Seed Coating Material Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Seed Coating Material Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Seed Coating Material Market size is estimated at USD 2.41 billion in 2023, and is expected to reach USD 3.60 billion by 2028, growing at a CAGR of 8.40% during the forecast period (2023-2028).

Key Highlights

• The drastic climate changes have affected the growing conditions adversely. This has resulted in increased demand for high-quality seeds, which can be attained through the adoption of seed coating technology. With increasing investments in agriculture and the use of modern technologies, the awareness among farmers about the use of material-coated seeds, genetically modified seeds, and hybrid seeds is increasing.
• The seed coating market has been exploring various innovative technologies to make seed coatings more sustainable and efficient in the field. One of these technologies is Micro Emulsion Gel (MEG) technology, which involves the use of a gel-based seed coating that contains micro-emulsified active ingredients. Micro-emulsion gel technology is an innovative seed coating technology that has gained popularity in recent years due to its sustainability and efficiency. This technique involves the application of a thin film of gel onto the surface of the seed, which can help to reduce the rub-off of coating materials during transportation and handling.
• The artificial coating of seeds helps improve the handling and delivery of protectants, symbiotic microorganisms, soil adjuvants, germination promoters, growth regulators, and colors. Using such coatings on seeds can potentially reduce the usage of chemical fertilizers and pesticides in agriculture. Delivering plant-beneficial microorganisms through seed coatings has been proven to achieve increased crop yields and food quality. These are some of the significant factors anticipated to drive the market.
• The untapped market potential in developing economies of the Asia-Pacific region, such as India and China, provides great opportunities for companies to expand. Despite many advantages, a few factors stop farmers from adopting coated seeds, like exorbitant prices, lack of information about the shelf life, vigor of the coated seeds after storage, etc. Furthermore, stringent regulations with respect to seed coating act as a restraint on the market.

Seed Coating Material Market Trends

Increasing Demand for Enhancing Seed Performance

• The global per capita land and arable land area have been witnessing a falling trend over the years, leading to a huge gap in demand and supply. To reduce the demand and the supply gap in agricultural products, the yield of crops needs to be increased. Seed diseases and volatile environments are a few major challenges farmers face since they decrease crop yield. Therefore, this boosts the demand for seed coatings as coating the seed with pesticides, fertilizers, plant growth regulators, and others helps accelerate seed performance and germination.
• Due to the increasing area under it, the major demand for seed coating is from biotech crops. The global hectarage of biotech crops has been increasing continuously in the past few years. An accumulated biotech area of 2.7 billion hectares makes biotechnology the fastest-adopted crop technology in the world.
• Around 190.4 million hectares of land were globally under biotech crops in 2019 and involved 17 million farmers. Biotech farming en adopted by around 29 countries, of which, in 2019, the United States stood first with 71.5 million hectares (37.55% of the global total), followed by Brazil with 52.8 million hectares (227.73%), and Argentina with 23.9 million hectares (12.6%). High adoption rates reflect farmer satisfaction with the products that offer substantial benefits ranging from more convenient and flexible crop management to lower cost of production.

North America Dominates the Market

• Seed coating is found to be effective for the seeds in enhancing their germination and protecting them from pests. The coating is applied to the seeds of high-value crops, such as wheat, cotton, hybrid vegetables, and others, to protect them from pests and diseases. The increasing area under these crops in North America drives the market's growth. Demand in the North American market is majorly led by countries such as the United States, Canada, and Mexico.
• The United States is the largest market for seed coatings in North America due to supportive regulations like the compulsory coloring of treated seeds coupled with growing demand for yield. Additionally, increasing farm size and decreasing crop rotation coupled with the rising awareness of bioproducts are the major factors driving the demand for seed coating materials in the country.
• Corn is one of the major crops grown in the United States, and a high number of seeds used in the country are treated with the seed coating material, and this percentage is growing. While most coatings include chemicals like copper compounds and antibiotics, new biologically-based coatings are increasingly important. Biological coatings are becoming more selective based on the preservation of soil microbiome and are compatible with organic practices. Hence, these factors are anticipated to bolster market growth during the forecast period.

Seed Coating Material Industry Overview

The global seed coating material market is highly consolidated, and this trend is likely to continue even in the future. The market is dominated by a few top players, such as Bayer AG, BASF SE, Clariant International, Chromatech Incorporated, and Incotec Group, which hold significant shares. The United States and certain European countries are likely to become seed coating industry giants, as the companies from these regions are highly focused on merging with each other to capture a larger market share.

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