The International Seed Federation (ISF) estimated that the commercial global market for seed and other planting material was worth some US$30 billion in 2005. Other estimates put the market for seeds alone at between US$17 billion and US$20 billion. The US is the largest country market, with around 19% of the global seed market.

The size of the global market is predicted to grow, as global farming standards rise, and farmers realise the value of purchasing both certified seed and the latest highest-yielding varieties. Biotechnology, in particular, is leading to the development of new, more expensive varieties, and this trend will continue to push up the value of the market. Up to a quarter of the value of the seeds market is in biotech seeds.

This is good news for the seed treatment market. While GM crops contain genes for disease- and insect-resistance, the technology has limitations, and not all pests are controlled. This means that fungicide and insecticide seed treatments are still required, and farmers are more likely to use seed treatments to protect their investment in the costlier GM seed.

GM crops were first grown in 1996, and since then the area planted has risen by more than 10% every year. Their global planted area reached 90 million ha in 2005. The main GM crops are soybeans, maize, cotton and canola. The area planted with GM crops is likely to continue to rise, which will help to drive up the seed treatment market.

While the total agrochemical market has been stagnant since 1999, the seed treatment market has shown steady growth. Estimates vary, but the market has grown from around US$800 million in 2000, to around US$1.40 billion in 2005. The trend is forecast to continue, with the majority of the expansion occurring in developing countries.

Various factors are contributing to the rise in the seed treatment market. These include: a wider range of highly active products, including new fungicides that offer low-use rates and control an expanded range of pathogens; and the introduction of neonicotinoid and phenylpyrazole systemic insecticides, which have extended control from soil-borne insect pests to early foliar-sucking insects.

Growers are becoming more aware of the benefits in treating seeds. Part of this is due to the higher value of seed, through added-value traits from biotechnology or traditional breeding. In addition, increasing no-till, conservation tillage and agronomic practices, such as earlier drilling, may be creating greater need for early protection of the seed and developing seedling. There is pressure to gain optimal plant populations and achieve greater uniformity in crop development and harvesting.