Performance Enhancement for Higher Yields to Fuel Growth of the Seed Coating Materials Market
Owing to rising industrialization and urbanization significant reduction in the area of arable land has been witnessed. This has resulted in an increased gap between demand and supply of agricultural produce, which has called for a higher yield in crops worldwide. Additionally, volatile environment along with diseases in seeds result in decrease in crop yield which has been a subject of concern among farmers. This has fuelled the need for coating of seeds with plant growth regulators, fertilizers and pesticides that aid in accelerating the germination and enhance the performance of seed yield. This aspect remains instrumental in driving sales of materials used in coating, in turn bolstering growth of the seed coating materials market.
Development of Biodegradable and Micro-plastic Free Seed Coating to Elevate Demand
Most formulations used in seed coating are based on emulsions or flowable concentrates. These aim to enhance adhesion on seed in turn reducing dust-off post coating. However, these formulations, on the back of regulations on environment safety, must be micro-plastic free and biodegradable. In this backdrop, companies are focused on developing new formulations for seed coating that support environment health. They are integrating novel methods to reduce or eliminate micro-plastics using biodegradable material. For instance, Borregaard has developed biodegradable microfibrillated cellulose which is an innovative, biodegradable and a sustainable material that can be incorporated in formulations used in seed coating. Such novelties in formulations are expected to significantly influence the seed coating materials market growth in the following years.
Polymer to Account for a Significant Share in the Seed Coating Materials Market
Among all types of seed coating materials, the use of polymers is expected to increase at an unprecedented rate. Large scale use of polymers in seed coating can be attributed towards their functional benefits including enhancing the nutritional value of the yield and appearance, reduced clumping and stickiness and improved adhesion and ingredient retention. The increase in adoption of polymers in seed coating is poised to largely contribute towards the valuation of the seed coating materials market.
North America Likely to Cement Dominance in the Seed Coating Materials Market
Developed economies in North America continue to reflect high growth potential with regards to use of seed coating materials. The growth of the seed coating materials market in North America is largely driven by increasing demand for high yield and supportive government regulations such as mandate on colouring of seeds. In addition, other aspects complementing the growth of the seed coating materials market are growing awareness of bio products, reducing crop rotation and growing size of farms. Moreover, there has been a significant demand for grains, pulses, oilseeds and cereals in the region. This is supported by favourable price support systems and trade system which is encouraging export and import of oilseeds and cereals in the United States. The process of seed coating for these products, being risk free, is considered as safe from investment standpoint. This has resulted in increased demand for coated seeds, in turn influencing sales of seed coating materials in the country. In this background, North America is expected to maintain status quo as a lucrative region in the seed coating materials market.
On the other hand, vivid opportunities of growth lie in the emerging economies in the Asia Pacific region. Key factors being shrinkage in arable land coupled with environment concerns, the need for coating of seeds has grown in order to protect and maintain crop yield, thus balancing demand and supply scenario. For instance, according to Ministry of Emergency of China, floods due to rains have disrupted production of wheat, rice and other crops, resulting in an economic loss of around US$ 20.8 billion.
As per China’s Ministry of Natural Resources, arable land in China has shrunk dramatically since 2009. In 2019 a 6% reduction in arable land was recorded. Land allocated for agriculture has reduced by over 75,000 sq km since the last decade and is expected to further reduce by 2030. This has resulted in demand and supply of agriculture products translating into an increasing reliance on advanced methods for crop yield. This factor continues to present lucrative opportunities for manufacturers of materials used in seed coating, consequently nurturing the growth of the seed coating materials market.
Seed Coating Materials Market: Competitive Landscape
Few of the key players in the seed coating materials market include ORCO, BASF SE, Croda International, Bayer CropScience AG and Clariant International.
Global Seed Coating Materials Market is Segmented as Below:
By Additive
By Crop Type
By Process
By Active Ingredients
By Region
Key Elements Included In The Study: Global Seed Coating Materials Market
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Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.
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