North America seed treatment market: $2.2 billion industry by 2018

Press release   •   May 01, 2013 16:20 BST

The North America seed treatment market is suggested to have reached a value of around $1.25 billion in 2012, and is forecast to grow to a value of $2.24 billion by 2018. This suggests a CAGR growth rate of 10% between 2012 and 2018. Growth in revenue is expected to be higher than volume, primarily because of increasing cost of agrochemicals. Development and registration of a pesticide active ingredient is one of the biggest components of cost for seed treatment manufacturers. Currently, the cost of innovation and registration of an active ingredient is about $200 million, which is a 25% increase from 2000.

The seed treatment market consists of crop protection chemicals or agrochemicals, specifically for seeds, and genetically modified (GM) crop-seeds. Crop protection chemicals are the most dominating segment of this market in terms of market share as well as product innovations. Seed treatment market is further classified as insecticides (chemical), fungicides (chemical), bio-control seed treatments, and other seed treatment chemicals.

Chemical seed treatments, which are typically manufactured from petrochemical or inorganic raw materials, are further segmented as insecticides, fungicides, and other chemical seed treatments. The market is dominated by chemical insecticides, accounting for over 51.3% of the total seed treatment demand in 2012. The fungicide seed treatments market is growing at a CAGR of 7.6% and is expected to reach $692.0 million by 2018. The insecticides seed treatment market is projected to reach $1,161.9 million by 2018, growing at a CAGR of 10.5%

Rising GM seed prices and cost effectiveness of seed treatments over other crop protection methods are expected to drive the demand for the seed treatment market in the near future. However, an absence of centralized government regulations for treated seed and seed treatment active ingredient registration are expected to hamper the growth and demand for seed treatments in the next five years.

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