BIOLOGICAL SEED TREATMENT MARKET ANALYSIS

Biological Seed Treatment MarketSize and Trends

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.

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

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.

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

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.