MICRONUTRIENTS FERTILIZERS MARKET ANALYSIS

The global micronutrients fertilizers market size was valued at US$ 2821.1 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 7.20% from 2022 to 2030. Growing deficiency of micronutrients in soil is a prime factor driving growth of the micronutrients fertilizers market. Moreover, increasing demand for food and large subsidies offered for the nutrition of crops are some of the other factors triggering market growth. Furthermore, growing research &development activities and increasing government initiatives to promote the use of micronutrients is further anticipated to foster micronutrients fertilizers market growth.

Global Micronutrients Fertilizers Market: Regional Insights

Regionally, North America region is projected to dominate the global micronutrients fertilizers market over the forecast period. The region has favorable climatic conditions and is well established in the agriculture industry. In addition, the region has a high adoption of crop nutrition. The US micronutrient fertilizer market was valued at USD 416.6 million in 2020, and it is projected to reach USD 641.9 million in 2026, witnessing a CAGR of 7.3% during the forecast period.

The Europe micronutrient fertilizers market is projected to grow at a rapid pace during the forecast period. Germany, France, and Spain are projected to contribute the largest share in the Europe market. The market is also projected to witness a robust growth due to the rising awareness of the benefits of micronutrients in crop production. The micronutrient fertilizers market in Germany was valued at USD 100.5 million in 2020, and it is projected to reach USD 155.3 million in 2026, witnessing a CAGR of 7.5% during the forecast period. Germany accounted for 21.2% of the overall European micronutrient fertilizers market in 2019.

Figure 1. Global Micronutrients Fertilizers Market Value Share (%), By Region, 2021

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Global Micronutrients Fertilizers Market Drivers:

Growing deficiency of micronutrients in soil is primarily fueling the global micronutrients fertilizers market. This deficiency can lead to stunted growth and other negative effects on crops. In such a scenario, micronutrient fertilizers play a vital role in providing balanced nutrition to crops. The demand for micronutrient fertilizers is expected to increase significantly in the coming years.

Various agencies are encouraging the use of micronutrients fertilizers which is again projected to augment the market growth. For instance, in January 2019, the  Micronutrients  Manufacturers  Association  (MMA)  entered  into a  partnership  with  the Fertilizers Institute, with the primary objective of educating diverse groups in the society, including growers, agronomists, retailers, consumers, and environmentalists, about the benefits of balanced nutrition for crops, thereby, strongly focusing on encouraging the use of micronutrients in crops.

Global Micronutrients Fertilizers Market Opportunities:

Increasing focus of key players on the research &development activities for developing new and improved micronutrients product is projected to offer significant growth opportunities. For instance, in 2018, BRANDT, a manufacturer of specialty products for the agriculture sector, bought up new micronutrient formulations, namely Brandt Smart Quatro Plus, high efficiency foliar 5-0-0 with zinc, manganese, boron, and sulfur, and Brandt Smart Mn Plus, high-efficiency foliar manganese, compatible for use with dicamba and 2, 4-D herbicides.

Growing development of application tool that monitor the deficiency level of micronutrients in plants is projected to hold potential growth opportunities for key players in the market. For instance, in March 2019, Yara International ASA launched YaraIrix application for smartphones. The application is made to scan the leaves of crop and predict approximate nitrogen and other micronutrient deficiencies. This provides awareness to the farmers regarding the deficiencies and helps them in purchasing suitable Yara products.

Global Micronutrients Fertilizers Market Trends:

Development of biodegradable chelates due to growing trend of go-green is expected to uplift the market growth. For instance, in July 2019, BASF has launched “Trilon M Max EcoBalanced”, the first renewables-based “Trilon M” grade produced according to the biomass balance approach. This approach replaces fossil feedstock with renewable feedstock such as bio-naphtha or biogas at the very beginning of production.

Growing focus on increasing crop production due to rising population and need for high quality crop yield is expected to positively influence the market growth. Also, growing agriculture industry due to increasing investment and growing adoption of advanced farming practices is again propelling market growth.

Global Micronutrients Fertilizers Market Restraints:

Low adoption of micronutrients in developing countries due to low awareness is projected to hamper the market growth of micronutrients fertilizers over the forecast period. Growing adoption of organic fertilizers is another factor limiting the use of micronutrients fertilizers, thereby hindering the market growth.

High cost of chelating agents is another key factor expected to restrict the market growth. High cost of chelating agents add to the overall crop production cost, this restrict their limitation especially among farmers across developing countries.

Figure 2. Global Micronutrients Fertilizers Market Value Share (%), By Nutrient, 2021

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Global Micronutrients Fertilizers Market Segmentation:

The global micronutrients fertilizers market report is segmented into nutrient, form, crop type, application, and geography

Based on nutrient, the market is segmented into Zinc, Manganese, Copper, Boron, Molybdenum, Iron, and Other Nutrients. Out of which, Zinc is expected to dominate the global market over the forecast period and this is attributed to the high demand for zinc micronutrient as it plays key role in protein synthesis, energy production, and growth regulation. The zinc micronutrient fertilizer market was valued at USD 956.2 million in 2020, and it is projected to reach USD 1,452.2 million in 2026, witnessing a CAGR of 7.2% during the forecast period.

