Chemical Seed Treatment is fastest growing segment fueling the growth of Seed Treatment Market

Agriculture

The seed treatment market is estimated to be valued at US$ 6.83 Billion in 2023 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Seed treatment involves application of various agricultural chemicals on seeds to protect them from pests, diseases and enhance seed performance. Seed treatment products are applied just before sowing of seeds. Products such as insecticides, fungicides and bio-control agents are commonly used as seed treatments. Seed treatment ensures proper plant establishment during early growth stages by protecting seeds and seedlings from diseases, insects and other stresses. This results in enhanced germination, plant stands and yield.

Market key trends:

One of the key drivers of the seed treatment market is the rapidly increasing adoption rate of hybrid seeds globally. Hybrid seeds are known to deliver higher yields as compared to conventional seeds. However, they also require extra protection from diseases and insects during sowing. Seed treatment is fundamentally important for hybrid seeds as it ensures proper germination and healthy growth of seedlings by preventing infections and insect attacks. According to the International Seed Federation, the global hybrid seed market is growing at over 8% annually. Hence, the rising demand for hybrid seeds directly increases the demand for seed treatment, driving market growth. Growing seed replacement rate in major crops like corn, soybean and cereals is another major trend strengthening demand in the seed treatment market.

Porter's Analysis

Threat of new entrants: The seed treatment market requires significant R&D investments and resources which makes it difficult for new companies to enter. Bargaining power of buyers: Large buyers such as farmers have significant bargaining power due to the consolidated nature of the seed treatment market. Bargaining power of suppliers: A few large multinational companies dominate the supply side thereby exerting strong influence over prices. Threat of new substitutes: No close substitutes currently exist for seed treatment technologies due to lack of alternative protection methods offering comparable outcomes. Competitive rivalry: Strong competition exists among key players to develop new products and capture greater market share.

SWOT Analysis

Strengths: Syngenta and Bayer CropScience have strong R&D capabilities and product portfolios. Weaknesses: High capital requirement and stringent regulations delay market entry of small players. Opportunities: Rising seed replacement rate and demand for high-yield seeds boost market potential. Threats: Slow agricultural growth and regulatory issues in certain countries pose challenges.

Key Takeaways

The Global Seed Treatment Market Size is expected to witness high growth, exhibiting CAGR of 9.2% over the forecast period, due to increasing focus on crop protection against pests and diseases. North America dominates the global market currently owing to high seed replacement rates and commercialized agricultural industry in the US and Canada. The Asia Pacific region is anticipated to grow at the fastest pace during the forecast period with countries such as India and China contributing significantly to market expansion.

Key players operating in the seed treatment market are Syngenta, Bayer CropScience AG, Monsanto, BASF, Advanta India Ltd, Dow Agro Sciences, DuPont, Nufarm Ltd., Chemtura Agro Solutions, and Sumitomo Chemical Co. Ltd. Syngenta and Bayer enjoy a dominant position while other players are focusing on new product launches and regional expansion to gain market share.