Seed treatment agents will become a powerful growth driver for the global agrochemical business
The global seed treatment agent market has broad prospects. In 2012, the global seed treatment agent market output value reached 2.287 billion USD. Calculated at a compound annual growth rate of 10.6%, the market output value is expected to reach 4.19 billion USD by 2018. In recent years, large multinational companies have continuously increased their investment in research and funding for seed treatment projects. If this trend continues, seed treatment agents will become a powerful new growth driver for the global agrochemical business.
The main products of seed treatment agents include chemical insecticides and fungicides, among others. Chemical insecticides account for half of the global seed treatment agent market, with a market share exceeding 51.7% in 2012. Calculated at a compound annual growth rate of 10.8%, the market share is expected to reach 2.183 billion USD by 2018. The fungicide market growth rate is slightly lower at 9.2%, but by 2018 it can still reach 1.368 billion USD.
In the Americas, especially in countries such as the United States, Brazil and Argentina, the market for products such as seed treatment agents is already quite mature. In 2012, sales in North America reached 1.25 billion USD. Calculated at a compound annual growth rate of 10.2%, this can reach 2.24 billion USD by 2018. In South America, the market output value will also reach 945 million USD by 2018. The market value of seed treatment in Europe had already approached 360 million USD in 2012, and is expected to double to 630 million USD by 2018. France and Germany are the main consumer countries of seed treatment agent products in Europe, accounting for 82.3% of total sales in 2012. High hopes are placed on the Asia-Pacific region, where China and India will promote rapid development of the seed treatment agent market. Currently, the Asia-Pacific region holds 7% of the global seed treatment market share, and is expected to reach 306.8 million USD by 2018.
Seed treatment agents are of extraordinary significance in improving the quality and yield of crops. They are extremely effective in protecting crop growth and controlling pests and diseases, and are both high-quality and inexpensive, and are widely used by various countries. Looking at the global share of seed treatment agent use by crop, seed treatment agents used on corn account for 34%, followed by soybean and wheat.
Overall, countries around the world have generally introduced regulatory decrees to restrict the use of chemical pesticides and raise consumer awareness of pesticide residues, all of which have significantly increased demand for seed treatment agents in other regions. Compared with the continuously rising prices of genetically modified seeds, seed treatment agents have low costs and better economic benefits. This unique advantage will put the seed treatment agent industry on a fast track of development.
In the UK seed industry market, INCOTEC (the world's most advanced company in the field of seed treatment and coating technology) has formed a strong alliance with ELSOMS seed company, focusing on promoting and marketing seed treatment products and providing seed health services, including seed spraying and disinfection services. The areas of cooperation between the two parties are not limited to vegetables, and they will also seek cooperation in arable crops and ornamental crops. This is due to ELSOMS seed company recognizing the superiority of INCOTEC's seed treatment products and their broad market prospects in the UK. ELSOMS has recently spent heavily to purchase seed treatment equipment, demonstrating its confidence in the seed treatment industry. For more than 6 years, it has used seed treatment technology authorized by INCOTEC to promote crop seeds such as carrot, onion and parsnip in the UK market.