Market Trends of Global Biological Seed Treatment Industry
Grains and Cereal segment leads the market
The adoption of biological seed treatments in cereals and grains is increasing, offering a sustainable alternative to chemical methods. This trend is driven by the global push for environmentally friendly farming practices and the rising demand for organic produce. As the demand for plant-based proteins grows, particularly in cereals and grains like wheat, soy, and corn, biological treatments are being utilized to maximize yields and improve crop quality. Additionally, crops such as wheat, barley, and corn are prone to various soil-borne diseases, including Fusarium head blight, seedling blight, and root rot. Biological seed treatments, which include Trichoderma, Bacillus species, and Pseudomonas species, protect against these pathogens, resulting in healthier crops and reducing the need for chemical fungicides.
During the study period, there has been a notable increase in the area under organic cereal farming. According to the Research Institute of Organic Agriculture (FiBL), the global organic area under cereal cultivation was 5.4 million hectares in 2021, which increased to 5.6 million hectares in 2022. The growing popularity of organic farming for cereal crops and integrated pest management (IPM) has made biological seed treatments a key component in reducing chemical use, thereby supporting their usage in the segment.
Ongoing research and development efforts are focused on improving the efficacy, shelf life, and cost-effectiveness of biological treatments. New microbial strains and innovative delivery methods are enhancing the performance of biological seed treatments. In 2024, Indigo Ag launched its ground-breaking CLIPS device. This automatic hands-free system saves time, eliminates the hassle in the seed treatment process, and has the potential to revolutionize standard biological seed treatment applications. CLIPS was designed in collaboration with 3BarBio, the first biological Contract Development and Manufacturing Organization focused on the agriculture industry. Therefore, the rising importance of organic produce, coupled with the expanding area of cereal farming and technological advancements, is driving market growth during the forecast period.
Europe Dominates the Market
Europe is a crucial market for biological seed treatments, driven by a strong focus on sustainability, environmental protection, and reducing chemical inputs in agriculture. The European Union (EU) leads in promoting eco-friendly farming practices, significantly increasing the demand for biological seed treatments. The EU has implemented stringent regulations on pesticide use to reduce chemical residues in food and minimize environmental impact. The EU Green Deal and the Farm to Fork Strategy aim to make the EU climate-neutral by 2050. These strategies emphasize sustainable food production and reducing reliance on chemical pesticides and fertilizers, encouraging the adoption of biological and organic farming practices and boosting the demand for biological seed treatments.
European consumers increasingly demand food produced with fewer chemicals and more environmentally friendly practices. According to the Research Institute of Organic Agriculture (FiBL), organic retail sales in Europe grew from USD 50.3 billion in 2019 to USD 55.8 billion in 2022. This demand for organic produce pushes farmers to adopt sustainable farming techniques, including biological seed treatments. The shift toward organic food, particularly in Germany, France, and the UK, has driven the adoption of biological solutions in both large-scale and small-scale farming operations.
Furthermore, strategies for developing new products in the market support growth. In 2023, Syngenta Biologicals and Unium Bioscience collaborated to bring breakthrough biological seed treatment solutions based on NUELLO iN to farmers across northwest Europe. The product naturally improves a plant’s ability to convert and use nitrogen readily available in the atmosphere, potentially reducing nitrogen use by more than 10 percent. This innovation lowers the environmental impact of farming while increasing crop yield, promoting plant and soil health, and offering farmers greater flexibility in their nitrogen management strategies. Therefore, growing government support for sustainability, coupled with the demand for organic produce and supportive strategies, aids market growth during the forecast period.