Fertilizer Market

Fertilizer Market Size

The global fertilizer market size was valued at USD 202 billion in 2023, with expectations to reach USD 257 billion on 2032 growing at a CAGR of 2.7%. Major growth driver for the market is increasing global population which will in turn will demand more food.

According to United Nations in November 2022, the population of entire globe reached around 8 billion. From 1998 to 2010 the total population of the globe rose by approximately 1 billion humans per year but for next 30 years the global population is expected to increase at 2 billion persons per year.

Fertilizers provide necessary nutrients which can significantly enhance growth of the plant. A study was conducted on tomatoes which showed that using fertilizer application rate of 840 Kg/ha increased partial factor productivity (PFP) up to 75% compared to crops without the use of fertilizers. Plants without fertilizers will totally have to depend on soil for nutrients which may not be sufficient for optimal growth of the plant which results in lower yields, low biomass, and slower growth rates.

Fertilizers increase crop yield, they provide necessary nutrients like phosphorus, nitrogen and potassium to the soil, which is later absorbed by plants, and they grow healthier and produce more grains and fruits. Another growth driver for fertilizer market is reducing availability of farmland, land degradation and urbanization are the main reasons of reduced availability of arable land. According to FAO global per capita cropland area had decreased continuously from 1961 to 2016 from 0.45 hectare to 0.21 hectares. Hence fertilizers are of utmost importance to utilize available land to its full potential.

Fertilizers helps in improving output from limited arable land for example in Sub- Saharan Africa without the use of fertilizers cassava yield is as low as 6-7 tons per hectare whereas in India with the help of proper fertilization cassava yield reached 36 tons per hectare.

Fertilizer Market Trends

• Increasing demand for organic fertilizers: Fertilizers that offer high nutrient content, maximize crop yield and minimize environmental impact are high in demand, this trend is driving demand for organic fertilizers. According to FAO the estimated sales of organic food and beverages in U.S. reached USD 40 Billion in 2010, whereas it was around USD 8 billion in Germany.
  
• Rising popularity of controlled release & specialty fertilizers: Controlled release fertilizers are important for sustainable agriculture. Its implementation method is considered to be helpful in providing environmentally friendly method to enhance the crop productivity. CRD is capable of preventing nutrient loss as well as they provide customized nutrient release patterns which aligns well with plants physiological processes.
  
• Placing CRF at distances, around 4–6 cm from the roots, is a method that improves fertilizer efficiency. Furthermore, by placing CRF into the root plug has shown to increase the growth of planted seedlings
  
• Studies have shown that use of CRF can increase crop quality and productivity. It was observed that by using controlled released urea tomato yield and nitrogen use efficiency increased by 10 % and 7.7–26.5 %, respectively.
  
• Regulatory landscape: Government rules on fertilizer use and impact on environment can impact the market significantly. Changes in policy such as subsidy or penalty can improvise or discourage use of certain fertilizers changing market dynamics.
  
• Technological innovations in fertilizer application: Innovations like nanotechnology are improving the efficiency and effectiveness of phosphate fertilizers. These innovations reduces the quantity of fertilizers needed to improve crop yield. For example, fertilizer use in China is declining for eight consecutive years, since 2015, as per the National Bureau of Statistics. still, the agricultural production of China has maintained steady growth in these years, with grain production reaching a record high of 706.5 billion tons in 2024 which is a 1.6% increase from 2023.
  
• Experts give credit of this growth to more accurate fertilizer applications which deliver only required nutrients to the farmland. Additionally, progress in seed quality, farmland condition and machinery have all played an important role in producing stable food output.
  
• Mergers and acquisitions: The market is facing consolidation because of mergers and acquisitions, with major players looking to expand their reach and gain access to resources. which can lead to intense competition and price fluctuations.  According to Statista there were total 33 mergers and acquisition in 2023 in the global fertilizers industry worldwide.
  

