The Chinese market for chemical seed treatment is the fastest growing in overall Asia-Pacific, forecast to record a compounded annual rate of 11.7% between 2014 and 2020. By segment, while insecticides dominate in terms of size with an estimated share of 54.2% of total seed treatment chemicals in 2014, demand for fungicides used in seed treatment is likely to post the fastest 2014-2020 CAGR of 12.1%.
China is the second largest seed market in the world, annually using roughly 12.5 million tons of planting seed. About 65% of the Chinese market for seeds is accounted for by hybrid corn, hybrid rice, and vegetable and fruit seeds. China is self-sufficient in rice, corn, wheat, cotton and soybean seeds, in addition to producing 80% of the vegetable and fruit seeds consumed domestically. In a shift from traditional methods, farmers have limited their reliance on saved seeds and have started using government subsidy programs for purchasing commercial seeds of higher quality.