Seed Coating Materials Market size was valued at around USD 2.5 billion in 2024 and is anticipated to surge to USD 5.9 billion by 2037, registering a CAGR of 7.5% during the forecast timeline i.e. 2025-2037. In 2025, the industry size of seed coating materials is estimated at USD 2.6 billion. The growth can be attributed to more affinity for precision agriculture, a growing concern over crop yield improvement, and environmental sustainability. Seed coating enhances crop yield by nearly 15-20% when combined with the standard package of practices, with increasing profitability.
Furthermore, the demand for organic and specialty crops with supreme quality is constantly rising, thus presenting opportunities for growth in the seed coating materials market. This trend is contributing to the development of improved crop varieties that have the potential to increase productivity by 50–90% while, ideally, tending to meet the requirements of the end-user. In addition, the changing perception towards the adoption of coatings, more protection, nutrient delivery, and safety against pests and diseases can be facilitated.
Moreover, advances in biotechnology in the seed coating materials market have included pest-resistant seed varieties that have helped fortify crop resilience. For instance, in September 2021, the multi-event SmartStax technology, by Bayer and Dow AgroSciences was made commercially accessible for the growing season of 2022. In settings with medium to high corn rootworm pressure, it offers an additional instrument to help minimize damage caused by corn rootworms. This results in the qualitative crop harvesting of farmers and leads to profit maximization.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
7.5% |
Base Year Market Size (2024) |
USD 2.5 billion |
Forecast Year Market Size (2037) |
USD 5.9 billion |
Regional Scope |
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Product Type (Polymer, Colorant, Binders, Minerals/Pumice, Others)
Polymer segment is likely to capture around 45.5% seed coating materials market share by the end of 2037, owing to its excellent properties and versatility. Moreover, the awareness of environmentally friendly practices has created a new wave of interest in biodegradable polymers as alternatives to traditional coatings. Precision agriculture further boosts demand for complex polymer coatings that allow nutrient delivery in a tailored way to improve seed establishment under various conditions of the soil. For instance, in October 2024, at the Euroseeds Congress in Copenhagen, Denmark, Incotec launched Disco Blue L-1523, the company's newest microplastic-free film coat for sunflower seeds.
Crop Type (Cereals & Grains, Fruits & Vegetables, Flowers & Ornaments, Oilseeds & Pulses, Others)
Cereals & grains in the seed coating materials market have the potential to dominate the crop type segment, owing to high-quality seed demand and the increasing adoption of precision agriculture. In December 2023, the world's population is expected to reach 10 billion by the end of 2050, as a result, there will be a significant increase in demand for rice in the coming decades. To feed the world's growing population and maintain food security, cereal output with proper coating is expected to rise drastically. Cereals and grains would continue to lead demand as sustainable agricultural practices along with high-yielding crop varieties continue to gain ground. In addition, it improves resistance to environmental stressors and increases seed germination rates.
Our in-depth analysis of the global market includes the following segments:
Product Type |
|
Crop Type |
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North America Market Statistics
North America in seed coating materials market is likely to account for more than 38.5% revenue share by the end of 2037 with remarkable growth opportunities. Advancement in agricultural practice and significance to crop yield improvement by introducing technology drives innovation in the market. Demand for the product is surging owing to farmers' awareness of the seed treatment benefits, including higher yield, germination rates, pest resistance, and improved nutrient uptake. Furthermore, regulations supporting the use of eco-friendly and sustainable agricultural inputs are increasingly influencing market dynamics in the region.
The U.S. continues to strive towards biological and innovative seed treatments in the seed coating materials market. Furthermore, collaborations between private and public entities are driving market growth. For instance, in February 2022, Cambridge University and Croda International Plc partnered to create next-generation seed coatings that are biodegradable and free of microplastics. This partnership is supported by the National Institute of Agricultural Botany and the UK government. Consequently, it strengthens the company's focus on using crop science innovation to support crop and seed enhancement to lessen the effects of a changing climate and land degradation.
Canada is eliciting support through funding from several private and public entities to strengthen its agricultural activities. For instance, in November 2023, Lucent Bio received over USD 3.6 million in funding through PacifiCan's Business Scale-up and Productivity program. The funds were allocated to improve Nutroe's (biodegradable and micro-plastic free seed coating) formulation and efficacy as it develops from a lab concept to a product that is ready to be commercialized. It aimed at encouraging robust crop establishment and germination while assisting in the switch from conventional agricultural inputs to sustainable substitutes. Thus, the main focus of the country lies in expanding its niche through continuous development.
Asia Pacific Market Analysis
The primary underlying factors driving the shift in the Asia Pacific in the seed coating materials market are the high acceptance of modern farming practices and the need to increase agricultural productivity to keep pace with population growth needs. The different crop types and varied climatic conditions of the region have contributed to the increasing application of seed coatings. Such materials can be engineered to improve certain specific performance characteristics of a seed under local conditions. The market is certainly going to witness rapid market expansion.
In India, farmers are assisted through government farm subsidies and irrigation projects. In addition, in the seed coating materials market, they are progressively adopting coated seeds that are commercially hybrid through acquisitions and partnerships. In December 2023, Fowler Westrup India announced the acquisition of Seed Processing Holland (SPH), from H2 Equity Partners. The company stated that with this strategic acquisition, Fowler Westrup became the top seed and grain processing company in the world. It aimed to provide its clients in the vegetable and field crop seed processing segments with an expanded product portfolio and cutting-edge solutions.
China will be an opportunistic country in the seed coating materials market during the forecast period owing to the local government which is actively boosting agricultural productivity by mitigating pesticide usage within industry. For instance, in November 2022, Bayer's Crop Science Division set up an installation in the crop and seeds subsection to highlight its vast germplasm pool and R&D capabilities. These developments are supporting China's seed industry's high-quality, innovation-driven development by increasing the likelihood of value-added growth.
The company landscape in the seed coating materials market is scattered with manufacturers, research institutions, and distributors. These market players have been very keen to collaborate for innovation and the development of seed coating technologies to achieve sustainability and efficiency. For instance, in July 2021, the Solvay group acquired the global coatings business SeedGrowth from Bayer. Through this acquisition, Bayer was offered the opportunity to invest in Solvay and expand its portfolio of bio-based solutions. Here is the list of companies:
Author Credits: Parul Atri
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