London, United Kingdom
August 16, 2016
Technavio analysts forecast the global seed treatment market to grow at a CAGR of close to 10% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global seed treatment market for 2016-2020. A top down approach was followed for the chemical and non-chemical seed treatment for arriving at the market size by revenue for the base year 2015.
According to Chandrakumar Badala Jaganathan, a lead analyst at Technavio for research on agrochemicals and fertilizers, “The rapid growth in population has increased the demand for food significantly, resulting in an increase in the demand for seeds. And likewise, the increase in the demand for seeds, has led to an increase in the demand for seed treatment. This is because arable land is limited and the growing demand for food can be met only by improving the quality of the seeds.”
Technavio chemicals and materials analysts highlight the following four factors that are contributing to the growth of the global seed treatment market:
- Larger use of GM seeds
- Mounting demand for food owing to the continuous upsurge in population
- Increased adoption of GE seeds
- Declining availability of per capita arable land increasing the demand for treated seeds
Larger use of genetically modified (GM) seeds
GM seeds help increase crop yield to meet the growing needs of consumers. Companies such as BASF, DuPont, and Dow AgroSciences provide GM seeds to farmers. These seeds require less water and fewer chemicals to grow. The US holds the highest share in the use of GM seeds, closely followed by Brazil and Argentina. Asian countries have also started using the GM technology as the scarcity of water is one of the major problems in parts of China, India, Afghanistan, and other Asian countries. The increasing demand for GM seeds will drive the market during the forecast period.
Mounting demand for food owing to the continuous upsurge in population
The demand for food products is constantly increasing with increase in the world's population. According to the predictions made by the UN Population Division in 2007, world population will reach 9.2 billion in 2050 from 6.7 billion in 2006. Every day, 200,000 individuals are added to the list of global food consumers. The population in India, China, and other Southeast Asian countries is most likely to grow at a higher rate during the forecast period. APAC is expected to account for 60% of the global population by 2050. “Central America and Central and West Africa are also projected to witness high growth in population and hence the demand for food during the forecast period,” adds Chandrakumar.
Increased adoption of genetically engineered (GE) seeds
The growing demand for food and the growing agricultural challenges are paving the way for the adoption of high-performing GE seeds. Manufacturers have increased investment in research and development to improve the quality of seeds. Although the traditional seeds segment occupies a significant share of the market, biotech seeds are gaining huge appreciation among manufacturers as well as the farmers in recent times. During 2013-2015, the market has recorded an evolution of seed strains which increases productivity, have better resistance to insects and disease, and a longer shelf life. For example, herbicide tolerant (HT) strains have been developed that allow the plants to survive the application of specific herbicides. These herbicides kill targeted weeds, thereby providing farmers with a greater variety of options for weed control.
Declining availability of per capita arable land increasing the demand for treated seeds
The rise in urbanization, population growth, industrialization, and energy demand has augmented the conversion of cropland to other industrial and domestic uses. The global per capita arable land has declined steadily since 1950. Arable lands are also getting wasted because of deforestation and inappropriate agricultural practices, which in turn, is leading to a fall in crop yields. Sustainable development and the use of agrochemicals including fertilizers, pesticides, and seed treatment products are most likely to help enhance crop productivity and decrease land wastage. The widespread adoption of high-quality seeds such as hybrid and GM seeds to increase crop yield has facilitated the need to treat these seeds and increase their value. All these factors will increase the demand for seed treatment methods during the forecast period.
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