SEED TREATMENT MARKET ANALYSIS

Global seed treatment market size is expected to reach US$ 30.28 Bn by 2031, from US$ 16.06 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 9.5% during the forecast period (2024-2031).

Seed treatment provides effective protection to the seed from insects, pathogens, and other pests. Moreover, seed treatment also contributes to the production of healthy and quality seed. It has emerged as a cost-effective solution as compared to the traditional spraying method as it is less labor-intensive and enhances overall productivity.

Global Seed Treatment Market Regional Insights:

• Asia Pacific is expected to be the largest market for seed treatment during the forecast period, accounting for over 39% of the market share in 2023. The growth of the global seed treatment market in Asia Pacific is due to the increasing demand for seed treatment in countries such as India and China.
• Europe is expected to account for over 27% of the market share in 2023. The growth of the global seed treatment market in Europe is due to the increasing demand for seed treatment in countries such as France, Germany, the Netherlands, and Russia.
• North America is expected to account for over 19% of the market share in 2023. The growth of the global seed treatment market in North America is due to the increasing demand for seed treatment in countries such as the U.S. and Canada.

Figure 1. Global Seed Treatment Market Share (%), By Region, 2023

To learn more about this report, Request sample copy

Analyst’s Views:

Global seed treatment market is expected to witness significant growth over the forecast period driven by the increasing demand for high-quality crops and the need to boost agricultural productivity. Farmers are increasingly opting for seed treatment solutions to protect their seeds and seedlings from diseases, insects, and other pathogens. The crop protection chemicals that are used in modern seed treatment technologies help to maximize plant health and potential yields. Asia Pacific serves as the largest as well as the fastest growing market for seed treatment globally due to the vast area under crops cultivation and growing awareness among farmers regarding seed treatment benefits.

However, stringent regulations around the use of chemical pesticides pose a challenge to market players. Further, concerns regarding potential health hazards due to excessive use of crop protection chemicals could hamper the market growth to some extent. Switching to bio-based and organic seed treatment products presents new opportunities in the near future. Innovation in seed coating technologies to deliver tailored solutions aligned with specific crop requirements also holds promising growth prospects. The market is also witnessing consolidation with leading agrochemical firms actively pursuing strategic mergers and acquisitions to gain access to novel seed treatment technologies. Overall, the seed treatment market remains positive backed by ongoing research and development (R&D) investments by key market players to develop superior seed protection solutions.

Global Seed Treatment Market Drivers:

Increasing corn production due to rising demand for biofuels: Rising demand for corn due to the increasing use of biofuels is a major factor behind the growth of the global seed treatment market. As more corn is needed to meet the requirements of biofuel production, farmers are compelled to increase their corn cultivation practices. However, corn being a widely grown crop requires extensive protection from various pests and diseases throughout its growth cycle. This is where seed treatment proves to be indispensable for farmers.

Seed treatment helps in providing pre-planting and post-planting protection to corn seeds and young corn plants. By imparting a protective coating to seeds, seed treatment controls major soil-borne and seed-borne diseases as well as early-season insect pests. This ultimately leads to higher germination rates and corn establishment, thus boosting the crop yields. With biofuel demand forcing farmers to ramp up corn output, these crops heavily rely on seed treatment products to shield their crops from losses that are caused by pests and diseases. As a result, the seed treatment market is witnessing significant expansion. The market is further stimulated by the entry of innovative product types. Various new-age formulations that combine multiple active ingredients are being rolled out. These improved products provide longer lasting and broader-spectrum protection. They assist in maximizing crop protection as well as productivity for farmers. For example, a seed treatment containing a combination of fungicide, insecticide, and nematode was released in 2021, which protects corn from major pathogens, sucking pests and parasitic roundworms. Such novel products are gaining popularity. The market witnesses increased research into biological seed treatments involving microbial strains and botanical extracts. This fits well with the global shift towards sustainable agricultural practices. With rising demand for corn likely to persist fueled by biofuel policies, the seed treatment market stands to greatly benefit to seed treatment, being supported by ongoing technological advancement.

Growth in the seed treatment market owing to the growing population around the globe: Growing global population is placing significant pressure on the global agricultural system to produce more food. According to data provided by the United Nations, the world's population is projected to grow to around 9.70 Bn by 2050 from the current level of around 7.70 Bn. Feeding this many additional mouths will require increasing agricultural productivity substantially. Seed treatment has emerged as a crucial component of sustainable agriculture to address this challenge.

