The Seed Coating Market is projected to grow at a CAGR of 8.5% from USD 1.8 billion in 2019 to reach a projected value of USD 3.0 billion by 2025. The quality, appearance, and nutritive value of seeds are the key factors contributing to the growth of the seed coating market. Seed coatings offer help to raise the commercial value of seeds by enhancing their appearance, improved handling, flowability through planters, and making them more productive. Hence, seed coatings are projected to offer business opportunities for manufacturers in the next five years. Due to these factors, many multinational players are focusing on producing various types of seed coating products.
By additive type, the polymer segment is projected to be the fastest-growing segment in the market during the forecast period.
Among the additive types of seed coating, such as polymers, colorants, pellets, minerals/pumice, active ingredients, and others, the polymer segment accounted for the largest market share, followed by the pellets and colorants segments. Polymers are used on a large scale due to their functional qualities of improving the nutritive value of seeds and enhancing their appearance.
By crop type, the cereals & grains segment is projected to dominate the market during the forecast period.
Depending upon the crop types, the market is projected to remain dominated by the cereals & grains segment, followed by the oilseeds & pulses, vegetables, and flowers & ornamentals segments. The cereals & grains segment is also projected to be the fastest-growing crop type in the market. The trend of using coated seeds is rising on a large scale in regions that witness extensive production and cultivation of cereals, grains, oilseeds & pulses, and vegetables. This has contributed to the growth of the market for the mentioned crop types.
By active ingredients, the protectants segment is projected to dominate the market during the forecast period.
The active ingredients segment includes protectants, which is projected to record significant growth in the market. The increasing incidence of soilborne pests and diseases is one of the key factors that is projected to drive the growth of the market.
The North American and European region accounted for the largest share in the seed coating market in 2018. Increasing awareness about the benefits of seed coatings is projected to drive the growth of the market in these regions. In addition, adding seed coatings is an economical option and is preferred by the Canadian farmers as a risk-hedging technique, which has led to increased sales of coated seeds in the North American market. North America and Europe dominated the market and accounted for the largest share globally, as seed coating products are gaining acceptance among the organic cultivators, which prefer only biodegradable techniques of seed coating production for cultivation.
Key players identified in the seed coating market include BASF SE (Germany), Bayer AG (Germany), Clariant AG (Switzerland), Croda International PLC (UK), and Sensient Technologies (US).