United States Seed Treatment Market - Growth, Trends, and Forecast (2020 - 2025)
The United States seed treatment market is projected to register a CAGR of 6.2% during the forecast period (2020-2025).
Seed treatment offers effective seed protection from pathogens, insects, and other pests, in addition to contributing to the healthy and uniform-stand establishment of a variety of crops produced.
Seed treatment products, applied to nearly every acre of corn planted in the United States every year, helped support nearly USD 80 billion worth of crops grown by the American farmers.
Key Market Trends
Increase in Cost of High-quality Seeds
High costs associated with hybrids and genetically modified seeds are among the major factors driving the growth of the seed treatment market. 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 save high-quality seeds. Since most of the GM seeds are costly and treated with biological and chemical treatments, there is an increase in the area under GM crops, which is positively affecting the market growth.
Increasing Usage of Treated Seeds
The demand for higher yield due to the rapid increase in the consumption of crops has increased the demand for the seed treatment market in the United States. Increasing farm size and decreasing crop rotation are the major factors that lead to an increase in the demand for seed-treatment products. Corn is one of the major crops grown in the United States, with around 33.1 million hectares harvested in 2018. In the United States, around 90% of the corn seeds are treated with seed treatment, and there is a significant percentage of growth in seed treatment.
The most widely adopted strategies by major market players include new product launches (which is being adopted 41% times of all other strategies market share), followed by acquisitions (over 20% of the time). R&D expansion and partnership or joint ventures are some of the other important strategies, followed by major companies in the market. Strategic partnership licensing and distribution agreements to address broad-acre opportunities are being used by top players, who are expanding their sales teams for larger geographic coverage, with researches on understanding the significance of seed treatment in agriculture.
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