Rise in Global Demand for Food Grain is Uplifting the Agricultural Micronutrient Market
Agriculture is the central aspect of a countries economy; it is the cultivation of land for food and other needs. Considering the current size of the human population, agriculture is essential. Without the crucial production of biomass that uses farming based systems, there would simply not be enough to eat. Sustainable development of global food supplies affect the unfolding of globalization and the survival of the species, so care must be taken to ensure that agricultural methods remain in synchronization with the environment.
Agriculture and Micronutrients go hand in hand to increase the crop cultivation we use micronutrients. Micronutrients, therefore, are an essential part of the farming. Micronutrients are one of the critical elements required for the growth of plants and crops. With the continuous use of micronutrients, we can obtain better quality and yield for agricultural products.There are 16 primary plant nutrients in total, out of which, seven are designated as micronutrients. These include chloride (Cl), boron (B), copper (Cu), iron (Fe), manganese (Mn), molybdenum (Mo), and zinc (Zn).
Agricultural micronutrients market is valued at $5.38 billion in 2016, and it is anticipated to reach $11.15 billion by 2025 growing at a CAGR of 8.40% during the forecast period 2017-2025. Increasing soil deficiency, depleting oil reserves, increasing demand for biofuels, growing population worldwide and soil erosion across the regions, shift in consumer preference towards a nutrient-rich diet and expanding government initiatives to promote agricultural activities are accelerating the growth of the agricultural micronutrient market.
The global agriculture micronutrients market is segmented by type, crop type and by the application. Cereals and grains contributed the highest market share of 49.26% in 2016. It was followed by the oilseeds and pulses segment with a share of 23.23%.Pulses are important sources of proteins and essential amino acids. Growing population and the rise in per capita calorie intake in these countries is fostering the demand for pulses, consequently increasing the acreage for these crops. Consumption of oilseeds for the production of biofuels is also being encouraged in the US and Brazil
Major players in agricultural micronutrient market in the report include Agrium, Akzo Nobel, Yara international, Mosaic, FMC, BASF and Bayer CropScience. The competition among the international and regional vendors is tough. Alteration among these vendors exists in terms of technology, quality, and pricing. International vendors are currently dominating the market.BASF is a prominent player in the Agricultural micronutrient market, BASF develops innovative solutions for farming, pest control and landscape management. BASF has signed an agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses. Bayer intends to divest these assets in the context of its planned acquisition of Monsanto. The all-cash purchase price is €5.9 billion, subject to certain adjustments at closing.
In 2016, Asia Pacific (APAC) dominated the overall agricultural micronutrient market, accounting for 52.66% of the total revenue generated in the global market, followed by North America with 20.43%.
The primary occupation of the people in the APAC region is agriculture. The growth in agricultural practices and rise in demand of agrarian product are anticipated to drive the micronutrients market. Zinc deficiency is extensively prevalent in the soil in APAC region, and the awareness and knowledge of the micronutrients are at a very niche level in these countries.
The above illustration is made by Inkwood Research- Global Agricultural Micronutrient Market Forecast
The global demand for food grain has increased gradually, and the consumption (per capita) in 2016 was 330–350 kilograms. The global food grain production in 2015 was approximately 2.8 billion metric tons in comparison to 2.5 billion metric tons in 2014. This estimate includes overall consumption of food grains by humans, livestock, and producers of biofuels. Governments of various countries, including India, China, Indonesia, and others are implementing new policies to meet food security concerns and increase food productivity. The rise in demand for food will require more arable land which can be attained through the use of micronutrients.
The market is expected to grow further during the forecast period, increasing the use of agricultural micronutrients such as zinc, manganese, and molybdenum to enhance the land fertility.It’s exceedingly beneficial to have a complete nutrient plan in place to ensure that growers are getting the best return on their investment and utilizing the most effective application and use of nutrients throughout their plants’ growth cycle to get the best yield from the crop.