Fertilizer Market Analysis

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Global fertilizers market reached USD 193, 197 and 202 billion in the year 2021, 2022, 2023 respectively. Based on form, the market is divided into dry and liquid. Dry fertilizers held the dominant market share of 83% 2023.

• This dominant share of dry fertilizers is owing to many reasons including easier storage, ample shelf life, they provide slow nutrient release option, dry fertilizers are more suitable for large scale field applications while preparing for planting,
  
• Dry fertilizers can be applied more uniformly across big areas compared to liquid fertilizers. Also, dry fertilizers are less likely to pollute waterways by leaching through the soil. Dry fertilizers are less prone to degradation from sunlight and moisture; hence they are popular in fertilizers market.
  
• Liquid fertilizers held 17% share in the fertilizers market. This small share of liquid fertilizers is mainly because liquid fertilizers can be costly than dry fertilizers specially for large areas. Liquid fertilizers degrade faster and have relatively smaller shelf life compared to dry fertilizers.
  

Based on product type the market is mainly divided by organic and inorganic. The inorganic segment held the dominant market share 97% in 2023 and is expected to grow at 2.5% CAGR in forecasted years.

• In many cases inorganic fertilizers are cheaper to produce and purchase. According to data provided by FAO in 2022 the global consumption of inorganic fertilizers in agriculture is estimated to be around 185 million tons.
  
• Which is down 7 % compared to 2021. This fall in consumption can be attributed to the rising awareness of environmental impact of inorganic fertilizers.
  

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Based on application, the fertilizer market is categorized into agriculture, horticulture, gardening, and other. Agriculture accounted for over 42% market share in 2023 and is projected to grow through 2032.

• Fertilizers provide important benefits to both agriculture and environment. They help to increase crop yield of per unit land. Fertilizers help farmers to adapt to changing climates and water scarce environment.
  
• Healthy soil and plants are better capable of withstanding harsh and water scarce environmental conditions since fertilizers helps in increasing soil resilience. Fertilizers at right place, rate, time and nutrient sources are vital to feed growing world population.
  

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Asia Pacific dominated the global fertilizer market in 2023. Asia Pacific generated a revenue of over USD 101 billion in 2023.

• Asia Pacific is home to some of the most populous countries in the world like India and China, their population combines is around 2.8 billion which is 33% of the global population. Large fertilizer sales in Asia pacific is driven by this huge population who demands significant food production.
  
• Also, in countries like India where farming is still main source of income government initiative like “DBT in fertilizers” system where 100 % subsidy is provided on numerous fertilizers grades to fertilizer manufacturing companies on the basis of actual sales to beneficiaries with the help of POS devices installed at each retail shop.
  

China dominated the fertilizer market due to large population and technological advancements. China fertilizers market size surpassed USD 40 Billion in 2023 and is expected to reach USD 49 billion by 2032.

• According to Statista, China and India rank first and second in consumption of fertilizers globally. Annual fertilizer consumption of China and India reached 44 and 29 million metric tons in 2022.
  
• Agriculture of China relies heavily on fertilizers to complete food demand of its population and to support export of agricultural products. India is the second largest producer of fruits and vegetables in the world next to China, which underlines the fertilizers industry growth in the region. In 2023 the India market size reached approximately USD 11 billion owing to rising agricultural demand and strategic government initiatives. Initiatives like direct income support schemes from central and state governments have also increased farmer liquidity, improving their ability to buy fertilizers.
  
• Programs like PM-KISAN and PM-Garib Kalyan Yojana have got funded by United Nations Development Program for their importance to food security.
  

Fertilizer Market Share

Westfarmers, Nutrien, Yara International, CF Industries Holdings, The Mosaic Company are top 5 companies in the fertilizers market. They collectively account for over 40% of the total market share. Based on market capitalization Westfarmers (USD 42 Billion) is the largest fertilizer manufacturing company in the words, who is Australian company focusing on different business segments like fertilizers, chemical and retail. On the basis on market capitalization Nutrien ranks second (USD 24.2 Billion) and is one the largest potash producer with plant capacity more than 20 million metric tons. Whereas CF Industries Holdings, Inc is the largest nitrogen fertilizer producer in the world.

