Biological Seed Treatment Market by Type (Microbial {Bacteria}, Biochemical), Formulation (Liquid Formulation), Application Techniques (Seed Coating), Crop Type (Cereals & Grains {Corn, Wheat}, Oilseeds {Cotton}), and Geography - Global Forecast to 2029

The Biological Seed Treatment Market is expected to reach $3.59 billion by 2029, at a CAGR of 12.7% during the forecast period 2022–2029. The growth of this market is mainly driven by the growing organic farming & demand for organic food, growing awareness about environmental safety, increasing investments from leading companies, growing need to increase crop yield and quality, and decreasing agricultural land. However, lack of education and awareness among farmers, the limited shelf life of treated seeds, and financial hurdles for new entrants are expected to hinder the growth of this market to a certain extent. Moreover, the emergence of biodegradable seed coatings is expected to offer significant growth opportunities for players operating in the biological seed treatment market.

Impact of COVID-19 on the Biological Seed Treatment Market

The COVID-19 pandemic adversely hit many economies around the globe. Complete lockdown and quarantine to fight COVID-19 adversely impacted many industries globally, including agriculture and crop protection. In the agriculture sector, the biological seed treatment market registered a strong slowdown in sales in the first quarter of 2020, mainly due to the disturbance in logistics and transportation. Along with logistics and transportation, the biological seed treatment market registered interruptions in the entire sector's value chain from raw materials supply to manufacturing, packaging, and distribution.

COVID-19 resulted in the movement restrictions of workers, a decline in demand from farmers, and the closure of seed production facilities. The industry also suffered severe labor shortages due to repeated lockdowns that affected production and trade movements. The decline in business for a few initial months in 2020, coupled with lower demand from a few major markets, put pressure on the profitability of biological seed treatment manufacturers and vendors.

The effects of the COVID-19 pandemic on this market were felt in China starting in 2020, as the country is one of the world's largest raw material suppliers for the biological seed treatment industry. Most European and North American biological seed treatment companies have imported key active ingredients used in producing biologicals, mainly from China and other Asian countries. The current crisis being persistent, suggested low availability of raw materials as the cropping season progressed. This created a scarcity of products in high-growth markets, such as the U.S., Brazil, Spain, and Italy.

Therefore, a complete halt in the transportation and logistics industry and reduced production in some countries due to lockdowns are projected to adversely affect the global biological seed treatment market in terms of volume sales in 2020 and 2021.

However, in 2021, there has been strong growth in the seed treatment industry across the globe due to the growing need for higher yields in crops such as corn, cotton, and soybeans. Therefore, major companies, such as Bayer AG (Germany), BASF (Germany), Corteva Agriscience (U.S.), and Syngenta AG (Switzerland) have resumed their production operations to ensure the smooth supply of their products to dealers and distributors. In addition, commodity prices are expected to be high in 2022, encouraging growers to invest in products that help them increase yields and profitability. Therefore, except for the initial days of the COVID-19 outbreak in 2020, the biological seed treatments segment revealed strong growth in the crop protection market in 2021 and is expected to remain the same in 2022.

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Growing Need to Increase Crop Yield and Quality Fuels the Growth of the Biological Seed Treatment Market

According to the Department of Economic and Social Affairs (UN), the global population is expected to reach 8.6 billion by 2030, 9.8 billion by 2050, and 11.2 billion by 2100. A growing global population places increased pressure on the world's resources to provide not only more but also different types of food. In addition to the increased demand from population growth, there has been a growing demand for nutrient-dense and residue-free food products due to growing health awareness, socio-economic changes, increased income, and rapid urbanization.

The agricultural sector will continue to be critical to the livelihoods of individuals and the stability of the global economy. The global demand and consumption of crops for food, feed, and fuel is increasing rapidly, subsequently driving the need to increase crop yield. Since crop yields are becoming increasingly important, the demand for cost-effective strategies to boost crop yields is also rising significantly. Furthermore, the decrease in agricultural land has driven agricultural producers to become more efficient and productive to meet the global food demand.

According to the FAO, the demand for cereals for human consumption and animal feed is projected to reach 3 billion tonnes by 2050, an increase from 2.1 billion tonnes in 2018. In addition, the rising demand for biofuels will continue to exert upward pressure on commodity prices, affecting food security and poverty levels in developing countries. Thus, modern agricultural practices such as biological seed treatments with advanced technologies are necessary for breaking yield barriers and enhancing crop productivity to meet the global food demand while ensuring environmental safety.

Biological seed treatment helps improve agriculture productivity as it protects the germinating seedlings from seed-borne or soil-borne pathogenic organisms and storage insects. It also enables the uniform growth of crops in adverse conditions. These benefits increase the adoption of biological seed treatment globally, driving the growth of the global biological seed treatment market.

Key Findings in the Biological Seed Treatment Market Study:

The Microbial Segment to Grow at the Highest CAGR During the Forecast Period

Based on type, the biological seed treatment market is segmented into microbial, biochemical, and other biological seed treatments. The microbial segment is expected to grow at the highest CAGR during the forecast period of 2022—2029. Its beneficial properties, such as ease of handling, stimulating plant growth, promoting soil biodiversity, and addressing specific issues, such as nitrogen fixation in legumes, are expected to boost the demand for microbial seed treatment in the market. Also, growing awareness about environmental safety and rising government initiatives are expected to offer significant opportunities for microbial seed treatment during the forecast period.

