Global Agricultural Chelates Market - 2022-2029

Global Agricultural Chelates Market - 2022-2029

Market Overview

Agricultural chelates are basically the substances that are added to fertilizers to improve their performance. These chelates are additional fertilizers that have the ability to increase crop output. There are various types of chelates such as DTPA, EDTA, and EDDHA, among others, are used in agricultural applications. The use of these chelates can improve the performance and efficiency of micronutrients and are used in foliar, soil, and fertigation treatments.

In addition, the rise in the demand for high-value crops is considered as the major factor fostering the growth of the agricultural chelates market. Also, less soil degradation due to the excessive cultivation and the upsurge in the adoption rate of precision-farming technology is influencing the growth rate of agricultural chelates market. Furthermore, factors such as significant growth in greenhouse vegetable production and rising incidences of micronutrient deficiency is driving the growth of market.

The global agricultural chelates market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 6.78% during the forecast period (2022-2029).

Market Dynamics: Rising focus on agricultural development is driving the growth of the market

The rising focus on agricultural development around the world represents one of the key factors impelling the growth of the market. Moreover, the agricultural chelates are easily absorbed by the plant leaves and roots as they are organic substances. These chelates aid in removing the positive charge from the micronutrients, which allows the neutral or slightly negatively charged chelates to slide through the pores on the leaf and root surface more rapidly.

In addition, chelates are also more easily translocated within the plant and used in numerous crops, such as corn, bush beans, cucumbers, and citrus groves. This, ultimately escalates the demand for high-value crops, is facilitating the growth of the market. Furthermore, plant nutrients are considered as one of the essential factors required for optimal crop growth and development and thus, chelated fertilizers are widely being utilized to increase micronutrient utilization efficiency. This, along with the rising global population, is creating a positive outlook for the market and driving the market growth.

However, the bioaccumulation of non-biodegradable chelates and rising growth of organic fertilizers industry will further hamper the growth of agricultural chelates market.

Market Segmentation: EDTA stands for the highest share in global agricultural chelates market

In 2021, the EDTA segment had the highest revenue share of YY percent. The increasing demand for EDTA chelates with the recent innovation of crop-specific chelates is driving the growth of the segment. In addition, EDTA chelates improves the absorption ability of the micronutrients and can be used for both soil and foliar-applied nutrients, which gives a competitive advantage over other agricultural chelates that adds to the growth of the market. Thus, manufacturers are adopting new strategies to fulfill these demands. For instance, in 2019, BASF invested in the development of production plant and product portfolio to strengthen the value chain for Chelating agents in Germany. The objective of the investment is to capture the growing demands of the target customers.

Geographical Penetration: Asia-Pacific is the dominating region during the forecast period

In 2021, Asia-Pacific had the highest revenue share of almost YY percent owing to the increasing demand for high-value crops along with the growing population in developing countries such as India, China, Indonesia, and Japan. In addition, the continuous innovation in farming techniques has created new opportunities for the manufacturers, which attracts various multinational giants to invest in the agricultural chelates market in this region. India is witnessing an incidence of micronutrient deficiencies, such as Zinc 36.5%, Boron 24.2%, Iron 12.8%, Manganese 7.1%, and Copper 4.2%. This has led to severe losses in the yield and nutritional quality of produce. In line with the nutrient deficiency in the soil and the effectiveness of chelates in combatting it, the demand for chelates is increasing in the country. The Indian market is estimated to grow at a moderate rate.

Competitive Landscape:

The global agricultural chelates market is competitive and comprises players such as Syngenta Crop Protection AG, Haifa Negev technologies LTD, Valagro, Nufarm Canada, Van Iperen International, Akzo Nobel N.V., PROTEX INTERNATIONAL, BASF SE, Nouryon and Dow among others. The agricultural chelates market competitiveness is estimated to increase over the forecast period as the key players focus on various strategies such as agreements and product innovation for various farming industry. Moreover, growing demand for food and rising population also leads to product launches, collaborations, acquisitions and expansions which leads to the growth of the market.

For instance,
• In March 2020, BASF and Delair, collaborated to scale up BASF’s research and development projects for seeds, traits and crop protection. This agreement will enable BASF’s agricultural research stations worldwide to use the delair.ai cloud platform to streamline and standardize the information gained through drone-based field studies

COVID-19 Impact: Negative impact on global agricultural chelates market

The COVID-19 pandemic has adversely affected the economies of various countries due to lockdowns, business close, and travel bans. Food & beverages, and agriculture are among the major industries suffered from intense disruptions such as restrictions on the supply chain and the shutdown of warehouse plants.

The COVID-19 pandemic affected all the processes that connect farm production to the final consumer. Government has taken various measures in order to stem the virus, including the shutdown of plants, and social distancing, among others. This resulted in reduced manpower for the work process of chemical plants, including factories manufacturing agricultural chelates during the pandemic.

Thus, as most production plants were operating at lower-than-normal capacity, this resulted in a shortage of supply of raw materials required to produce fertilizers over the short term. This has affected the agricultural chelates market negatively during the covid-19 pandemic.

The global agricultural chelates market report would provide an access to approximately 61 market data tables, 55 figures and 175 pages