North America Seed Coating Materials Market - Growth, Trends and Forecasts (2020 - 2025)

The North America Seed Coating Materials market is projected to grow at a CAGR of 7.4% during the forecast period 2020-2025. In 2019, North America is the largest geographic segment of the market that accounted for a share of around 40.7% of the overall seed coating market. Seed coating enhances seed performance by the addition of chemicals to protect the seed from pathogens. Seed coating materials market in the country is driven by factors such as seed technology development, low-risk investment, and adoption of advanced farming technologies that necessitates the use of seed coating. While sustainable agricultural practices will lead to higher demand for seed coatings, disposability of coating materials and environmental concerns would create obstacles for market growth.

Key Market Trends

Adoption Of New Seed Technologies (GM & Hybrid)

Genetically modified (GM) and hybrid seeds denote a significant step forward in the production of agricultural crops. The adoption of new seed technologies, such as genetically modified seeds and hybrid seeds, has an acute impact on the seed coating ingredients market. According to the International Service for the acquisition of agri-biotech applications, the United States witnessed the highest area cultivated under GM crops and hybrids globally. Over the years, the acreage of genetically modified crops in the United States recorded a growth of 5.8% from 70.9 million hectares in 2015 to 75 million hectares in 2017. According to the International Service for The Acquisition of Agri-biotech Applications, the total acreage of genetically modified crops in Canada was valued at 13.1 million hectares, which was 11 million hectares in 2015. Thus, the advantages of genetically modified crops over conventional seeds have made the growers incorporate more of GM seeds. These factors are leading the seed producers to cater to the seed coating ingredients market. Henceforth, these advantages and the increasing adoption of GM seeds in the North American market are likely to accelerate the seed coating ingredient sales during the forecast period.

Innovative Seed Coating Formulation Technique

The North American market has explored several innovative seed coating technologies to make the coated seeds environmentally sustainable and efficient in the field. These developments have overcome some of the challenges and have been able to cater to the seed coating material and coated seeds to the North American seed market. Micro Emulsion Gel Technique, Controlled Release of Seed Coating Formulation Technique, and Nanogel based seed coating formulation technique are some of the innovative methods developed to address the issues raised in the seed coating process. These seed coating formulation techniques can further reduce the toxicity of the coating materials, which in turn, makes the manufacturers obey strict government regulations. Therefore, these innovative techniques make the seed coating manufacturers and coated seed manufacturers find a way to persist in the market., This factor is driving the growth of the market.

Competitive Landscape

The North America seed coating material market is getting into a highly consolidated market, and this trend is likely to continue even in the future. The market is dominated by a few top players like Bayers CropScience, BASF SE, Croda International, and so on, holding a major market share. The United States is likely to become a seed coating industry giant, as the companies focus mainly on the developed markets. The companies are mainly focusing on merging with each other to capture a larger market share. In 2018, Clariant has been able to emerge with a larger market share as compared to other big players like BASF because of its acquisition of Incotec.

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