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2022

Controlled Release Fertilizers Granules Market

Controlled Release Fertilizers Granules Market Size, Share, Competitive Landscape and Trend Analysis Report by Product Type, by Application : Global Opportunity Analysis and Industry Forecast, 2021-2031

MC : Renewable, Speciality and fine chemicals

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Author's: Snehal Mohite | Eswara Prasad
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Controlled Release Fertilizers Granules Market Research, 2031

The global controlled release fertilizers granules market size was valued at $0.5 billion in 2021, and is projected to reach $1 billion by 2031, growing at a CAGR of 8% from 2022 to 2031.

Report key highlighters

  • The controlled-release fertilizers granules market has been analyzed in value (Million) and volume (Kilotons). We have given market data in more than 15 countries.
  • Conducted primary interviews with raw material suppliers, wholesalers, suppliers, and manufacturers of controlled release fertilizers granules market to understand the market trends, growth factors, pricing, and key players competitive strategies.
  • Regarding the growth prediction, we look at the historical development of end-use sectors, government technology efforts, and significant business player activities including expansion, acquisition, agreements, and new product launches, among other things.
  • The report also provides a competitive landscape providing company profiles for major revenue-contributing companies.

Controlled Release Fertilizers Granules Market

The term-controlled release fertilizer granules (CRFGs) refer to granular fertilizers coated with a semipermeable membrane that gradually release nutrients into the soil over a predetermined period of time. CRFGs are widely utilized in agricultural production. These granules enhance the efficiency of nitrogen delivery to crops and lessen the risks to the environment, and human health. CRFG provides plants with appropriate nutrition based on their requirements at every stage of the growth cycle. This guarantees the best possible growth and the highest possible yields. There are various advantages of CRFGs. These include, easy application to the soil and no requirement of sophisticated injection or dosing system. Moreover, they are environment-friendly as they minimize losses through leaching, volatilization, or fixation, thus preventing environmental contamination.

The use of controlled release fertilizers granules is driven by many factors such as rise in demand for food due to increase in population and depleting soil quality. The rise in population across the globe has created major problem of food scarcity. The Food and Agricultural Organization of the United Nations (FAO) estimates that if the population hits 9.1 billion by 2050, the world's food supply will need to rise by 70%. The current rate of crop output growth is insufficient to meet the projected demand for food. It will be challenging to produce adequate food due to a number of other problems, including urbanization, climate change, and a lack of investment.

For instance, climate change might cause the production of soy and corn in the Brazilian state of Mato Grosso, one of the most important agricultural regions in the world, to decline by 18% to 23% by 2050. Synthetic fertilizers have been used widely to meet the need for food. However, these fertilizers come with negative effects, such as soil infertility and decreased crop quality. In addition to eliminating the need to mix and monitor water-soluble fertilizers, the use of controlled release fertilizer granules also reduces the need for expensive injection equipment, which lowers labor expenses. Controlled release fertilizer granules are widely utilized to meet the growing demand for food owing to the growing population and food shortage, which ultimately strengthened the market.

Soil depletion is another factor which has contributed to the growth of the controlled release fertilizers granules market. Significant amounts of chemical fertilizers have been sprayed to arable land over the past few decades in an effort to prevent global food shortages and boost agricultural output. However, the excessive use of chemical fertilizers has resulted in a variety of issues, such as significant soil deterioration, nitrogen leaching, soil compaction, a drop in soil organic matter, and soil carbon loss.

The rate of loss of rich soil is expected to be 24 billion metric tons per year, according to studies presented at a conference of the United Nations Convention to Combat Desertification (UNCCD) in the Ordos. The uncoated fertilizer granules' nutrients are swiftly released into the soil, giving the plant little time to use them. In controlled-release fertilizers, granules produce a delayed release that distributes a small, constant amount of nutrients over a predetermined period. The controlled release fertilizers granules have gained immense importance leading to the growth of market due to the degrading quality of soil. The technology used in the manufacturing of controlled release fertilizers granules is somewhat costly. This is a major restraining factor as majority of the people restrict themselves to utilize CRFGs in their farming.

Granules of coated fertilizer or matrices are considered controlled release fertilizers. These are either covered with a polymer coating or an inorganic coating, such as sulfur. The matrices technique disperses the matrix throughout the fertilizer, which slows the fertilizer's decomposition. The matrix can be made from many materials, such as rubber, polyolefins, or gel-forming polymers.

The employment of technology to coat the materials requires sophisticated machinery. The overall cost of controlled release fertilizer granules rises as production costs gradually rise. Granules of polymer-coated fertilizer have the drawback of leaving significant amounts of non-degradable coating components in the soil after the nutrients have been used up.

