Market Trends of North America Soybean Seed Treatment Industry
This section covers the major market trends shaping the North American Soybean Seed Treatment Market according to our research experts:
Increased Production of Soybeans
According to the Food and Agriculture Organization in 2018, the overall production of soybeans in term of quantity accounted for 130.09 million tonnes up from 123.5 million tonnes in 2016 significantly denoting the increasing demand for soybean in the region. In 2018, 38.1 million hectares of land area is under the cultivation of soybean which has also increased from 35.7 million hectares in 2016. The increase in production can be attributed to the increase in domestic as well as the international demand of soybean and its multilateral importance. The increase in production also increases the chances of diseases and pest infestations, thereby, leading to an increase in the demand for seed treatment products. Integrated pest management (IPM) plays a major role in the identification of target areas of action for seed treatment and it also helps in identification of the perfect product for soybean seed treatment. Hence the increased production in the region forges an increase in the demand for soybean seed treatment during the forecast period.
Increased Multilateral Usage of Soybeans
Soybean is a commodity which can be used as food, feed as well as fuel. Majority of soybean is used as feed for poultry as well as dairy farming, whereas it also finds application in various food preparations. The usage of soybean as a biofuel is majorly driving the demand for soybeans throughout the region. Hence in order to meet the domestic as well as international demands, farmers in the region are forced to produce higher volumes of soybean year after year. Being a crop with higher chances of pest infestation, meeting a higher yield in the area harvested is a hude challenge for the farmers and hence seed treatment is done at a higher level across commercial as well as farm levels. As per the Food and Agriculture Organization, the area harvested under soybean in each of the country is declining year after year which also urges the use of seed treatment to increase the commodity yield. The use of seed treatment on soybean crop can protect the yield, but when there is no pest the use of seed treatment is like an insurance. Only in the case of high risk from early season pest, the seed treatment has very high significance, else it is only an extra process. Hence the increase in the multilateral use of soybean across the region is anticipated to drive the soybean seed treatment market during the forecast period.
