The high costs associated with hybrids and genetically modified seeds is a major factor that is driving the growth of the seed treatment market, globally. With higher regulatory issues relating to fumigation and foliar application of pesticides, seed treatment is being increasingly considered by farmers as a mode to protect high investments made on good quality seeds. Owing to the increasing demand for high-quality seeds with desirable agronomic traits, the cost of seeds is increasing.

Owing to the fact that most of the GM seeds are costly and are treated with biological and chemical treatments, there is an increase in area under GM crops, which is positively affecting the seed treatment market growth. For the past five years, developing countries have planted more biotech crops, 19 developing countries planted 54% (99.6 million hectares) of the global biotech hectares. Moreover, this trend is expected to continue in the upcoming years, due to an increase in the number of countries- particularly in the Southern hemisphere- adopting biotech crops, and the commercialization of new biotech crops such as cotton, maize, and soybean, which is mostly grown in developing countries.

In 2019, Europe witnessed the highest share in the seed treatment market and Spain has the largest market for seed treatment, followed by France, Germany, and Russia. A significant part of the organic crops produced in Spain is mainly used for export to other European countries, and increasing demand for the organic farming market in Europe is increasing the demand for the non-chemical seed treatment products. The demand for treated seeds is high in Germany, as cereal crops, like maize, barley, and fruits and vegetables, like grapes and sugar beet, are cultivated on a large scale in the country. Ban of GMO seeds, demand for higher yield, and the government’s discouragement in the use of chemical products in the region, are encouraging the use of biological seed treatment products.