SEED TREATMENT MARKET ANALYSIS

Market Challenges And Opportunities

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 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.