The "Global Agricultural Secondary Nutrients Market" is predicted to grow at a high CAGR during the forecasting period (2022 - 2029).
Secondary nutrients are required in moderate quantities and are less likely to limit growing crops. Magnesium, calcium, and sulfur are incorporated into the secondary nutrients. Calcium helps absorb other important nutrients, likewise, magnesium acts as an excellent enzyme activator responsible for botanical growth and blooming. Plants require secondary macronutrients in minimal quantity but are not replaceable with any primary nutrients. Plants require minor amounts of secondary nutrients but are not replaceable with any primary nutrients.
Rapid decline in arable land and mounting pressure to increase crop productivity
The global market for agricultural micronutrients is fueled by decreasing arable land in major crop-producing countries and increasing soil contamination across the globe. The deficiency of essential secondary nutrients such as sulfur, magnesium, and calcium in soil due to excess exposure to synthetic chemical fertilizers is leading to increased demand for specially formulated nutrients for agricultural purposes. For instance, sulfur emission has decreased significantly over the last decades. In the United States, sulfur dioxide emission (SO2) has fallen to 2.82 million tonnes in 2017 from 31.22 million tonnes in 1970. Sulfur dioxide reduction is largely due to the Clean Air Act, which includes the implementation of the Acid Rain Programme. As the Clean Air Act progresses positively, sulfur emissions have been reduced, so the amount of atmospheric sulfur depositing in the soil is only 25 percent of what it used to be. Crops are now sulfur deficient and more sulfur deficiency will continue in the future due to the "Clean Air Act" which will drive the market for agricultural secondary nutrients during the forecast period.
Adoption of backward integration strategy by key global food processing companies to get high-quality products and rapid acceptance of contract farming, where companies provide significant agricultural inputs, are expected to act as major growth-promoting factors for the agricultural secondary nutrients market. However, a lack of awareness about the positive aspects associated with the adoption of agricultural secondary nutrients among farmers based in some developing or under-developed economies is obstructing the growth of the market.
Calcium is by far the largest segment of the global market
The global agricultural secondary nutrients is segmented by nutrient type into calcium, magnesium, and sulfur. Calcium is by far the largest segment of the global market, owing to the growing demand for lime and gypsum to tackle soil acidity issues. In addition, calcium is the most important nutrient among the three macronutrients as it helps to strengthen the cell wall, reduce soil salinity, and improve water penetration. Calcium is responsible for proper plant cell division and for strengthening cell walls. It improves the absorption of other nutrients by roots and their translocation within the plant. It activates enzyme systems, helps convert nitrate-nitrogen into proteins and contributes to improved disease resistance. Without enough Ca, roots become stunted with impaired activity. Hence, the segment is expected to grow with a CAGR of XX% during the forecast period.
Asia Pacific is the largest market for agricultural secondary nutrients contributing significantly to global sales in 2020
The Asia Pacific agricultural secondary nutrients market will register a significant compound annual growth rate of around 40% during 2022-2029. This can be attributed to the rising agriculture industry across major food-producing countries, coupled with rapidly rising incidences of nutrient deficiency in the soil of the region. The growing population across the region and rapidly rising demand for nutrient-rich food products is anticipated to boost the utilization of agricultural secondary nutrients products in the region. Furthermore, the adoption of innovative marketing approaches by key players of the region and the launch of programs to educate farmers about the benefits of using micronutrients to stimulate crop growth will help in expanding the market size of the region. The presence of major players such as Nufarm (Australia), Coromandel International (India), and Deepak Fertilisers and Petrochemicals (India) is supporting the market growth in this region.
The market in North America is anticipated to witness significant growth during the foreseeable years. This can be attributed to gradually declining arable land within countries such as the U.S. and Mexico, which is further generating the demand for specialized products. Rising awareness and adoption of crop nutrition products by farmers or growers within the region to produce quality crops are predicted to aid the growth of the North America agricultural secondary nutrients market.
The global agricultural secondary nutrients market is fragmented, with various small and medium-sized companies coining smaller shares. Nutrien Ltd, Yara International, and Coromandel International are the leading market players in the segment, while smaller companies, such as Rural Liquid Fertilizers and Nutri-Tech Solutions also account for a formidable share in the market. These companies have used various strategies such as expansions, new product launches, agreements, partnerships, joint ventures, acquisitions, and others to increase their footprints in this market. For instance, in March 2022, The Mosaic Company and Sound Agriculture have formed a strategic partnership to bring a revolutionary nutrient efficiency product to market to boost yields across major row crops and improve soil health. In January 2018, Yara, acquired the urea business of Tata Chemicals for Rs 26.82 billion.
COVID-19 Impact: Pandemic had a negative impact on global agricultural secondary nutrients market
The widespread of novel coronavirus has had a modest negative impact on the agricultural industry in 2020 owing to the lockdowns and other restrictions imposed in most parts of the world. Global economies have contracted by 5% to as much as 20% during the first half of 2020. Increasing COVID-19 cases and uncertainties in the development of vaccines is poising the GDP to decline till the end of 2020. The global trade volumes are projected to decline between 13% and 32% in 2020 as a result of the economic impact of COVID-19. There have been multiple shocks impacting service delivery, such as fiscal constraints, interruption of supply chains due to travel restrictions, and lack of availability of labor. For example, Jiang et al. pointed out that COVID-19 has brought some adverse effects on the development of grain planting, livestock breeding, seed industry, leisure agriculture, agricultural products processing, vegetable industry, fruit industry, flower industry, and so on in China.
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