Seed Treatment Market Size, Share & Trends Analysis Report By Type (Chemical Seed Treatment, Non-Chemical Seed Treatment), By Crop Type (Cereals & Grains, Oilseeds & Pulses), By Function (Seed Protection, Seed Enhancement), By Application Technique (Seed Coating, Seed Dressing, Seed Pelleting) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global seed treatment market size was valued at USD 8822.18 million in 2022. It is projected to reach USD 26041.42 million by 2031, growing at a CAGR of 12.78% during the forecast period (2023–2031).

Seed treatment safeguards plants from a wide variety of insect pests and diseases that can be transmitted through the soil. The importance of these insects to corn production has also been documented. The agricultural sector's need for better crops and higher-quality seeds drives growth in the seed treatment market. Seed treatment refers to applying chemical or biological agents to seeds to prevent or mitigate the spread of pests and diseases that harm crop yields. Protecting seeds and seedlings from diseases transmitted by seeds and soil, as well as insect pests that can stunt crop growth, is the primary function of seed treatment.

Market Dynamics

What are the primary factors driving the market for seed treatments?

High demand for seed coating in commercial operations

Farmers are transitioning from traditional to modern farming methods as they become more aware of the benefits of these new approaches. The need to maximize profits and gains in the face of finite resources is mainly responsible for the shift. Farmers are increasingly buying and investing in commercial seeds to take advantage of their many advantages. All over the world, this is becoming more common. Greenhouses are used to cultivate a variety of high-value crops, including edible and decorative plants. These crops' tiny seeds necessitate careful planning to ensure adequate growth. Coating seeds is a common practice that helps seeds flow more easily and get planted more uniformly, regardless of their larger size. The method is especially useful in industrial settings for precise seeding.

What are the main factors that will slow down the market for seed treatments?

Government regulations and industry standards

The United States Department of Agriculture (USDA), Health Canada, the European Commission, and the Asia Pacific Seed Association (APSA) are just a few governing bodies overseeing the seed treatment industry. Companies in the seed treatment industry must follow the rules established by various regulatory agencies. Manufacturers face a significant challenge in trying to meet the varying requirements of these regulations in different regions. Several regulatory approvals are needed before the commercialization of the solutions developed for seed treatment can begin using the active ingredients. Specific laws have been drafted to control the distribution and advertising of crop protection products and treated seeds, especially in industrialized nations. Most developing countries, however, classify seed treatment products alongside conventional agrochemicals.

What are the future opportunities for seed treatments?

Development of biodegradable and environment friendly seed treatment products

The widespread application of chemical seed treatment products, such as synthetic coatings made of polymers, has severely affected the natural environment. Most companies producing seed treatments have noticed and are working on a long-term solution. Many businesses, including Borregaard and Dynaplak Group (Netherlands) subsidiary Amulix, have begun providing biodegradable seed treatment options. Other industry players are also teaming up to create innovative products in this space. For instance, Croda International Plc and Xampla, supported by CAMBRIDGE UNIVERSITY, entered into a partnership in February 2022 to develop micro plastic-free, biodegradable next-generation seed coatings.

Regional Analysis

North america dominates the global market

The global seed treatment market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.  

North America is the most significant shareholder in the global market and is expected to grow during the forecast period. The United States and Canada have commercial cooperation for farmers, making them one of the most successful agricultural platforms. For instance, eliminating tariffs on agricultural trade in the region has facilitated the transport of many different agricultural products. There are many ways to increase crop yield, but two of the most prominent are pesticides and genetically modified organisms (GMOs) in the crop itself. In addition, the region is well-known for its abundance of technological options and market players, so rising investment from manufacturers is unlocking previously untapped potential in the market there. If we take Syngenta as an example, they invest over USD 1.36 billion yearly into R&D.

Europe is expected to grow during the forecast period. Demand for natural and organic goods is on the rise in this area. Companies are responding to this market need by developing products to meet the requirements of a broad spectrum of customers. One of the most influential trends in rural Europe is agricultural production. Various trade agreements, including the Transatlantic Trade Partnership with the United States, have significantly developed Europe's food markets. Aside from this, Eurostat reports that the agricultural sector employs over 10 million people in the EU or 4.4% of the total workforce.

