Global Agricultural Chelates Market Grows Significantly at a CAGR of 7.3 %

Introduction

Agricultural chelates are chemical compounds that improve plants' availability and absorption of critical micronutrients. These chemicals form stable, water-soluble complexes with metal ions, preventing insoluble residues from forming in the soil and boosting their availability for plant absorption. Agricultural chelates are important in preventing and resolving nutritional deficits in crops, which can significantly impact crop productivity and quality.

One of the key factors driving market expansion is the increased emphasis on agricultural development worldwide. Furthermore, as chelates are organic molecules, they are easily absorbed by plant roots or foliage. They aid in removing positive charges from micronutrients, allowing neutral or slightly negatively charged chelates to pass more quickly through the leaf and root surface capillaries. They are also used in crops such as corn, bush beans, cucumbers, and citrus orchards because they are more easily transmitted within the plant. This and increased demand for high-value crops encourage the agricultural chelates market share to grow.

Market Dynamics

Micronutrient Deficiencies in Soils Fuels the Market Growth

In many developing countries, soils are weak in micronutrients, including iron (Fe), zinc (Zn), manganese (Mn), and copper (Cu). Zinc deficiency in the soils of India, Pakistan, and Bangladesh causes "zinc hunger." According to the International Zinc Association, 49% of the world's cereals are cultivated in zinc-deficient soils, reducing crop yields and nutritional quality. Soil zinc shortage lowers crop output on millions of hectares of Indian agricultural land. In addition, vitamin shortages can stunt plant growth. Iron deficiency in plants causes "iron chlorosis," which turns leaves yellow due to inadequate chlorophyll synthesis. This decreases photosynthesis, turning crops maroon.

Micronutrient deficiencies can cause yield losses of 10% to 50% or more, depending on severity and crop type, according to FAO and IFA studies. According to the WHO, micronutrient deficiencies affect billions worldwide and can cause anemia, stunted growth, and immunological dysfunction. To improve nutritional security, address these deficits through agronomic interventions, particularly chelates.

Precision Agriculture and Nutrient Management Creates Tremendous Opportunities

Precision agriculture, or "smart farming," employs data and technology to make agricultural decisions. Precision agriculture estimates farm nutrients using soil testing and nutrient mapping. This helps farmers understand field-specific nutritional needs. Next, precision agriculture uses VRA to adjust fertilizer rates based on soil factors and crop needs. Supplement VRA systems with chelated micronutrients.

Finally, IoT technology is incorporated into agriculture to provide real-time crop monitoring and automated nutrient distribution. These systems may contain chelated nutrients. Chelated micronutrients can improve precision agriculture's nutrient management, crop yields, and environmental sustainability. Precision agriculture increases the potential for agricultural chelates to optimize nutrient use efficiency and boost agricultural yield.

Regional Insights

Asia-Pacific has the largest agricultural chelate market, led by China, India, and Japan. China, the world's most populous nation, boasts a massive agricultural infrastructure. Due to population growth and food needs, farmers plant high-yield crops. The national need for agricultural chelates rises. According to the Australian Government, western Australian soils have a pH range of 4 to 8.5, and 23.8% of Australia's land is alkaline. The Australian need for EDTA chelating agents is rising because trace element efficiencies limit agricultural output. India's most common micronutrient deficiencies are Zn 36.5%, Boron 24.2%, Fe 12.8%, Mn 7.1%, and Cu 4.2%. This has reduced crop yield and nutritional quality significantly. The country's need for chelates is growing due to soil nutrient shortage and chelates' effectiveness. The Indian market should grow moderately.

North America holds a significant market share, Agricultural production in the U.S., Canada, and Mexico are included in the North American Agricultural Chelates Market. Large U.S. farms use current soil testing and nutrient mapping to optimize fertilizer distribution. Nutrition management is optimized with chelated micronutrients. Precision agriculture in North America is growing due to the need to increase yields and conduct sustainable farming. Precision agricultural technology use is rising, according to the USDA. Environmental regulations and sustainability certifications in North America encourage precision nutrient management and eco-friendly nutrient solutions. As health-conscious Americans want higher-quality food, crop manufacturers use chelates in the soil. Additionally, a U.S. company heavily funds organic and biodegradable agricultural chelates research and manufacture.

Key Highlights

• The global agricultural chelates market size was valued at USD billion in 2022and is projected to reach USD billion by 2031, registering a CAGR of 23.5% during the forecast period 2023-2031.
• The two types are synthetic (EDTA, EDDHA, DTPA, IDHA) and Organic (lignosulfonates, amino acids, heptagluconates). Synthetic has the greatest market share. 
• The market is divided into four categories: grains and cereals, pulses and oilseeds, commercial crops, fruits and vegetables, turf, and ornamentals. The most common crop types are fruits and vegetables. 
• The segment can be subdivided into Soil, Foliar, and Fertigation. Foliar controls the majority of the market.
• Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. Asia-Pacific is the most significant shareholder and is estimated to grow at a CAGR of 4% over the forecast period. Likewise, North America is anticipated to exhibit a CAGR of 4.3% over the forecast period. 

Competitive Players

1. BASF SE
2. Nufarm Limited
3. Syngenta AG
4. The Dow Chemical Company
5. AkzoNobel N.V.
6. Haifa Group
7. Isagro S.p.A.
8. Compo Expert GmbH
9. Micromix Plant Health Limited
10. Aries Agro Limited
11. Valagro S.p.A.
12. Yara International ASA
13. Protex International
14. Van Iperen International
15. Arysta LifeScience Corporation

Recent Developments

• March 2024 – Croplands and Robotics Plus have partnered to introduce Prospr, an innovative spray equipment platform, to the horticulture sector in Australia and New Zealand.
• April 2024 - OCI Global, a prominent manufacturer of nitrogen, methanol, and hydrogen products, provides COMPO EXPERT, a producer of top-notch specialty fertilizers and biostimulants with reduced-carbon ammonia. This ammonia will be used to produce COMPO EXPERT's NPK fertilizers.

Segmentation

1. By Type
   1. EDTA
   2. DTPA
   3. EDDHA
   4. IDHA
   5. Others
2. By Crop Type
   1. Cereal and Grains
   2. Fruit and Vegetables
   3. Oilseeds and Pulses
   4. Others
3. By Mode of Application
   1. Foliar Spray
   2. Soil Treatment
   3. Fertigation
   4. Seed Treatment
   5. Others
4. By End-Use
   1. Agriculture
   2. Horticulture
   3. Floriculture
   4. Others