Seed Treatment Market Outlook On Innovative Agricultural Methods

Published On: December 2022

Introduction to Seed Treatment

Seed treatment has empowered crop producers to achieve high efficiency in protecting high-value seeds and further controlling the rates of active chemical components or ingredients. The novel traits embedded in new varieties and the sharp upward trajectory in the price of products in recent times have compelled farmers to protect them to ensure proper germination of the seeds and the productivity of the crops. The increasing control of insects, pests, and diseases is generally achieved traditionally by applying inorganic pesticides through the method of foliar application. The efficiency and safety of the seed treatment process acts as a better alternative to conventional pest control methods along with the low cost, which can supplement the other control measures to achieve desired results in the field.

According to the seed treatment market outlook, the seed treatment market is expected to reach USD 5.77 billion in 2021 at an 8.4% CAGR.

The seed treatment market analysis shows that the seed treatment market growth relies on the rising need for low-cost crop protection solutions, the rising costs of high-quality seeds like hybrid and GM seeds, and the increasing need to maintain the minimum residue limit in food products. Apart from this, the growing need to increase crop yield and quality, advancements in seed treatment equipment benefits offered by seed treatment, and the rapidly decreasing agricultural land are also key factors contributing to the growth of the seed treatment market globally.

The increasing focus on integrated pest management, the emergence of biodegradable seed coatings, and the growing adoption of biological seed treatment are expected to provide significant opportunities for the progress of this global market.

The COVID-19 outbreak has significantly affected the market due to disruption in the supply chain due to restrictions on transportation during the lockdown. Owing to market closures, prices of agriculture products such as pesticides and fertilizers have increased by 10%-12%. The industry witnessed challenges in the certification and production of products with barriers to international trade. This happened due to the restrictions on traveling by most governments worldwide.

With the rising awareness regarding innovative agricultural methods, farmers are shifting from traditional to modern farming methods. The need for higher profits and gains with limited resources drives the primary shift. The farmers are largely investing and consuming commercial seeds to utilize the benefits associated with them.

There has been an increasing growth of high-value crops such as fruit and vegetables, ornamental plants, and other horticultural products- which are grown using the greenhouse cultivation method. The consumption and production of vegetables continue to play a significant role in the nutrition intake of people worldwide. As per FAO's data, the production of fruits and vegetables has experienced a remarkable increase of 3% annually. Additionally, the growing production of high-value vegetable crops, such as hydroponic tomato, spinach, lettuce, and bell pepper, has contributed to the increased scope for developing seed treatment solutions to suit hydroponics and greenhouses.

According to the FAO, the demand for cereals for human consumption and animal feed is projected to reach 3 billion tonnes by 2050, a significant increase from 2.1 billion tonnes in 2018. In addition, the rising demand for biofuels will continue to exert upward pressure on commodity prices, affecting food security and poverty levels in developing countries worldwide. Thus, modern agricultural practices with advanced technologies, such as seed treatments, are necessary for breaking yield barriers and enhancing crop productivity to meet global food demand while ensuring the environment's safety. The demand for these treatment products is increasing due to the rising awareness regarding healthy food consumption and its minimum environmental impact among consumers.

The seed coating method is also used to increase the seed shape and size. This is done using a coat to improve the sow ability and flowability of the seeds. The growing adoption of the germination process across various regions is expected to grow the market in the predicted period further.

According to the seed treatment market analysis for the regional markets, Asia-Pacific region is predicted to be the largest and the fastest-growing region during the analysis period. This is due to the increase in demand for fodder or forage crops. There has been a rise in demand for crop protection chemicals from nations like India, China, and Japan. This market is accelerating growth, aiming to meet the huge demand, which is expected to increase further over time. The market has gained a high level of acceptance and popularity due to the aggregated research and development efforts of key players in launching new & innovative products.