BIOLOGICAL SEED TREATMENT MARKET ANALYSIS

The global biological seed treatment market size was valued at USD 1097.8 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.10% from 2023 to 2030. The global biological seed treatment market is anticipated to grow at a significant pace. The growth of the global biological seed treatment market is driven by the increasing demand for bio-based products, rising concerns about chemical residues, and the increasing inclination towards organic farming practices. The major players are focused on launching new and innovative products to maintain their position in the market. They are also focusing on developing new technologies and establishing manufacturing facilities in emerging markets which is further projected to augment market growth.

Global Biological Seed Treatment Market: Regional Insights

In terms of the region, North America is projected to lead the global biological seed treatment market over the forecast period. This region is a major contributor to the global biological seed treatment market because of its extensive agricultural production and demand for high-quality agricultural produce. In addition, the government policies for banning certain chemicals are also boosting this industry in the region.

Europe is another important region in the global biological seed treatment industry. The region is expected to grow at a significant rate due to its large population and extensive agriculture sector. The region is also home to several leading biotechnology companies. Moreover, increasing adoption of GM crops and innovative technologies in the agricultural sector are expected to boost the product demand in this region.

Figure 1. Global Biological Seed Treatment Market Share (%), By Region

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Global Biological Seed Treatment Market Drivers:

Growing use of bio-priming techniques for improved efficiency to augment market growth

Bio-priming is the simple, most economical, and eco-friendly delivery system of beneficial microorganisms in the agro ecosystem.  For instance, the United Nations (UN) proposed 17 sustainable development goals (SDGs) after seriously analyzing the situation and potential threats of climate change. These goals aim at collaborative efforts toward the upliftment of social and economic standards with no compromise on the environment and future generations.

New product launch in the market by key players is also propelling market growth

For instance, in 2018, BASF expanded its soybean seed treatment portfolio with the launch of Vault IP Plus seed treatment and Obvius® Plus fungicide seed treatment, recently registered by the Environmental Protection Agency (EPA) and useful for soybean growers with an even broader portfolio that will get them off to a strong start this season. Hence, advent of new products will further favor the market growth.

Global Biological Seed Treatment Market Opportunities:

Growing demand for chemical-free crops is expected to provide significant growth opportunities. This is attributed to the growing environmental concerns and strict government policies regarding the use of chemical pesticides on fields.

Increasing need for high-value crops along with demand for industrial crops is also expected to provide significant growth opportunities. The high-value industrial crops cultivated in high yielding and deliver a higher net per hectare of product produced. These crops includes sugarcane, cotton, hybrid soybean, potatoes, fruits, spices, maize (corn), vegetables, flowers, and herbs.

Global Biological Seed Treatment Market Trends:

Increasing food demand from the ever- increasing global population

The market for biological seed treatment is witnessing strong growth with the rise in demand for food due to increasing population. According to the United Nation, the world’s population is more than three times larger than it was in the mid-twentieth century. The global human population reached 8.0 billion in mid-November 2022 from an estimated 2.5 billion people in 1950, adding 1 billion people since 2010 and 2 billion since 1998.

Adoption of treated seeds with biological agents

According to the Food and Agricultural Organization (FAO), the production of rapeseed in Asia increased from 20,949,744 metric ton in 2016 to 24,691,356 metric ton in 2020. The increase in production can be attributed to the enhanced adoption of treated seeds with biological agents by farmers in the region.

Global Biological Seed Treatment Market Restraints:

High costs of biological seed treatment and low availability

For instance, according to the American Soybean Association, seed and seed treatment costs may represent a considerable amount of the input costs for a farmer. For example, soybean seed and FST (Fungicides Used for Seed Treatment) costs constitute 48% of the farmers’ input cost in the United States, which corresponds to over USD 7.5 billion annually. This is expected to hinder the market growth.                  

Government regulatory barriers             

The regulations for biological ingredients differs across countries and regions. This is expected to restrict the market growth. In January 2021, the UK government issued, with strict conditions, emergency authorization to utilize a product containing a neonicotinoid to treat sugar beet seed in England. The Health and Safety Executive received an application from National Farmers Union (NFU) Sugar and British Sugar seeking emergency authorization for the work of a neonicotinoid product as a seed treatment on sugar beet.

Figure 2. Global Biological Seed Treatment Market Share (%), By Function

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Global Biological Seed Treatment Market Segmentation:

The global biological seed treatment market report is segmented into function, crop type, and geography

Based on function, the market is segmented into Seed Protection, Seed Enhancement, and Other Functions. Out of which, Seed Protection is expected to dominate the global market over the forecast period and this is attributed to the growing trend of biocontrol ingredients used in biological seed treatment product. The seed protection segment of the market studied was valued at USD 741.6 million in 2022, and it is anticipated to reach USD 1,356 million by 2030, witnessing a CAGR of 10.7% during the forecast period.

Seed Enhancement segment is also expected to witness significant growth in the near future owing to the favorable government policies and growing awareness among farmers. The seed enhancement segment of the market studied was valued at USD 291.1 million in 2022, and it is anticipated to reach USD 599.1 million by 2030, witnessing a CAGR of 11.4% during the forecast period.

Based on crop type, the market is segmented into Grains and Cereal, Oil Seeds, Vegetables, and Other Crop Types. Out of which, Grains and Cereal is expected to dominate the global market over the forecast period. The grains and cereal segment of the market studied was valued at USD 548.3 million in 2022, and it is anticipated to reach USD 979.5 million by 2030, witnessing a CAGR of 11.3% during the forecast period.

Oil Seeds segment is also expected to witness significant growth in the near future. The oil seeds segment of the market studied was valued at USD 378.4 million in 2022, and it is anticipated to reach USD 719.2 million by 2030, witnessing a CAGR of 10.2% during the forecast period.

Global Biological Seed Treatment Market: Key Developments

In March 2021, BASF announced its plan to launching at least 30 R&D projects by 2030, which will focus on sustainable agriculture innovations that complement its offerings in seeds, seed treatments, biological and chemical solutions, and digital services.

In October 2020, BASF introduced three new products: Vault IP Plus seed treatment, Poncho XC seed treatment, and Relenya seed treatment in soybean seed treatment portfolio, offering growers a strong start to their growing season.

In April 2021, BASF SE Company launched the new insecticide Exponus. For the control of key insect pests. Exponus is registered for use on various largely cultivated crops under the oil seeds, pulses, and vegetable segment.

Global Biological Seed Treatment Market: Key Companies Insights

The global biological seed treatment market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global biological seed treatment market are BASF SE, Bayer Cropscience AG, Bioworks Inc., Syngenta AG, Agrauxine by Lesaffre, Germains Seed Technology, Koppert Biological Systems, Novozymes, Marrone Bio Innovations, and Groundwork BioAg

*Definition: Biological seed treatment is a type of biological fertilizer that is used in the agriculture industry to enhance or protect the crops. It consists of biochemicals, botanicals, and microbials that are effective against plant pathogens, insects, and nematodes.