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A16556 | Pages: 180 | Charts: 55 | Tables: 152 |
The global fertilizer market size was valued at $184.60 billion in 2021, and is projected to reach $251.57 billion by 2030, growing at a CAGR of 3.55% from 2022 to 2030. The fertilizer market is driven by the growing global population and rise in food demand, necessitating higher agricultural yields. Limited arable land and urbanization further emphasize the importance of fertilizers for sustainable crop production. In addition, rise in adoption of advanced farming practices, such as precision agriculture and nutrient management systems, enhances the efficient use of fertilizers. These factors support the market growth by addressing food security challenges and improving productivity.
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The fertilizer market is segmented into Application, Type and Form.
Introduction
Fertilizer is a natural or synthetic substance that is added to soil or plants to provide essential nutrients that promote healthy growth and increase agricultural productivity. It typically contains key elements such as nitrogen, phosphorus, and potassium, which are vital for plant development. Fertilizers help improve soil fertility, replenish nutrient deficiencies, and support the growth of crops, especially in areas where the soil lacks the necessary minerals.
Market Dynamics
Fertilizers of synthetic or natural origin are applied to soil or plant tissue to increase crop performance by enabling plant growth nutrients. Nitrogen-based fertilizers, for example, contain nitrogen, which is the primary constituent of chlorophyll, which aids in plant photosynthesis. Phosphorus fertilizers are beneficial to plant roots because phosphorus is found in cell protoplasm, which promotes cell growth and proliferation. Organic fertilizers, on the other hand, are made from agricultural residues, toxic pollution, municipal silt, or animal waste. These fertilizers increase soil water retention capacity, promote microorganism reproduction, and improve soil physical and chemical properties.
Growth in global population significantly drives the fertilizer market, as it leads to rise in demand for food production. With limited arable land, farmers must increase crop yields to meet rise in food requirements. Fertilizers play a critical role by supplying essential nutrients that enhance soil fertility and plant growth. In addition, changing dietary patterns and urbanization further amplify agricultural output needs. This reliance on fertilizers ensures sustainable food supply chains, addressing the challenges of feeding a rapidly expanding population while maintaining soil health and productivity in the long term.
However, environmental concerns about excessive fertilizer use restrain the growth of the fertilizer market due to the harmful effects of nutrient runoff, which leads to water pollution and eutrophication in aquatic ecosystems. Overapplication of fertilizers depletes soil health and impacts biodiversity, prompting stricter regulations and restrictions on fertilizer use. These challenges encourage the adoption of sustainable farming practices, such as organic farming and precision agriculture, reducing dependence on traditional fertilizers. Thus, the market growth faces limitations due to environmental and regulatory pressures.
Rise in agricultural activities in emerging economies presents a significant opportunity for the growth of the fertilizer market. Increase in demand for higher crop yields to meet the needs of growing populations leads to rise in adoption of fertilizers. Governments in these regions are actively promoting agricultural development through subsidies, infrastructure improvements, and access to modern farming techniques. In addition, expansion of cash crops and export-oriented agriculture enhances the need for specialty and balanced fertilizers, further fueling the market growth in these areas.
The global fertilizer market share is segmented on the basis of type, application, and region. By type, market has been divided into organic and inorganic. By form, the analysis has been divided into dry and liquid. By application, the market is further divided into agriculture, horticulture, gardening, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in this report include Yara International, Nutrien Ltd., The Mosaic Company, Haifa Group, Syngenta AG, ICL Group Ltd., EuroChem Group, OCP Group S.A., K+S Aktiengesellschaft, and Uralkali.
[TYPEGRAPH]
By type, the market has been divided into organic and inorganic. Among these, the inorganic sub-segment accounted for the highest revenue share in 2021. Inorganic fertilizers are made up of nutrient-rich salts like potassium, phosphorous, nitrogen, and others that disintegrate rapidly and are immediately available to the plants. Because the use of inorganic fertilizers is regulated by law, they have precise nitrogen, phosphate, and potassium, effectively meeting plant and soil requirements.
[FORMGRAPH]
By form, the dry sub-segment accounted for the highest revenue share in 2021. Dry fertilizers are commonly used fertilizers. Dry fertilizers are best suited for slow-release formulations because they are absorbed more slowly by plants and must first be broken down. Because they do not "settle out" over time or in cold weather, these fertilizers are less expensive and easier to store. This is one of the reasons for the fertilizer market growth.
[APPLICATIONGRAPH]
By application, the agriculture sub-segment is anticipated to have the dominant share during the forecast period. Agriculture sub-segment accounted for the highest revenue share in 2021. Fertilizer demand in agriculture has skyrocketed as a result of rising global population, globalization, and the development of smart cities, all of which have resulted in a decrease in arable land availability and an increase in food demand. Fertilizers are important for maintaining soil nutrient levels, meeting crop nutritional needs, and increasing agricultural productivity. According to Future Farming, a brand focusing on smart farming, the world's population is expected to reach 10 billion by 2050. As a result, increasing agricultural productivity is critical in order to meet the food needs of the growing population. As a result, the use of fertilizers in the agricultural sector is critical to balancing nutrients in the soil.
[REGIONGRAPH]
By region, Asia-Pacific dominated the global fertilizer market share in 2021 and is forecasted to remain the dominant region during the forecast period. The growing agricultural practices and demand for high-quality agricultural produce are expected to drive the growth of the nitrogenous fertilizers market in this region. Rice, sugar beet, fruits and vegetables, cereals, and grains are among the major crops grown in Asia; the region consumes 90 percent of the world's rice production. Asian countries such as Korea, China, Japan, and, more recently, Vietnam are using high nitrogenous fertilizer rates per hectare for both short-term and perennial crops. As a result, the region has a high demand for specialty fertilizers.
Key Developments
January 2023: ICL entered a strategic partnership with General Mills, becoming a key supplier of specialty phosphate solutions. The long-term agreement also includes plans for global market expansion.
May 2022: ICL introduced three new NPK formulations under its Solinure brand, enhanced with increased trace elements aimed at optimizing crop yields.
May 2022: ICL secured supply agreements with customers in India and China to deliver 600,000 and 700,000 metric tons of potash, respectively, throughout 2022. The agreed price was USD 590 per ton.
Key Market Segments
Key Market Players