According to a new market intelligence report, the seed testing market was valued at ~ US$ 725 Mn in 2018, and is poised to see ~5.6% YOY growth in 2019. Among the several megatrends driving the next wave of growth in agricultural testing services market, increasing focus on ‘crop quality’ continues to be a prominent one.
The quest for quality necessitates emphasis on quality inspection and testing of agricultural products, including seeds and fertilizers, propelling growth of seed testing services market through 2028. According to the report, mandates for seed testing certifications to facilitate the international trade continue to call for sessions of comprehensive seed analysis, thereby creating a plethora of opportunities for the seed testing service providers.
Key players operating in the seed testing services landscape will continue to raise the bar by providing credible certifications to end users, which will not only play a major role in green-lighting imports and exports but also ensure conformity to the latest labelling and traceability requirements.
As the global agricultural scene continues to embrace modernization in an effort to gain enhanced yields, the adoption of seed testing services for the purpose of fostering productivity is poised to tread on an ever-increasing path. According to analysis, the adoption of purity tests is estimated to grow by leaps and bounds, followed by moisture tests. As purity and moisture tests continue to be among the basic prerequisites in the seed testing sessions, the adoption rates of these two tests are likely to reach new heights in the coming years. With more stringent and tight regulations coming to the fore, end users will exhibit a greater degree of confidence on vigor tests for warranting seed health and quality.
While off-site services continue to be well-received among the end users, demand for on-site services is estimated to pick pace through 2028. The demand for on-site services remains underpinned by increasing need for convenience and reliability, suggest study’s findings. In addition, growing availability of compact, lightweight, portable testing equipment, along with an increasing count of on-site testing service providers, is further complementing this growth.
Seed Processors at the Forefront of Demand for Seed Testing Services
Opportunities are imminent for the market players during the forecast period, as seed manufacturers (seed processors or seed refiners) continue to be at the forefront of demand for seed testing services. In order to align with this demand, market players vie to offer a wide range of testing services through accredited laboratories that are strategically positioned in multiple regions.
According to the analysis, North America and Europe are estimated to emerge as the two hub spots of opportunities for the key stakeholders of the seed testing services market. However, the East Asia region is emerging as a bright spot for the market players to target at, with countries such as China and Japan being the front liners. In order to capture value across the fast-growing economies of East Asia, companies active in the seed testing services are gaining a granular understanding of varying trends with respect to segments, channels, and product lines. Skyrocketing focus on trading of field crops/seeds is further likely to provide the much-needed impetus to these regional markets, thereby offering new opportunity streams for market players to leverage.
According to the analysis, key service providers operating in seed testing services are channelizing their efforts toward offering tailor-made services to serve specific end user needs. Mergers and acquisitions will continue to top the priority list of market players, as these alliances do have a major contribution to inorganic growth of these companies.
This study underlines the growth prospects of seed testing services market for the forecast period of 2018-2028, and sheds light onto latent opportunities emerging in the seed testing services market and opines that the market would reflect growth at a CAGR of 8.9% during the forecast period.