The agricultural micronutrients market is estimated to reach USD 5.83 Billion by 2017, and it is projected to reach USD 8.81 Billion by 2022, at a CAGR of 8.60% from 2017. In terms of volume, the market is projected to reach 1,681.1 KT by 2022. This market is growing in accordance with the increasing soil deficiency and increasing demand for biofuels. Furthermore, the increasing need for effective fertilizers due to poor soil quality and high demand for quality and uniform yield as a result of the increasing population across the globe are expected to drive the growth of the agricultural micronutrients market.
The foliar segment is projected to be the fastest-growing in terms of mode of application. The soil segment is estimated to dominate the agricultural micronutrients market during the forecast period.
The zinc segment is estimated to dominate the agricultural micronutrients market in terms of value. The demand for zinc is high in the Asia Pacific region, as China and other developing countries in this region prefer zinc fertilizers as they improve crop yield and provide economic benefits to the farmers owing to their low prices. The deficiency of zinc in the soil reduces the productivity and growth of agricultural crops. Thus, zinc is added in standard fertilizers and premixes in many developing countries such as China and India which drive the use of zinc as a micronutrient.
The Asia Pacific region dominated the agricultural micronutrients market in 2016 and is projected to grow at the highest CAGR from 2017 to 2022, both in terms of value and volume.
India is projected to be the fastest-growing market in the region. In India, the growing awareness towards the benefits of micronutrients among growers drives the agricultural micronutrients market. It is a leading producer of many other agricultural commodities such as spices, pulses, fresh fruits, cashew nuts, coconut, and tea. It is also one of the top producers of cereals such as sorghum and pearl millet. The country ranks second in terms of agricultural production in the world. According to the World Bank, the total agricultural land in India was around 60.4% in 2014. Agriculture contributed to 17.3% of the total GDP of India in 2016.
The lack of awareness among farmers and critical application doses of micronutrients are the restraining factors for the agricultural micronutrients market.
The agricultural micronutrients market is concentrated, with leading companies driving market growth. The report provides qualitative analysis of the prominent market players and their preferred development strategies. Key players such as BASF (Germany), Dow Chemical (US), AkzoNobel (Netherlands), Agrium (Canada), Yara International (Norway), The Mosaic Company (US), Land O’Lakes (US), Helena Chemical Company (US), and Nufarm (Australia) have been profiled in the report. These leading players have adopted various strategies such as expansions, mergers & acquisitions, new product launches, and joint ventures/agreements to explore new and untapped markets, expanding in local areas of emerging markets, and developing a new customer base for long-term client relationships. This has not only enabled the key players to expand their geographical reach but has also reinforced their market position by gaining a larger share in terms of revenue and product portfolios.
Small-scale players have also adopted these strategies to expand their businesses globally by investing in the establishment of manufacturing facilities and technical service centers in various regions. This inorganic growth strategy enables them to improve their technical expertise through intensive R&D infrastructure offered by bigger players.