Micronutrients are essential for plant growth and play an essential role in balanced crop nutrition. Lack of any of the micronutrients can limit soil growth even when all other nutrients are present in adequate amounts.
Market Dynamics
Drivers
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Increasing agricultural micronutrient deficiencies in soil across the globe
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Increasing demand for higher crop yield with increasing focus by companies on R & D
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Governments encouraging the use of agricultural micronutrients
Restraints
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Lack of awareness about the micronutrient products among the farming community
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Increasing micronutrient toxicity due to over usage of products
Market Segmentation
Based on Product Type, the market is segmented into Boron, Copper, Iron, Manganese, Molybdenum, Zinc and Others. Zinc is the leading product segment which accounted for the major market share of 31%. The segment is anticipated to expand at a significant pace during the forecast period, as zinc helps improve the crop yield and it is economically beneficial for farmers owing to its low price. The deficiency of zinc in soil reduces the productivity of soil.
Based on form type the market is segmented into chelated and non-chelated, with non- chelated form of agricultural micronutrients accounted for the largest market share of about 76% in 2019. The non-chelated segment is expected to hold the major market share due to its affordable pricing structure as compared to chelated micronutrients.
Based on crop type, cereals and grains dominate the micronutrient market accounting for 55% in 2019. The growing world population is driving the demand for crops, especially cereals as they are consumed as staples across various parts of the world.
Geographical Analysis
Asia Pacific is the largest market accounted for 37% market share in the global agricultural micronutrients market in 2010, followed by North America and Europe with 30% and 17% share respectively. In the Asia-Pacific regions, molybdenum, boron, and zinc are the major micronutrient deficiencies found in the wheat crop. The deficiency levels of boron in cotton, sunflower and canola is very high and zinc is generally deficient in cotton and linseed. Europe is one of the major producers of fruits & vegetables and the usage of micronutrient fertilizers is relatively high for fruits and vegetables crops.
Increasing incidences of soil contamination and decreasing arable land is severely hampering the production of good quality crops across the globe. To counter this, farmers across the world are turning towards sustainable farming by adopting specially formulated micronutrients to obtain high-quality products.
One such technique becoming increasingly popular is hydroponics, wherein the plants are immersed in nutrients and water and include a soil-free base. The technique aims at providing the right amount of water and nutrients to the roots directly and is gaining prominence among the farmers globally. Increasing adoption of sustainable farming practices to grow nutrient-rich crops is expected to drive the global agricultural micronutrients market in the forecast period.
The global agricultural micronutrients market continues to be challenged by the disruptions in production, transport and trade restrictions. However, the impact is considered to be nominal owing to exemption of agricultural practices from COVID-19 restrictions. Production of fertilizers has been uninterrupted across most parts of the world and the plant efficiencies are set to reach normal levels as lockdown lifted in most countries
The production disruptions during the hard hit period of the pandemic does not pose considerable impact owing to unaffected demand from agricultural activities. Also, the available stocks and upsurge in domestic production are likely to offset the supply shortages caused by the import restrictions, thereby ensuring continuous availability to the farming communities
Market Key Players
Dominant players in the industry such as Haifa Group, Nutrien, Nouryon, The Mosaic Company, and Yara are relying on product development and collaboration strategies to gain the leading position in the global marketplace.
For instance, in March 2020, The Mosaic Company entered into an agreement with the Technology Research Centre (FTRC) at the University of Adelaide in Australia to focus on enhanced fertilizer efficiency.
In June 2020, Cargill, a leading food, agriculture, and industrial products service provider, announced the development of its new Fertilizer Retail and Distribution Centre. The $30 million state-of-the-art Centre is being developed at Camrose and is expected to be the first retail site for Cargill that is located in West Canada. It will offer a four-product liquid coating capability for nutrient and micronutrient stabilizer coatings.
The companies are adopting strategies such as product expansion offerings, collaboration, merger and acquisition, and partnership to garner massive revenues in the global agricultural micronutrients market share during the forecast period.
Moreover, expanding research and development capacities is becoming is becoming a priority for global key players to address the increasing demand coming from crop micronutrients market. Market players are focusing on innovating easy and quick micronutrients fertilizers manufacturing processes and reducing the production cost of the product to make the product affordable to a wider group of consumers.
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