The global agricultural micronutrients market is mainly driven by the growing demand for food production to meet the ever-increasing population. Micronutrients are essential for healthy plant growth and high crop yield. They play a crucial role in various plant metabolic functions including photosynthesis, enzyme activity, redox reactions, and gene regulation. Micronutrients such as boron, copper, chloride, iron, manganese, molybdenum, and zinc are applied to crops as fertilizers. The growing adoption of precision farming techniques and soil and plant tissue tests is allowing farmers to address micronutrient deficiencies in crops. Precision farming enables site-specific fertilizer application based on the soil conditions, thereby minimizing wastage and increasing input use efficiency. The global agricultural micronutrients market is estimated to be valued at US$ 4.5 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the growth of the agricultural micronutrients market is the increasing demand for food due to the rising global population. As per the data by the United Nations, the world population is expected to reach 8.5 billion by 2030 and 9.7 billion by 2050. Feeding this growing population will require a substantial increase in food production. Micronutrients play a crucial role in supporting optimal plant and crop growth, thereby helping to boost agricultural productivity and meet the rising demand for food. Moreover, the growing adoption of precision farming practices is also driving the agricultural micronutrients market. Precision farming techniques such as soil mapping, GPS-guided spreaders, and variable-rate technologies enable precision application of micronutrients based on soil conditions. This helps minimize wastage and improve yields.
Segment Analysis
The agricultural micronutrients market is dominated by the iron segment. Iron is an essential micronutrient for plants and helps in chlorophyll formation, nitrogen fixation and photosynthesis. It accounts for over 25% of the total agricultural micronutrients market share owing to widespread iron deficiencies observed in soil across the globe. The zinc segment is another major segment driven by its critical role in various metabolic processes of crops. The boron and manganese segments are also notable and witnessing increased adoption over the forecast period.
PEST Analysis
Political: Trade policies and subsidies by governments influence the demand for agricultural micronutrients. Stringent regulations also impact the prices and manufacturing of micronutrient fertilizers.
Economic: Fluctuations in crop prices and global economic growth rates affect the spending power of farmers on agricultural inputs including micronutrients.
Social: Rising population is increasing the global food demand which is supporting the use of micronutrients for higher agricultural yields. Growing awareness among farmers regarding soil nutrition is also boosting market growth.
Technological: Advancements in formulation techniques are leading to development of innovative delivery mechanisms for micronutrients such as chelates and complexes. This is improving their absorption and effectiveness in soil.
Key Takeaways
The Global Agricultural Micronutrients Market Size is expected to witness high growth over the forecast period. The Asia Pacific region currently dominates the market owing to large crop production and increasing consumption of micronutrient fertilizers in major countries like India and China. Key players operating in the agricultural micronutrients market are Zoetis Inc., Elanco Animal Health, MSD Animal Health, Benchmark Holdings, Phibro Animal Health Corporation, Intervet Inc., Norvartis, Merck Animal Health, Novartis AG, Pharmaq AS, AquaBounty Technologies, Alltech, Skretting, Nutreco, Biomin.
The Asia Pacific region is currently the fastest growing as well as largest region in the global agricultural micronutrients market. Countries such as India and China have huge crop acreage coupled with high yield targets set by governments. This is translating to increased consumption of various micronutrient formulations including iron, zinc, boron and manganese over the forecast period. The growth is further supported by efforts taken towards educating farmers about soil health management and benefits of micronutrients.
Key players operating in the agricultural micronutrients market are Zoetis Inc., Elanco Animal Health, MSD Animal Health, Benchmark Holdings, Phibro Animal Health Corporation, Intervet Inc., Norvartis, Merck Animal Health, Novartis AG, Pharmaq AS, AquaBounty Technologies, Alltech, Skretting, Nutreco, Biomin. Zoetis Inc. holds a leading market share owing to its wide portfolio of zinc and iron based fertilizers.
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