Manganese segment is also expected to witness significant growth in the near future and this is owing to the high prevalence of manganese deficiency in soil. Deficiency is also found in organic-rich soils with pH of above 6, and calcareous soils with pH above 6.5. The manganese micronutrient fertilizer market was valued at USD 354.9 million in 2020, and it is projected to reach USD 559.7 million in 2026, witnessing a CAGR of 7.9% during the forecast period.

Based on form, the market is segmented into Chelated and Non-chelated. Out of which, Chelated is expected to dominate the global market over the forecast period and this is attributed the multiple benefits dry chelated such as easy to store and readily soluble in water to create nutrient solution. The dry chelated micronutrient fertilizer market was valued at USD 334.5 million in 2020, and it is projected to reach USD 550.4 million in 2026, witnessing the CAGR of 8.9% during the forecast period.

Dry non-chelated segment is also expected to witness significant growth in the near future as they entails various specialty fertilizers with necessary nutrients such as iron, zinc, manganese, boron and copper. The dry non-chelated micronutrient fertilizer market was valued at USD 1,037 million in 2020, and it is projected to reach USD 1,550 million in 2026, witnessing the CAGR of 6.8% during the forecast period.

Based on crop type, the market is segmented into Grains and Cereals, Pulses and Oilseeds, Commercial Crops, Fruits and Vegetables, and Other Crop Types. Out of which, Grains and Cereals is expected to dominate the global market over the forecast period as corn, wheat, and rice account for a largest portion of the micronutrient fertilizer market whereas other grains  and cereal like oats and barley, constitute a smaller portion of the market. The micronutrient fertilizer market for grains and cereals was valued at USD 1,161.1 million in 2020, and it is projected to reach at USD 1,727.7 million in 2026, witnessing the CAGR of 6.8% during the forecast period.

Commercial Crops segment is also expected to witness significant growth in the near future. The micronutrient fertilizer market for commercial crops was valued at USD 164.2 million in 2020, and it is projected to reach USD 269.4 million in 2026, witnessing a CAGR of 8.5% during the forecast period.

Based on application, the market is segmented into Soil, Foliar, Fertigation, and Other Applications. Out of which, Soil is expected to dominate the global market over the forecast period and this is attributed to the fact that this application is the most inexpensive method. Copper, zinc, and boron are mostly applied through the soil. Micronutrient fertilizer market through soil application was valued at USD 986.2 million in 2020, and it is projected to reach USD 1,466.8 million in 2026, witnessing a CAGR of 6.7% during the forecast period.

Foliar segment is also expected to witness significant growth in the near future. Foliar is majorly used to apply micronutrients to the crops. Micronutrients, such as manganese and iron are commonly applied using foliar methods. The micronutrient fertilizer market through the foliar application was valued at USD 1,070.5 million in 2020, and it is projected to reach USD1617.8 million in 2026, witnessing a CAGR of 7.1% during the forecast period.

Global Micronutrients Fertilizers Market: Key Developments

In July 2020, Yara expanded its product reach to farmers in African countries. Yara’s premium fertilizer YaraMila produced in Porsgrunn was shipped to reach smallholders in Kenya, Uganda, Rwanda, Tanzania, Zambia, Malawi, and Mozambique, the fertilizer and agronomic support will help farmers produce food for one million people for one year.

It is the first 20,000 metric ton of YaraMila shipped toward East Africa.

In March 2019, Yara International ASA launched YaraIrix application for smartphones. The application is made to scan the leaves of crop and predict approximate nitrogen and other micronutrient deficiencies. This provides awareness to the farmers regarding the deficiencies and helps them in purchasing suitable Yara products.

In March 2017, Yara International ASA acquired Agronomic Technology Corp. (ATC), which markets software for precision farming and hydroponics.  This helped Yara to market its micronutrient fertilizer products to hydroponic farmers.

In March 2019, BASF Canada partnered  with Quadra Chemicals  Ltd,  a  leading  chemical  and ingredient   distributor, to  distribute micronutrient fertilizer products in Canada.

In June 2019, BASF SE invested in a production plant in Theodore/Alabama and Ludwigshafen. This is expected to help the company further develop chelating micronutrient fertilizers for widening its product portfolio and expanding in the market.

In June 2019, BASF SE opened its new Agrochemical Application Research Center (AARC) in Research Triangle Park, North Carolina, United States. This is expected to help the company develop better products in the future in all its segments, including the micronutrients segment.

Global Micronutrients Fertilizers Market: Key Companies Insights

The global micronutrients fertilizers market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global micronutrients fertilizers market are Yara International ASA, BASF SE, The Mosaic Company, FMC Corporation, Nouryon Cooperatief UA, Nutrien Limited, Haifa Group, Valagro SpA (Syngenta Group), Coromandel International Limited, Sapec Agro SA, Auriga Group, ATP Nutrition Ltd, Wilbur-Ellis Company LLC, BMS Micro-Nutrients NV, and UPL Limited (Arysta Lifescience Corporation)

*Definition: Micronutrients play a key role in the physiology of plants. They are essential for the development of healthy crops. A micronutrient deficiency can lead to reduced yield, stunted growth and poor quality of agricultural products. Soil chemistry is a critical factor in proper micronutrient fertilization management. In alkaline soils, acidifying N fertilizers help to keep micronutrient cations soluble longer. This may prevent deficiencies. They can also be used to stimulate microbial activity in the soil. They can be used with phosphorus to enhance plant growth.