Like with any other industry, the COVID-19 pandemic also affected the seed coating material market, which was at a nascent stage. As there were lockdowns worldwide, R&D activities were halted, supply chains were disrupted, and there were delays in the deployment of newly developed commercial products. As a result, the industry faced significant challenges during the pandemic.
Artificial coating of seeds helps in improving the handling and delivery of protectants, symbiotic microorganisms, soil adjuvants, germination promoters, growth regulators, and colors. Using such coatings on seeds has the potential to reduce the usage of chemical fertilizers and pesticides in agriculture. Delivering plant beneficial microorganisms through seed coatings has been proven to achieve increased crop yields and food quality. These are some of the significant factors anticipated to drive the market. With increasing investments in agriculture and the use of modern technologies, the awareness among farmers about the use of material-coated seeds, genetically modified seeds, and hybrid seeds is increasing.
Despite many advantages, there are a few factors stopping farmers from adopting coated seeds like exorbitant prices, lack of information about the shelf life, vigor of the coated seeds after storage, etc. Furthermore, stringent regulations with respect to seed coating act as a restraint on the market.
Seed coating is a process through which seeds are coated with crop protection chemicals, such as insecticides, fungicides, insecticides, and some other non-chemical/biological products, which protect the seeds from pest attacks. Binders, seed planting lubricants, seed-applied fertilizers, and adjuvants are the major ingredients used in the seed coating process apart from active ingredients/chemicals. The global seed coating material market is segmented by ingredients (polymer, seed planting lubricants, binders, fertilizers, adjuvants, and colorants), crop type (grain and cereal, oilseed, fruits and vegetables, and other crop types), coating type (bio-based and synthetic), and geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecasts of value (in USD million) for all the above segments.
The global per capita land and arable land area have been witnessing a falling trend over the years, leading to a huge gap in demand and supply. To reduce the demand and the supply gap in agricultural products, the yield of crops needs to be increased. Seed diseases and volatile environments are a few major challenges faced by farmers since they decrease the crop yield. Therefore, this boosts the demand for seed coatings as coating the seed with pesticides, fertilizers, plant growth regulators, and others helps in accelerating seed performance and germination. The global hectarage of biotech crops increased from 189.8 million hectares in 2017 to 190.4 million hectares by 2019 and involved 17 million farmers. Biotech farming has been adopted by around 29 countries, of which the United States stood first with 71.5 million hectares (37.55% of the global total), followed by Brazil with 52.8 million hectares (227.73%), and Argentina with 23.9 million hectares (12.6%) in 2019. High adoption rates reflect farmer satisfaction with the products that offer substantial benefits ranging from more convenient and flexible crop management to lower cost of production.
Demand in the North American market is led by countries such as the United States, Canada, and Mexico. The United States is the largest market for seed coatings in North America due to supportive regulations like the compulsory coloring of treated seeds coupled with growing demand for yield. Increasing farm size and decreasing crop rotation coupled with the rising awareness of bioproducts are the major factors driving the demand for seed coating materials in the country. Corn is one of the major crops grown in the United States, and a high number of seeds used in the country are treated with seed coating, and this percentage is growing. While most coatings include chemicals like copper compounds and antibiotics, new biologically-based coatings are increasing in importance. Biological coatings are becoming more selective on the basis of preservation of soil microbiome and are compatible with organic practices. Hence, all these aforementioned factors are anticipated to bolster the market growth during the forecast period.
The global seed coating material market is highly consolidated, and this trend is likely to continue even in the future. The market is dominated by a few top players holding major shares. The United States and certain European countries are likely to become seed coating industry giants, as the companies are highly focused on merging with each other in order to capture a larger market share.
In February 2022, Croda International partnered with Xampla to contrive a completely biodegradable seed coating that is microplastic-free in nature. This partnership is helping Croda International lead the seed coating material market. This will also help Croda International offer enduring solutions in compliance with the microplastic ban in a few countries. 2b1af7f3a8