Seed Treatment Market: Opportunities And Challenges

The global seed treatment market is estimated to be valued at USD 6.4 billion in 2020 and is projected to reach USD 11.3 billion by 2025, recording a CAGR of 12.1%. Seed treatment serves the purpose of seed disinfection, as well as disinfestation and protection based on the features and purpose of the treatment. The increase in the demand for high-efficiency seed chemicals and need to turn every seed into a viable seedling and produce high yields is driving the market.

Market Dynamics

Driver: Serves as insurance to seed investments

The seed treatment market has gained significant success in terms of product development with respect to seed coating and achieving crop efficiency at the early seedling stage. Today, these seed treatment products not only help in protecting the seeds but also help in acting as seed enhancers, in turn, improves the crop yield. The basic functions of the initial seed treatment were majorly to control certain soil pathogens that affect seed performance. In addition, innovations with different formulations and active ingredients have now helped in seed treatments, which have a broad spectrum of protection against insects, diseases, and nematodes, with a combination of insecticides, fungicides, and inoculants.

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Restraints: Limited shelf life of the treated seed

Seed treatments can protect the seed and seedlings from low-moderate attacks by insects during the emergence and establishment of plants. Although the duration of protection may be limited, a delay in crop damage and pest establishment can be lowered. Due to the limited shelf life of treated seeds, seed germination and vigor decline relatively increase, particularly in seeds such as soybean. The survival of the microbes is affected by the physical and chemical properties of its formulation. The maintenance of the viability of the coated microbes in seeds can be challenging, therefore, shortening their shelf life.

Opportunities: Innovative combination of products

With the increase in R&D activities pertaining to seed treatments, there have been various innovative product developments that can enter the market in the next five years. Manufacturers of seed treatment products are developing innovative combinations of these products, which could be extremely beneficial for crop yields, both qualitatively and quantitatively. These combinations of chemical-biological and biological-biological components can be marketed and distributed to farmers in a customized way, depending on the crop to be harvested and the soil conditions. Manufacturers, such as Bayer and Syngenta, have been developing biological seed treatment products based on crop growing conditions at the regional level.

Challenges: Growing resistance to crop protection products

To achieve profits, growers have limited their adoption of good agricultural practices, such as controlled pesticide application in dosage limits and crop rotation. For instance, Brazilian farmers have been combating the soybean rust problem since it was first discovered in Brazil during the 2000/01 sowing season. It took a significant number of years for researchers and farmers to develop successful strategies to limit the extent of damages from the disease. However, recently, farmers and researchers have observed an increase in resistance from these diseases and new active ingredients.

By type, the chemical seed treatment is projected to dominate the market during the forecast period.

Chemical seed treatment witnesses increased preference among farmers due to its effectiveness, availability, and simpler application technique. Research shows that treating seed with one or more pesticides is the most economical way to protect them from pests and enhance seed quality. Pesticide manufacturers have been assisting in the formulation of chemical combinations for seed processors. Many key companies, such as Bayer AG (Germany), Syngenta AG (Switzerland), and Corteva Agriscience (US), offer broad-spectrum chemical seed treatment solutions for controlling seed and soil-borne diseases in a broad range of crops. This exponential growth in this North America region is attributed to government subsidies, increasing need to improve and protect food production, and rising awareness of seed treatment.

By application time, the pre-treated segment is projected to be the fastest-growing segment in the seed treatment market during the forecast period.

Pre-treated seed treatment includes the application of the formulation chemically or biologically by the seed companies. Most of the key companies, such as Bayer AG (Germany) and Syngenta AG (Switzerland), treat the seeds with chemicals, such as thiram (fungicide), before selling it to farmers to protect the seeds from seed-borne and soil-borne diseases in the initial stage of their growth. Today’s modern seed treatment products meet high safety and efficacy standards. The new active substances and formulations provide long lasting, broad spectrum, systemic control of diseases and insects. They are cost-effective and exhibit enhanced efficacy against various pests.

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Key Market Players

Key players in this market include BASF SE (Germany), Bayer AG (Germany), Novozymes A/S (Denmark), Syngenta AG (Switzerland), Corteva Agriscience (US), FMC Corporation (US), Adama Ltd (Israel), Croda International (UK), UPL Ltd (India) and Nufarm (Australia) and EastMan Chemicals (US). These major players in this market are focusing on increasing their presence through expansions & investments, mergers & acquisitions, partnerships, joint ventures, and agreements. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities, along with strong distribution networks across these regions.

Market research Analyst, Business Research