Despite the fact that France is the largest market for seed treatment of cotton, with a share of 40.7% in 2015, the German demand for the same is probably going to record the fastest CAGR and rise as the biggest market by 2023.
By application, chemical seed treatment has the maximum market share and the non-chemical seed treatment is expected to grow at the fastest rate during the forecast period. Uncertainty over product approvals and environmental concerns regarding the use of chemical seed treatment products in cotton are hampering the growth of products in the United Kingdom.
In Europe, over the past few years there were several restrictions and bans against import of cotton crops or food that has been improved through biotechnology. Due to this ban, usage of chemical seed treatment has been increased. Top players in the market are constantly focusing on the development of superior quality cotton seeds through modern breeding techniques, thereby increasing the cost of cotton seeds. Replanting of seeds due to poor germination or insect attack is expensive; the high cost of labor requirements is also tied to the overall cost. All such factors are driving growth.
International companies that are Germany-based, such as Bayer Crop Science and BASF, are carrying out research on cotton seed production technologies. There are many seed treatment companies in Germany and there is a clear separation in strategy between local and international companies. The international companies are focusing on sales through distributors with around 80-85% of the sales happening through them, whereas, the local companies are focusing on direct distribution. However, the local companies are now focusing on sales through distributors, and hence, are gaining advantage over international companies. Due to this competitive environment between companies, demand for cotton seed treatment is probably going to record the fastest CAGR and rise as the biggest market by 2023.
Major Players: Adama Agricultural Solutions Ltd, Advanced Biological Marketing Inc., BASF SE, and DowDuPont, among others.
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