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The fertilizers market is estimated to grow at a CAGR of 2.52% between 2022 and 2027. The size of the market is forecast to increase by USD 27.19 billion. The growth of the market depends on several factors, including the rising demand for organic fertilizers, the water-soluble fertilizers gaining traction, and the rapidly growing food industry.
This report extensively covers market segmentation by type (inorganic and organic), application (agriculture, horticulture, and gardening), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global fertilizers market as a part of the global fertilizers and agricultural chemicals market within the overall global chemical industry. The global fertilizers and agricultural chemicals market covers fertilizers such as nitrogen, phosphorus, potassium, calcium, magnesium, sulfur, chlorine, iron, boron, manganese, zinc, copper, molybdenum, and nickel. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising demand for organic fertilizers is notably driving the market growth, although factors such as health issues associated with fertilizer may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Fertilizers Market Driver
The rising demand for organic fertilizers is notably driving market growth. Organic fertilizers are safer for the environment, animals, and the soil with which they come into contact because they break down quickly and do not adversely affect surface and groundwater. They have a longer shelf life, improve soil structure and increase the ability of the soil to bind nutrients and water. They are non-toxic, slow-release fertilizers that leave no residue on food and are therefore recommended for non-freezing products.
With population growth, eating habits are changing in both developed and developing countries, which will contribute to the growth of the fertilizer industry in the coming years. Furthermore, along with the support from the government, the use of organic fertilizers improves the health of people and the soil. Growth in the organic fertilizers segment along with increasing awareness of its positive effects on quality is fueling the growth of the fertilizers market. Additionally, compliance with stringent regulations on the use of synthetic fertilizers offers lucrative growth opportunities to market players. The use of animal waste as organic fertilizer is still the first choice of organic fertilizer producers. Thus, the global market is expected to witness rapid growth during the forecast period due to the increase in demand for organic fertilizers.
Significant Fertilizers Market Trend
High-efficiency fertilizers gaining market traction is an emerging trend in the market. Agricultural production increased as the demand for food grows. This led to an increase in the use of fertilizers. The demand for micronutrients will also grow as the soil efficiency is required to increase to produce crops that are of high quality. As the demand for vegetables and fruits is intensifying, the demand for high-performance fertilizers is also growing. Additionally, subsidies are being provided by governments worldwide for fertilizers and vendors are also focusing on R&D activities to develop premium products that will drive market growth.
The worldwide population is projected to increase rapidly by 2050. With such an increase the demand for food will also rise. Since the major part of the population depends on agricultural produce, the current agricultural output is insufficient. Hence, farmers require advanced facilities to maximize their yields. Major vendors are emphasizing technology development to obtain more raw materials and introduce more efficient, environmentally friendly, and sustainable fertilizer production methods to meet the demands of a growing population. Hence, these factors will propel the market growth during the forecast period.
Major Fertilizers Market Challenge
Health issues associated with fertilizer are a major challenge impeding the market growth. Fertilizers have the potential to harm humans and pets if accidentally inhaled or consumed. Skin contact with such products can cause irritation or infection. Many commercially available synthetic or chemical-based fertilizers contain heavy metals, ammonium nitrate, potassium chloride, and cadmium. These toxic chemicals enter the food chain through plants. These chemicals also have a huge potential to contaminate groundwater and this can result in water containing high levels of nitrates and nitrites that cause hemoglobin failure.
One of the important components of fertilizer mixtures is Ammonium nitrate. It is an odorless, colorless, or white crystalline salt formed by the reaction of ammonia and nitric acid. It is poisonous to the environment as well as to human health as it is also used in the production of explosives. Thus, the rising concern about health issues due to fertilizers may hinder the market growth during the forecast period.
Key Fertilizers Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Fertilizers Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Coromandel International Ltd. - The company operates under two segments including nutrient and other allied businesses, and crop protection with a high focus on nutrient and other allied businesses.? The company under this segment?offers nutrient products such as Urea, fertilizers, single super phosphate, and muricate of potash.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the inorganic segment will be significant during the forecast period. Inorganic fertilizers are used to plant tissue or soil to give plants the nutrients they need to grow.
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The inorganic segment was valued at USD 173.10 billion in 2017 and continued to grow until 2021. The growing need for improved soil nutrients coupled with higher crop yields is expected to increase the demand for fertilizers during the forecast period. As the penetration of high-efficiency fertilizers progresses, it is expected that farmers will be able to use fertilizers more efficiently and safely. Higher yields are promoted while maintaining and improving soil nutrient availability. The fertilizer business is rapidly growing in popularity due to the need to provide crops with essential minerals such as nitrogen, phosphate, potassium, and other minerals that promote soil fertility.
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APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC dominates the global fertilizers market. The region's fertilizers market growth is fueled by the growing demand for organic food, which is rising along with per capita income. The most important agricultural countries include Australia, China, and India. These countries are best known for exporting agricultural products such as cotton, sugarcane, fruits, vegetables, grains, and cotton. China and India offer companies lucrative business opportunities in fertilizers, as agriculture is one of the most important activities in these countries.
In APAC, mainly in India and China, there is a shift in food preferences from a grain-based diet to a high protein-based diet, which will drive the demand for nitrogen-based liquid fertilizers to produce high-yield crops that are rich in protein. Thus, due to all such factors, the regional fertilizers market is expected to witness high growth during the forecast period.
The outbreak of COVID-19 hindered the growth of the regional market in 2021. However, with the lifting of lockdowns, business activities were resumed. The initiation of vaccination programs in the region in early 2021 resulted in the control of the spread of COVID-19, which led to the reopening of fertilizer manufacturing plants in the region. Therefore, the regional fertilizers market is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Inorganic and Organic), Application (Agriculture, Horticulture, and Gardening), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
Fertilizers Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.52% |
Market growth 2023-2027 |
USD 27.19 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.04 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, India, France, and Brazil |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bunge Ltd., CF Industries Holdings Inc., Coromandel International Ltd., EuroChem Group AG, GUBRETAS, Haifa Group., Israel Chemicals Ltd., Indian Farmers Fertiliser Cooperative Ltd., KS Aktiengesellschaft, Nufarm Ltd., Nutrien Ltd., OCI NV, OCP Group, PhosAgro Group of Companies, Sociedad Quimica y Minera de Chile SA, Sumitomo Chemical Co. Ltd., Syngenta Crop Protection AG, Unikeyterra Kimya Tarim, Yara International ASA., and Zuari Agro Chemicals Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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