Global seed treatment market to grow
The global seed treatment market reached to over $2250.0 million by the end of year 2010, and is expected to reach $3430.3 million by 2016, growing at a CAGR of 13.5% from 2011 to 2016. The North American market is expected to hold 22% of the global market share by 2016, at an estimated CAGR of 16.4% due to higher acceptance of GM seeds for soybean and maize/corn. Asia-Pacific is another fastest growing segment due to the constant push by government bodies for adoption of seed treatments with "100% seed treatment campaign". The market share of Asia-Pacific is expected to boost from $157.5 million in 2010 to $248.2 million by 2016, at an estimated CAGR of 14.4% from 2011 to 2016.
This report says global seed treatment market is the fastest growing segment of crop protection market. This growth is fueled by government encouragement for adoption of seed treatment as crop protection practice. This growth is particularly higher in geographies such as Latin America and Asia-Pacific due to increased acceptance of GM seed and farmers awareness regarding maximum residue level.
Rising GM seeds prices and cost effectiveness of seed treatments over other crop protection methods are expected to drive the demand for seed treatment market in the near future. However, absence of centralized government regulation for treated seed and seed treatment active ingredient registration expected to hamper the global movement of seeds and ultimately the demand for seed treatments in the next five years.
One of the critical success factors (CSFs) in the market is the ability of a market participant to innovate complete protection solution against various biotic and abiotic stresses in single product. This battle of manufacturing grower-friendly, crop-friendly, and environment-friendly product innovation is going to be one of the key strategies market players are following in seed treatment industry in the next five years.