Seed Coating Materials Market Forecasts to 2028 – Global Analysis By Product (Binders, Polymers, Colorants, Pellets), Crop Type (Fruits & Vegetables, Oilseeds & Pulses, Cereals & Grains), Coating Type (Synthetic Coating, Bio-Based Coating), Active Ingredi

Seed Coating Materials Market Forecasts to 2028 – Global Analysis By Product (Binders, Polymers, Colorants, Pellets), Crop Type (Fruits & Vegetables, Oilseeds & Pulses, Cereals & Grains), Coating Type (Synthetic Coating, Bio-Based Coating), Active Ingredient (Photoactive Promoters, Protectants,), and By Geography

According to Stratistics MRC, the Global Seed Coating Materials Market is accounted for $2.20 billion in 2021 and is expected to reach $4.46 billion by 2028 growing at a CAGR of 10.6% during the forecast period. Seed coating is the method of applying seed protection formulation over seed surface. The benefits attributed to the utilization of seed coating materials majorly include multi-component products and quality output per hectare, The primary goal of seed coating material is the timely supply of crops at a reasonable price. This material offers a low seeding rate, high yield per hectare, and multi-component product, which increases the event of the seed coating material across the world. Other benefits include low seeding rate, high yield per hectare, multicomponent products, which are driving the demand for seed coating material across the world. This growth is particularly observed within the developing regions, where agriculture is the prime contributor to the general economy.

The increasing use of natural treatment methods is witnessed as an environment-friendly option for treating seeds. The expanding agricultural practices and requirement for high-quality agricultural produce along with the rapid adoption of biotech crops are likely to drive the seed treatment market. According to the International Service for the Acquisition of Agri-biotech Applications, in 2019, the 24th year of commercialization of biotech crops, 190.4 million hectares of biotech crops was planted by up to 17 million farmers in 29 countries. From the initial planting of 1.7 million hectares in 1996 when the first biotech crop was commercialized, the 2019 planting indicates a ~112-fold increase. Thus, biotech crops are considered the fastest adopted crop technology in the history of modern agriculture.

Market Dynamics:

Driver:

Development of biodegradable and micro-plastic free seed coating to elevate demand

The majority formulations used in seed coating are based on flowable concentrates or emulsions. These aim to improve adhesion on seed in turn reducing dust-off post coating. Though, these formulations, on the back of regulations on environment safety, must be micro-plastic free and biodegradable. In this backdrop, companies are focused on developing new formulations for seed coating that support environment health. They are integrating novel methods to reduce or eliminate micro-plastics using biodegradable material. For instance, Borregaard has developed biodegradable microfibrillated cellulose which is an innovative, biodegradable and a sustainable material that can be incorporated in formulations used in seed coating. Such novelties in formulations are expected to significantly influence the seed coating materials market growth in the following years.

Restraint:

Government regulations and industry standards

The seed coating industry is regulated by diverse companies, government bodies, and associations. The companies operating in the seed coating materials market space are required to comply by the regulatory guidelines set forth by various bodies. These regulations vary across the geographies making it challenging for the manufacturers to comply by all of them. The active ingredients used in the solutions developed for seed coating require several approvals before commercialization of the product. There are certain specific legislations developed to regulate the commercialization and marketing of crop protection and treated seed primarily in the developed countries. Though, in most of the developing countries seed coating products are treated as other conventional agrochemicals. In addition, the biological seed coating products do not have a standard procedure yet in most of the developed as well as developing countries and a procedure similar to the chemical seed coating products is followed for market entry.

Opportunity:

Strong R&D and innovation to unlock lucrative business opportunities

Today, numerous market players in the agriculture sector are experiencing business challenges pertaining to low consciousness about the advantages of coated seeds, violent commercialization, and the espousal of heritably modified seeds. Accordingly, market players are growing R&D activities that can enable them to launch organic and natural seed coating materials, thus overcoming the aforesaid challenges. Numerous manufacturers are anticipated to follow strategic partnerships and M&A, along with expanding their current production capabilities, to sustain their dominance in the seed coating materials market. In addition, environmental concerns have intensified the need for protection and maintenance of crop yield, thus creating sound growth prospects for the global seed coating materials market.

Threat:

Entry of unorganized players with low profit-to-cost ratio

Novel technologies such as microbial technologies provide important opportunities for new entrants in the market. Some of these companies are hindering the growth of foremost players. The novel market entrants have comparatively lower brand identification, but they offer products at lower prices compared to the prices of established players, affecting the market share of major companies. The ease of raw material availability for seed products is one of the key factors in favour of domestic players. The competition among the domestic players and availability of low cost crop protection technologies is anticipated to hamper the growth of seed coating materials market.


