Controlled Release Fertilizers Granules Market Expected to Reach $1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Controlled Release Fertilizers Granules Market," The controlled release fertilizers granules market was valued at $0.5 billion in 2021, and is estimated to reach $1.0 billion by 2031, growing at a CAGR of 8% from 2022 to 2031.

Controlled release fertilizers granules (CRF) can be referred to as fertilizers that release nutrients in a manner that is controlled to be able to meet the nutrient demand uptake of a crop. These fertilizers have the potential to upsurge crop quality and yield, enhance fertilizer usage effectiveness and decrease the potential losses to the environment. 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.

Furthermore, the growing demand for high-value crops is further anticipated to propel the growth of the controlled release fertilizer market. Moreover, the product innovations in controlled-release technology is further estimated to cushion the growth of the controlled release fertilizer market. For instance, biodegradable coating solutions are manufactured from raw materials renewable in the process of biosynthesis. One of such materials is chitosan, also known as poly(2-amino-1,4-β-glukane) a natural polysaccharide produced commercially by deacetylation of chitin, which is the structural component of sea crustaceans.

Chitosan easily undergoes biodegradation in natural environment and it is highly biocompatible. In addition, it has unique polycationic properties. On the other hand, the cost ineptness is further projected to impede the growth of the controlled release fertilizer market in the timeline period. In addition, the growing demand to improve pasture production and crop-specific nutrient management through precision farming will further provide potential opportunities for the growth of the controlled release fertilizer market in the coming years. However, the inadequate adoption of controlled-release technology might further challenge the growth of the controlled release fertilizer market in the near future.

The controlled release fertilizers granules market is segmented on the basis of product type, application, and region. On the basis of product type, the market is segmented into sulfur-coated urea (SCU), polymer coated products, polymer-sulfur-coated urea (PSCU), and others. On the basis of application, the market is segmented into agricultural, and non-agricultural. Furthermore, agricultural segment is further classified into cereals & grains, oilseed & pulses, fruits & vegetables, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by North America, and Europe.

The polymer-coated urea (PSCU) segment is likely to register the fastest growth rate with a CAGR of 8.06% during the forecast period. Polymer coated urea (PCU) is an N fertilizer that uses temperature-controlled diffusion to regulate N release in matching plant demand and mitigate environmental losses when added to moist soil. Polymer-coated CRF (PCRF) is the newest and most technically sophisticated fertilizer used in horticultural plant production and consists of a core of soluble nutrients by a polymer coating.

The agricultural segment is likely to register the fastest growth rate with a CAGR of 8.13% during the forecast period. Rise in demand for agricultural products due to surge in population will drive the demand for control release fertilizer granules market. In addition, increase in awareness among the people regarding the utilization of conventional fertilizers on food materials has led to increase in demand for control release fertilizers.

The Asia-Pacific dominates the controlled release fertilizers granules market. This is attributed to the rapid increase in the population of countries especially China and India. This is further propelling the rise in demand for food all over the region. Japan and China are the two major market leaders in Asia-Pacific with both high production and consumption. Growth in China is owing to the rise in research and development of innovative agricultural products, coupled with the presence of market players namely Hangfeng Evergreen, Kingenta International, and others in the nation. Moreover, conducive policies concerning smart fertilizers in Japan and China are further expected to help this region continue dominating the market in the years to follow.

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.

Key findings of the study

• By product type, polymer-coated urea (PSCU) segment was the leading segment in 2021.
• On the basis of application, the agriculture segment is projected to grow at the CAGR of approximately 8.13%, in terms of revenue, during the forecast period.
• Asia-Pacific would exhibit CAGR of 8.17% during 2022-2031.

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

• 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 would not be 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.
• Post pandemic, the Indian government has set its sight on the agriculture and energy industries as they are most necessities for the development of the country. For instance, the government of India announced the COVID-19 social assistance package of $ 25 billion under the Pradhan Mantri Garib Kalyan Yojana (PM-GKY) to provide immediate relief to the vulnerable population. The PM-GKY package uses existing schemes to provide additional benefits to farmers and rural households. Furthermore, the government has started relaxing norms around the world, which led to continuation of business activities.