USD 1.10 billion
Report ID:
SQMIG15C2042 |
Region:
Global |
Published Date: September, 2024
Pages:
184
|Tables:
59
|Figures:
75
Global Biological Seed Treatment market size was valued at USD 1.10 billion in 2022 and is poised to grow from USD 1.21 billion in 2023 to USD 2.62 billion by 2031, at a CAGR of 10.1% during the forecast period (2024-2031).
The global market for biological seed treatment is poised for substantial growth in the foreseeable future, primarily driven by the escalating demand for chemical-free crops. This surge in demand is attributed to shifting consumer preferences towards personal health improvement and the consumption of wholesome food. Additionally, the increasing elderly population is anticipated to further stimulate the demand for biological seed treatment. Notably, corn stands out as the primary crop benefiting from biological seed treatment applications in the United States. American farmers have recognized that employing selected biological seed treatment methods provides corn with a significant advantage during the germination period, leading to improved yields and contributing to sustainability in agriculture. By implementing precise combinations of microbial and fungal agents in biological seed treatments for corn, farmers have witnessed remarkable yield growth of up to ten percent.
The adoption of biological seed treatment in agricultural practices has witnessed significant growth due to its ability to prevent seed-borne and soil-borne infections and diseases. Compared to chemical treatments, biological seed treatment poses a lower risk of exceeding residue limits, aligning with the increasing demand for sustainable agriculture. Furthermore, the rising trend of organic farming is expected to have a direct impact on the market penetration of biological seed treatment products. According to the Office for National Statistics in the United Kingdom, the agriculture sector contributes approximately 0.7% to the country's total GDP. The composition of biological seed treatment products, consisting of naturally occurring active ingredients, offers plant protection against abiotic stress and soil-borne pathogens, consequently enhancing overall plant growth. However, the lack of awareness regarding sustainable agricultural practices in developing economies is projected to hinder market growth. Additionally, limited shelf life, particularly for seeds like soybean compared to other treated crop seeds, is expected to negatively impact demand over the forecast period. Biological seed treatment plays a crucial role in achieving sustainable agriculture by reducing the reliance on chemical fertilizers, boosting immunity, enhancing nutrient absorption capacity, and improving resistance to diseases and pest attacks. The reduced use of chemical fertilizers not only enhances crop health but also enables quick recovery from abiotic stressors such as drought and salinity.
Global Market Size
USD 1.10 billion
Largest Segment
Microbials
Fastest Growth
Botanicals
Growth Rate
10.1% CAGR
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Global Biological Seed Treatment Market is segmented based on crop type, product type, function and region. Based on crops, the market is segmented into corn, wheat, and soybeans. Based on product type, the market is segmented into Microbial, and Botanical & Others. Based on function, the market is segmented into Seed enhancement and, Seed protection. Based on region, the market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Biological Seed Treatment Market Analysis by Type
By type, the market can be segmented into microbials and botanicals. Microbials dominated the biological seed treatment market. These treatments involve the use of beneficial microorganisms such as bacteria, fungi, and viruses. They provide numerous benefits, including disease control, improved nutrient availability, and enhanced plant growth. Microbials are widely adopted due to their effectiveness in protecting seeds and seedlings from pathogens and pests.
While botanicals hold a smaller market share. This growth can be attributed to several factors. Firstly, there is an increasing demand for organic and natural food products, which has boosted the adoption of botanical-based treatments in organic farming systems. Additionally, the rising awareness about the potential adverse effects of chemical pesticides on human health and the environment has led to a growing preference for botanical alternatives.
Biological Seed Treatment Market Analysis by Crop
By crop, the market can be segmented cereals and grains, and fruits and vegetables. Cereals and grains dominated the biological seed treatment market. This category includes crops like wheat, corn, rice, barley, and others. Biological seed treatments for cereals and grains primarily aim to improve seed germination, protect against diseases, enhance nutrient uptake, and increase overall crop productivity.
While the fruits and vegetables segment is experiencing rapid growth. This growth can be attributed to several factors. Firstly, there is a growing consumer demand for high-quality, safe, and residue-free fruits and vegetables. Biological seed treatments offer an effective and sustainable solution to address disease and pest issues while minimizing chemical residues in the final produce. Additionally, the rising popularity of organic farming practices has further fueled the adoption of biological seed treatments for fruits and vegetables.
