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The North American market for seed treatment is projected to reach US$3 billion by 2020. This seed treatment market Report is segmented by by Application Area [Chemical Agents (Insecticides, Fungicides and Other Chemicals) and Biological Agents] and Crop Type (Corn/Maize, Soybeans, Wheat, Rice, Canola, Cotton and Other Crops).
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NORTHAMERICASEED TREATMENTMARKET
Market Shares, Forecasts& Trends
2014 - 2019
mordorintelligence.com
1. GLOBAL MARKET OVERVIEW
1.3 Seed Statistics (Sample Tables)
Estimated Value of the Domestic Seed Market in Top 10 Countries for the year 2012 (In US$ Million)
Country Value % Share
United States XX XX
China 9,950 22.15
France XX XX
Brazil 2,625 5.84
Canada XX XX
India 2,000 4.45
Japan XX XX
Germany 1,170 2.60
Argentina XX XX
Italy 767 1.71
Rest of World XX XX
Total 44,925 100.00
(Source: International Seed Federation, www.worldseed.org)
1.3.1 Exports
Quantity of Exports of Field Crop Seeds for Sowing by Top 10 Countries for the Calendar Year 2012 (In Metric
Tons)
Country Quantity % Share
France 586,289 20.68
United States XX XX
Canada 193,559 6.83
Slovakia XX XX
Hungary 128,168 4.52
Denmark XX XX
The Netherlands 119,862 4.23
Germany XX XX
Romania 96,750 3.41
Italy XX XX
Rest of World 901,479 31.80
Total XX XX
(Source: International Seed Federation, www.worldseed.org)
1.3.2 Imports
Value of Imports of Vegetable Crop Seeds for Sowing by Top 10 Countries for the Calendar Year 2012 (In US$
Million)
Country Value % Share
The Netherlands 373 11.49
United States XX XX
Mexico 221 6.81
Spain XX XX
Italy 170 5.24
France XX XX
Turkey 122 3.76
Japan XX XX
China 111 3.42
Germany XX XX
Rest of World 1,344 41.38
Total XX XX
(Source: International Seed Federation, www.worldseed.org)
1.6 Global Market Overview of Crop Type by Region
1.6.4 Rice
The worldwide market for seed treatment in rice is projected to reach US$207 million by 2020 from an estimated
US$145.3 million in 2014 by recording a CAGR of 6.1% between 2014 and 2020. North America is the largest
global market for seed treatment in rice, accounting for an estimated 2014 share of 35.9% and a forecast 2014-
2020 compounded annual rate of 4.9%. Demand for rice seed treatment in Asia-Pacific is likely to emerge as the
fastest growing with a compounded annual rate of 8.5% during the similar analysis period.
Global Market for Seed Treatment in Rice from 2010-2020 (In US$ Million)
Region 2010 2011 2012 2013 2014 2020 % CAGR (2014-2020)
North America XX 45.97 XX XX XX XX XX
Europe XX XX XX XX 21.59 28.82 XX
Asia-Pacific 31.49 33.72 XX XX XX XX XX
South America XX XX 20.12 21.05 XX XX XX
Rest of World XX XX XX XX 7.68 10.55 5.43
Total XX XX XX XX XX XX XX
2.3 Seed Treatments on Select Crop Types
2.3.3 Oats, Wheat and Barley
Small grains, such as oats, wheat and barley are liable to be infected by various types of smut, which results in
loss of yield. Stinking smut, or common bunt of wheat, has a “fishy smell” that spreads from infected kernels to
healthy kernels. If the level of smut is very high, the smell passes on to the flour, which then cannot be used for
baking purposes. Animals, too, refuse consuming wheat that contains common bunt.
Controlling smut in small grains can be achieved by the application of numerous systemic seed treatment
fungicides available in the market. These seed treatments used for controlling smuts have enabled breeders of
small grains to focus on increasing yield and improving quality of baking in place of breeding for resisting smut.
The following table lists out the various fungal diseases and insect damages in wheat and the relevant seed
treatments to overcome them:
Basic Protection for Fungal Diseases and Insect Damages in Wheat
Type of Infestation Seed Treatment Option(s)
Fungi: Phytium, Rhizoctonia, Ustilago nuda, Tilletia controversa, Fusarium spp., and
Microdochium nivale
Azole. Carboxime and
Thiram
Insects: Wireworm, Hessian fly and aphids Neonicotinoid
Products with a Broad Range of Efficacy for Fungal Diseases and Insect Damages in Wheat
Type of Infestation Seed Treatment Option(s)
Fungi: Microdochium nivale, Fusarium spp., Ustilago nuda, Septoria
nodorum and Tilletia caries
Azole. Prochloraz, Fludioxonil and
Strobilurin
Insects: Aphids, wireworm, cicada and wheat bulb fly Neonicotinoid
3. MARKET DRIVERS, RESTRAINTS AND OPPORTUNITIES
3.1 Major Drivers for the Seed Treatment Market
3.1.2 Price and Weather Volatility
By nature, farmers tend to be highly averse to taking risks. Further, since weather and crop prices are highly
volatile, the risk factor for farmers increases quite drastically. This results in focusing greater attention on
procedures that reduce risk, such as adapting to weather conditions after sowing, which makes seedlings highly
vulnerable to soil-borne diseases and insects. However, this limitation can be successfully overcome by adopting
pre-sowing seed treatment practices that increase resistance to diseases and pests, thereby driving the market
for seed treatment.
