Global seed treatment market size was estimated at USD 2.98 billion in 2013. Low cost seed protection solution is expected to be one of the key drivers for market growth. Seed treatment industry is expected to witness growth on account of increasing R&D in order to enhance the genetic yielding potential of seeds, which in turn increases productivity. It comprises of various fungicides and insecticides used for providing protection against bacteria, fungus and viruses during the stage of seed growth and development.
Growing demand owing to reduction in resource wastage by enhancing quality is likely to propel demand for the product over the next few years. In addition, they have effective control over seed and soil borne diseases and infections.
Certain treatments provide pathogen resistance and prevention of transmission of infections which is expected to have a positive impact towards the market growth. Increasing global population coupled with initiatives being numerous regulatory agencies to fulfill minimum food requirements of the populations is expected to drive measures to improve crop yield.
Formulation and registering of products is a time consuming process for manufacturers involving high costs. Stringent government regulations regarding ingredient usage and registration is also expected to be a major restraining factor towards market growth. Furthermore, product standardization issues coupled with low shelf life of products hinders market growth resulting in conventional methods garnering preference over them.
North America seed treatment market revenue by crop type, 2012-2020, (USD Million)
Crop Type Insights
Corn/maize accounted for over 30% of the global seed treatment industry. Growing demand for corn in manufacturing bio-fuels is expected to result in market growth. In addition, corn is a key ingredient used in manufacturing starch and starch products, accounting for a majority share in starch as well as modified starch market.
Canola is expected to witness fastest growth at a CAGR of 10.3% from 2014 to 2020. Growing demand for canola seeds owing to its high oil content is expected to have a positive impact on market growth over the next few years. In addition, increasing utilization of canola in manufacturing bio-fuels is expected to result in increasing production volumes.
Reduction in arable land available for farming calls for improved productivity to meet the growing demands. High vulnerability of certain seeds such as corn, cotton, wheat, canola and soybean has resulted in extensive seed treatment application in their cultivation.
Treatment Type Insights
Insecticide accounted for the majority market share of over 50% owing to its widespread use in providing effective protection to seeds against pests or diseases such as wilt, rot, bacteria, aphid, and fungi. In addition, low cost and easy execution practices are likely to drive demand for insecticides over the forecast period.
Non-chemical treatments are expected to witness growth at a CAGR of 10.3% from 2014 to 2020. Rising concern for human health and environment is expected to augment market growth for non-chemical alternatives. In addition, growing popularity of organic farming methods has resulted in increasing demand for non-chemical products.
North America seed treatment market was valued at USD 1.27 billion in 2013. The region dominated the global market on account of increasing demand for improved variety of seeds in the region. In addition, the treatment coupled with genetic modification of seeds is prevalent in the region which is expected to drive demand over the forecast period.
Asia Pacific is expected to witness fastest growth at a CAGR of 10.6% from 2014 to 2020. Rising consumer awareness coupled with overall growth in the agriculture industry in the region is expected to have a positive impact towards market growth. In addition, technological advancements coupled with increasing R&D related to improving crop quality is expected to propel growth over the projected period.
Syngenta, Bayer CropScience, Monsanto, BASF, Chemtura, Nufarm, DuPont, Becker Underwood, Wolf Trax Incorporation, Plant Health Care, Valent U.S.A. Corporation, Precision Laboratories Incorporation, Sumitomo Chemical Company Limited, Novozymes A/S, Advanced Biological Marketing, Morflora, ASTEC Global, Incotec Group BV, Cibus Global, Germains Seed Technology, Ceres Inc. and Brettyoung Limited dominated the global seed treatment market share in 2013.
The market is characterized by manufacturers registering patents and focusing on improving product quality by enhancing research and development. In addition, requirement of these products with enhanced disinfectant properties resulting in improved seed growth is expected to promote ongoing research by various manufacturers.