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North America dominated the biological seed treatment market. In North America, the dominating segment is corn, as farmers in the US have recognized the significant advantages of employing biological seed treatments for corn crops. The accurate combination of microbial and fungal agents has led to remarkable yield growth of up to ten percent. The shift in consumer trends towards chemical-free crops and the emphasis on sustainable agriculture further contribute to the dominance of biological seed treatment in this region. The US market for biological seed treatment is characterized by extensive research and development activities, fostering innovation and the introduction of advanced products.
The APAC region, with countries such as China, India, and Japan, represents a rapidly growing biological seed treatment market. In APAC, the dominating segments vary based on the agricultural practices and crop preferences of each country. For instance, in China, soybean and rice are prominent crops benefiting from biological seed treatment. The increasing adoption of organic farming practices, coupled with rising awareness of sustainable agriculture, drives the demand for biological seed treatment in the region. Moreover, government initiatives promoting eco-friendly agricultural practices and the growing emphasis on food safety contribute to the market's growth.
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Drivers
Rising Food Demand from the Ever-increasing Global Population
The relentless surge in global population has led to an unprecedented increase in food demand, acting as a significant catalyst for the expansion of the biological seed treatment market. As the world’s population soared past 8 billion in 2022, the agricultural sector is under immense pressure to enhance crop yields sustainably. Biological seed treatments, which include the use of beneficial microorganisms to protect and enhance seed performance, are gaining traction as a viable solution.
Growing demand for chemical-free crops
The global biological seed treatment market is experiencing a surge in growth, primarily driven by the escalating demand for chemical-free crops. This trend is a direct response to heightened environmental concerns and the push for sustainable agricultural practices. As consumers become more aware of the impact of chemicals on the ecosystem, there’s a growing preference for bio-based products. This shift is influencing consumer choices and shaping agricultural methods, with more farmers turning towards organic farming techniques. The market’s expansion is further fueled by government policies that restrict the use of certain chemicals, thereby promoting the adoption of biological seed treatments as a safer, eco-friendly alternative. These factors collectively contribute to the market’s robust growth, reflecting a conscious move towards environmentally responsible farming.
Advancements in Seed Treatment Technologies
The protection of seeds and seedlings from soil- and seed-borne illnesses and insect pests that impact crop emergence and growth is greatly aided by seed treatment. The expansion of the market is anticipated to be driven by improvements in seed treatment technology, greater government backing, and a rise in farmer demand for high-quality seeds. Due to growing regulatory concerns around fumigation and the foliar application of pesticides, farmers are more and more seriously considering seed treatment as a way to safeguard investments made in high-quality seeds. Thus, the global sales of seed treatment chemicals are being driven by farmers' growing understanding. Moreover, seed treatment has evolved into a more cost-effective crop protection technique than standard spraying since it is more efficient and labor-intensive. Several governments are also running national campaigns and pushing legislation that would allow farmers to get pesticides, herbicides, and fungicides at a reduced cost in an effort to popularize seed treatment methods among farmers. Thus, the effectiveness of the seed treatment as well as growing government assistance will probably boost the expansion of the seed treatment market in the upcoming years. Also, the growing popularity of organic farming, the high demand for agricultural products free of chemical residues, and the efforts made by governments all over the world to promote the use of biological seed treatment are other significant factors influencing the market's growth.
The global market for seed treatments is expanding as a result of the rising popularity of hybrids and genetically modified seeds. Due to heightened regulatory concerns over fumigation and foliar pesticide use, farmers are increasingly contemplating seed treatment to safeguard investments made in high-quality seeds. The price of seeds is anticipated to rise as a result of an increase in demand for high-quality seeds with acceptable agronomic features. To preserve high-quality seeds, businesses and farmers are both willing to invest in seed treatment technology. For instance, Syngenta ran a trial program for VICTRATO, a ground-breaking seed treatment for wheat, durum, and barley that prevents crown rot. The Seedcare Institute (SCI), a global network of Syngenta facilities, provided assistance in adjusting the formulation for Australian conditions. According to Syngenta Crop Protection's Seedcare division, VICTRATO is a cutting-edge technology with a potent nematode and disease management combination for growers wishing to improve the quality and production of their crops and maintain the long-term health of their soil. It was introduced in May 2022. Also, by choosing seeds that do not require several chemical dosages, framers are attempting to reduce operating costs. Using seed treatment solutions ensures that these modified seeds are initially protected. The percentage of overall operational costs for maize that go toward seed has gone up from 30% to 34% during the previous seven years. The expansion of the seed treatment market is anticipated to be positively impacted by the rise in area under GM crops since the majority of GM seeds are more productive due to biological and chemical treatments.
