The crop micronutrients market is expected to grow at a compound annual growth rate of 7.89% to reach a market size worth US$9.621 billion by 2027. This market was valued at US$5.653 billion in 2020.
Food is a key sector to consider for survival as the world population grows. As a result, micronutrients are essential for plant and agricultural growth. They boost quality and output by supplying nutrients like iron, zinc, boron, copper, and others. Furthermore, the rising requirement for crop micronutrients might be due to the development of soil deficiencies in cultivated fields. Crop micronutrients also assist crops in becoming more disease-resistant. According to the United Nations, the global population is predicted to reach 9.7 billion by 2050. However, the demand for the few available resources is rising as industrialization and urbanization accelerate. Thus, a major decrease in arable land has increased farmers' usage of micronutrients, which are thought to be very efficient for increasing yield quantity and quality in the limited accessible land.
A significant decrease in arable land, combined with an increase in the globally growing demand for food, has increased the pressure on the limited available resources. As a result, farmers are using various micronutrients to improve yield in the limited available land, which is also playing a significant role in shaping the market growth in the coming years.
The crop micronutrient market is expanding due to soil micronutrient deficiencies and biodegradable chelates
Crop micronutrients are found in low amounts in plants, and shortages in these elements can lead to crop diseases. For example, a lack of Fe can induce chlorosis in several crops. Similarly, Mn shortage may result in decreased agricultural output. Micronutrient deficiencies and imbalances are occurring in soils all around the world, with soil pH, humidity and others being the primary reasons. As the pH of the soil rises, so does the accessibility of micronutrients. Mineral fertilisation efforts are being prioritised by governmental and non-governmental entities to reduce shortages. According to the FAO, India, China, and the United States utilise almost half of all mineral fertiliser nutrients. Despite the fact that many nations have achieved national food sufficiency, there is always a need to feed people with nutrient-rich food by upgrading agricultural methods.
Furthermore, because of the different recognised risks of non-biodegradable chelating agents, market attention is shifting toward the creation of biodegradable chelates. These are mostly used to remove metals that can harm plant and soil health, as well as to prevent the precipitation of these hazardous metals into the soil. Additionally, farmers are gradually transitioning away from commodity fertiliser products and toward speciality fertilisers such as chelated fertilisers, encapsulated fertilisers, and others. These fertilisers have strong growth potential for higher output, and they use less water. Fertilizer producers are creating agricultural chelates with the help of government regulations and subsidies, which are expected to expand in rising economies such as India and China. Therefore, all these reasons sum up the crop micronutrient market to witness an increase in the coming years.
There have been major key developments in this market that have elevated and expanded the market spectrum. For instance,
· Under the Tamil Nadu State Rural Livelihood Mission, the National Research Centre for Banana licenced and transferred technology for the manufacture of 'Banana Sakthi,' a micronutrient mixture for banana crops, to a women farmer producer’ group in Kanyakumari district in 2022.
· In 2022, Coromandel International Limited launched products, OFFICER, a new generation selective herbicide, for farmers. It is a broad-spectrum systemic herbicide that controls a wide range of weeds in paddy fields.
· In 2020, McGregor Company expanded its family-owned ag retail company by acquiring HydroGro. HydroGro is an Arizona-based company that produces water-based micronutrient solutions for the agricultural and turf sectors. HydroGro was a pioneer in seed-applied Nutritionals micronization technology and possesses multiple patents in that field.
· In 2022, The Rice Fortification Unit has been inaugurated by the Centre of Excellence for Food Fortification (CEFF) at the National Institute of Food Technology Entrepreneurship and Management (NIFTEM), Haryana, in collaboration with Hexagon Nutrition. The construction of the rice fortification equipment at CEFF is an important step toward creating a healthier nation.
· A new collaboration between Pro Farm Technologies, a subsidiary of Marrone Bio Innovations, Inc., and Corteva Agriscience has provided growers in Europe with an innovative, sustainable choice for increasing plant health and crop quality in 2022. Corteva is the only European distributor for Kinsidro Grow, a revolutionary foliar bionutrient that provides critical nutrients to plants, resulting in greater plant vigour.
According to analysts, the Asia Pacific region is expected to occupy a notable share of the market in the upcoming years.
During the predicted period, Asia Pacific is anticipated to account for the biggest share in terms of volume and value. The rising development of high-value crops and increased farmer knowledge of micronutrients are likely to give greater opportunities for market expansion. Government regulations enacted by Asia Pacific countries, as well as huge subsidies for crop fertilisation and nutrition, often up to 100% for marginal farmers, are important drivers driving the growth of this industry in the area. The growing farming practices and need for high-quality agricultural output are driving the Asia Pacific micronutrient fertiliser market expansion.
The outbreak of the COVID-19 virus led to a surge in infection rates, resulting in the implementation of worldwide lockdowns across countries. This led to a decrease in the market demand for the crop micronutrient market since most production and supply lines were disconnected. Since most crop producers could not meet the increasing food demand during the pandemic, the cost of food increased. The increased demand resulted in more farmers using micronutrients for crop production, to increase crop immunity and decrease crop failure. Moreover, with most industries now restarting their production processes, the crop micronutrient market is anticipated to increase in demand.