Micronutrient Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The micronutrient fertilizers market is projected to register a CAGR of 7.2% during the forecast period (2022-2027).

The COVID-19 outbreak affected all the processes that connect farm production to the final consumer. Farmers faced a shortage of agricultural inputs like seeds, fertilizers, and pesticides. China is one of the major fertilizer producers and exporters in the world. When lockdowns began in China, the impact was huge in terms of production cuts due to the labor shortage. Problems with transportation also significantly impacted the fertilizer chain, resulting in stockpiling.

Micronutrients play a vital role in ensuring balanced nutrition for crops, and the lack of these may limit crop growth. Increasing incidences of micronutrient deficiencies in soils worldwide are one of the major factors driving the market’s growth.

Asia-Pacific was the largest market for micronutrient fertilizers, accounting for a 36.7% share in the overall market in 2020. North America was the second-largest market for micronutrients.

By nutrient type, zinc is a widely applied nutrient due to its importance in protein synthesis, growth regulation, and energy production, which is the major factor driving the demand for zinc micronutrient fertilizers. China’s Ministry of Agriculture (MoA) added zinc to its national fertilizer recommendation, which was recently extended for summer crops, like rice and corn, at a rate of 15-30 kg ZnSO4/ha.

Therefore, widespread micronutrient deficiencies 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 micronutrients to enhance the plant and soil health, are driving the market’s 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 requirement of 9 billion people. Technology will continue to play a major role in this progress. Increasing 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, farmers are adopting micronutrients in their crops to obtain quality products and better yields. Soil deficiencies of the micronutrients essential for plant growth can lower crop yields. During the past decade, soil micronutrient deficiencies were 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 is 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 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, further helping deepen the market for various micronutrient 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 China's most widespread micronutrient deficiency. 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. About 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.

Competitive Landscape

The micronutrient fertilizer market is consolidated, with a few major players dominating the market. The major players in the market are Yara International ASA, BASF SE, The Mosaic Company, FMC Corporation, and Coromandel International Limited. The key players in the market are focused on mergers and acquisitions, expansions, 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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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