In 2022, the Liquid Formulation Segment to Dominate the Biological Seed Treatment Market

Based on formulation, the biological seed treatment market is mainly segmented into liquid formulation and dry formulation. In 2022, the liquid formulation segment is estimated to account for the largest share of the biological seed treatment market. The largest share of this market is mainly attributed to the factors such as uniform & easy application of liquid formulations, better performance, and higher effective duration (up to 6 months) than dry formulations (up to 3 months). Moreover, the product and operator safety aspects compared to dry formulations are the key factors attributed to the growth of this segment.

The Seed Dressing Segment to Grow at the Highest CAGR During the Forecast Period

Based on application technique, the biological seed treatment market is segmented into seed coating, seed dressing, and seed pelleting. The seed dressing segment is expected to grow at the highest CAGR during the forecast period of 2022—2029. The fast growth of this segment is mainly attributed to its highly effective and beneficial properties for farmers and the environment. It also provides a wide range of benefits, including improved seedling vigor through added nutrients, faster germination, extended growing season, improved nutrient uptake, enhanced root development, and protection against disease, temperature, and excessive moisture/drought. Thus, all these factors increase the adoption of the seed dressing technique.

The Cereals & Grains Segment to Dominate the Biological Seed Treatment Market in 2022

Based on crop type, the biological seed treatment market is segmented into cereals & grains, oilseeds, and other crops. In 2022, the cereals & grains segment is expected to account for the largest share of the biological seed treatment market. This segment’s large share is mainly attributed to the growing demand for cereal & grains for food & feed with the growing population and increasing industrial applications such as animal feed, biofuel, and starch & ethanol production.

The Seed Enhancement Segment to Grow at the Highest CAGR During the Forecast Period

Based on function, the biological seed treatment market is segmented into seed protection and seed enhancement. The seed enhancement segment is expected to grow at the highest CAGR during the forecast period of 2022—2029. Biological and seed coating & pelleting enhancement techniques are the most widely practiced advanced seed treatments used to improve crop yield, germination, and storage of seeds.

North America to Dominate the Biological Seed Treatment Market in 2022

Based on geography, the biological seed treatment market is segmented into seven major geographies: North America, Europe, East Asia, South & Southeast Asia, Australasia, Latin America, and the Middle East & Africa. In 2022, North America is expected to account for the largest share of the biological seed treatment market. The large share of this market is mainly attributed to the large arable land, a wide variety of crops cultivated in the region, increasing demand for crop yield & efficiency, and growing adoption of innovative technologies in the agricultural system.

Key Players

The key players operating in the global biological seed treatment market are BASF SE (Germany), Bayer AG (Germany), Syngenta AG (Switzerland) (a part of China National Chemical Corporation/ChemChina), Corteva Inc. (U.S.), UPL Limited (India), Nufarm Limited (Australia), FMC Corporation (U.S.), Verdesian Life Sciences, LLC (U.S.), Novozymes A/S (Denmark), Valent BioSciences LLC (U.S.), Croda International Plc (U.K.), and Precision Laboratories, LLC (U.S.), among others.

Scope of the Report:

Biological Seed Treatment Market, by Type

• Microbial
  • Microorganism Type
    • Bacteria
    • Fungi
  • Microbial Type
    • Biofertilizers
      • Nitrogen-Fixing Bacteria
      • Rhizobia Bacteria
      • Azospirillum
      • Other Nitrogen-Fixing Biofertilizers
      • Other Biofertilizer
    • Biopesticides
      • Bioinsecticides
        • Bacillus Thuringiensis
        • Beauveria Bassiana
        • Lecanicillium lecanii/Verticillium lecanii
        • Metarhizium Anisopliae
        • Baculoviruses
        • Other Bioinsecticides
      • Biofungicides
        • Trichoderma Viride
        • Pseudomonas
        • Bacillus
        • Streptomyces
        • Trichoderma Harzianum
        • Other Biofungicides
      • Bionematicides
        • Bacillus Firmus
        • Other Bionematicides
      • Bioherbicides
    • Bio-Stimulants
• Biochemical
• Other Biological Seed Treatments

Biological Seed Treatment Market, by Formulation

• Liquid Formulation
• Dry Formulation

Biological Seed Treatment Market, by Application Technique

• Seed Coating
• Seed Dressing
• Seed Pelleting

Biological Seed Treatment Market, by Crop Type

• Cereals & Grains
  • Corn
  • Wheat
  • Other Cereals & Grains
• Oilseeds
  • Soybean
  • Cotton
  • Canola
• Other Crops

Biological Seed Treatment Market, by Function

• Seed Protection
• Seed Enhancement

Biological Seed Treatment Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • Spain
  • U.K.
  • Rest of Europe
• East Asia
  • China
  • Japan
  • South Korea
  • Rest of East Asia
• South & Southeast Asia
  • India
  • Indonesia
  • Rest of South & Southeast Asia
• Australasia
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Chile
  • Rest of Latin America (RoLATAM)
• Middle East & Africa

Key Questions Answered in the Report-