Market Trends of North America Seed Coating Materials Industry
Increasing Adoption of New Seed Technologies (GM Seeds)
The development of genetically modified (GM) seeds, which offer benefits like higher yields, pest resistance, and drought tolerance, is enhancing production efficiency and attracting both farmers and investors. Genetically modified (GM) and hybrid seeds represent a significant advancement in crop production, and their adoption has a substantial impact on the seed coating materials market. According to the AgbioInvestor GM Monitor, the United States maintained its position as the leading country in GM crop area, with 74.4 million hectares cultivated in 2023. Canada ranked fifth globally in GM crop area, with 11.5 million hectares cultivated, a 1.5% increase from the previous year. At the regional level, North America holds the second-largest GM crop area after Central and South America, with a total of 85.9 million hectares planted in 2023.
The advantages of genetically modified crops over conventional seeds have led growers to incorporate more GM seeds into their operations, prompting seed producers to focus on the seed coating ingredients market. This trend, coupled with the increasing adoption of GM seeds in the North American market, is expected to accelerate seed coating ingredient sales during the forecast period.
United States Dominates the Market
United States oilseed growers are rapidly adopting seed-coating materials to increase yields by protecting crops from pests and diseases. A recent survey conducted by the American Soybean Association and the United Soybean Board in July 2024 revealed significant trends in this adoption. The survey, which gathered 491 online responses from farmers cultivating at least 150 acres of soybeans during the 2023 season across the 17 largest soybean-producing states, found that approximately 90% of the soybean cultivation area was planted with treated seeds. Only 3% of respondents reported never having used coated soybean seeds, indicating widespread acceptance of seed treatments among soybean producers to protect against early-season pests. These treatments typically involve applying one or more pesticides as a coating on seeds before sowing.
Major players in the seed-coating materials industry have established a strong presence in the United States, recognizing the market's substantial potential. These companies have formed strategic partnerships with various seed associations to promote their products among growers. For example, Germains Seed Technology has collaborated with the American Seed Trade Association (ASTA), Organic Seed Alliance, and Mexican Seed Association AC to enhance the visibility and adoption of its seed coating products in the agricultural sector.
