The seed treatment market is projected to register a CAGR of 9.8% during the forecast period (2020-2025). In 2019, 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 on 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.
Key Market Trends
Rising Cost of High Quality Seeds
The high costs associated with hybrids and genetically modified seeds is a major factor that is driving the growth of the seed treatment market, globally. With higher regulatory issues relating to fumigation and foliar application of pesticides, seed treatment is being increasingly considered by farmers as a mode to protect high investments made on good quality seeds. Owing to the increasing demand for high-quality seeds with desirable agronomic traits, the cost of seeds is increasing.
Owing to the fact that most of the GM seeds are costly and are treated with biological and chemical treatments, there is an increase in area under GM crops, which is positively affecting the seed treatment market growth. 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. Moreover, this trend is expected to continue in the upcoming years, due to an increase in the number of countries- particularly in the Southern hemisphere- adopting biotech crops, and the commercialization of new biotech crops such as cotton, maize, and soybean, which is mostly grown in developing countries.
Europe Dominates the Seed Treatment Market
In 2019, Europe witnessed 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 export 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 the use of chemical products in the region, are encouraging the use of 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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