"Because of their affordability, sustainability, and eco-friendliness, biomaterials for controlled-release fertilizer granules have grown swiftly; yet, because their coatings are typically hydrophilic and have numerous micro-holes, they still have challenges with their release characteristics. To improve this drawback, advance technologies are utilized which make CRFG costly. Owing to these factors, cost of CRFGs hampers the growth of market."

Modern agricultural techniques

The practice of modern agricultural techniques has gained an opportunity as the controlled release fertilizers granules require the use of various technologies for the coating of these granules. The main features of CRFGs are its coating which enables them to release the essential nutrients into the soil. According to the World Bank report, an international financial organization, "Enabling the Business of Agricultural 2019," the global business climate for agriculture is improving as 47 of the 101 nations analyzed over the course of two years implemented 67 regulatory measures to make it easier for farmers to manage insect outbreaks, obtain high-quality seeds, and obtain loans to invest in production.

As a result, more people are adopting contemporary agricultural techniques. The crop production is being increased and the negative effects of fertilizers are being reduced by several manufacturers employing efficient technology. As an illustration, Pursell Agri-Tech increased the Southeast's and beyond's reach of its next-generation coating technologies in 2020. The Savannah facility will create biodegradable controlled-release fertilizers in granular form for the turf, ornamental, specialty, and broadacre industries. In September 2021, ICL Group also introduced the fifth version of their Osmocote controlled-release fertilizer. The updated Optimized Trace Element Availability (OTEA) mechanism in Osmocote 5 fits the needs of plants throughout the release programme, resulting in improved plant health, color, and growth. For the market for controlled release fertilizer granules, these technological developments have proven to be a fantastic potential.

The global controlled release fertilizers granules market is bifurcated on the basis of product type, application and region. On the basis of product type, the market is divided into sulfur-coated urea (SCU), polymer coated products, polymer-sulfur-coated urea (PSCU) and others. Depending on the application, the market is classified into agriculture and non-agriculture. Agriculture is further bifurcated into cereals & grains, oilseed & pulses, fruits & vegetables, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

The key players operating in the global controlled release fertilizers granules market are Haifa Negev technologies LTD, ICL Specialty Fertilizers, Nutrien Ltd., Simplot, Allied Nutrients, Koch Industries, Knox Fertilizer Company, Neufarm, Kingenta, and ASK Chemicals GmbH. Based on product type, sulfur coated urea is widely used in agriculture for reducing some of the harmful effects of fertilizers including crop burn.

Controlled Release Fertilizers Granules Market by Product Type

Based on product type, the rising urbanization across the world, the growing demand for food and food products, and the growing population are expected to drive growth of the polymer coated product market. Polymer coated products help farmers increase agriculture yields considerably.

Notable Developments

India’s major state-run enterprise, the National Fertilisers Limited or NFL registered record sales of Urea during April-September 2019. The company registered a whopping 27 lakh tonnes of fertilizer sales, which stood at 21.62 lakhs in 2018. Additionally, among this, the sale of urea jumped by 20%, a notable achievements. Additionally, this is despite the major production delays due to a lower production at one of its key production facility. The technical problems at this facility may have hindered growth of the sulfur coated urea market in country. Despite the difficulties, the rising demand for urea and widespread adoption is a major driver for the market. Rising concerns about sustainability are expected to drive demand from the agriculture sector in the near future. Additionally, rising demand for recreational aesthetics like golf courses, and other luxury amenities are also expected to emerge as major growth drivers for the sulfur coated urea market.

Controlled Release Fertilizers Granules Market by Application

Based on application, non-agricultural end uses include turf & ornamentals, nurseries & greenhouses, and other non-agricultural uses. The application of controlled-release fertilizers in turf was higher, as these are required in lesser quantities and require less labor. For instance, in May 2021, Pursell Agri-Tech, a U.S. based company that develops fertilizers to increase crop yields, entered into terms of building a state-of-the-art manufacturing facility in Savannah, Georgia. It will significantly expand the reach of its next generation coating technologies in the southeast and beyond. The plant will produce controlled release fertilizers (CRF) for the ornamental, agriculture, turf, and specialty markets.

Controlled Release Fertilizers Granules Market by Region

Based on region, Asia-Pacific dominated the global controlled release fertilizers granules market share in 2021. China accounted for the majority share of the overall consumption of controlled release fertilizers granules and was closely followed by India and Japan. Over the coming years, the demand for controlled release fertilizers granules is expected to increase at a faster rate than conventional fertilizers in these countries. As cereals and grains are one of the most important parts of traditional diets in Asia-Pacific, they hold almost two-third share of the overall calorie intake of an average Asian person.

