Controlled Release Fertilizers Market Expected to Reach $4.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Controlled Release Fertilizers Market," The controlled release fertilizers market was valued at $2.3 billion in 2021, and is estimated to reach $4.3 billion by 2031, growing at a CAGR of 6.6% from 2022 to 2031.

Controlled release fertilizers (CRFs) are excipients needed to regulate or control nutrient release in crops, enhancing the nutrient supply and reducing ecological, environmental, and associated health hazards. Having recognized their incredible benefits in increasing agricultural productivity, prominent controlled release fertilizer market players are coming up with profitable initiatives that will help raise their production and supply.

Sulfur coated urea fertilizers are controlled-release fertilizers made by coating urea with sulfur and wax that increase nitrogen efficiency, reduce water pollution, and augment plant growth when compared to water soluble fast-release urea. Besides, the product also alleviates the frequency of fertilizer application thus reducing the overall cost, helping enhance the crop quality, and reducing the salt index. The presence of above-mentioned advantages will drive the market growth.

COVID-19 had a direct and negative impact on the value chain of the controlled release fertilizer market. The lockdown in different countries affected the export-import and the distribution system adversely. The restricted movement all over the region created a shortage of raw materials required to produce fertilizer over a shorter term. This led to manufacturers' use of the emergency stock of raw materials for continuing production. Decrease in agricultural land area, investments in research & development, and increase in awareness among the farmers regarding the need for nutrients and the crop yield are the major drivers that will boost the demand for fertilizers in the country. However, rising environmental issues and increasing demand for organic farming are expected to restrain the market's growth.

Brazil has the largest market share of the controlled release fertilizer market, which is about 34%. Brazil has launched discussions to boost the output of fertilizer and inputs for the domestic agriculture sector, but progress remains slow due to its strong dependency on imports of fertilizers from China. Difficulties in negotiating for the natural gas needed for nitrogen production is one of the reasons for the low Brazilian fertilizer production. Brazil is one of the top four consumers of fertilizer globally. The country's demand for NPK fertilizer in 2020 reached 41million tons (mn t), with imports comprising 80%. As of 2020, nearly more than 1/3rd of the African population was malnourished. In the whole of Africa, close to 282 million people experience acute hunger, under such circumstances, governments across different African economies are laying out plans and initiatives to introduce sustainable farming and agriculture practices to bridge food insecurity in the continent. Speaking of which, the United Nations Development Program recently underlined the need for Ghana to adopt sustainable agricultural practices in the country. The above mentioned are the key factors that provide remunerative opportunities for the growth of controlled release fertilizer market.

The global controlled release fertilizer market is segmented on the basis of type, mode of application, end-use, and region.

On the basis of type, it is segmented into slow release, nitrogen stabilizer, and coated & encapsulated. On the basis of mode of application, the market is segmented into foliar, fertigation, soil, and others. On the basis of end-use, 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.

Key findings of the study

• Asia-Pacific would exhibit CAGR of 6.9% during 2022-2031.
• As per global Controlled release fertilizer market analysis, by type, the coated & encapsulated segment accounted for the largest share in 2021.
• By mode of application, soil segment was the leading segment in 2021.
• By end-use, non-agricultural segment occupies 65.3% of total market share in 2021.

Impact of Covid-19 on Global Control Release Fertilizers Market

The global COVID-19 pandemic had negative impact on the controlled release fertilizer market. This market has experienced lower than anticipated demand across all regions as compared to pre pandemic levels. The global market exhibited a decline in 2020 as compared to 2019, due to shutdown of various agricultural activities from where agricultural products are used in the production of various food products and feedstock, which is used as raw material for the production of bio power.

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 fertilizer industry.

Competition Landscape

The major companies profiled in this report include Yara International ASA, Nutrien Ltd, The Mosaic Company, ICL Group, Nufram Lts, Kingenta, ScottsMiracle-Gro, Koch Industries, Helena Chemical, SQM, JNC Corporation, Haifa Chemicals, AGLUKON, Pursell Agri-Tech, and Ekompany International BV. Due to rapid surge in population due to industrialization has increased the demand for the food products. The outbreak of pandemic and on-going war between Russia and Ukraine has great impact over agricultural industry. The above-mentioned factors will have positive impact on the demand for energy storage devices. Additional growth strategies such as expansion of storage capacities, acquisition, partnership and research & innovation in the sustainable chemical fertilizers have led to attain key developments in the global controlled release fertilizer market trends.