The Global Micronutrient Fertilizer Market was valued at USD 2,627.0 million in 2020 and is projected to register a CAGR of 7.2%, over the forecast period (2021-2026). COVID-19 has affected all the processes that connect farm production to the final consumer. Farmers were facing a shortage of agricultural inputs like seed, fertilizer, and pesticides. China is one of the major fertilizer producers and exporters in the world. When lockdown began in China, the impact was huge in terms of production cuts due to the labor shortage. Problems with transportation also had a big impact up and down the fertilizer chain, resulting in stockpiling up.
- Micronutrients play a vital role in ensuring balanced nutrition to crops, and the lack of these may limit crop growth. Increasing incidences of micronutrient deficiencies in soils around the world are one of the major factors driving the growth of the market.
- Asia-Pacific was the largest market for micronutrient fertilizers, which accounted for 36.7% share in the global market in 2020. North America, the second-largest market for micronutrients.
- By nutrient type zinc is widely applied nutrient, owing to the important role played by zinc in protein synthesis, growth regulation, and energy production is the major factor driving the market for zinc micronutrient fertilizers. Chinaâ€™s Ministry of Agriculture (MoA) added zinc to its national fertilizer recommendation, which has recently been extended for summer crops, like rice and corn, at a rate of 15 to 30 kg ZnSO4/ha.
Therefore, widespread micronutrient deficiency across the world, with iron and zinc deficiencies becoming a rising concern for plant health coupled with increasing encouragement from various government agencies and other organizations to increase the use of micronutrient to enhance the plant and soil health are the prominent factors that are driving the market growth.
Key Market Trends
Need For Improving Productivity in Declining Arable Land
Agricultural production across the world will need to be doubled over the next 36 years to meet the demand from 9 billion people. Certainly, technology will continue to play a major role in this progress. An increase in urbanization and lower availability of arable land are motivating farmers to adopt efficient techniques. Micronutrient deficiencies are frequently observed in intensively-grown cereals, oilseeds, pulses, and vegetable crops. Hence, in order to obtain quality products and better yields, farmers are tending to adopt the use of micronutrients in their crops.
Soil deficiencies of the micronutrients that are essential for plant growth can lead to lower crop yields. During the past decade, soil micronutrient deficiencies have been noticed primarily for zinc, and to a lesser extent for boron and molybdenum. Soil deficiencies of zinc are widespread in Asia (Turkey, India, China, and Indonesia), sub-Saharan Africa and the northwestern region of South America.
There are broader acceptance and recognition of the collective benefits of micronutrient fertilizers. The amount of arable land per person is declining and the population is expanding. Hence, crop-yields must increase to meet food production needs. As a result, the world is witnessing the most dramatic demand increase for micronutrient fertilizers and for agricultural production.
Asia-Pacific Dominates the Market
The Asia - Pacific micronutrient fertilizers market is the most developed and widespread in the global market. The distribution network of micronutrient fertilizers is well-established in major Asia - Pacific countries. This is further helping deepen the market of various micronutrients fertilizer products in the region. The increasing demand for food grains, coupled with decreasing nutrients in the soil, is one of the major factors driving the growth of the market in the region. Recent studies have indicated that zinc deficiency is the most widespread micronutrient deficiency in China. More than 50% of arable soils are low in zinc, limiting agricultural growth and improvement in human nutrition. Israel Chemicals Ltd and Yara China Limited are the major companies offering products related to micronutrients in the country.
Furthermore, 10% of the Indian soil has phosphorus content and the average potassium content in soil is low by international standards. Japan has a highly active research base in micronutrient fertilizers. Government policies and subsidies in most Asia - Pacific countries also support their expansion.
The micronutrient fertilizer market is consolidated and the key players such as Yara International ASA, BASF SE, FMC Corporation, UPL Limited, and Coromandel International Limited, dominate the global micronutrient fertilizer market. The key players in the market are focused on acquisitions and new product launches to cater to a wider consumer base and expand market share. Manufacturers are also investing in the production process to reduce the cost of production.
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