Seed Coating Market by Type (Polymers, Colorants, Minerals/Pumice), Active Ingredients Type (Protectants, Nutrients, Phytoactive Promoters), Crop Type (Cereals and Grains, Oilseeds and Pulses, Vegetables, Flowers and Ornamentals) - Global Forecast to 2030

The Seed Coating Market is projected to reach $6.13 billion by 2030, at a CAGR of 9.6% during the forecast period of 2024–2030. The growth of this market is mainly driven by the growing demand for low-cost crop protection solutions, technological advancements, the rising focus on seed treatment, reduction in arable lands, the need to increase agricultural productivity, increasing demand for low-cost alternatives to hybrid and genetically modified seeds, and increasing farmers’ preference for seed-enhancing products. Moreover, the emergence of biodegradable seed coatings is expected to provide significant growth opportunities for the stakeholders operating in this market. However, the stringent and non-standardized regulatory framework, restriction on the use of neonicotinoids, the limited shelf life of treated seeds, and the lower awareness about seed coating technology among growers in developing countries are some of the factors expected to hinder the growth of the seed coating market. Complexity process of the seed film coating and financial hurdles for new entrants pose a challenge to this market's growth.

The Impact of COVID-19 on the Seed Coating Market

The COVID-19 pandemic adversely affected the global economy. The lockdowns and quarantines imposed to curb the spread of the SARS-CoV-2 virus negatively impacted many sectors, including the agricultural sector. In the initial days of the pandemic, disrupted logistics and transportation impacted the movement of agricultural commodities. Thus, the seed coating market registered a decline in sales in the first quarter of 2020.

The effects of the COVID-19 pandemic on this market were first felt in China at the beginning of 2020, as the country is one of the world's largest raw material suppliers for the agricultural crop protection industry. Most European and North American agricultural chemical and biological seed companies import key active ingredients used in seed coating, mainly from China and other Asian countries. The low availability of raw materials created a scarcity of products in high-growth markets, such as the U.S., Brazil, Spain, and Italy. In addition, according to the Program Manager at the OECD, seed companies headquartered in the Asia Pacific region were more negatively affected than their counterparts in other regions.

Click here to: Get Free Sample Copy of this report

Therefore, disruptions in the transportation & logistics industry and impacted production in some countries adversely affected the global seed coating market in terms of sales volumes in the initial phase of the outbreak in 2020.

Subsequently, the transport barriers were lifted up by government bodies, making it easy to meet the demand from farmers in many countries. There was minimal impact on the movement of agrochemicals.

In 2021, strong growth in the global seed coating materials market was witnessed due to the growing need for higher crop yields such as corn, cotton, and soybeans. Therefore, major companies such as Bayer AG (Germany) and BASF (Germany) resumed their production operations to ensure the smooth supply of their products to dealers and distributors. In addition, commodity prices were higher in 2022, encouraging the growers to invest in products that help them increase yields and profitability.

Rising Need for Low-Cost Crop Protection Solutions

Seed coating is one of the most popular crop protection methods. It provides better crop establishment, such as healthy seed germination and protection against seed-borne and soil-borne diseases, thereby ensuring high yield and profitability of the harvest.

In seed coating, a relatively small amount of active ingredients is required to protect the seedling against various plant diseases and pests. Expenses on crop protection have significantly increased in the last few years due to the increasing concerns regarding crop protection, productivity, and yield. Usually, crop protection is the second-highest expense after fertilizers in farming. These expenses can be lowered through seed coating as the volumes/quantity required in seed coating are lower compared to foliar or furrow applications of crop protection chemicals. Due to the limited seed surface area, the active ingredients are required in limited quantities and effectively control early seed diseases to a large extent. Compared to the surface application of crop protection products, the loss is substantially reduced by up to 99% with the help of seed coating. Also, genetically modified (GM) seeds with target protection against specific pests are more expensive than seed coating. Hence, seed coating becomes a more cost-effective solution than using GM seeds for crop protection in countries with stringent regulations on GM crops.

