According to a new market research report titled, ‘Seed Coating Market by Type (Polymers, Colorants, Minerals/Pumice), Active Ingredients Type (Protectants, Nutrients, Phytoactive Promoters), Crop Type (Cereals and Grains, Oilseeds and Pulses, Vegetables, Flowers and Ornamentals) - Global Forecast to 2030,’ the seed coating market is expected to reach $6.13 billion by 2030, at a CAGR of 9.6% during the forecast period 2023–2030.
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Seed coating is the practice of covering seeds with external material to improve handling, prevent diseases, and enhance germination. The coating includes pesticides, biological agents, and colorants. Polymer coating reduces dust-off losses. The exogenous material is applied on the surface of the natural seed coat. Seed coating technology does not hamper the genetic makeup of seeds. In seed coating, a special binder is used with an agrochemical formulation to enhance adherence to the seed. Binders, natural or synthetic polymers such as methylcellulose, carboxymethyl cellulose, gum arabic or polysaccharide Pelgel are added during the coating process to bind the exogenous materials and reduce the amount of dust in the end product. Some adhesives, such as gum arabic and xanthan gum, can also be used to extend the survival of plant beneficial microbes (PBM) applied to seeds. The selection of the proper type and concentration of binder and ingredient is prominent for seed germination, plant development, and viability of the microbial inoculant when applied through microbial treatment. It applies to most crops, such as maize, sunflower, soybean, and canola.
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Therefore, disruptions in the transportation & logistics industry and impacted production in some countries adversely affected the global seed coating market in terms of sales volumes in the initial phase of the outbreak in 2020.
Subsequently, the transport barriers were lifted up by government bodies, making it easy to meet the demand from farmers in many countries. There was minimal impact on the movement of agrochemicals.
In 2021, strong growth in the global seed treatment industry was witnessed due to the growing need for higher crop yields such as corn, cotton, and soybeans. Therefore, major companies such as Bayer AG (Germany) and BASF (Germany) resumed their production operations to ensure the smooth supply of their products to dealers and distributors. In addition, commodity prices were higher in 2022, encouraging the growers to invest in products that help them increase yields and profitability.
The global seed coating market is segmented by material type (polymers {polymer gels and superabsorbent polymer gels}, colorants, minerals/pumice, and other material types), active ingredients type (protectants, nutrients, phytoactive promoters, and other active ingredients), and crop type (cereals & grains {corn, wheat, and other cereals & grains}, oilseeds & pulses, vegetables, flowers and ornamentals, and other crop types). The study also evaluates industry competitors and analyzes the regional and country-level markets.
Based on material type, in 2023, the polymer segment is expected to account for the largest share of the seed coating market. The large market share of this segment is attributed to the growing demand for polymers in seed coating due to their capability to enhance the seed germination process and provide protection against pests, diseases, drought and adverse soil conditions. The high acceptance of seed-coating polymers is attributed to their low viscosity and water-based nature that promote speedier seed germination. Seed-coating polymers keep seeds damp/moist, provide an unwavering temperature, and suppress seeding stress from drying field conditions.
Based on active ingredients type, in 2023, the protectants segment is expected to account for the largest share of the seed coating market. The large market share of this segment is primarily attributed to the rising incidence of soilborne pests and diseases and the need for a safe and controlled application of plant protectants. Seed coating is an effective carrier of plant protectants such as pesticides, and it provides several benefits such as precise placement of protectants on the target, comparatively minimum toxicant requirements, minimum impact on the environment, and least possible exposure to wildlife and beneficial organisms.
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Based on crop type, in 2023, the cereals & grains segment is expected to account for the largest share of the seed coating market. The large market share of this segment is attributed to the increasing demand for cereals & grains due to rapid population growth, the need to lower the loss of cereals & grains due to pests and diseases, and the increasing use of cereals & grains in animal feed, biofuel, and starch & ethanol production.
Based on geography, in 2023, North America is expected to account for the largest share of the seed coating market. This region’s large market share is primarily attributed to the rising demand for high-yielding and disease-tolerant crops from domestic markets and export destinations. Moreover, factors such as an organized distribution chain for crop protection chemicals, the increasing awareness about sustainable crop production techniques to lessen the environmental impact of high residue, and the presence of a large number of key stakeholders in the region are further supporting the growth of this market.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 3-4 years. The key players profiled in the seed coating market are BASF SE (Germany), Bayer AG (Germany), Chromatech Incorporated (Netherlands), Cistronics Innovations Pvt. Ltd. (India), Clariant International Ltd. (Switzerland), Croda International Plc. (U.K), Germains Seed Technology (U.S.), Milliken & Company (U.S.), and Precision Laboratories, LLC (U.S.), among others.
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