Agricultural Micronutrients Market Overview
Valued $5,848.0 million in 2017, the global agricultural micronutrients market is expected to reach $9,009.2 million by 2023, registering a CAGR of 7.5% during the forecast period. The increasing population worldwide is expected to continue boosting the demand for cereals and grains, thereby increasing the requirement for micronutrients needed to aid the growth of crops.
Based on type, the agricultural micronutrients market is categorized into iron, manganese, zinc, molybdenum, boron, and others (nickel, copper, and chlorine). Among these, zinc micronutrients led the market in 2017, holding more than 25.0% value share. One of the most essential micronutrients, zinc is used in plants to promote their growth. Apart from being a major constituent of many plant proteins and enzymes, zinc is extremely important for metabolic processes. Thus, the rising need to expedite plant or crop growth is expected to boost the sale of zinc micronutrients across the globe.
On the basis of form factor, ethylenediaminetetraacetic acid [EDTA], diethylenetriaminepentaacetic acid [DTPA], ethylenediamine-N,N'-bis (2-hydroxyphenylacetic acid) [EDDHA], N,N′-bis(2-hydroxyphenyl) ethylendiamine-N, N′-diacetic acid [HBED], and non-chelated micronutrients are the various categories of the agricultural micronutrients market. Non-chelated micronutrients are more cost-effective than other types of micronutrients, which is why these are consumed in larger quantities, especially in major crop-producing nations, such as India, China, and Indonesia.
On segmenting by crop type, the agricultural micronutrients market is categorized into fruits and vegetables, cereals and grains, oilseeds and pulses, and others (cotton, sugarcane, rubber, tea and coffee, and coconut). Of these, the cereals and grains category dominated the market during the historical period, with over 50.0% revenue share in 2017. Micronutrients are heavily used to ensure the proper growth of cereals and grains and to boost their overall yield. Moreover, increasing population across the globe will continue boosting the demand for cereals and grains, which, in turn, would raise the demand for micronutrients.
Based on application mode, the agricultural micronutrients market is categorized into foliar, fertigation, soil, and others (banding and broadcasting). Among these, the soil category held over 45.0% revenue share in the market in 2017. The addition of micronutrients to soil is preferred owing to the relative ease of application, less requirement for advanced machinery (such as drippers and sprays), and easy incorporation with fertilizers.
On the basis of geography, the agricultural micronutrients market is categorized into North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), and Middle East and Africa (MEA). During the forecast period, the market is expected to witness the fastest growth in APAC. With the increasing income level and spending power of people in key regional countries, including China, Indonesia, and India, the demand for processed and non-processed food is growing significantly, which, in turn, is driving the use of micronutrients for growing different kinds of crops.
Agricultural Micronutrients Market Dynamics
The key trend observed in the agricultural micronutrients market has been the substantial increase in horticulture and the production of high-value crops, such as fruits, nuts, vegetables, and ornamental crops, in the last decade. Additionally, the agricultural sector has witnessed major consolidation of farmlands, which has contributed in providing the necessary impetus, such as high capital for raw materials and means to apply micronutrients, which were previously non-existent. In congruence, pastoralists and farmers in advanced economies have recognized the importance of optimizing micronutrient management practices, which can improve disease resistance in plants and minimize the application of fungicides and pesticides to combat crop failure.
Increase in population across the globe can be viewed as a major factor driving the growth of the agricultural micronutrients market. According to the Population Division of the United Nations Department of Economic and Social Affairs (UNDESA), the worldwide population, which was 7.6 billion in 2017, is predicted to increase to around 9.8 billion by 2050, growing by 30.9% during this period. These additional 2.2 billion individuals are projected to raise the demand for horticulture crops, food crops, and cash crops in the coming years.
Thus, to meet the increasing requirement for food, advanced farm management technologies are being developed. Moreover, limiting potential barriers in crop growth such as micronutrient deficiencies has become a key area of focus for farmers and agriculturists. Reduced yield as a result of plant abnormalities in the form of stunted growth can be caused by micronutrient deficiency, which can hamper crop productivity as well as reduce the income of farmers. That is why the use of micronutrients is expected to rise in the near future, thereby contributing to the growth of the agricultural micronutrients market.
Although the penetration of technology has shown massive improvements in the agriculture sector, it has had limited success in introducing sustainable practices. The technology has allowed farmers to increase production to unprecedented levels, but, at the same time, encouraged unsustainable practices, such as salinization and degradation of soil and removal of micro- and macronutrients from the soil. This, coupled with the lack of awareness among farmers about these nutrients, has restrained the growth of the agricultural micronutrients market to some extent.
Agricultural Micronutrients Market Competitive Landscape
Akzo Nobel N.V., FMC Corporation, BASF SE, Yara International ASA, SAPEC SA, and Sinochem Group were the leading players in the agricultural micronutrients market in 2017. Among these players, FMC Corporation led the market due to its large micronutrient product portfolio. Additionally, the firm has an efficient distribution network, which facilitates the sale of micronutrients around the world. Another company engaged in the production of agricultural micronutrients, Akzo Nobel N.V. has offices as well as partners in several countries, resulting in its strong foothold in the global market.
Coromandel International Limited, The Mosaic Company, the Haifa Group, and Chambal Fertilisers and Chemicals Limited are some other key players operating in the global agricultural micronutrients market.