The polymers segment is expected to be the largest during the forecast period

The polymers segment is estimated to have a lucrative growth during the forecast period, due to increased planting of corn and soybeans in emerging markets such as China and India, low viscosity and waterbased composition that aids in faster seed germination, and growth in cotton production worldwide. Polymer Seed Coatings are used to enhance the germination process and provide protection against pests, diseases, drought and adverse soil conditions. The coating consists of a hydrophobic polymer that is applied uniformly to the surface of seeds during or after their formation. Large scale use of polymers in seed coating can be attributed towards their functional benefits including enhancing the nutritional value of the yield and appearance, reduced clumping and stickiness and improved adhesion and ingredient retention.

The cereals & grains segment is expected to have the highest CAGR during the forecast period

The cereals & grains segment is anticipated witness the highest CAGR during the forecast period, due to the trend of using coated seeds are rising on a large scale in regions that witness extensive production and cultivation of cereals and grains and rising consumption of cereal & grains across the globe. Moreover, growing awareness among farmers regarding the advantages of seed coating materials to increase crop yield owing to rising population is a major factor expected to drive revenue growth of this segment over the forecast period. According to Food and Agriculture Organization of United Nations (FAO), world cereal & grains utilization is projected to reach 2,591 million tons by 2017 end, which creates a highly potential market for cereal & grains coatings.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing demand for advanced farming techniques over traditional techniques to enhance the productivity. Vivid opportunities of growth lie in the emerging economies in the Asia Pacific region. As per China’s Ministry of Natural Resources, arable land in China has shrunk dramatically since 2009. Land allocated for agriculture has reduced by over 75,000 sq km since the last decade and is expected to further reduce over the forecast period. This has resulted in demand and supply of agriculture products translating into an increasing reliance on advanced methods for crop yield. This factor continues to present lucrative opportunities for manufacturers of materials used in seed coating, consequently nurturing the growth of the seed coating materials market.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period owing to growing demand for cereals, grains, oilseeds, and pulses used mainly in the food and feed industries and rising development of seed technology in the region. Demand in the North American market is 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. 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 seed coating, and this percentage is growing.

Key players in the market

Some of the key players profiled in the Seed Coating Materials Market include Croda International PLC, Clariant International Ltd., BASF SE, Incotec Group BV, Solvay, Sensient Technologies, Precision Laboratories, Bayer CropScience AG, Chemtura Corporation, Chromatech Incorporated, Germain Seed Technology Inc., Syngenta AG, Dupont, Fmc Corporation, and BrettYoung Seeds Limited.

Key Developments:

In Feb 2022, Croda International partnered with Xampla to contrive a completely biodegradable seed coating that is microplastic-free in nature. This partnership is helping Croda International lead the seed coating material market. This will also help Croda International offer enduring solutions in compliance with the microplastic ban in a few countries.

In Dec 2018, BASF launched two new products in its product portfolio of soybean seed treatment. The the Abvius Plus Fungicide seed treatment aims at growing emergence and healthy plants and the Vault IP Plus seed treatment benefits the soybean growers by delivering protection and root inoculation. Moreover, the products deliver four-way disease protection thereby, protects the soybean crops.

In Dec 2018, Sensient Technologies announced that it has reached a definitive agreement to acquire the natural color business of GlobeNatural, a leading natural food and ingredient company based in Lima, Peru, owned by the Michell Group. The transaction is expected to close in the first quarter of 2018. The new entity will operate as Sensient Natural Colors Peru S.A.C.

In Jun 2017, Incotec, a seed enhancement company launched three new film coats for corn crops. By the launch of these films the company aims to meet the needs of customers for effectively dealing with major corn crop issues such as dust-off and abrasion.

Products Covered:
• Binders
• Polymers
• Colorants
• Minerals/Pumice
• Pellets
• Seed Planting Lubricants
• Fertilizers
• Other Types

Functions Covered:
• Pelleting Polymers
• Powder Blends
• Film Coating Polymers
• Encrusting

Crop Types Covered:
• Fruits & Vegetables
• Oilseeds & Pulses
• Cereals & Grains
• Flowers & Ornamentals
• Turf and Forage Grasses

Coating Types Covered:
• Synthetic Coating
• Bio-Based Coating

Active Ingredients Covered:
• Photoactive Promoters
• Protectants
• Other Active Ingredients

Types Covered:
• Phenol
• Acetone

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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Comprehensive profiling of additional market players (up to 3)
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Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
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