Due to rising domestic demand, Asia Pacific is expected to overtake Latin America as the third fastest-growing region during the forecast period. Asia Pacific countries like China, Japan, and India are driving the increased demand for crop protection chemicals expected to fuel the region's market expansion over the next few years. The Asia-Pacific region is expected to grow at the quickest rate over the forecast period because it is where most established players are focusing their expansion efforts in response to rising demand. The potential for the seed treatment solution market to grow is expected to be bolstered by the continued development of high-value crops and the growing recognition among farmers of the product's advantages.

A growing number of people worldwide choose rice as their staple food and primary source of calories, so its popularity is expected to rise in the Middle East and Africa. There is a glut of grains because production is exceeding demand. However, rising demand and increased production are driving this sector's expansion. It bodes well for the region's economy, which should see a more rapid development due to the rising demand. Opportunities for growth in the market are anticipated, owing to factors such as the growing demand for high-value crops and the increasing knowledge of farmers about the advantages of treatment solutions.

Segmental Analysis

The global seed treatment market is segmented by type, crop type, function, and application technique.

Based on type, the global seed treatment market is bifurcated into chemical seed treatment and non-chemical seed treatment.

The chemical seed treatment segment is the highest contributor to the market and is expected to grow during the forecast period. Growing demand from BRIC nations, along with its low price, high efficiency, and ready availability, explains this market's dominant position, with biological products trailing far behind. But the demand for natural seed treatments is anticipated to expand rapidly over the forecast time frame. Environmental and public health concerns about chemical seed treatment, the rise of organic farming, consumer demand for food that is free of chemical residues, and government initiatives to encourage the use of biological seed treatment are all factors propelling this market segment forward.

Based on crop type, the global seed treatment market is bifurcated into cereals & grains and oilseeds & pulses

The cereals & grains segment is the highest contributor to the market and is expected to grow during the forecast period. Growing demand from BRIC nations, along with its low price, high efficiency, and ready availability, explains this market's dominant position, with biological products trailing far behind. But the demand for natural seed treatments is anticipated to expand rapidly over the forecast time frame. Environmental and public health concerns about chemical seed treatment, the rise of organic farming, consumer demand for food that is free of chemical residues, and government initiatives to encourage the use of biological seed treatment are all factors propelling this market segment forward.

Based on function, the global seed treatment market is bifurcated into seed protection and seed enhancement.

The seed protection segment is the highest contributor to the market and is expected to grow during the forecast period. Among the most sought-after biological seed treatment options provided by market leaders are Trichoderma fertile, Penicillium bilaiae, Bacillus firmus, and Rhizobium leguminiosarium. Biologicals are a promising addition to chemical seed treatment products for integrated pest management. Growing concerns about food safety, the rise of organic farming, supportive government policies and subsidies in emerging markets like India, Japan, and China, the availability of bio fungicides with low environmental impact, and the rapid evolution of insect resistance to chemical insecticides are all driving up the demand for biological seed protection. Biological seed treatment is becoming increasingly popular in cultivating widely studied crops like rice, corn, soybeans, and canola.

Based on application technique, the global seed treatment market is bifurcated into seed coating, seed dressing, and seed pelleting.

The seed coating segment is the highest contributor to the market and is expected to grow during the forecast period. Increasing the commercial value of seeds by improving their appearance is a significant factor in the market's expansion, as is the widespread applicability of all crops. Considerable growth is also anticipated for the pelleting application method during the forecast period. Because of the widespread use of grains, seed coating is predicted to be the most lucrative sector of the industry. The FAO predicts that by 2050, the world's population will need to be fed by an increase in food production of over 60 percent. Biofuel's rising popularity is helping to increase interest in high-yielding seed techniques.

Recent Developments

• March 2022- Syngenta has added CruiserMaxx APX to their Seedcare line-up. The new product will offer protection against diseases such as Phytophthora and Pythium.
• December 2021- Corteva Agriscience and FMC Corporation have partnered to provide Cyazypyr and Rynaxypyr actives for seed treatment products.