With various advancements taking place in the world of seed technology, talking about seed colorants is inevitable. This market is expected to witness unprecedented vertical growth during the forecast period of 2017-2022. The supportive regulatory structures in the field of seed treatments and thus seed treatment colorants are also likely to facilitate growth in this segment. Companies operating in this segment are increasing their product portfolio to better meet the demands of the consumers. Understanding the probable surge in the seed coating colorant market in 2012, BASF acquired Becker Underwood. This acquisition helped BASF to exploit various seed treatment opportunities. In the past few years, Incotec has been the most active player in the seed colorants market.
Regulations for the market
The Environmental Protection Agency (EPA) makes it mandatory under 40 CFR §153.155 that pesticide products intended for use in seed treatment must contain an EPA approved colorant to impart an unnatural color to the seed, unless appropriate tolerances or other clearances have been established under the Federal Food, Drug and Cosmetic Act for residues of the pesticide. EPA-approved colorants are listed as inert ingredients under 40 CFR §180.910-§180.960. The market intended for commercial use should, therefore, comply with the US Environmental Protection Agency (EPA) inert ingredients regulations and European Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).
Seed Colorant – Market Dynamics
Going by the growing significance of seed colorant usage in agriculture, the market holds huge potential for the future. Support for immense market growth is fuelled by factors, such as supportive regulatory structure, growing demand for seed treatment market, brand differentiation, and high adoption of hybrid seeds & GM seeds. While the seed colorant market has high growth potential, high costs associated with colored or treated seeds are inhibiting the market growth. Rapid advancements in seed coating technologies and increasing opportunity in the usage of seed colorants in grains and cereals are expected to cater to the future growth opportunities of the seed coating colorants market.
Are seed colorants going to be the future of seed treatment?
According to a market research firm, the global market revenue was valued at USD 206.20 million in 2016 and is projected to reach USD 484.01 million by 2022, at a CAGR of 15.44% over the forecast period. The figures clearly depict the rapid growth likely to be witnessed in the global market.
According to analysis, North America and Europe occupy a majority share of the global seed colorants market. Emerging economies, such as Brazil, China, and India are also expected to witness rapid growth, owing to the demand for increased agricultural production.
The mergers and acquisitions of various seed and chemical companies like Bayer, Milliken Chemicals, etc. with a number of seed enhancement and inoculants technology companies, are likely to further bring about dynamism in the market. The move helps them to achieve their business objectives, in addition to creating value to society that is demonstrated by their strong effort in the research of seed technology.