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)