Restraints
Limited Efficacy and Consistency limited Efficacy and Consistency
The Global Biological Seed Treatment Market is facing a significant challenge due to the limited efficacy and consistency of biological seed treatments across various environmental conditions and crop types. While these treatments offer an eco-friendly alternative to chemical options, their effectiveness can be unpredictable. This variability leads to inconsistent results, which can be disheartening for farmers who rely on these treatments to protect their crops. As the market continues to grow, addressing this restraint is crucial for maintaining farmer trust and ensuring the widespread adoption of biological seed treatments.
Regulatory Challenges in Biological Seed Treatment Market
The global biological seed treatment market, while poised for growth, faces significant hurdles due to government regulatory barriers. Diverse regulations across countries create a complex landscape for market players, as they must navigate varying legal requirements that can impede market expansion. For instance, the UK’s stringent conditions on emergency authorization for neonicotinoid use in sugar beet seed treatments highlight the challenges faced by the industry. These regulatory discrepancies not only restrict market growth but also demand a high level of compliance and adaptability from companies operating in this space. As a result, the market’s potential is hampered, calling for a more harmonized regulatory approach to foster industry development.
Although the industry has the potential to grow, there are some challenges, such as limited awareness and understanding, high cost, limited shelf-life, and regulatory issues. The advantages of biological seed treatments and how they affect crop yields are yet unknown to farmers and producers. The various kinds of biological seed treatments and their application techniques are not well understood or known. Also, the items used for biological seed treatments are more expensive than those used for traditional chemical seed treatments. These products are expensive, which can deter farmers from using them. Moreover, biological seed treatments have a short shelf life and need to be stored in the right circumstances. Poor agricultural yields may arise from inadequate storage, which can reduce the product's effectiveness. Also, the registration and approval procedure for items used in biological seed treatment is time-consuming and expensive. The cost of registration may be prohibitive for many businesses, which could reduce the marketability of certain products.
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The global biological seed treatment market is characterized by a diverse range of companies offering a variety of products. Market players focus on research and development activities to introduce innovative and effective biological seed treatment solutions. Strategic partnerships, collaborations, and mergers and acquisitions are common strategies employed by companies to enhance their market presence. Moreover, companies emphasize expanding their distribution networks and strengthening their relationships with farmers and agricultural organizations. Continuous technological advancements and product differentiation play a crucial role in maintaining a competitive edge in the market.
Biological Seed Treatment Market Top Player’s Company Profiles
Biological Seed Treatment Market Recent Developments
In March 2024, Loveland Products unveiled the presentation of a new seed treatment custom-made for soybeans, branded as Equity® VIP.
In February 2024, AgriBusiness Global directed a meeting with Marcus Meadows-Smith, CEO of BioConsortia, regarding the company's expansion into Brazil. Registration initiatives have commenced for several seed-applied products, including a fungicide designed to combat early-season pathogens such as rhizoctonia and pythium, along with a broad-spectrum nematicide exhibiting efficacy against significant soil insects like corn rootworm and wireworm. Meadows-Smith likewise addressed the launch of new items in the US.
In December 2023, Lavie Bio Ltd., a subsidiary of Evogene Ltd. specializing in agricultural biologicals, revealed an exclusive distribution agreement with WinField United Canada for its bio-inoculant seed treatment, Yalos. This partnership, exclusive to independent retail, is geared towards bolstering Lavie Bio's sales growth strategy in Canada for 2024. The focus will be on important agricultural areas like Saskatchewan, Alberta, and Manitoba, where Yalos is specifically designed to help crops like spring wheat, durum, and barley.
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According to our global biological seed treatment market analysis, the increasing demand for chemical-free crops, driven by consumer trends towards improved personal health and the consumption of healthy food, is a major driver of market expansion. Additionally, the rising elderly population and the recognition of the advantages of biological seed treatment for crops like corn in the United States contribute to the market's growth. The market is witnessing a shift towards sustainable agriculture practices, with biological seed treatments gaining importance over chemical treatments due to their lesser risk of exceeding residue limits and their alignment with the growing trend of organic farming. However, the market faces challenges such as limited awareness in developing economies and the shorter shelf life of treated seeds. Nevertheless, with continuous innovation, strategic partnerships, and a focus on organic farming, the biological seed treatment market is poised for further advancement.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 1.10 billion |
Market size value in 2031 | USD 2.62 billion |
Growth Rate | 10.1% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Biological Seed Treatment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biological Seed Treatment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biological Seed Treatment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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Report ID: SQMIG15C2042
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