Seed Coating Ingredients Market

Global Seed Coating Ingredients Market Size (2024 to 2029)

The global Seed Coating Ingredients Market size is expected to be worth US$ 2.12 billion in 2024, and it is predicted that it will reach a valuation of US$ 3.19 billion by 2029 with an annual expansion rate (CAGR) of 8.5% between 2024 and 2029.

Seed coating is the process of directly coating seeds with a variety of materials, such as repellants, fertilizers, crop protection chemicals, and plant growth regulators that provide both aesthetic and environmental benefits. The main goal of seed coating material is to provide crops in a timely manner with fast growth and reasonable price. This growth is especially observed in developing countries, where agriculture makes the largest contribution to the overall economy. Seed coating offers both aesthetic and environmental benefits. It is primarily done to ensure rapid growth and timely supply of crops at a fair price. Quality yield per hectare, multi-component products, and more are other advantages of these coatings. The market for seed coating materials is expected to experience tremendous growth, especially in developing countries where agriculture contributes primarily to the economy.

REPORT COVERAGE:

Drivers:

Globally, population growth is driving demand for increased crop production, which is expected to increase the market call for seed coating materials during the forecast period. Also, the seed coating ingredients market is expected to flourish in the near future to reduce environmental impact and protect crops. The increased use of polymers due to functional properties such as improved nutritional value and seed appearance will help complement the growth of the polymer category in the global seed coating ingredients market during the forecast period. Increased investment in the agricultural sector, significant advancements in farm tools/facilities, and increased awareness of the importance of genetically modified seeds among farmers are a powerful force in increasing demand for seed coatings across the world. As consumer demand for natural foods increases, there is a growing demand for seed coating materials around the world. The market is expected to post a healthy CAGR during and after the outlook period. To bridge the gap between these two economic parameters, it is necessary to increase the yields of crops grown around the world. With the growing population of consumers consuming plant products over the years, there is a gap between supply and demand for agricultural products. These properties are the driving force behind the growth of the industry around the world. In an era of urbanization and changes in consumer lifestyles, farmers tend to produce crops, fruits and vegetables of great demand and value. This has reduced crop rotation practices that have traditionally been used to supplement soil nutrients.

To reduce the negative impact on the environment and enable better crop protection, the global seed coating market is expected to increase in the forecast period. To avoid this, the seed paint ingredients used in seed products have been selected through many studies to minimize the risk of spoilage. Traditional seeds, which have been used for many years, are affected by various factors during storage and lead to rotting. The use of seed coating ingredients protects the seeds from external factors. The new powder-free coating properties and easy flow due to the use of seed coating ingredients have improved the shelf life of the seeds. With increasing consumer awareness of these factors, the demand for seed coating ingredients is increasing rapidly. The rising world population is driving the need to increase crop production, which is expected to increase market demand for seed coating materials during the envisioned period. The ingredients in the seed coating include ingredients that provide micronutrients to the seeds through a film like Rhizobium. These micronutrients help the seeds grow by providing essential nutrients that the soil can use. Therefore, the use of seed coating products is versatile and this has led to a high demand for seed coating ingredients. However, innovations in seed coating materials have closed the gap between supply and demand for agricultural products. Seed coating materials help control pests, enhance crop yield, control growth, and increase the quality of agricultural products.

Restraints:

The global seed coating ingredients market is foreseen to decline due to stringent government regulations on the usage of seed coatings. High dependence on seed surface, compatibility with active ingredients and/or colorants, and limited use, such as application temperature, can hinder growth during the forecast period. Abiotic factors such as temperature, rainfall, and many other factors are expected to slow the growth of the industry during the forecast period.

Impact of COVID 19 on the Seed Coating Ingredients Market:

The COVID-19 pandemic is expected to have a strong impact on the growth prospects of the seed coating ingredients market, especially in the first half of the forecast period. Players in the seed coating treatment market are expected to seek solutions to solve supply chain problems. In addition, strict disinfection and cleaning measures will be implemented. Businesses operating in today's market environment must adhere to guidelines set by local authorities. Production cycles and freight transportation are expected to be delayed as government agencies around the world are imposing lockdowns as a preventive measure to contain the new coronavirus. The companies are expected to focus on improving their contingency strategy and establishing new partnerships with domestic market players to expand their sales and market presence.

Seed Coating Ingredients Market Segmentation Analysis:

Among seed coatings of additive types such as colorants, polymers, pellets, active ingredients, minerals / pumice, etc., the polymer segment occupies the largest market share, followed by the pellets and colorants segment. The polymer segment is expected to grow more rapidly in the market during the forecast period. Polymers are used on a large scale due to their functional properties that increase the nutritional value of seeds and improve their appearance.

By type of crop, the world market was divided into the cereals and grains, oilseeds and legumes, vegetables, flowers and ornamentals sector. The cereals and grain sector are also expected to be the fastest-growing crop type on the world market. There is a significant increase in the use of coated seeds in areas where there is a wide range of production and cultivation of cereals, grains, oilseeds, and legumes and vegetables. This has contributed to the growth of the market for the types of crops mentioned.

The active ingredients segment includes protectants, which are expected to register significant growth in the market. The protectants segment is expected to dominate the market during the forecast period. The increasing incidence of soil-borne pests and diseases is one of the key factors expected to drive market growth.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

In North America and Europe, there is a growing demand for oilseeds, cereals, grains and soybeans for further use in the feed and food industry. The complexity of seed coat production has increased the number of investments in the seed coat industry in the North American market. In the United States, a favorable trade and price support system is expected to increase the import and export of grains and oilseeds, increasing the demand for seed coatings. The United States is a major contributor to the North American seed coatings market, followed by Canada. Government sponsored regulations for seed coatings and the growing consumer demand for plant products are the main factors driving the growth of the global market for seed coating materials in the region. Besides, the growing demand for healthy foods and the development of the food processing industry will drive the growth of the global seed coating ingredients market. Increasing demand for biodegradable seed coatings is expected to drive the European seed coat market during the outlook period due to European Union regulations on chemical-based seed coatings. Therefore, Europe is expected to grow faster during the forecast period. Also, developing countries such as China and India in the Asia Pacific region are prominent countries that are expected to drive the growth of the seed coating ingredients market in the region. In addition, Brazil will promote the growth of the Latin American market and a healthy CAGR is expected.

Key Players in the Market:

Major Key Players in the Global Seed Coating Ingredients Market are

• Clariant International
• BASF SE
• Bayer Cropscience AG
• Precision Laboratories, LLC
• Incotec Group Bv
• Chemtura Corporation
• Chromatech Incorporated