The global seed treatment market size was valued at USD 3.86 billion in 2016 and is expected to exhibit a CAGR of 9.6% from 2014 to 2020. Increased demand in the agriculture sector and rising research and development initiatives to improve yield and seed potential are expected to drive the market over the forecast period.
Demand for seed treatment is growing in agriculture practices as it helps prevent seed- and soil-borne infections and diseases. In addition, it reduces germination time, enhances overall productivity, and improves crop yield.
North America is expected to account for a significant market share by 2020. Several policies set by regulatory agencies to ensure minimum food requirement, coupled with growing population, are expected to boost demand for seed treatment over the forecast period.
The global agriculture industry is poised to witness significant growth on account of increasing demand for organic vegetables and fruits as a result of rising health awareness. This is expected to drive the overall market for seed treatment.
Corn/maize dominated the global market, accounting for 34.5% of the overall revenue in 2013. The segment is expected to dominate this industry over the forecast period due to increasing demand for corn for the production of biofuels.
Global demand for soybean was valued at USD 748.2 million in 2013 and the segment is projected to register a CAGR of 10.0% from 2014 to 2020. Rising agricultural activities in the Asia Pacific region is expected to boost the market for soybean.
Surging demand for biofuels on the heels of energy conservation is expected to drive the demand for canola crop. The segment is likely to exhibit a CAGR of 10.3% CAGR from 2014 to 2020.
Insecticides dominated the global seed treatment market, accounting for 52.6% of the overall revenue in 2013. Habitat fragmentation, insect prone climate conditions in some regions, and high-performance organophosphates are driving the insecticides segment.
Fungicides accounted for 34.9% of the global demand in 2013. Rising demand from regions with favorable climate conditions promoting fungal growth is expected to drive the segment over the forecast period.
Other chemical treatment methods are gaining traction as consumer awareness regarding food safety and environmental concerns grow. Increased demand for organic fruits and vegetables is expected to drive this segment over the coming years.
Chemical seed treatments are known to result in adverse environmental impact and harmful effect on human health. Stringent regulations against the use of such treatments are expected to restrain the growth of this segment, making room for non-chemical methods.
In terms of revenue, North America is considered to be the largest regional market, accounting for 42.5% of the global demand in 2013. It is expected to retain its dominance in the market over the forecast period due to growing demand from the agriculture industry. Europe is expected to witness a CAGR of 8.9% from 2014 to 2020, fueled by rising demand for organic food products.
The Asia Pacific market expected to exhibit a CAGR of 10.6% from 2014 to 2020, owing to ongoing developments in the agriculture industry and increased awareness among consumers. This is expected to continue driving the market over the forecast period.
Latin America is projected to clock in a significant CAGR of 10.3% CAGR from 2014 to 2020. This can be attributed to increase in incomes of the people, which is expected to result in rising consumption of food products among all income groups.
Some of the key market players are Syngenta; Bayer; Monsanto; BASF; CropScience; Chemtura; DuPont; Nufarm; Becker Underwood; Plant Health Care; Wolf Trax Incorporation; Valent U.S.A. Corporation; Sumitomo Chemical Company Limited; Precision Laboratories Incorporation; Novozymes A/S; Morflora; Incotec Group BV; Germains Seed Technology; Cibus Global; Ceres Inc.; BrettYoung Limited; ASTEC Global; and Advanced Biological Marketing.
Leading players are focusing on increasing their market share along with profitability by indulging in research and development activities. Companies have undergone acquisitions and strategic alliances in order to develop broader applications of seed treatment methods.
This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of latest industry trends in each of the sub-segments from 2012 to 2020. For the purpose of this study, Grand View Research has segmented the global seed treatment market report based on type, crop type and region:
Type Outlook (Revenue, USD Million, 2012 - 2020)
Other chemical treatment
Crop Type Outlook (Revenue, USD Million, 2012 - 2020)
Regional Outlook (Revenue, USD Million, 2012 - 2020)
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The current pandemic situation has created disruption in the manufacturing of agrochemicals by virtue of raw material availability. Furthermore, this continual trend shall have a cascading effect on food productivity and crop yields on economies that are predominantly agrarian, during a time when demand for Agri produce shall register a spike over the medium term. Governments across the developing world are vying to incrementally ease restrictions on the manufacturing of fertilizers and maintain seasonal agricultural activities in order to reduce concerns regarding food security, which is a critical indicator for determining the course of a supply gap in the industry. The report will account for Covid19 as a key market contributor.