The agricultural micronutrients market is expected to grow at a CAGR of 8.7 per cent from 2020 to 2027 to reach US$12.2bn by 2027, with the Asia-Pacific region dominating the market in the forecast period, according to Meticulous Research
The leading position of the Asia Pacific region is primarily credited to the high demand for micronutrients from the region to enhance the quality of its huge arable land under the crop cultivation and to meet the rising demand for high quality food.
In addition, the growing awareness and acceptance of the agriculture micronutrients by farmers from the emerging economies, such as China and India; rising micronutrient deficiency in soil; availability of huge area of infertile soil; and considerable government support for the fertilizer industry are further projected to drive the growth of agricultural micronutrients market in Asia-Pacific region.
Asian agricultural micronutrients market is challenged by the lockdowns
The global agricultural micronutrients market continues to be challenged by the lockdowns, logistical disturbances, reduced productions and associated economic impacts of COVID-19.
The global fertiliser sector has been affected since the outset, primarily in China, the world's largest producer as well as consumer of agriculture micronutrients. The outbreak of a novel coronavirus in China has to date had the most critical impact across the Chinese agriculture micronutrients sector, affecting the movement of both micronutrients products and raw materials in and out of the country.
In India, the nationwide lockdown has disturbed the raw material movements and caused shutdown of some fertiliser plants and challenged full capacity manufacturing operations of some plants, leading to a substantial loss in domestic agriculture micronutrients production.
Similarly, the southeast Asia’s fertiliser industry is facing challenges because of the worsening coronavirus outbreak in the region, which has impacted the fertiliser distribution within and across markets in the Asia-Pacific region. For instance, the fertiliser production facilities have been given clearance to continue operations in Malaysia as they are considered essential to maintain food supply; while, the lockdown has posed logistical challenges for suppliers in distributing fertilizers products in the country and across the border to Thailand.
Therefore, owing to the lockdowns in many countries across the globe and a complete halt on the transportation and logistics industry, the global agricultural micronutrients market will be impacted in terms of market volume and revenue during 2020 and 2021.
