Seed Coating Market

The global Seed Coating market is foreseen to grow by 8.8%, from USD 2.65 Billion in 2022 to USD 5.20 Billion in 2030. Enhancements and benefits derived from seed technologies to encourage adoption of seed coating, seed coating would support agricultural productivity on marginal lands, increase in seed replacement rate to drive adoption of commercialized seeds is to drive the market for the upcoming forecast period. However, uncertainty in climate conditions to impact the global market, low yield of crops in under-irrigated areas to impact seed coating market remains one factor hindering the market growth over the anticipated period.

Market Definition

What Is Seed Coating?

Seed coating is a process in which seeds are coated with a layer of protective material that can improve the quality and health of the seed. This process has been used for centuries by farmers and gardeners to ensure a higher rate of germination and healthier plants. In recent years, seed coating has become an important aspect of modern agriculture and has been the subject of much research and development.

Market Overview

One of the primary benefits of seed coating is that it can help protect the seed from disease and pests. The coating can contain fungicides, insecticides, and other chemicals that can help prevent the seed from being attacked by pathogens and pests. This can lead to higher yields and healthier plants overall.

Another benefit of seed coating is that it can improve the physical characteristics of the seed. The coating can make the seed larger and heavier, which can improve its ability to be planted at a consistent depth. It can also make the seed more uniform in size, which can help to ensure that it germinates evenly and produces healthy plants.

In addition to its benefits for the seed, seed coating can also be beneficial for the environment. By protecting the seed from disease and pests, farmers and gardeners can reduce the amount of pesticides and fungicides that they need to use. This can lead to a reduction in the amount of chemicals that are released into the environment, which can be beneficial for local ecosystems and wildlife.

Despite its many benefits, there are also some potential drawbacks to seed coating. One concern is that the chemicals used in the coating can be harmful to bees and other pollinators. Additionally, the cost of seed coating can be higher than the cost of uncoated seeds, which can be a barrier for small-scale farmers and gardeners.

Overall, seed coating is an important process that can have many benefits for farmers, gardeners, and the environment. With careful consideration of the potential risks and benefits, it can be an effective tool for improving the quality and health of seeds and plants.

Seed Coating Market Dynamics

The demand for seed coating technologies is driven by the numerous benefits they offer. Seed coating protects the seeds from several factors that may damage them, such as extreme weather conditions and harmful insects. Protection from diseases and pests is another factor that is propelling the growth of seed coatings. Seed coating also improves germination by preserving the seed, allowing it to mature under favorable conditions. It also enhances plantability by increasing yield and reducing labor costs.

However, the seed coating market may be impacted by the low yield of crops in under-irrigated areas. Poor irrigation infrastructure is a significant challenge for the seed coating industry as it affects crop yield and quality. Developing countries such as India, South Africa, and Turkey cultivate crops such as rice, corn, wheat, soybean, and groundnut, which require ample water. Even though the seeds are coated, the unavailability of adequate water supply hampers crop yield, thereby limiting the growth of seed coatings.

The development of biodegradable seed coatings is gaining traction and is expected to have a significant share in the market in the coming years. This is primarily due to the growing awareness among consumers about healthy food consumption and the adverse impact of non-biodegradable seed coatings on the environment. Moreover, the increasing ecological concerns have led to restrictions on the use of oxo-plastics and microplastic particles in consumer and commercial products, further creating opportunities for market players to capitalize on.

The emergence of new technologies, such as breeding methods, has led to the entry of new players in the market. Although these new entrants disrupt the market for established players, they face challenges such as lack of brand recognition and low-profit margins. Additionally, the seed prices of these small players are comparatively lower than those of established players, impacting the market share of leading players.

Film coating is a commonly used technique in seed coating due to its ease of use, making it the most widely used method in 2021. It involves applying a thin, water-permeable polymer-based coating onto the seed, seed coating, or pellet. This technique is preferred due to the availability of polymers in various colors, finishes, opacities, and coverage qualities such as matt, shine, and sparkle. It not only minimizes dust but also increases the market appeal, which adds value to the seed. Crops are vulnerable to diseases and insect pests at all growth stages, such as blight and sucking insects, which can be effectively combated through seed coating. The encrusted seed is then coated with a lighter covering to make handling easier. This results in the seed having better size, shape, and weight, improving planting accuracy, and maximizing the germination rate.

In North America, the demand for seed coatings is led by countries such as the United States, Canada, and Mexico. The United States, being the largest market for seed coatings in the region, benefits from supportive regulations such as the compulsory coloring of treated seeds and the growing demand for yield. The increasing size of farms and decreasing crop rotation, along with rising awareness of bioproducts, are the major factors driving the demand for seed coating materials in the country. The United States primarily grows corn, and a high percentage of the seeds used in the country are treated with seed coating, with this number expected to increase. While most coatings contain chemicals such as copper compounds and antibiotics, there is a growing trend towards biologically-based coatings that are more selective and compatible with organic practices while preserving soil microbiome. All of these factors are expected to contribute to the growth of the seed coating market during the forecast period.

The decreasing trend in global per capita land and arable land area has resulted in a significant gap in the demand and supply of agricultural products. To bridge this gap, there is a need to increase crop yield. However, farmers face several challenges such as seed diseases and volatile environments, leading to a decline in crop yield. Therefore, there is an increasing demand for seed coatings that help accelerate seed performance and germination by coating them with pesticides, fertilizers, plant growth regulators, and other substances.

The global hectarage of biotech crops has been steadily increasing over the years, with 190.4 million hectares in 2019, involving 17 million farmers across 29 countries. The United States, Brazil, and Argentina had the highest adoption rates with 71.5 million hectares, 52.8 million hectares, and 23.9 million hectares, respectively, in 2019. Farmers have shown high levels of satisfaction with biotech farming products as they offer numerous benefits, including more convenient and flexible crop management and lower production costs.

Market Segmentation

For the purpose of this report, the global Seed Coating market segmented on the basis of Form Type, Additive type, Process, Crop Type, Active Ingredient, and region:

Form Type Outlook:

On the basis of Form Type, the market is segmented into coil spring, leaf spring, air spring, shock absorber, control arm, rubber bushing, link stabilizer/sway bar, ball joint strut.

Additive type Outlook:

On the basis of Additive type, the market is segmented into passenger car, light commercial vehicle (LCV), truck, bus, two wheeler.

Process Outlook:

On the basis of Process, the market is segmented into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Fuel Cell Electric Vehicle (FCEV).

Figure 1 Seed Coating Market By Process (Market Size And Forecast By Value - USD Million, 2022 & 2030)