Agricultural Chelates Market

Market Overview

The global agricultural chelates market size was valued at USD 920 million in 2023 and is projected to reach USD 1,967 million by 2032, registering a CAGR of 4.5% during the forecast period (2024-2032). The increasing demand for high-value crops propels the agricultural chelates market.

The agricultural chelates market pertains to the sector involved in producing and distributing chelated micronutrients utilized in agricultural activities. Chelates are chemical compounds in which a metal ion is bound to an organic molecule, creating a ring-shaped chelate complex. These chelated micronutrients are crucial for the growth of plants and are used to enhance soil and foliar treatments in agriculture.

The market is driven by the increasing demand for high-efficiency fertilizers, growing awareness of sustainable agricultural practices, significant technological advancements in agrarian chelates, rapid expansion of the agricultural sector, favorable government initiatives, and the global population's rapid growth and subsequent increase in food demand.

Highlights

• EDTA generates the highest revenue share based on type.
• Cereals and grains account for the largest market share by crop type.
• Soil treatment influenced the market growth by mode of application.
• Agriculture contributes significantly to the market through end-use.

Market Dynamics

Global Agricultural Chelates Market Drivers:

Growing Trends of Precision Agriculture

Precision agriculture dramatically enhances the efficiency and effectiveness of chelate applications, leading to significant growth in the agricultural chelate industry. Precision agriculture utilizes advanced technology such as GPS, IoT, and data analytics to monitor and manage soil and crop health accurately. By ensuring precision, we may effectively utilize chelates, which are crucial for correcting deficits of micronutrients in plants. As a result, this decreases the amount of waste, enhances crop productivity, and encourages sustainable farming methods. 

Since the 1980s, the United States has been the foremost and earliest proponent of precision agriculture. Currently, 15-40% of big farms in the United States employ various types of precision technology, including variable-rate technology and guidance systems. 85% of the farms in the USA, which are predominantly tiny, do not utilize precision technology. The technique is also widely adopted by Canadians and 20% of Australians, who also have enormous farms. Western European countries started using the technology ten years after the USA, and 68% of their small farms also utilize it. 

Additionally, the United Kingdom holds the highest adoption rate, with Scotland taking the lead at 85%, followed by 43% of Irish farmers. The utilization of the technology is observed among 80% of wheat and barley farmers and 30-40% of oilseed growers in Denmark. Germany has a higher adoption rate of precision agriculture technology among farmers, with 30% utilizing it. In contrast, Hungary has a lower adoption rate of only 9.9%. Over the past decade, countries in the global south, such as Argentina, Brazil, Turkey, and South Africa, have been implementing this technology for agricultural management. Adoption rates in African and Asian countries are currently low since most farms in these regions are small to medium-sized and owned by a single individual.

Moreover, farmers can enhance their agronomic techniques by collecting and analyzing data on plant nutrition, weather patterns, soil health, and yield variability. Enhancing farm production involves using agricultural chelates and data-driven analysis to address particular nutritional deficiencies identified by soil testing or remote sensing. The adoption of precision agriculture by farmers is anticipated to lead to an increase in the need for agricultural chelates, hence driving the expansion of the market.

Global Agricultural Chelates Market Restraints:

Bioaccumulation of Non-biodegradable Chelates 

The accumulation of non-biodegradable chelates significantly hinders the growth of the Agricultural Chelates Market. Chelates are substances utilized in agriculture to augment the accessibility of vital micronutrients to plants, enhancing crop productivity and quality. Nevertheless, in the case of non-biodegradable chelates, they remain in the soil for a prolonged period and gradually build up. Bioaccumulation presents environmental hazards, such as the possibility of toxicity to soil microbes and plants and the pollution of water resources through leaching. Long-lasting chelates can negatively impact soil health by influencing the microbial communities essential for nutrient cycling and maintaining soil structure. Over time, the accumulation of these pollutants can result in soil degradation, which diminishes its fertility and productivity.

In addition, non-biodegradable chelates seeping into groundwater or surface water can result in widespread environmental pollution, endangering aquatic ecosystems and potentially infiltrating the human food chain. Environmental concerns lead to increased regulatory scrutiny and a growing need for sustainable and biodegradable alternatives. Consequently, the agricultural chelates market is pressured to develop and transition towards environmentally sustainable goods. If these challenges are not resolved, it could impede market expansion, as stakeholders such as farmers, regulators, and consumers are placing greater emphasis on sustainable agriculture practices.