Seed treatment helps to improve germination rates and protect seeds and seedlings from diseases, insects, and other stresses until the plant establishes itself. This reduces the need for multiple farm inputs and improves crop establishment. With the need to boost yields from every acre of cultivated land, seed treatment allows farmers to maximize their output without expanding agricultural land, thus ensuring more food that can be produced whilst preserving natural resources and biodiversity. According to the studies by the United Nation Food and Agriculture Organization (FAO), farmers can realize 5-10% increase in their yields by opting for treated seeds compared to untreated ones.

Global Seed Treatment Market Opportunities:

Untapped growth potential in emerging countries: Global seed treatment market has immense untapped growth potential in emerging economies across Asia Pacific, Latin America, Eastern Europe, and Middle East & Africa. These regions are witnessing increased agricultural production and rising demand for food due to their large and young population base. However, seed yield and overall productivity remains low in these countries due to various biotic and abiotic stresses.

Seed treatment helps to address this issue by protecting the seeds from diseases, insects and other threats during germination. It boosts early-stage plant growth and ultimately enhances agricultural productivity. With robust economic growth projected over the next few years many developing nations are prioritizing agricultural modernization which includes wider adoption of advanced seed treatment practices.

Advancements in seed treatment technologies: Advancements in seed treatment technologies could unlock tremendous opportunities in the global seed treatment market. As the world increasingly faces challenges of climate change, reducing arable land and growing need to boost crop yields, innovative seed technologies are needed more than ever. New methods that help to protect seeds from diseases and pests, enhance germination and improve overall plant health can go a long way in supporting global food security.

Seed coating and some of the promising technologies gaining ground include biological and natural seed treatments. Compared to traditional chemical-based treatments, these alternatives offer higher selectivity and equally strong results but with minimal environmental impact. For example, certain microbial treatments utilize beneficial microorganisms to suppress disease and promote plant immunity. As farmers and environmental organizations emphasize sustainability, such eco-friendly innovations are expected to gain wider acceptance going forward. Another innovation is the use of novel delivery methods like seed coating technology which helps precisely regulate the application of active ingredients, thus, maximizing seed protection while minimizing wastage of valuable agrochemicals. This leads to more precise application of active ingredients and reduces environmental pollution.

Global Seed Treatment Market Trends:

Rising popularity of biological/natural seed treatment solutions: Global seed treatment market is observing significant shift towards more biological and natural seed treatment solutions driven by growing environmental and sustainability concerns among farmers and regulators. With traditional chemical-based seed treatment products facing increased scrutiny over their potential environmental impact, seed companies are investing heavily in developing natural and organic seed treatment options. Some of the biological products gaining popularity include microbial such as fungal and bacterial inoculants. These beneficial microbes help the seeds to develop resistance to diseases and boost plant immunity without involving chemicals. Seed coating technologies are also advancing to efficiently apply microbial solutions while ensuring their viability. Various plant extracts that are derived from neem, ginger, turmeric, and others are commonly used natural fungicides and pesticides replacing synthetic chemicals. Many seed treatment formulations incorporate natural plant-based components and nutrients that support early plant growth along with providing protection.

Growth in the adoption of treated genetically modified seeds: Growing adoption of genetically modified seeds has significantly impacted the global seed treatment market from 2022 to 2023. As genetically modified seeds are designed to be resistant to certain pests and diseases, they require intensive seed treatment compared to conventional seeds. Seed treatment protects the seeds and seedlings from damage due to early season pests, pathogens and abiotic stresses. This ensures enhanced germination and crop establishment.

As genetically modified seed technology continues to evolve with new developments such as herbicide tolerant and insect resistant traits, it is driving greater seed treatment needs. With higher weed control issues that are reported in herbicide tolerant crops, seed companies are treating genetically modified seeds with stronger mixtures of insecticides, fungicides, and bactericides. For instance, in 2022, major seed producers like Monsanto and Corteva Agriscience, a leader in providing a wide range of agricultural products and solutions, including seeds, crop protection products, and digital agriculture, introduced new seed treatment formulations for their drought tolerant and late blight resistant GM corn and soybean seeds launched in 2022. These new seed treatments offer multi-modal protection against soil borne diseases as well as above ground sucking pests that were previously not a concern.

