Seed Coating Materials Market showing Compound annual growth rate and forecast till 2025

Seed coating is the method of applying seed protection formulation over seed surface. The prime aim for seed coating is enhance protection of the seeds against pathogenic, fungal attacks. Applying weight to very light seeds and improving shape of uneven seeds for greater precision of planting are some other purposes of seed coating. Various materials such as polymers, fertilizers, repulsive agents are used to coat seeds. Key advantages associated with seed coating such as high crop yield per hectare, high binding capacity coupled with high shelf life, higher seeding rates are expected to fuel demand for seed coating materials throughout the forecast period.In addition, increasing research and development activities to develop high performance coating methods with advanced features is expected to fuel growth of seed coating materials market over the forecast period. For instance, in the recent past, a film coating method has been developed that allows for uniform and dry polymeric coating to overcome disadvantages of other coating methods.

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However, stringent government regulations imposed on the use of chemicals is a restraint for seed coating materials market growth. The impact of this restraint is expected to be low due to technological advancement in coating materials manufacturing processes.

Among product types, polymer segment holds the largest revenue share in the global seed coating materials market and is expected to lead the market by witnessing a CAGR of 7.10% over the forecast period. Increasing demand for polymeric seed coating materials such as polyurethane, polyvinylacrylate, polyvinylpyrrolidone etc. in agriculture due to their high efficacy in terms of binding capacity and ease of pouring is projected to have a positive impact on the growth of this segment in the near future.

Among crop types, cereals & grains segment accounted for the highest share, in terms of revenue in 2016. According to Food and Agriculture Organization of United Nations (FAO), world cereal & grains utilization is projected to reach 2,591 million tons by 2017 end, which creates a highly potential market for cereal & grains coatings.

North America accounted for highest revenue share and was valued at US$ 0.42 billion in the global seed coating materials market in 2016. The region is expected to retain its dominance throughout the forecast period, due to increasing awareness about advantages of seed treatment such as seed germination enhancement, better seed performance in adverse conditions fuelled by government seed treatment campaigns in the region.

According to a study by Coherent Market Insights, the global seed coating materials market was valued at US$ 1.22 billion in 2016 and is expected to witness a CAGR of 8.43%, in terms of revenue, over the forecast period (2017 – 2025).

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North America held highest revenue share of 34% in the global seed coating materials market, in 2016 and the region is projected to maintain its dominance in the near future. Europe accounted for the second largest revenue share in global seed coating market in 2016 and is expected to maintain its position over the forecast period.

Major Players in the Global Seed Coating Materials Market

The major players in the seed coating materials market include Clariant International, Chemtura Corporation, BASF SE, Bayer CropScience AG, Precision Laboratories LLC, Croda International PLC, Platform Specialty Products Corporation and Chromatech Incorporated among others. Key players are strategically investing in the Seed Coating Materials market, to enhance their product portfolio through collaboration, joint ventures, merger & acquisitions. For instance, in 2017, BASF signed an agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses.

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