Seed treatment provides effective protection to the seed from insects, pathogens, and other pests. Moreover, seed treatment also contributes to the production of healthy and quality seed. It has emerged as a cost-effective solution as compared to the traditional spraying method as it is less labor-intensive and enhance overall productivity.
The global seed treatment market is projected to surpass US$ 9.8 billion by the end of 2027, in terms of revenue, growing at CAGR of 9.2% during the forecast period (2020 to 2027).
Drivers
Increasing corn production due to rising demand for biofuels is expected to foster the market growth of seed treatment. Up surging demand for biofuels subjected to rising need to conserve energy is expected to fuel the market growth of seed treatment. Increasing fungal growth due to changing climatic conditions is expected to accelerate the market growth of seed treatment over the forecast period.
Growth in the seed market owing to the growing population around the globe is expected to propel the market growth. According to the United Nations, the world population is expected to reach 9.1 billion by 2050, which in turn is expected to drive the demand for food globally. An increase in global farming coupled with the growing application of seed treatment to both GMO seed and conventional seed is expected to augment the market growth of seed treatment.
Regionally, North America dominated the global seed treatment market in 2019, reporting 42% market share in terms of revenue, followed by Europe and Asia-pacific, respectively.
Figure 1. Global Seed Treatment Market, Revenue Share (%), By Region, 2019
Market Restraints
The risk factor associated with the use of chemicals used in the treatment of seed is expected to hinder the market growth of the seed treatment. Seed treatment is basically done by using herbicides, insecticides, pesticides, and other chemicals, and these chemicals are needed to handle with care.
The low margin for the major crop producers due to various economic factors is expected to hamper the market growth of seed treatment. Moreover, strict regulations on the usage of seed treatment due to the presence of various harmful chemicals is further expected to restrict the market growth.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 4.8 Bn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 9.2% | 2027 Value Projection: | US$ 9.8 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Syngenta, Bayer CropScience AG, Monsanto, BASF, Advanta India Ltd, Dow Agro Sciences, DuPont, Nufarm Ltd., Chemtura Agro Solutions, and Sumitomo Chemical Co. Ltd. |
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Market Opportunities
The growing need for sustainable farming is creating demand for biological seed treatment across developing regions is expected to provide potential market opportunities. For example, non-chemical see treatment is gaining importance as it includes antagonist bacteria, antagonist fungus, and biological agents. In this process, these bacteria is placed in the soil environment in order to colonize the seedling and protect them from the soil-borne disease.
Growing concern regarding food safety and rising environmental concerns are expected to provide enormous opportunities for the market of seed treatment. Ongoing development in the agriculture industry coupled with the expansion of the food industry due to increasing spending on the food products by all income groups is further anticipated to accelerate the market growth of the seed treatment over the forecast period.
Figure 2. Global Seed Treatment Market – Opportunity Analysis
Market Trends
Consumption of organic food is a key trend in the market and this is attributed to improving the lifestyle of the consumer and increasing the disposable income of the consumers. Growing awareness regarding the health benefits of consuming food products is also expected to foster the market growth of seed treatment. The growing popularity of fungicides and insecticides among farmers is further projected to bolster the market growth of seed treatment.
Distribution agreement and partnership between key manufacturers is a major trend in the market and this trend is expected to bolster the market growth. For instance, in July 2017, Valagro, a production and marketing of biostimulants and specialty nutrients, has signed an agreement with Syngenta, an agriculture-focused company, to supply biostimulants for seed treatment.
Figure 3. Global Seed Treatment Market, Revenue Share (%), By Crop Type, in 2019
On the basis of crop type, corn/maize the global seed treatment market in 2019 with around 34% of market share in terms of revenue, followed by soybean and wheat, respectively.
Figure 4. Global Seed Treatment Market – Value Chain Analysis
Global Seed Treatment Market - Impact of Coronavirus (Covid-19) Pandemic
Recent disruptions in raw material availability in the manufacturing of agrochemicals owing to Coronavirus (Covid-19) Pandemic. In addition to this, this is expected to hamper food productivity and crop yields in various nations. Governments across the developing world are focusing to ease restrictions on the manufacturing of fertilizers and chemical intermediate used in agricultural industry.
Competitive Section
Key players are operating in the global seed treatment market are Syngenta, Bayer CropScience AG, Monsanto, BASF, Advanta India Ltd, Dow Agro Sciences, DuPont, Nufarm Ltd., Chemtura Agro Solutions, and Sumitomo Chemical Co. Ltd.
Few Recent Developments
Seed treatment is referred to seeds treated with chemicals or biological substances to protect the crop from insects and other pests. It is widely used in eradicating seed borne pathogens such as bunt or smut from barley, wheat, and oats, and can also be used to suppress root rots in certain crops. Due to the low dosage nature of seed treatments, use of pesticides and fertilizers on crops is reduced resulting in significant cost savings for farmers.
Market Dynamics
Feeding the growing population globally is one of the challenge faced by the world coupled with declining agricultural land owing to soil erosion, higher salinity levels and increasing urbanization. According to the United Nations, the world population is expected to increase from 7.6 billion in 2017 to 9.8 billion in 2050. Food security is a major concern for numerous countries around the world. This is expected to foster the demand for seed treatment in the next few years.
Utilization of seed treatment has been associated with increased yield. However, various alternatives to crop protection and enhancement techniques such as crop rotation and heat treatment of seeds are restraining factors for growth of the seed treatment market.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective.
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