The global biological seed treatment market in terms of revenue was estimated to be worth $0.9 billion in 2020 and is poised to reach $1.7 billion by 2025, growing at a CAGR of 11.9% from 2020 to 2025. The market is influenced by the adoption of sustainable agricultural practices and strong investments being made by major market players in the research and development of these products. The agricultural and environmental benefits associated with these biological seed treatment solutions are the major factors contributing to the growth of this market globally. Beneficial microorganisms and plant extracts are projected to act as important tools that could help reduce the usage of synthetic fertilizers and chemical pesticides, thereby reducing farmers' investments and environmental risks.
Increasing Demand for Sustainable Agriculture Practices
The global population is expected to reach 9.7 billion by 2050, according to the United Nations. This has put immense pressure on the agricultural sector to produce more food using fewer resources with minimal impact on the environment. Biological seed treatment offers a sustainable alternative to traditional seed treatment methods that rely on synthetic chemicals. This is driving the demand for biological seed treatment solutions, as they are considered more environmentally friendly and sustainable.
Growing Concerns over the Adverse Effects of Synthetic Pesticides and Herbicides
Synthetic pesticides and herbicides have been widely used in agriculture to control pests and weeds. However, they are known to have several adverse effects on human health and the environment. These include water pollution, soil degradation, and the development of pesticide-resistant pests. Biological seed treatment offers a safer alternative as it relies on natural microorganisms to protect crops from pests and diseases. This is driving the adoption of biological seed treatment solutions, especially in developed countries where consumers are more aware of the potential risks of synthetic chemicals.
Rising Demand for High-Quality Crops and Yield
Biological seed treatment solutions can enhance the quality and yield of crops by improving their resistance to pests, diseases, and environmental stresses. This is driving the adoption of biological seed treatment solutions as farmers are increasingly focused on improving the quality and yield of their crops to meet the rising demand for food. Additionally, biological seed treatments can improve the germination and establishment of crops, leading to higher yields and better crop performance.
North America region’s increasing preference for high quality produce
The increasing agricultural practices and requirement for high-quality agricultural produce are factors that are projected to drive the growth of the biological seed treatment market in this region. The government policies adopted by developed countries for the ban on key active ingredients are the major factors encouraging the growth of this market in the North American region. Hence, North America is projected to be the fastest-growing region in the global market. R&D investments for the development of biological seed treatment and the installation of new production capacities by key players are projected to drive market growth in the next five years.