Description of the Report
The global agriculture micronutrient industry is forecast to grow at a rate of 5.8% between 2020 and 2030 to reach 2,013.3KT by 2030.
Agriculture Micronutrients Market for agriculture micronutrients are rising micronutrient deficiencies in soil, shifting consumer preference for nutrient-rich food, growing population, and increasing food insecurity. A growing market for agriculture micronutrients is also an excellent opportunity for contract farmers.
The Impact of COVID-19 on the Agriculture Micronutrients Market
Most industries have been affected by the COVID-19 global pandemic since 2019. Many economies will be affected by the COVID-19 pandemic in 2021. Many industries have suffered from the solid adverse effects of COVID-19-fighting measures, such as complete lockdowns or quarantine for two consecutive years, 2020 and 2021.
Due to disruptions in logistics and transport in many countries, the agriculture sector’s sales of fertilizers and agricultural micronutrients have seen a significant slowdown in 2020 and 2021. The entire value chain, from raw materials supply to manufacturing, packaging and distribution, was disrupted by disruptions in logistics and transport.
In China, one of the largest producers, consumers, and suppliers of agricultural micronutrients, the COVID-19 epidemic began in 2020. The closure of Chinese production plants severely affected the supply chain and restrictions on importing and exporting agricultural micronutrients and raw materials to and from China. This significantly impacted the industry’s production, sales and operation in 2020. The situation in China improved as the number of cases decreased. The Chinese Agricultural Ministry is constantly trying to get the industry back on track. This would allow for the normalized availability of all raw materials.
This pandemic will also harm the global agricultural micronutrient market, which is expected to affect many countries, including India, Brazil, the U.S. and the EU-5. Many Indian fertilizer plants were closed or reduced in capacity during the countrywide lockdown. This led to substantial losses in India’s agriculture micronutrient production over the first three quarters of 2020.
The pandemic is also affecting the distribution of fertilizers within and between markets in Southeast Asia. Malaysia’s food supply was affected by the partial shutdown in March 2020. However, fertilizer production facilities were allowed to continue operating as they were essential. This pandemic and lockdown created logistical problems for suppliers to distribute fertilizers across the border and in the country. The COVID-19 crisis in Vietnam had a significant impact on many industries. Despite this, the country’s crisis has seen some improvement in the supply chain for fertilizers. The production units continue to operate at their normal levels, with no disruptions to the distribution network for fertilizers in 2021. The market is becoming more difficult as distributors are reluctant to do business with the country due to increasing COVID-19 incidences. Despite various virus containment measures, Thailand’s production and distribution channels of fertilizers and crop nutrients remained unaffected. The tight port restrictions in the Philippines negatively affected the market for agricultural micronutrients in 2020.
The recovery phase for the agricultural micronutrients, fertilizers and pesticides industries is expected to begin in 2021. It was also observed that the operations of many companies and the fertilizers industry were not affected by the COVID-19 first wave in many countries worldwide. This could be because fertilizers are crucial for food security. In 2021, however, many of the significant challenges facing the agricultural micronutrient markets in many countries will be logistical and labor problems.
In 2020, the global market for agricultural micronutrients in volume sales had been negatively affected by a halt to the transport and logistics industry and reduced production in certain countries due to lockdowns.
The growing population and increasing food insecurity are driving the growth of the market for agriculture micronutrients.
The world’s population is increasing rapidly. According to the Population Reference Bureau (PRB), the global human population will grow by 75 million per year or 1.1% per annum. This means that the world’s population will reach 9.9 billion by 2050. That is 33% more than what was 7.4 billion in 2017. The demand for food rises as the world’s population increases. Growing populations mean a growing need for food, making agriculture more vital to the planet’s future. The number of arable lands is expected to increase slightly, so agricultural producers must improve efficiency and productivity to provide enough food for a hungry world. Crop production will still be affected by unpredictable climates such as drought, flooding, intense heat, and other stresses.
The term “food insecurity” has been a significant concern worldwide over the past few decades. It is now a grave concern for scientists, policymakers, agronomists, researchers, and anthropologists. Recent years have seen a lot of attention to food security due to changing climatic conditions and the ever-looming threat from anthropogenic activity. All countries around the globe are now paying more attention to food security. They are all working together towards a common goal of global food safety. Food security does not just concern the availability of food but also the quality and variety of the food. These factors require optimal utilization of existing farmlands and maximization of their yield. These problems can be solved by using micronutrients in agriculture.
