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European Seed Treatment Market to Reach $720 mn by 2020

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The European market for seed treatment is projected to reach US$720 million by 2020, according to the report “European Seed Treatment Market – Segmented By Application, Crop Type And Geography – Trends And Forecasts (2014-2020)” published by Mordor Intelligence. With an estimated share of 40.6% in 2014, France constitutes the largest market for seed treatment in Europe, though the fastest CAGR of 6.5% during 2014-2020 is anticipated to be recorded by demand for seed treatment in Germany.

By application segment, chemical agents dominate the European market for seed treatment, accounting for an estimated 2014 share of 94.1%. However, growth in demand for biological agents is likely to outpace chemical agents by posting a 2014-2020 compounded annual rate of 7.3% to emerge as the fastest segment.

Corn/maize is the leading type of crop for seed treatment applications in Europe, estimated to account for 31.8% of the total demand in 2014. In terms of CAGR between 2014 and 2020, however, demand for seed treatment applications in soybeans is expected to be the fastest among all crop types at 6.9%.

The value of the EU's seed market is estimated at US$9.1 billion in 2012, standing at third place behind the US and China. In terms of production, the EU's seed market is dominated by small grain cereals, covering an area of about 1.2 million hectares in 2013 and an output of over 4.1 million tons in 2012. Following small grain cereals are grasses/forage species with an area of 308 thousand hectares, maize with 196.1 thousand hectares, oilseeds with 134.9 thousand hectares, potatoes with 10.7 thousand hectares and pulses with an area of 60 thousand hectares in 2012. France forms the largest producer of seeds, with an area of 335.2 thousand hectares, and is followed by Germany with 195.4 thousand hectares and Italy with 185.6 thousand hectares.

The market for seed treatment gains in significance due to a number of factors, prominent among which are agronomic trends that comprise development of high quality seeds through the enhanced potential offered by genetically modified organisms (GMOs), changes in climatic conditions, increasing rates of crop rotation, flexibility in sowing approaches and greater pressure from regulatory requirements. Primary requirements of seed treatment include capability of offering good protection during the germination period, supporting early plant development and enhancing stress tolerance at an early stage. These can be achieved by improving the quality of seed treatment products that offer ease of application at low rates. In short, it may be summed up that the foundation for the future lies in the concept of innovation in seed treatment.

Syngenta, Bayer CropScience and BASF are the top three players in the global seed treatment market, with all of them having an extensive portfolio of agricultural products and solutions. While BioWorks Inc, Advanced Biological Marketing Inc and Valent USA Corp are comparatively smaller players, they offer the potential of becoming big game changers in the area of seed treatment in future. Each company has adopted an individual approach in terms of strategy for future growth. A few have focused on horizontal growth by expanding their presence in emerging markets that offer greatest scope for future prospects, while yet others have been content to operate within their established boundaries and go in for vertical growth by concentrating on innovations in the area of products and solutions.