Fertilizers Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, India, France, Brazil - Size and Forecast 2023-2027

Fertilizers Market Size 2023-2027

The fertilizers market is estimated to grow by USD 27.19 billion at a CAGR of 2.52% between 2022 and 2027. 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. The growing demand for organic fertilizers is a key factor fueling the market's expansion. With the global population on the rise and dietary trends evolving, the agriculture industry is set to grow, leading to an increase in fertilizer consumption. Organic fertilizers—made from materials like nitrogen, phosphates, and potash are gaining traction for their environmentally friendly characteristics, such as fast decomposition, low impact on water resources, and enhancement of soil structure and nutrient retention. Emerging economies and agricultural sectors are adopting sustainable farming practices, like precision agriculture and balanced fertilization, to boost crop productivity and ensure food security.

What will be the size of the Fertilizers Market During the Forecast Period?

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Market Segmentation

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.

By Type

The market share growth by the inorganic segment will be significant during the forecast period. The agriculture industry is experiencing significant growth due to the increasing global population and the need for higher food production. To meet this demand, the Fertilizer Market is witnessing increased popularity. Advanced fertilizers, including Nitrogen-based fertilizers, phosphates, and potash, play a crucial role in promoting crop yield and maintaining soil nutrients. Developing economies and agricultural sectors are major consumers of these essential minerals. However, environmental concerns, such as nutrient runoff and greenhouse gas emissions, necessitate the adoption of sustainable agriculture practices and precision agriculture. Nutrient formulations and technologies, like water-soluble fertilizers and sensors, drones, and data analytics, are driving efficiency and waste minimization in the market. 

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The inorganic segment was valued at USD 173.10 billion in 2017 and continued to grow until 2021.  Industry participants are focusing on sales & marketing facilities, mergers & acquisitions, and new product developments to ensure profitability. Fertilizer Market Trends include eco-friendly farming practices, balanced fertilization, and the integration of technology for fertilizer application. Soil health and sustainable agriculture are key priorities in addressing food security concerns while minimizing environmental impact. 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.

By Regions

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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.

The APAC region, particularly India and China, leads the global fertilizers market due to increasing per capita income and the growing demand for organic food. Nutrient imbalances in agricultural land call for the use of various fertilizer formulations, including dry fertilizers. The versatility of fertilizers extends to various agriculture applications, such as Horticultural crops, Turf and ornamentals, and Grains.

However, environmental impact is a concern, leading to the adoption of precision agriculture technologies, GPS-guided equipment, and reduced chemical inputs through cover cropping. Nitrogen-based liquid fertilizers are in high demand due to the shift towards high protein-based diets, driving business share in the market. Nutrient use efficiency is crucial to mitigate environmental concerns and optimize crop yields. Thus, due to all such factors, the regional fertilizers market is expected to witness high growth during the forecast period.

Market Dynamics and Customer Landscape

The market is experiencing significant growth due to the increasing demand for higher crop production in response to the growing global population and food security concerns. Nitrogen-based fertilizers, phosphates, and potash continue to be the primary nutrient formulations used in agriculture sectors worldwide. However, environmental concerns, such as nutrient runoff and greenhouse gas emissions, are driving the need for sustainable agriculture practices and advanced fertilizers. Key industry participants are investing in new product developments, mergers & acquisitions, and sales & marketing facilities to increase profitability. Precision agriculture practices, technology, and eco-friendly farming methods are gaining popularity to improve soil health and reduce environmental impact.

Water-soluble fertilizers and advanced fertilizer technologies are also becoming increasingly important in this context. Market Trends indicate a shift towards sustainable and eco-friendly farming practices, with a focus on reducing nutrient runoff and greenhouse gas emissions. The use of nutrient formulations that are specifically tailored to the needs of different crops and soil types is also becoming more common. Overall, the market is expected to continue growing as the agricultural sectors of developing economies seek to increase food production while addressing environmental concerns. 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 Market Driver

The rising demand for organic fertilizers is notably driving market growth. The agriculture industry is poised for growth due to the increasing global population and shifting dietary habits, leading to an expansion in the fertilizer market. Organic fertilizers, such as those derived from nitrogen, phosphates, and potash, are preferred for their eco-friendly properties, including rapid degradation, minimal impact on water sources, and improvement of soil structure and nutrient retention. Developing economies and agricultural sectors are embracing sustainable agriculture practices, including precision agriculture and balanced fertilization, to enhance crop yield and ensure food security.