Based on plant capacity by primary product Nutrien, Mosaic, OCP, Belaruskali, Uralkali, Eurochem, Yara International are the top 7 players globally. Their plant capacity in million metric tons is 29.5, 26, 15, 15, 14.5, 10.5, 10 respectively.

Fertilizer Market Companies

Major players operating in the Fertilizer industry include:

• Westfarmers
• Yara International
• Nutrien
• The Mosaic Company
• CF Industries Holdings
• K+S Group
• EuroChem Group
• Israel Chemicals
• OCP Group
• Haifa Group
• IFFCO
• Sinofert Holdings Limited
• Coromandel International Limited
• Uralkali
• Bunge Limited
• Syngenta
  

Recent acquisition in the fertilizer industry is between Yara International and Agribios. Yara international acquired Agribios who is a manufacturer of organic and organo-mineral fertilizers in December 2023. Also, in May 2023 Yara International announced that it would build new production plant for biostimulants and crop nutrition products which are designed to improve yield and improve quality. The plant will be one of the first of its kind crucial for gaining food security and fighting climate changes. The plant will be build close to company existing site in UK.

Fertilizer Industry News

• In July 2024, Brazilian manufacturer Terraplant launched MinerOxi+, the 3-in-1 organomineral fertilizer. According to the company the product combines essential minerals, organic fractions, and oxides, which are suitable to combat environmental challenges and fulfills need for more sustainable agricultural practices.
  
• ICL is partnering with entrepreneurs, manufacturers, and researchers, for developing new, sustainable technologies to product next generation fertilizers for crop nutrition to create stronger and healthier agricultural crops. Company is looking for innovative solutions in the following fields Plant Biostimulants, economic slow-release fertilizer granules, improved fertilizers efficiency, and biodegradable coating for CRF.
  
• In September 2023, on a mission to assist farmers in augmenting crop yields while being environmentally conscious and cost-effective, SABIC Agri-Nutrients Company (SABIC AN) signed partnerships with BiOWiSH Technologies and ADM, two American firms. BiOWiSH’s product range includes a biologically-enhanced urea fertilizer which is classified as a ‘green fertilizer relatively eco-friendly bait’. This fertilizer’s composition makes it a more viable option as it leads to a reduction in greenhouse gases emissions relative to traditional fertilizers. It also serves to increase the capture of CO2 from the atmosphere and sequester it within the soil, addressing greenhouse gases emissions while simultaneously improving agricultural productivity.
  
• In December 2022, Bunge Limited invested USD 550 million in a fully integrated facility of soy protein and textured soy protein concentrates. The plant is expected to be operational by the middle of 2025 and is aimed at satisfying the demands of customers to manufacture pet food & pet feed products..
  

The Fertilizer market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Kilo Tons) from 2018 to 2032, for the following segments:

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Fertilizer market, By Form, 2018 – 2032

• Dry
• Liquid

Fertilizer market, By Product, 2018 – 2032

• Organic
  • Plant based
  • Animal based
  • Mineral based
• Inorganic
  • Nitrogen
    • Urea
    • Anhydrous ammonia
    • CAN
    • UAN Solution
    • Ammonium sulfate
  • Phosphorus
    • Diammonium phosphate
    • Monoammonium phosphate
    • Triple superphosphate
    • Ordinary superphosphate
    • Ammonium polyphosphate
    • Others
  • Potassium
    • Potassium chloride
    • Potassium sulfate
    • Potassium nitrate

Fertilizer market, By Application, 2018 – 2032

• Agriculture
• Horticulture
• Gardening
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia       
  • Indonesia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • Saudi Arabia
  • UAE
  • South Africa