3.1.5 Greater Use of Multi-Component Products
One of the major driving factors for the seed treatment market has been the availability and greater utilization of
a single product that offers multi-component features covering an extensive range of insects and diseases.
Demand for hybrid seeds is also on the rise, more so in Europe, Brazil and the United States, since they lend
themselves better to seed treatment methods. This creates greater opportunity for either including or offering
seed treatment as an effective option for controlling pathogens and pests.
3.2 Key Factors Restraining the Seed Treatment Market
3.2.3 Limited Dose Capacity
The quantity of pesticide that can be applied is limited by the factor as to how the much of the material will
actually adhere to the seed. Though the development of seed coating technologies is helping in overcoming this
problem, the issue of phytotoxicity could still be a restraining factor.
3.2.4 Limited Duration of Protection
In several instances, the duration of protection offered by seed treatments is short because of the comparatively
less amount of chemical applied to the seed, dilution of the chemical as the plant grows and breakdown of the
chemical. Any such experience undergone by farmers acts as a deterrent for future applications of seed
treatment.
4. REGIONAL MARKET ANALYSIS
4.1 NORTH AMERICA
The North American market for seed treatment is estimated to be US$ XX.XX billion in 2014 and forecast to
maintain a CAGR of X.X% between 2014 and 2020 to reach a projected US$X.X billion by 2020. With an estimated
share of XX.XX% in 2014, the United States constitutes the largest market for seed treatment in North America,
though the fastest CAGR of X.X% during 2014-2020 is anticipated to be recorded by demand for seed treatment
in Mexico.
By application segment, chemical agents dominate the North American market for seed treatment, accounting for
an estimated 2014 share of XX.XX%. However, growth in demand for biological agents is likely to outpace
chemical agents by posting a 2014-2020 compounded annual rate of 7.6% to emerge as the fastest segment.
Corn/maize is the leading type of crop for seed treatment applications in North America, estimated to account for
XX.XX% of the total demand in 2014. In terms of CAGR between 2014 and 2020, however, demand for seed
treatment applications in canola is expected to be the fastest among all crop types at X.X%.
North American Market for Seed Treatment by Region from 2010-2020 (In US$ Million)
Region 2010 2011 2012 2013 2014 2020 % CAGR (2014-2020)
United States XX XX XX 1,030.00 XX XX XX
Canada XX XX XX XX 58.03 81.24 XX
Mexico 64.22 67.65 XX XX XX XX XX
Total XX XX XX XX XX XX XX
4.1.1.1.1 Major Markets for US Seed
4.1.1.1.1.1 Africa
The overall market value of the US seed industry for the Africa as delineated by the USDA stood at US$14.5
million in 2007 and reached US$20.4 million in 2011 to reflect a CAGR of 8.9% between these years.
4.1.1.1.1.9 India
Exports of planting seeds from the US to India declined by 2% over 2011 to stand at US$8.8 million in 2012.
However, between 2010 and 2011, there was an increase of 27% in seed exports from the US to India, and the
period from 2005 witnessed a net increase of exports to this market.
5. MARKET SHARE ANALYSIS
Syngenta and Bayer are the clear leaders in the global market for seed treatment, with a combined share
estimated to be nearly 61% in 2013. In fact, the high level of concentration exhibited by the seed treatment
market is evident from the fact that the top four players account for a share in excess of 80% in 2013.
Market Share of Leading Players in the Global Seed Treatment Market for 2013
Despite being engaged in the food and farming sectors for several decades, these multinationals have been able
to achieve the present levels of consolidation and control only over the last 10-20 years. This has been the
outcome of mixing and matching a range of approaches, which include the following:
Mergers and Acquisitions: A tried and tested practice adopted by virtually every industry at some point of
time, M&A activity in the pesticides industry has witnessed the top six companies embark on a spending
spree since the 1990s with a focus on taking over the three major segments of the agriculture industry, viz.,
pesticides, seeds and biotechnology for developing a proprietary family of chemicals, seeds and genetic traits
that have been formulated to work in tandem.
Cooperative strategies among the few close competitors
Vertical integration upward along the food chain by setting up food chain clusters
Syngenta
Monsanto
These strategies have enabled the leading players to remain leaders, who have taken over smaller players and
integrated their businesses into their own portfolios.
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