Environmental concerns, including nutrient runoff and greenhouse gas emissions, are driving the demand for advanced fertilizers and technologies, such as water-soluble fertilizers, nutrient formulations, sensors, drones, and data analytics for efficient fertilizer application. Industry participants are investing in sales & marketing facilities, mergers & acquisitions, and new product developments to increase profitability and meet the growing demand for fertilizers. The Fertilizer Market Trends reflect a focus on soil health, eco-friendly farming practices, and technology to minimize waste and optimize nutrient management.
Thus, the global market is expected to witness rapid growth during the forecast period due to the increase in demand for organic fertilizers.

Significant Market Trend

High-efficiency fertilizers gaining market traction is an emerging trend in the market. The agriculture industry is experiencing a surge in demand due to the growing global population and the need for food security. This increased food production necessitates higher agricultural output, leading to a greater demand for fertilizers such as nitrogen-based fertilizers, phosphates, and potash. Developing economies and intensifying agricultural sectors are significant contributors to this trend. However, environmental concerns, including nutrient runoff and greenhouse gas emissions, necessitate the adoption of sustainable agriculture practices and precision agriculture.

Advanced fertilizers, water-soluble fertilizers, and nutrient formulations are gaining popularity as industry participants focus on profitability and sales & marketing facilities. Mergers & acquisitions, new product developments, and technology advancements are key trends in the Market. Soil health, eco-friendly farming practices, precision agriculture, technology, and fertilizer application are essential aspects of this industry's future. Sensors, drones, data analytics, efficiency, waste minimization, nutrient management, and balanced fertilization are some of the technologies driving the market.
Hence, these factors will propel the market growth during the forecast period.

Major Market Challenge

Health issues associated with fertilizer are a major challenge impeding the market growth. The Fertilizer Market plays a significant role in the agriculture industry, enhancing crop yield and ensuring food security for the growing global population. Nitrogen-based fertilizers, including ammonium nitrate, phosphates, and potash, are essential for food production. Developing economies and agricultural sectors heavily rely on these nutrient formulations to increase productivity.

However, environmental concerns, such as nutrient runoff and greenhouse gas emissions, have led to the adoption of sustainable agriculture practices and precision agriculture. Advanced fertilizers, water-soluble fertilizers, and eco-friendly farming practices are industry trends. Sales & marketing facilities, mergers & acquisitions, and new product developments contribute to profitability. Technologies like sensors, drones, and data analytics improve fertilizer application efficiency and waste minimization. Balanced fertilization and nutrient management are crucial for soil health and maintaining productivity in the face of the growing population's demands. Thus, the rising concern about health issues due to fertilizers may hinder the market growth during the forecast period.

Key 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 Market Customer Landscape

Who are the Major Fertilizers Market Companies?

Companies 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 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 companies, including:

• Bunge Ltd.
• CF Industries Holdings Inc.
• 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.

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. 

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.

• Type Outlook
  • Inorganic
  • Organic

• Application Outlook
  • Agriculture
  • Horticulture
  • Gardening

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

In the agriculture industry, the use of fertilizers plays a crucial role in enhancing crop productivity and ensuring healthy plant growth. The Fertilizers market is a significant sector, driven by the increasing global population and the need to increase agricultural output. The industry includes various types of fertilizers such as Nitrogenous fertilizers, Phosphatic fertilizers, Potassic fertilizers, and Organic fertilizers. These fertilizers contain essential nutrients like Nitrogen, Phosphorus, and Potassium that are vital for plant growth. The use of advanced technology in fertilizer production, such as controlled-release fertilizers and precision farming, has led to improved crop yields and reduced environmental impact. The market is expected to grow due to factors like increasing agricultural productivity, government initiatives, and technological advancements. However, concerns regarding the environmental impact of fertilizer use and the high cost of fertilizers remain challenges for the industry. Overall, the market is a dynamic and essential sector in the agriculture industry, with continued growth and innovation expected in the future.

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 forecasting, 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 market forecast period.
Customization purview	If our market research 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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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