Rising technological Advancements
Technological developments in the agricultural sector have led to the development of various treatment methods owing to rising health concerns by the consumers and pressure on farmers to increase their crop yield. This factor is driving the growth of the seed treatment market.
Increasing Farming Activities
Farming activities are increasing globally on croplands and this has generated need for high productivity which in turn, is propelling the growth of the seed treatment market.
Strict Government Regulations
Restrictions are being imposed by the government on use of pesticides and chemicals used in the pesticides are hazardous for the environment which may hinder the growth of the seed treatment market during the forecast period.
Costs associated with specialized seed treatment is very high for small farmers and farmers available in the developing countries cannot afford the cost which may hinder the growth of the market during the forecast period.
Advanced productive agricultural materials are used in order to fulfill the food demand of the growing population. There have been rapid advancements in recent years in order to improve the agricultural yields through various technologies. The demand for seed treatment is increasing widely as it prevents crops from seed borne insects and diseases. Increasing demand for organic fruits and vegetables as a result of health concern is boosting the growth of agricultural industry ultimately leading towards the growth of the seed treatment market. Economic and industrial developments is forcing the farmers to increase their crop yield which is expected to augment the demand for biological seeds thereby, boosting the seed treatment market over the period 2019 and 2027.
The global seed treatment market is anticipated to record a CAGR of around 8.72% over the forecast period i.e. 2019-2027. The market is segmented by type, formulation, application & crop type. The market is segmented by type into chemical and non-chemical, out of which, the non-chemical segment is anticipated to have significant growth on account of increasing demand for bio-based treatment and concern for the environment. The non-chemical treatment segment is in its early stages of growth though it is anticipated to be fastest growing segment during the forecast period.
The market is further segmented by formulation into liquid form and dry form. On the basis of application, the market is segmented into insecticides, fungicides, herbicides, fertilizers, bio control and others. Out of these, insecticide segment is anticipated to be the most adopted treatment owing to its ability to get adjusted with other products. Bio-control segment is accounted for fastest growing segment on the back of rising awareness and strict government regulations related to chemical seed treatment.
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By crop type, the market is segmented into cereals and grains, oilseeds, sugar beets, sugarcane, vegetables and others out of which cereals and grains segment account for largest share of the seed treatment market owing to seed treatment being used on high productivity cereals and grains crop such as corn.
Increasing technological advancements in seed treatment methods, enhanced focus on crop protection by the seed industry, and higher prices of seeds are factors leading towards the growth of the seed treatment market. Leading players in the market are focusing on increasing their market share and productivity by focusing on research and development. Companies are undergoing acquisitions in order to develop applications of seed treatment methods. Economic and industrial developments is forcing the farmers to increase their crop yield and as well as the production which is expected to boost the demand for biological seeds and as well as the seed treatment.
Our-in depth analysis of the seed treatment market includes the following segments:
By Application Technique
By Crop Type
On the basis of regional analysis, the seed treatment market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is anticipated to have leading share owing to the growing demand from the agricultural industry in this region. Presence of technological advancements and ban of chemical products is expected to boost the growth of market during the forecast period. Europe is expected to witness significant growth on account of major revenue contribution in biological seed treatment market, followed by markets in Asia Pacific, Latin America, Middle East and Africa. Asia Pacific is anticipated to grow at a faster rate owing to growing demand for organic products in countries such as India and China. Additionally, increased awareness among the farmers regarding environmental hazards and health effects among farmers related to the usage of chemical substances is driving the growth of seed treatment market in this region.
The seed treatment market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Shivam Bhutani, Anil Kumar