Local farmers and agriculturists are being encouraged to uptake sustainable agriculture practices in order to increase their production with the efficient usage of specialty fertilizers such as controlled release fertilizers granules. The above-mentioned policies and investments are major factor driving the controlled release fertilizers granules market growth in this region during the forecast period.

COVID-19 impact analysis on the controlled release fertilizers granules market

  • The COVID-19 pandemic has hit the global market as decline in the demand of fertilizers from agricultural and commercial sector. 
  • Post pandemic crisis, the governments of various countries across the globe have invested in the fertilizer industries to provide boost in the agriculture sector and improve the crop yield. The decline in food resources during the pandemic outbreak period has led to national food security issues, especially in African continent where most of its population is starving is also another factor which led to surge in the utilization of controlled release fertilizers granules industry.
  • China is the largest exporter of Phosphorus (5.32 Metric ton (Mt)) and the second-largest exporter of Nitrogen fertilizers, respectively (5.56 Mt). Fertilizers are imported from developed countries, particularly China, by most African countries. Fertilizers were not exported in big amounts as a result of the COVID-19 epidemic and control measures implemented. Inadequate production and importation of fertilizers caused by covid 19 logistic constraints caused unsatisfactory yield in Africa.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the controlled release fertilizers granules market analysis from 2021 to 2031 to identify the prevailing controlled release fertilizers granules market opportunities.
  • The controlled release fertilizers granules market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the controlled release fertilizers granules market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global controlled release fertilizers granules market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the controlled release fertilizers granules market players.
  • The report includes the analysis of the regional as well as global controlled release fertilizers granules market trends, key players, market segments, application areas, and market growth strategies.

Controlled Release Fertilizers Granules Market Report Highlights

Aspects Details
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Market Size By 2031

USD 1 billion

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Growth Rate

CAGR of 8%

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Forecast period

2021 - 2031

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Report Pages

263

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By Product Type
  • Sulphur-coated urea (SCU)
  • Polymer coated Products
  • Polymer-sulphur-coated urea (PSCU)
  • Others
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By Application
  • Agriculture
  • Non-agriculture
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, UK, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Indonesia, India, Vietnam, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Kenya, South Africa, Rest of LAMEA)
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Key Market Players

Allied Nutrients, Koch Industries, Inc., Knox Fertilizer Company, Inc., Nutrien Ltd., Haifa Negev technologies LTD, Kingenta , J.R. Simplot Company, ASK Chemicals, Neufarm GmbH, ICL Group

Analyst Review

According to CXO Perspective, the global controlled release fertilizers granules market is expected to witness increased demand during the forecast period, due to surge in the demand for food products owing to surge in population across the globe.

Controlled release fertilizers granules are generally used as specialty fertilizers in applications, such as agricultural applications, lawn & turf, fruits and vegetables, nurseries and gardens, among others. Thus, the agriculture industry will hold a dominant share in the demand for controlled and slow-release fertilizers. Increasing investments in sustainable and eco-friendly fertilizers are expected to propel the demand for these controlled release fertilizers granules during the forecast period.

The global agricultural industry is anticipated to register a high CAGR of over 8.13% due to increase in population, change in eating habits and improvement in economies of developing countries. Moreover, increasing penetration of controlled and slow-release fertilizers in the developing markets is anticipated to provide impetus to the growth of the controlled release fertilizers granules market during the forecast period.

Author Name(s) : Snehal Mohite | Eswara Prasad
Frequently Asked Questions?

The use of controlled release fertilizers granules is driven by many factors such as rise in demand for food due to increase in population and depleting soil quality.

The market players are adopting various growth strategies and also investing in R&D extensively to develop technically advanced unique products which are expected to drive the market size.

Asia-Pacific region will provide more business opportunities for controlled release fertilizers granules market in coming years

Haifa Negev technologies LTD, ICL Specialty Fertilizers, Nutrien Ltd., Simplot, Allied Nutrients, Koch Industries, Knox Fertilizer Company, Neufarm, Kingenta, and ASK Chemicals GmbH are the top players in controlled release fertilizers granules market.

Non-agriculture and agriculture application are the potential customers of controlled release fertilizers granules market industry

Major factors that are expected to boost the growth of the controlled release fertilizer granules market in the region during the forecast period are the rise in the application rates of fertilizers in advancing countries is further boost the growth of the controlled release fertilizer market.

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Controlled Release Fertilizers Granules Market

Global Opportunity Analysis and Industry Forecast, 2021-2031