Asia-Pacific Seed Treatment Market - Growth, Trends, and Forecasts (2023 - 2028)

The Asia-Pacific seed treatment market is estimated to register a CAGR of 7.1% during the forecast period 2022-2027.

The COVID-19 pandemic negatively impacted the seed treatment industry in the region as the supply chain was disrupted due to various restrictions imposed by the government authorities in the region. In a survey conducted by the Asia-Pacific Seed Association (APSA) and the World Vegetable Center, more than 85% of respondents reported negative effects on international and domestic seed shipments during the COVID-19 pandemic.

However, seed treatment enables seed enhancement by improving their performance post-harvesting and conditioning them before they are sown. Seed-applied technologies, such as inoculants, herbicide safeners, micronutrients, plant growth regulators, seed coatings, and colorants, among others, can also be applied to the seed.

The chemical seed treatment methods segment occupied a major share (91.17%) in the Asia-Pacific seed treatment market, while the remaining 8.89% of the market share was occupied by the non-chemical/biological treatment methods segment.

APAC Seed Treatment Market Trends

Increased Cost of High-quality Seeds Driving the Market

The high cost associated with hybrid and genetically modified seeds is a major factor driving the growth of the seed treatment market globally. Seed treatment is being increasingly considered by farmers as a mode to protect investments made on good quality seeds due to an increase in regulatory issues relating to fumigation as well as the foliar application of pesticides.

The cost of seeds is expected to increase, owing to an increase in the demand for high-quality seeds with desirable agronomic traits. Both companies and farmers are ready to spend on seed treatment solutions in order to preserve high-quality seeds.

For instance, owing to higher production costs, the Indian government increased the maximum retail prices for cottonseed (BG II) to INR 767 for 450-gram packets in the 2021-22 sowing season compared to INR 730 in the 2020-21 sowing season. Farmers are trying to cut down operating costs by opting for seeds that do not require multiple doses of chemicals. The initial protection of these engineered seeds is ensured by using seed treatment products.

China Dominates the Market

China is the largest country in terms of consumption of seed treatment chemicals, especially maize, and holds a market share of 93.3%. India stands second, with a market share of approximately 6%.

Owing to the huge demand for seed treatment products in the Chinese market, pesticide manufacturing companies are offering a wide range of seed treatment solutions in the country. For instance, Sinochem International Crop Care Co. Ltd (Sinochem) offers approximately 21 seed coating products in the country, including various seed coating agents such as insecticidal, fungicidal, and insecticidal-fungicidal mixtures, and is registered to cover crops such as corn, wheat, cotton, rice, soybean, potato, and peanut.

Corn, wheat, and soybean are the most important crops in the Chinese market, followed by cotton. Corn is the most important raw material for feed production in China and occupies the largest share in the seed treatment market.

Seed treatment is significant in northern China, where production of corn and wheat is high. The rate of seed treatment is also higher in large farmlands across the country. However, due to their cheaper cost, fungicides are used more in terms of quantity. Due to the changing weather conditions and biological mutations, several crop-threatening pests have become resistant to the chemical agents present in pesticides.

Furthermore, as the combination of chemical agents is displaying more success in countering the pests, the demand for chemical treatment products combining insecticides and fungicides is increasing.

APAC Seed Treatment Market Competitor Analysis

The market studied is fairly consolidated. Some of the key companies in the market are ADAMA Agricultural Solutions Ltd, BASF SE, Nufarm Limited, and Rallis India Limited, among others. The key players are focusing on expanding their business in Asia-Pacific. The leading players in this market have adopted various strategies to strengthen market opportunities and increase their market share. Acquisitions, agreements, and joint ventures are the major strategies being adopted by major players.

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