Global Seed Treatment Market Restraints:

Risk factors associated with the use of chemicals used in the treatment of seeds: Global seed treatment market is very risky. Many of the active ingredients that are used in modern seed treatment solutions are synthetic pesticides and fungicides that can pose risks to human health and the environment if not handled and applied properly. Long-term exposure to some of these chemicals has been linked to increased risk of cancer, disruption of the endocrine system, and other health issues, according to studies conducted by the World Health Organization (WHO). Farm workers and agricultural equipment operators who are regularly exposed to treated seeds during the planting season face higher risks. Furthermore, these chemicals can contaminate nearby water sources and soils, if seeds are accidentally spilled or dust from the seeds drift during the planting process. This runoff poses threats to aquatic ecosystems and risks further contamination of the food chain. For example, according to the United States Geological Survey, neonicotinoids insecticides which are commonly used in seed treatments were detected in over 50% of stream samples across the midwest in 2020. This persistent contamination can negatively impact populations of beneficial insects like bees and other pollinators that are crucial for biodiversity and food production. The environmental and health risks that are associated with many seed treatment chemicals have faced increasing scrutiny from regulatory bodies and consumer groups around the world which poses compliance challenges for seed treatment product manufacturers. Many countries in the European Union (EU) have imposed restrictions or bans on certain neonicotinoids and other pesticides in 2022 to minimize such risks. These regulatory changes can significantly hinder industry growth trajectories in affected regions. While seed treatment plays an important role in maximizing crop yields, the potential downsides of chemical usage must also be carefully managed to achieve long term sustainable growth of the market.

Counterbalance: To overcome this restraint, the key market players need to focus on the use of chemicals in the treatment of seeds that can pose risks to human health and the environment. The chemicals used in seed treatments can be toxic to non-target organisms including beneficial insects, birds, and mammals.

Recent Developments:

• In May 2022, Syngenta is a product portfolio offered by Syngenta, a global agriculture company that provides farmers with a complete range of crop protection, seed, and digital solutions. Syngenta Seedcare offers a range of seed treatment solutions that are designed to help farmers to protect their crops and maximize yields. Syngenta Seedcare launched, Victrato, a seed treatment product that targets nematodes and key soil-borne fungal diseases and increases the quality and yield of many crops including soybeans, corn, cereals, cotton, and rice.
• In March 2022, Syngenta introduced CruiserMaxx APX, a new seed treatment product that is designed to provide enhanced protection against diseases such as Phytophthora and Pythium. This innovation delivers supercharged, broad-spectrum, early-season disease, and insect protection for soybean seedlings, thus promoting strong and healthy plant growth. CruiserMaxx APX combines the proven Vigor Effect and Rooting Power to give seedlings the strongest possible start, and it is specifically designed to perform in all planting conditions, fitting with soybean earlier planting and continuous soybeans. Syngenta offers a range of seed treatment solutions that are designed to help farmers to protect their crops and maximize yields. Syngenta launched, Victrato, a seed treatment product that targets nematodes and key soil-borne fungal diseases and increases the quality and yield of many crops including soybeans, corn, cereals, cotton, and rice.

Mergers and Acquisition:

• In December 2021, FMC Corporation is a leading global agricultural sciences company headquartered in Pennsylvania, U.S. The company provides crop protection, plant health, and professional pest and turf management products. FMC Corporation and Corteva Agriscience signed an agreement for the supply of Cyazypyr and Rynaxypyr actives for Corteva’s seed treatment products. Corteva Agriscience is a publicly traded, global pure-play agriculture company that provides farmers around the world with a complete portfolio of crop protection, seed, and digital solutions.

 Figure 2. Global Seed Treatment Market Share (%), By Treatment, 2024

To learn more about this report, Request sample copy

Top Companies in the Global Seed Treatment Market

• Syngenta
• Bayer CropScience AG
• Monsanto, BASF
• Advanta India Ltd.
• Dow Agro Sciences
• DuPont, Nufarm Ltd.
• Chemtura Agro Solutions
• Sumitomo Chemical Co. Ltd.

Definition: Seed treatment refers to the application of various chemicals, biologicals, and other substances of seeds which are required before planting, to protect them from diseases, pests, and environmental stressors. Seed treatments aim to eliminate or reduce inoculum levels and/or disease development from seedborne fungi that are present on or within seeds, without affecting the seeds' viability.