A micronutrient deficiency can reduce the plant’s immune system and enable them to resist many diseases. The alarming rise in micronutrient deficiency has significantly contributed to the world’s disease burden. This can lead to severe health problems such as extreme hunger, eventually leading to life-threatening illnesses like malnutrition and undernutrition. Because of their importance and critical function in crop production, there have been promising changes in modern agriculture. This includes the treatment of micronutrients both in main staple foods crops and in human diets.
The growing global population and the increased need for micronutrients in intensive crop systems to achieve higher yield productivity are the driving forces behind the expansion of the market for agriculture micronutrients.
The key findings from the market study on agriculture micronutrients:
In 2020 Zinc dominated the overall agricultural micronutrients market
The zinc segment held the largest market share in the overall agricultural micronutrient market based on type in 2020. This segment’s rapid growth and large share are due to increasing awareness about zinc deficiency in soil and its many functions in plant growth. The demand for zinc agricultural micronutrients will rise due to rising food security concerns and the growing demand for zinc nutritious foods which has health benefits. This market is also supported by rising government initiatives to increase zinc concentrate in soils to improve quantitative and qualitative crop yields.
Chelated forms segment to grow at the fastest CAGR in the forecast period
The fastest growth rate for the chelated forms segment will be based on form. This is the most likely forecast period. This segment’s rapid growth is due to its superior stability to non-chelated micronutrients and growing demand to improve micronutrient utilization efficiency. There is also a rising trend in the application and development of new chelates.
Cereals, grains and wheat dominated the overall market.
The largest market share in the overall agricultural micronutrient market was based on crop type. In 2020, cereals and grains command the highest percentage. This segment has a significant market share due to the growing demand for cereals, grains products and a vast area under cereals cultivation. There is also an increase in demand for cereal-based snack products and the rising importance of cereals in the recovery and treatment of chronic diseases.
Soil segment to see the most significant demand through 2030
The largest market share in the overall agricultural micronutrient market was based on the application method. In 2020, soil application accounted for the majority of this segment. This segment holds a significant share due to its ease of use and cost-effectiveness, as well as the better results with micronutrients than other methods. This is partly due to the high use of traditional farming methods in the current agricultural system, the limited resources available, and the lower adoption of advanced fertilizer application methods.
Asia-Pacific – The most significant and fastest-growing regional market
In 2020, the Asia Pacific region will dominate the agriculture micronutrient market. This is due to large areas under cultivation, growing population, interest in high-quality food and increased awareness and acceptance of agriculture micronutrients among farmers in emerging economies like China and India. This market is expected to grow due to the growing demand for high-quality agricultural products and better agricultural practices. This region will also grow at the highest CAGR rate over the forecast period due to the significant depletion of arable land, the rising micronutrient deficiencies in the soil and the massive area of infertile ground, and government support for fertilizer industries.
This report focuses on the competitive landscape and is based upon an in-depth analysis of the most important strategic developments made by market players in the agricultural micronutrient market during the last four years. The major players in the global agricultural micronutrients market include BASF SE (Germany), Coromandel International Limited, India, Nutrient Ltd., Canada, The Mosaic Company, Haifa Group, Israel, Yara International ASA, Norway, Helena Agri-Enterprises LLC, USA, Valagro S.p.A. (Italy), Sigma Agriscience, LLC, USA, Aries Argo Limited, India, Nufarm Limited, Australia, and Argo Liquid (USA), Nufarm Limited, Nufarm Limited (Australia) and Nufarm Limited (Australia), Nufarm Limited, Nufarm Limited (USA), Nufarm Limited, Limited (Australia)
|Agriculture Micronutrients Market Report Scope and Segmentation|
|UNIT||Value (USD Million/Billion)|
|BY REGION||North America, Europe, Asia Pacific, Latin America, Middle East and Africa|
Scope for the report
Agriculture Micronutrients Market by Type
- Other Micronutrients
Agriculture Micronutrients Market based on Crop Type
- Cereals and Grains
- Other Cereals and Grains
- Fruits and vegetables
- Oilseeds, Pulses
- Other Crops
Agriculture Micronutrients Market – Form
Agriculture Micronutrients Market by Method of Application
- Soil Application
- Seed treatment
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA