The global demand for agricultural products that are primarily influenced by various social factors, population dynamics, increasing availability of disposable income, high rate of urbanization, forward-looking national policies, as well as evolving consumer preferences among others is in part expected to drive the growth of biological seed treatment market. Besides, changing eating habits due to globalization and rising per capita food expenditure across the diverse set of income groups are expected to facilitate aspirations for consuming organically derived food products which are comparatively healthier than their traditional counterparts are also expected to drive the growth of this market during the coming few years. Moreover, as per the forecasts by FAO (Food and Agriculture Organization of the United Nations), the proportion of household income that is estimated to be spent on food would be reportedly sustained at an average of 43% in 2029. Above all the surge in various strategic investments by players operating in this space partly as a response to the aforesaid are also expected to drive the biological seed treatment market growth. A few of the recent market development are being listed below:
September 2020 – R&D Agreement
CERADIS B.V. and CEV, SA (CEV) have reportedly announced an R&D agreement with a rationale to develop innovative products pretraining to crop protection based on CEV’s biological active ingredient and Ceradis’ technology. CEV is known to commercialize bio-fungicides whose active ingredients are reportedly a polypeptide called BLAD that has been obtained from germinated lupin seeds. Whereas Ceradis is known to innovative environmentally friendly products for plant nutrition & crop protection. Through the means of this agreement new biological crop protection products would be effectively delivered to farmers as an alternative to chemicals.
Knowledge Source Intelligence has forecasted the Biological Seed Treatment Market to grow at a CAGR of 12.94% to attain a market size of US$1316.302 million by 2024 from the market value of US$634.138 million that has been estimated for 2018.
The favorable global agriculture production forecasts are in part conducive to foster further innovation leading to healthy growth in the biological seed treatment market
According to FAO, the population of the world is expected to reach 8.4 billion people by 2029. Moreover, strong growth in per capita income is also reportedly expected to continue particularly with regards to emerging markets. The aforementioned are two prime considerations that are expected to determine a variety of development of the agriculture industry. Moreover, constant enhancement in productivity and higher availability of resources is anticipated to augment the rate of developments in the industry. Applications that encompass feed, food, and raw materials for industrial applications that include biofuels. These, among others, are expected to collectively facilitate healthy growth of the biological seed market. Moreover, to put matters into perspective certain market conditions that are deemed salient to this market are being mentioned below. FAO states that in the last ten years, cereal production growth outpaced demand growth, leading to ample stocks and lower prices. The production of cereals across the world is forecasted to attain 3,054 Mt in 2029 which is a growth by 375 Mt. This development stems from higher yields. Among cereals, the highest growth is expected to be attained by Maize which would increase by 193 Mt. This would be followed by wheat (an increase by 86 Mt), rice (growth by 67 Mt), and other coarse grains (growth by 29 Mt).
Moreover, progress in biotechnology leading to improved seed varieties together with the increasing use of inputs and better agricultural practices will continue to drive increases in yields; however, these gains can be hindered by the effects of climate change and associated constraints pertaining to production like lack of investment or land tenure problems in developing countries. The average yield of cereals globally is projected to increase by 1.1% p.a. over the next 10 years. Further, global soybean production is forecasted to expand at 1.3% p.a., with the expansion of area harvested accounting for about a third of global output growth. Brazil is anticipated toe to be the world’s largest producer whose domestic output is forecasted to reach 140 Mt by 2029, followed by the forecasts of the United States which are in the order of 120 Mt by 2029. These nations are together projected to account for about 2/3rds of the global production of soybeans. Besides the forecasted global oilseed production is estimated to increase by 1.2% p.a. over the next decade. Apart from the aforesaid, the emergence of the increasing domestic demand for biodiesels in Indonesia is expected to exert upward pressure on global vegetable oil supplies in the medium term.
Global demand for vegetable oil is projected to expand by 37 Mt by 2029, which is likely to draw down high inventories and support vegetable oil prices over the outlook period. Additionally, Knowledge Source Intelligence has forecasted the Oilseed Processing Market to grow at a CAGR of 5.15% to attain a market size of US$210.836 billion in 2025 from the market value of US$156.008 billion that has been estimated for 2019. Further, production of fish at a global scale is estimated to reach 200 Mt by 2029, increasing by 25 Mt (or 14%) from the base period (average of 2017-19), though at a pace of 1.3% p.a. which is reportedly lower than that of the previous decade (2.3% p.a.). One of the main factors for the aforesaid is China’s fisheries and aquaculture policies for the next decade will align with its 13th Five-Year Plan (2016-20). This has reportedly led to a marked shift in the priorities comprising the need to promote sustainability and facilitate the modernization of the sector by the means of initial capacity reduction, which is anticipated to be followed by a faster growth, that has been envisaged particularly in aquaculture production. Since China is to date the globally leading fisheries and aquaculture producer, the aforesaid is relevant. The aquafeed market is relevant to the biological seed market as feed used in aquaculture comprises seeds, also aquaculture facilitates the production of fishmeal which is used for animal feed.