Zinc sulphate supply is driven by China, accounting for more than one-third of the production cluster positioned in East Asia. Increasing zinc deficiency-related problems around the world and presence of zinc-deficient soils in a majority of regions are fuelling demand for zinc as a micronutrient in agriculture. This, in turn, is set to provide impetus to the growth of the zinc sulphate market, reveals Fact.MR in A recently published report.
Also, to maintain healthy zinc levels in the body, zinc sulphate is taken as a dietary supplement. As per the report published, the global zinc sulphate market is anticipated to surpass US$ 665 Mn valuation in 2020, and is evaluated to expand at around 6% CAGR over the long-term forecast period (2020-2030). Over the past half-decade, the market has been witnessing a shift towards East Asia, especially China.
Key Takeaways from Zinc Sulphate Market Study
- The global zinc sulphate market is anticipated to add 1.7X value by 2030 as compared to 2020.
- Zinc sulphate monohydrate captures a major chunk of the market share equivalent to two-third, and is set to create US$ 747 Mn opportunity by 2030.
- Agrochemicals is the fastest-growing segment in the zinc sulphate market, owing to shift towards zinc sulphate-based fertilisers across the globe, especially in East Asia, to overcome zinc deficiency prevalent in the region.
- East Asia is set to dominate market revenue in 2021, and is expected to gain 388 BPS in its market share by 2030 over 2020.
- Agrochemical application is anticipated to gain around 451 BPS over the next ten years.
- Pharmaceutical application is anticipated to lose around 120 BPS by 2030
- East Asia is set to hold a leading share by the end of FY2030, and is the fastest-growing region in this market.
- The market in China is projected to expand at a CAGR of around 7% through 2030.
- Due to the COVID-19 pandemic, the zinc sulphate market grew at just 2.3% in 2020. However, 2021 would offer more opportunities for manufacturers, with the market expected to expand over 5% in the years.
“Increase in manufacturers of zinc sulphate is set to make the market more fragmented over the long-run forecast period,” says a Fact.MR analyst.
Fragmented Market to Stabilize Prices over Long Run
The zinc sulphate market is highly fragmented in nature, owing to ease of producing the product and generation of higher absolute dollar opportunity. Moreover, in the past half-decade, prices of zinc sulphate have remained largely stable, owing to extensive product diversification across domains. Furthermore, absence of near substitutes of the product has maintained the consistency of price elasticity of demand.
Apart from demand factors, supply factors such as stable supply and presence of numerous manufacturers across the globe will convert the market into a price taking market. Long-run growth of the zinc sulphate market will strengthen prices, owing to stiffened competition across regions.