Presence of micronutrients in optimum concentration is necessary for the plant to complete its life cycle. While micronutrients are required in small quantities, their scarcity can lead to stunted growth, deficiency, and negative impact on plant reproduction. Further, it addresses specific issues of plants, as every micronutrient has a particular effect on plant growth.
What is happening in the industry?
The market is one of the most active, and to some extent one of the most unpredictable, this creates a necessity for continuous tracking, to explore opportunities and making right business decisions. Recently, the Dutch-based multinational company, Akzo Nobel NV invested more than EUR 10 million, in Sweden, to expand its chelated micronutrient capacity. On the other hand, Israeli company Haifa Chemicals announced that it is to cease all operations, dismissing 800 employees from both its plants.
Similar trends are observed in country-level markets, as well. Many of the major countries are focused on micronutrient deficiencies in the soil. As a result, recently India slashed the taxes on micronutrient fertilizers to address this issue, and to enhance farmers’ income. However, several European nations have banned few of the hazardous micronutrient fertilizers, for environmental concerns.
The global micronutrient fertilizer market is growing at an encouraging rate, given the increasing occurrence of soil and micronutrient depletions across regions. As the natural availability of micronutrients is declining, it is paving the way for the greater market growth of micronutrient fertilizers. The issue of food security, along with shrinking farmlands, further necessitate the usage and application of micronutrient fertilizers in the fields. Low acceptance and lack of product knowledge in the farming community are major hindrances to further growth in demand. Product and application innovation pertaining to region-specific needs, and growing awareness for upgraded agricultural practices involving environment-friendly intensive farming would help the industry penetrate further into developing regions.
Will the demand continue an upward trend till 2022?
According to a report by a market intelligence firm, the global micronutrient fertilizer market revenue was valued at USD 3,855.93 million in 2016, and it is projected to reach USD 6,191.01 million by 2022, at a CAGR of 8.23% over the forecast period. The figures clearly depict the rapid growth, likely to be witnessed in the global market.
According to analysts, Asia-Pacific and North America occupy a majority share of the global micronutrient fertilizer market. Emerging economies, such as Brazil, China, and India, are also expected to witness rapid growth, owing to the demand for increased agricultural production.
The global marketplace for micronutrient fertilizers is concentrated within the key agricultural growing regions. The increasing incidence of soil and micronutrient depletion is generating high demand for these agriculture-based countries. The Mosaic Company, Cheminova A/S, Yara International, BASF Agricultural Solutions, Agrium Inc., Haifa Chemicals Ltd., are some of the big players active in the industry. R&D pertaining to region and area specific requirements is being religiously adopted by the industry players here.