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Blog: Strong market growth for seed treatments and coatings boosted by biologicals
01 June 2020
Seed treatments are chemicals and/or biological products that
are applied to the seed to protect them from early season diseases
and pests. The discovery and introduction of systemic fungicides
and insecticides revolutionized the use of seed treatments, as they
not only protect the germinating seeds, but also the young
seedlings. These include the ground-breaking fungicide from Bayer,
Baytan (triadimenol) introduced in 1979 and the neonicotinoid
insecticide, Gaucho (imidacloprid) introduced in 1994.
The total seed treatment market was valued at US$4.7 billion in
2018 and had a CAGR of 4.9% between 2012 and 2018. The seed
treatment market is made up of chemicals and biologicals. The
chemical segment dominates the market representing 93% of the total
seed treatment market. However, the biological segment is the
fastest growing with a CAGR of 8.4% between 2012 and 2018 (see
Figure 1 below).
Technological advancements and increased understanding of plant
physiological processes have played an important role in improving
the efficacy and reliability of biological agents. Innovation in
both chemicals and biologicals will continue to accelerate growth
in the seed treatment market that is estimated to reach above $7
billion by 2025.
Figure 1: Seed Treatments Market Size - Sales
US$
However, the regulatory environment is challenging and becoming
more demanding, particularly in Europe which could constrain the
market. In addition, a number of seed treatment active ingredients
are off-patent and generic manufacturers have become key players in
this market. Applying products to seeds rather than spraying them
over the whole crop has numerous economic and environmental
advantages. Many Biological Control Agents (BCAs) and biostimulants
are particularly well-suited to being delivered this way.
The seed treatment market is dominated by Bayer and Syngenta who
have a long history of developing seed treatment products. The
recent consolidations in the agrochemical industry, ChemChina's
acquisition of Syngenta, Bayer's acquisition of Monsanto and the
formation of Corteva Agriscience (merger of Dow Agroscience, DuPont
and Pioneer) have benefited other players seed treatment portfolios
e.g. BASF and Nufarm.
In 2019, Bayer and Syngenta continued to dominate the market
with a combined market share of 46%, with BASF holding a distinct
third position with a market share of 15%. Other major players in
the seed treatment market include Corteva, FMC, Nufarm, Sumitomo
and UPL.
New special report
IHS Markit is pleased to announce the publication of a new
edition of its Agrow Seed Treatments report. This is a
complete update of a seed treatment study previously written in
2017. It provides a quantitative and qualitative assessment of the
global seed treatment market, competitor landscape, products and
industry developments, and focuses on seed treatments for key field
crops. The 310-page report has 147 tables and 10 figures.
Chapter 1 provides an introduction into the
seed treatment market, segments and developments. Chapter
2 outlines the market size and key segments. It discusses
the key market drivers, constraints and key players in the
industry.
Chapter 3 discusses the formulation,
application process and equipment used for seed treatment,
including seed coatings. This outlines the types of formulations
used such as the evolution from powders towards flowable suspension
concentrates and emulsions. It also provides insights into any
other types of formulations such as microemulsion, capsule
suspension and gels. It discusses application methods such as
dressing, encrusting, pelleting and film coating. Much of the
development has been in film coating and advanced polymer
technology that is discussed. It looks at the future of these
technologies and the main company activities in enhancing coating
technology in controlling dust. The report also discusses new
regulations regarding microplastics.
Chapter 4 provides an in-depth view of the
eight major seed treatment companies. Each company profile provides
key facts about the company, recent events, performance, product
portfolio, research and development activities and strategy.
Chapter 5 profiles the active ingredients from
the major seed treatment companies. It provides a summary of the
active ingredient, its discovery and launch as a seed treatment,
and outlines the regulatory status of the active ingredient in the
key markets of the US and Europe. The products section provides a
detailed view of all seed treatment products based on that active
ingredient with approval dates, target crops and key development by
regions: North America, Europe, Latin America and Asia.