Global Agricultural Chelates Market Opportunity:

Rising Soil Degradation and Nutrient Deficiency

Soil deterioration and nutrient inadequacy are significant concerns that are negatively affecting agricultural output on a global scale. Intensive agricultural methods, excessive grazing, the clearing of forests, and poor irrigation methods are causing significant soil erosion, depletion of nutrients, and the loss of organic matter. This deterioration reduces soil fertility, directly affecting crop productivity and quality. A 2022 assessment released by the United Nations approximates that over 40 percent of soils globally are moderately or severely degraded. This percentage could escalate to 90 percent by 2050 if detrimental practices such as deforestation, overgrazing, intensive farming, urbanization, and others continue.

The National Bureau of Soil Survey and Land Use Planning also reports that around 146.8 million hectares, equivalent to 30% of India's soil, have deteriorated. Approximately 29% of this amount is lost to the sea, 61% is moved from one location to another, and 10% is deposited in reservoirs. By 2050, an area of land measuring 16 million square kilometers, equivalent to the size of South America, will exhibit ongoing land degradation. Approximately 12-14% of agricultural, pasture, and grazing land and natural areas experience a chronic and enduring decrease in vegetative output. This phenomenon particularly impacts Sub-Saharan Africa. Between 2015 and 2050, an extra 69 gigatonnes of carbon is released due to changes in land use and deterioration of soil.  The figures provided correspond to 17% of yearly greenhouse gas emissions. Specifically, soil organic carbon accounts for 32 gigatonnes, vegetation accounts for 27 gigatonnes, and peatland degradation/conversion accounts for ten gigatonnes.

Moreover, the need for agricultural chelates is growing due to their capacity to improve nutrient availability and soil health. Chelates operate by forming stable complexes with essential micronutrients, preventing them from being inaccessible to plants due to soil fixation or changes in pH. These traits offer significant market opportunities.

Regional Analysis

The global agricultural chelates market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global agricultural chelates market shareholder and is estimated to grow at a CAGR of 4.1% over the forecast period. China, India, and Japan are the primary drivers of the agricultural chelates market in the Asia-Pacific region, which has the most significant market value. As the most populous country, China possesses one of the most expansive agricultural infrastructures worldwide. Due to substantial population growth and the rising need for food, farmers are obligated to cultivate crops that have high productivity. This necessitates the use of agricultural chelates within the country. According to the Australian Government, around 23.8% of Australia's total land area comprises alkaline soils. In Western Australia, the pH levels of soils range from 4 to 8.5. Consequently, the need for EDTA chelating agents is rising in Australia because of the limitations on agricultural productivity development caused by trace element efficiencies.

Additionally, India is currently experiencing a prevalence of micronutrient deficiencies, specifically Zn at a rate of 36.5%, Boron at 24.2%, Fe at 12.8%, Mn at 7.1%, and Cu at 4.2%. Consequently, there has been a significant decline in both the quantity and quality of agricultural output. Due to the soil's nutrient shortage and the effectiveness of chelates in addressing this issue, there is a growing need for chelates in the country. The Indian market is projected to experience a moderate pace of growth. 

North America is anticipated to exhibit a CAGR of 4.6% over the forecast period. North America's horticultural and specialty crop production is growing, particularly in fruits, vegetables, and high-value crops. These crops are cultivated in under-regulated settings, where the management of fertilizers is of utmost importance, and they often have specific nutritional needs. Growers focusing on specialized markets are encouraged to embrace agricultural chelates due to the unique solutions they offer for these crops. In March 2022, Biotron Laboratories and Talus Mineral Company, manufacturers of specialized ingredients for the nutritional supplement industry, purchased Aceto, a leading provider of specialty ingredients for life sciences and advanced technologies. The acquisition enhances Aceto's presence in the life science industry and broadens its existing nutraceuticals business.

Europe is expected to grow at a significant pace. The agriculture chelate market in Europe is propelled by the growing need for enhanced crop productivity and quality, stimulated by the region's sophisticated farming methods. Environmental rules encourage the utilization of chelates to improve the efficiency of nutrients and minimize soil contamination. Furthermore, the increasing prevalence of sustainable agriculture and organic farming promotes the acceptance of bio-based chelates. The impact of technological developments in agriculture and the growing awareness among farmers about the advantages of chelated micronutrients are also crucial factors. Government efforts and subsidies provide additional impetus to the market expansion in Europe. 

Segmental Analysis

The global agricultural chelates market is segmented based on type, crop type, mode of application, and end-use. 

The market is segmented based on type into EDTA, DTPA, EDDHA, IDHA, and Others. 

