Market Snapshot

Seed Coating Market: By Additive, Process, Active Ingredients, Crop Type, and Region

Market Synopsis:

Global Seed Coating market is projected to attain a value of USD 3,972 million by 2028 from USD 1,729 million in 2021 at a CAGR of 8.6% during the forecast period, 2021–2028. The global Seed Coating market is expected to witness significant growth, during the forecast period. The high demand for pesticide coated seeds and growing focus of the farmers on pest management activities will be among major factors that are expected to boost the market growth over the projected timeline. Rapid expansion in arable land for agricultural production and increase in demand for food grains from emerging economies such as China and India will also aid in driving the Seed Coating industry over the next couple of years.

Increase in investment towards Seed Coating along with effective returns is further anticipated to drive this market during the forecast period. However, high cost associated with newer technologies, stringent government regulations related to pesticide residue levels on crops may hinder its adoption rate.

Market Segmentation:

The Global Seed Coating Materials Market is segmented based on Additive(Polymers, Colorants, Pellets, Active ingredients, Minerals/Pumice, Others),Crop Type(Cereals & Grains, Vegetables, Flowers & Ornamentals, Oilseeds & Pulses, Others),Process(Film coating, Encrusting, Pelleting),Active Ingredients(Protectants, Phytoactive promoters, Others),Region(North America, Europe, Asia Pacific, Middle East & Africa, South America). Based on additive, the market is bifurcated into polymers, colorants, pellets, minerals/pumice, active ingredients, and others. Based on crop type, the market is bifurcated into cereals & grains, vegetables, flowers & ornamentals, oilseeds & pulses, and others. Based on process, the market is bifurcated into film coating, encrusting, pelleting. Based on active ingredients, the market is bifurcated into protectants, phytoactive promoters, others (adjuvants and inoculants).

Ability to Reduce Labor Costs and Improve Grain Quality to Drive Demand for Seed Coating

Seed Coatings are done by applying a thin layer of a compound on a seed's surface which helps in protecting it from pests and diseases, thereby delaying germination for a longer period of time. These coatings have been gaining popularity across various regions due to their ability to protect against various biotic stresses including insects, nematodes, fungi and viruses. Precisely speaking, seeds coated with fungicides are used to control damping-off disease caused by Rhizoctonia solani and Pythium species. Seeds treated with acaricides have been found effective in controlling cereal leaf beetle (Oulema melanopus). The demand for Seed Coatings with various pesticides is expected to witness significant growth over the forecast period. Other types of Seed Coatings include herbicide, insecticidal and molluscicidal.

Fertilizer Coated Seeds are Gaining Momentum in the Seed Coating Market

Thousands of varieties are treated with fertilizers which can be used in protecting them against soil nutrients depletion, while some other types are also beneficial for improving the growth rates and yield of crops. Fertilizer-coated seeds entail a great potential because these coatings are compatible to the large-scale application owing to their minimal disposal costs. With respect to type of fertilizer used for coating, nitrogenous fertilizers have been widely used due to their ability to work as growth enhancers. All types of coated seeds including both organic and inorganic hold high market value over the projected period. They are expected to experience prominent demand over the coming seven years on account of increasing adoption rate by farmers across the globe.

Inorganic fertilizers have been commonly used for Seed Coating and available in various forms including sodium, potassium and aluminium phosphate (ALP). These coatings contain insoluble components which make them suited for soil application along with seeds. Coated seeds containing organic fertilizers is expected to become one of the most attractive niches owing to their ability to enhance plant growth and health. Organic fertilizer is produced from natural sources such as animal by-products (e.g. bone meal), vegetable waste (e.g. compost) and certain types of minerals (e.g., rock phosphate). Its market value is likely to increase significantly over the forecast period.

By Additive type, Polymer Segment to Witness Highest Growth

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. Seed treatments allow for better crop establishment by encouraging uniform dispersion of water and nutrients throughout the entire treated area, thus reducing problems with clogged irrigation systems or drainage.

The global market for polymer Seed Coatings is forecast to grow at a healthy CAGR due to increased planting of corn and soybeans in emerging markets such as China and India. Growing demand for polymer seed treatment will be driven by growth in cotton production worldwide.

Asia Pacific is the largest Market for Seed Coating

Asia Pacific is the largest market for Seed Coating, followed by Europe and North America. Coating seeds with fungicides alone accounts for 45% of the total seed treatment market. The major drivers are high loss in yield due to seed borne diseases. Seed Coating with fungicide is economical when compared to soil fumigation or alternate disease management practice, because it reduces crop injury during sowing process and protect the young plant from pathogen attack which leads to higher planting density, fewer seeds per hectare are required besides saving on costly fumigants.

A new trend in this field is application of pesticides through spacers with air driven systems that do not need any external source of energy like compressor etc. design has many advantages over conventional spouting system, as it reduces dusting of pesticides which can be hazardous to user as well as environment. It is also more economical and convenient in operation and results in minimum working conditions at the time of application. This technology has been adopted by big players like Syngenta and Monsanto Company due to advantages over conventional spouting system.

Competitive Landscape:

Some of the key players in the global Seed Coating market are Bayer AG (Germany), BASF (Germany), Croda International Plc (Switzerland), Clariant AG (Switzerland), Sensient Technologies (US), Brett Young Seeds Ltd (US), DSM-Amulix (Netherland), Precision Laboratories (US), Germain Seed Technology Inc. (UK), Milken Chemicals (US), and CR Minerals (US) among others.

The Seed Coating is Segmented as Follows:

• Additive
  • Polymers
  • Colorants
  • Pellets
  • Active ingredients
  • Minerals/Pumice
  • Others

• Crop Type
  • Cereals & Grains
  • Vegetables
  • Flowers & Ornamentals
  • Oilseeds & Pulses
  • Others

• Process
  • Film coating
  • Encrusting
  • Pelleting

• Active Ingredients
  • Protectants
  • Phytoactive promoters
  • Others

• Region
  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America