agreementR&D us, followed by acquisitions and R&D investments in the biological research divisions in the expanding marketplace, are the most adopted strategies of the market leaders. For instance, in July 2017, Bayer, in partnership with Novozymes, launched two on-farm seed treatments, inoculant Biagro 10 and Biagro Líquido NG, in Brazil. IHARA launched CERTEZA N in Brazil in April 2019, which is the first fungicidal seed treatment product for controlling nematodes.
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