Seed Treatment Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Market Overview

The seed treatment market was valued at USD 5,615.6 million in 2020, and it is estimated to reach USD 9,577.0 million by 2026, registering a CAGR of 9.1% during the forecast period (2021-2026).

The agricultural sectors have been partially affected by the COVID-19 pandemic in the initial days of the outbreak, but agricultural chemicals and fertilizers, which are import-dependent, have seen supply disruptions. Preventive measures and initiatives were taken to ensure supply. As China is the major producer of agricultural chemicals, disruptions to production would have a ripple effect on North American supplies of crop protection inputs, including seed treatment.

Seed treatment plays an important role in protecting the seeds and seedlings from seed and soil-borne diseases and insect pests affecting crop emergence and growth. The adoption of this practice by farmers across the world requires effective extension strategies, making the appropriate chemical pesticides/bio-pesticides and equipment available to farmers and making them aware of methods of seed treatment, post-treatment handling of seeds, and planting materials.

To make seed treatment methods popular among the farmers, various governments are organizing nationwide campaigns and promoting bills that will enable farmers to receive pesticides, herbicides, and fungicides at a subsidized price. Hence, the increasing government support is likely to boost the growth of the seed treatment market in the coming years.

Scope of the Report

The seed treatment market is segmented by application (chemical and non-chemical/biological), function (seed protection, seed enhancements, and other functions), crop type (grains and cereals, oilseeds, vegetables, and other crop types), application technique (seed coating, seed pelleting, seed dressing, and other application techniques), and geography (North America, Europe, Asia-Pacific, South America, and Africa).

The report presents an in-depth analysis of the market share, size, and trends of the seed treatment market on a global scale. The market operates at both B2B and B2C levels, and market sizing has been done at the end consumer level.​

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Key Market Trends

Increasing Cost of High-quality Seeds

High costs associated with hybrids and genetically modified seeds are a major factor driving the growth of the seed treatment market globally. Seed treatment is increasingly considered by farmers as a mode to protect investments made on good quality seeds due to an increase in regulatory issues relating to fumigation and foliar application of pesticides.

Furthermore, the cost of seeds is expected to increase, owing to an increase in the demand for high-quality seeds with desirable agronomic traits. Both companies and farmers are ready to spend on seed treatment solutions to save high-quality seeds.

According to the USDA estimates of 2017, corn seeds have cost about 300% since 1995, while the yield grew by only 35%. Framers are trying to cut down operating costs by selecting seeds that do not require multiple doses of chemicals. The initial protection of these engineered seeds is ensured by using seed treatment products. In the past seven years, the seed’s portion of total operating costs for corn has increased from about 28% to 32%. Even though there was a drop in operating costs of corn between 2015-2016, the seed cost share of corn increased by 2%.

As most 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.

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