Key Findings in the Seed Coating Market Study:

In 2024, the Polymer Segment to Dominate the Seed Coating Market

Based on material type, the seed coating market is segmented into polymers, colorants, minerals/pumice, and other material types. In 2024, the polymer segment is expected to account for the largest share of the seed coating market. The large market share of this segment is primarily attributed to the growing demand for polymers in seed coating due to their ability to enhance the seed germination process and provide protection against pests, diseases, drought and adverse soil conditions. Moreover, the high acceptance of seed-coating polymers is attributed to their low viscosity and water-based nature, which promotes faster seed germination. Seed-coating polymers keep seeds damp/moist, provide an unwavering temperature, and suppress seeding stress from drying field conditions.

Moreover, seed coating materials market is projected to register the highest CAGR during the forecast period owing to the rising adoption of polymeric materials in farming because of their high usefulness in binding strength and convenience of seed pouring.

In 2024, the Protectants Segment to Dominate the Seed Coating Market

Based on active ingredients type, the seed coating market is segmented into protectants, nutrients, phytoactive promoters, and other active ingredients. In 2024, the protectants segment is expected to account for the largest share of the seed coating market. The large market share of this segment is primarily attributed to the growing incidence of soilborne pests and diseases and the need for a safe and controlled application of plant protectants. Seed coating is an effective carrier of plant protectants such as pesticides. In addition, the application of plant protectants through the seed coating provides benefits such as precise placement on the target, minimum toxicant requirements, minimum impact on the environment, and minimum exposure to wildlife and beneficial organisms.

In 2024, the Cereals & Grains Segment to Dominate the Seed Coating Market

Based on crop type, the seed coating market is segmented into cereals & grains, oilseeds & pulses, vegetables, flowers and ornamentals, and other crop types. In 2024, the cereals & grains segment is expected to account for the largest share of the seed coating market. The large market share of this segment is attributed to the growing need to increase cereal & grain production, minimize cereal & grain loss due to pests and diseases, and the increasing use of cereal & grains in animal feed, biofuel, and starch & ethanol production.

North America to Dominate the Overall Seed Coating Market, While Asia-Pacific Leads in Growth

Based on geography, in 2024, North America is expected to account for the largest share of the seed coating market, followed by Latin America and Europe. This region’s large market share is attributed to the growing demand for high-yielding and disease-tolerant crops from domestic markets and export destinations. Moreover, factors such as an organized distribution chain for crop protection chemicals, the growing awareness about sustainable crop production techniques to lessen the environmental impact of high residue, and the presence of a large number of stakeholders further support the growth of seed coating materials market.

However, Asia-Pacific is slated to register the fastest growth rate during the forecast period of 2024–2030 owing to the rising demand for high-yield crop products and growing support from various organizations & governments to enhance crop productivity in several countries.

Key Players

The key players operating in the seed coating materials market are BASF SE (Germany), Bayer AG (Germany), Chromatech Incorporated (Netherlands), Cistronics Innovations Pvt. Ltd. (India), Clariant International Ltd. (Switzerland), Croda International Plc. (U.K), Germains Seed Technology (U.S.), Milliken & Company (U.S.), and Precision Laboratories, LLC (U.S.), among others.

Scope of the report:

Seed Coating Market, by Material Type

• Polymers
  • Polymer Gels
  • Superabsorbent Polymer Gels
• Colorants
• Minerals/Pumice
• Other Material Types

Seed Coating Market, by Active Ingredients Type

• Protectants
• Nutrients
• Phytoactive Promoters
• Other Active Ingredients

Seed Coating Market, by Crop Type

• Cereals & Grains
  • Corn
  • Wheat
  • Other Cereals & Grains
• Oilseeds and Pulses
• Vegetables
• Flowers and Ornamentals
• Other Crop Type

Seed Coating Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • Spain
  • France
  • U.K.
  • Russia
  • Rest of Europe (RoE)
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia-Pacific (RoAPAC)
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America (RoLATM)
• Middle East & Africa

Key questions answered in the report: