Agricultural micronutrients are trace elements required in small quantities for proper growth of plants and crops. They play a vital role in numerous physiological functions and boost crop immunity, crop quality and yield. Micronutrients such as iron, manganese, zinc, copper and molybdenum improve photosynthesis, protein synthesis and enzyme systems in plants. With rising world population and growing need for food security, use of micronutrients has increased in agriculture to boost production and improve the nutritional value of crops.
The global Agricultural Micronutrients Market is estimated to be valued at US$ 5.19 Bn in 2024 and is expected to exhibit a CAGR of 27% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing opportunity in improving crop yields through use of micronutrients is driving the agricultural micronutrients market. Micronutrients play a vital role in improving various growth functions in crops and help increase crop productivity significantly. Due to their high efficiency and excellent results, use of micronutrients has gained immense popularity among farmers worldwide to boost production. With growing focus on sustainable agriculture to meet rising global food demand, dependence on micronutrients is expected to increase considerably during the forecast period.
Porter’s Analysis
Threat of new entrants: The agricultural micronutrients industry is extremely competitive due to its high growth opportunity and increasing market demand. However, the significant capital requirements to set up manufacturing facilities and obtain regulatory approvals poses a high threat of entry barriers to new players.
Bargaining power of buyers: Individual buyers account for a small share of total sales in this market. However, large buyers such as government organizations and farmers cooperatives have significant bargaining power that allow them to negotiate prices and demand higher quality products.
Bargaining power of suppliers: The market has a concentration of raw material suppliers that supplies critical micronutrients like zinc, boron, manganese, copper, etc. This gives existing suppliers a competitive edge over new entrants with regard to negotiating prices and ensuring uninterrupted supply of materials.
Threat of new substitutes: There exists a low threat of substitution in this industry as agricultural micronutrients have no close substitute and are essential for improving soil quality, health of livestock, and enhancing crop yield.
Competitive rivalry: The agricultural micronutrients industry experiences high competitive rivalry owing to presence of numerous global and regional players fighting for larger market share through product differentiation and innovation.
SWOT Analysis
Strength: Agricultural micronutrients are essential for balanced plant nutrition and better farming output. Players have strong R&D capabilities to introduce innovative product formulations and delivery systems.
Weakness: Market fragmentation limits economies of scale. Raw material prices can fluctuate affecting profit margins.
Opportunity: Growing preference for organic and sustainable farming practices among farmers provides opportunities for micronutrients providers. Rising acceptance of modern agricultural practices in developing nations also supports demand.
Threats: Trade protectionism and import restrictions pose challenges to global expansion plans of companies. Environmental regulations on fertilizer use act as a bottleneck to market growth.
Key Takeaways
The global Agricultural Micronutrients Market Demand is expected to witness high growth between 2024-2031 driven by rising world population and surging global demand for food grains.
Regional analysis: Asia Pacific is expected to be the fastest growing as well as the largest market for agricultural micronutrients during the forecast period. This can be attributed to factors such as rapidly growing population, improving living standards, rising farm output targets by governments, and increasing acceptance of modern farming practices among growers in countries such as India and China.
Key players operating in the agricultural micronutrients market are The Mosaic Company, Yara International, Nutrien, Coromandel International, PhosAgro, Agrium, CF Industries, ICL, Koch Fertilizer, and OCP. The Mosaic Company is a leading producer and marketer of concentrated phosphate and potash crop nutrients. It offers a wide array of micro- and secondary nutrient products for efficient crop cultivation.
Explore more related article on this topic: https://www.ukwebwire.com/agricultural-micronutrients-market-demand/