The EDTA segment dominated the market in 2023. EDTA chelates are highly versatile and practical in supplying essential micronutrients such as iron (Fe), manganese (Mn), zinc (Zn), copper (Cu), and others to plants. These micronutrients are crucial for various physiological processes, including photosynthesis, enzyme activity, and overall plant growth and development. Agricultural formulations containing EDTA chelate are available in several forms, such as granules, soluble powders, and liquid solutions. Due to the versatility of the formulation, farmers can conveniently utilize EDTA chelates through many application methods, such as foliar spraying, soil soaking, and fertigation (application through irrigation systems).

The DTPA segment is the fastest growing. DTPA comprises five carboxylic acid groups, which gives it chelating solid properties. DTPA readily forms stable complexes with metal ions, such as Fe3+, Cu2+, Zn2+, and Mn2+, with high charge densities. Chelates enhance nutrient uptake efficiency by inhibiting precipitation and effectively binding essential elements in a form that plants may easily absorb. There is an increasing awareness among farmers and agricultural professionals about the adverse effects of micronutrient deficiencies on crop productivity and quality. As a result, they are adopting micronutrient management approaches more often. DTPA chelates offer a reliable solution for addressing deficiencies, enhancing plant well-being, and enabling plants to obtain micronutrients in a readily absorbable form.

Based on crop type, the market is segmented into Cereal and Grains, Fruit and Vegetables, Oilseeds and Pulses, and Others. 

The cereal and grains segment dominated the market in 2023. Grain and cereal crops necessitate a substantial amount of nutrients throughout various stages of growth. For these crops to achieve optimal growth and productivity, they must have a well-balanced supply of micronutrients such as zinc, iron, manganese, and copper. Chelated micronutrients enhance the growth and yield of crops by providing them with the necessary essential elements in a more efficient and readily available form than conventional ones. The significance of mitigating environmental effects and adopting sustainable practices is growing in contemporary agriculture.

The fruit and vegetables segment is the fastest growing.  As consumers become more health-conscious, they seek high-quality fruits and vegetables rich in nutrients. The increasing popularity of products with enhanced nutritional value and appealing aesthetics has increased demand. Agricultural chelates enhance the absorption of essential elements such as iron, zinc, manganese, and copper, hence growing the nutritious content of fruits and vegetables. The adoption of sustainable agricultural practices is increasing in popularity as individuals become more aware of the detrimental effects of chemical fertilizers and the long-term viability of the ecosystem.

The oilseeds and pulses segment is the second largest. The presence of oilseeds and pulses significantly influences the expansion of the agriculture chelate market. These crops depend on micronutrients to achieve the best possible production and quality. Chelates effectively distribute these micronutrients by improving nutrient absorption and minimizing losses due to soil interaction. The increasing global need for healthy and protein-rich food sources requires enhanced farming practices. This drives the adoption of chelates, which fosters market expansion by ensuring improved crop health and increased productivity.

Based on the mode of application, the market is segmented into Foliar Spray, Soil Treatment, Fertigation, Seed Treatment, and Others. 

The soil treatment segment dominated the market in 2023. The soil's pH level is a crucial determinant of the nutrients that plants can absorb. Alkaline soils can hinder the availability of some micronutrients, such as iron and zinc, to plants, leading to deficiencies and reduced crop yields. Chelates help overcome this limitation by maintaining these micronutrients in a soluble and easily absorbable form, even in soils with high pH levels. Chelates can also augment the cation exchange capacity, soil structure, and water retention of the soil, enhancing the conditions for plant roots' growth and the absorption of nutrients.

The seed treatment segment is the fastest growing. Seed treatment is a vital factor in the growth of the agriculture chelate market as it increases the availability of nutrients, enhances crop output, and promotes healthy plant development. It improves the absorption of micronutrients, hence lowering the requirement for excessive fertilizers. This initiative encourages using environmentally friendly farming methods and increases the desire for chelated products, resulting in the market's overall growth.

The market is segmented into agriculture, horticulture, floriculture, and other fields based on end-use.

The agriculture segment dominated the market in 2023. Farmers and growers utilize agricultural chelates to enhance farm yield and optimize productivity. Chelates enhance plant health, bolster resilience against pests and diseases, and increase environmental stressors such as salt and drought tolerance by sustaining optimal plant nutritional balance. These components collaborate to generate increased crop outputs and improved product standards, essential for fulfilling global food requirements.

The horticulture segment is the fastest growing. Horticulture plays a vital role in expanding the agriculture chelate market by focusing on valuable crops that necessitate accurate nutrient management to achieve the best possible production and quality. Chelates are utilized in horticulture to increase the accessibility of nutrients, which leads to enhanced plant development and increased productivity. The growing demand for fruits, vegetables, and ornamental plants is leading to an increase in the use of chelates in horticulture operations, which is driving the market expansion.

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.