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The liquid fertilizer market is estimated to grow at a CAGR of 3.63% between 2022 and 2027. The size of the market is forecast to increase by USD 2,314.05 million. The growth of the market depends on several factors, including increasing demand for nitrogen-based fertilizers, ease of application, and increasing demand from emerging countries.
This report extensively covers market segmentation by application (cereals and grains, oilseeds and pulses, and fruits and vegetables), type (nitrogen, phosphate, potassium, and micronutrients), 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 liquid fertilizer market as a part of the global fertilizers and agricultural chemicals market within the overall global chemical industry. The 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 increasing demand for nitrogen-based fertilizers is notably driving the market growth, although factors such as health hazards caused due to liquid fertilizers 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 Liquid Fertilizer Market Driver
The increasing demand for nitrogen-based fertilizers is notably driving market growth. Nitrogenous fertilizer readily dissolves in water and can quickly be applied to plants. Nitrogen is the most widely known nutrient, primarily for its ability to green up lawns. Though air contains about 78% nitrogen, atmospheric nitrogen is not readily available to plants. Hence, the demand for nitrogen-based fertilizers is high when compared with other fertilizers, such as potassium. The growing demand for nitrogenous fertilizer for plants will drive the growth of the global market during the forecast period.
The increasing agricultural activities across the globe will drive the use of nitrogen-based liquid fertilizers during the forecast period. For instance, in 2020-2021, the share of agriculture in India's GDP reached almost 20% for the first time since 2004. This was an increase from 17.8 % in 2019-2020. The last time the contribution of the agriculture sector to GDP was at 20% was in 2003-04. Hence, the growth in agricultural activities will also drive the demand for nitrogenous fertilizer, which, in turn, will boost the growth of the global market during the forecast period.
Significant Liquid Fertilizer Market Trend
The growing awareness of organic fertilizers is an emerging trend in the market. Organic fertilizers decompose easily in the soil with the release of carbon dioxide, methane, and water, thereby enriching the nutrient quality of the soil. They are environment-friendly and are harmless to the sod, though they are used extensively over a long period. The use of organic fertilizers reduces costs and environmental issues. These fertilizers are highly sustainable, and their increased adoption helps in eliminating toxic residues from the soil and improving cultivation practices Thus, these benefits will result in an increasing demand for them.
Furthermore, favorable government policies and subsidies, rapidly increasing awareness about organic farming, and increasing sales of organic food products are creating a market for organic fertilizers. Moreover, increasing awareness among farmers and cultivators about eco-friendly fertilizers would increase the demand for organic fertilizers. Hence, such factors will positively impact the global market during the forecast period.
Major Liquid Fertilizer Market Challenge
Health hazards caused due to liquid fertilizers are major challenges impeding the market growth. Many synthetic or chemical-based liquid fertilizers, which include heavy metals, ammonium nitrate, potassium chloride, and cadmium, are available on the market. The plants absorb these toxic chemicals found in fertilizers and enter the food chain via fruits or vegetables. Also, these chemicals can flow into the groundwater and pollute it, and the polluted water may contain high levels of nitrates and nitrites, which cause hemoglobin disorders.
Ammonium nitrate is an important component of fertilizer mixtures. It is used to manufacture explosives, and it is hazardous to the environment and human health. According to the Centers for Disease Control and Prevention (CDC), exposure to ammonium nitrate is dangerous to human health. Inhalation of ammonium nitrate results in cough, headache, and sore throat. Its exposure to the skin results in redness due to the reaction of ammonium nitrate. Similarly, if the eyes are exposed to the chemical, then it can lead to pain in the eyes. These health hazards will highly impact the adoption of ammonium nitrate and intensify safety measures at workplaces, which will hinder the growth of the global market during the forecast period.
Key Liquid Fertilizer 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 Liquid Fertilizer 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.
AgroLiquid - The company operates under one segment. The company manufactures nutrition products and provides exceptional service to large and small companies. The key offerings of the company include liquid fertilizers.
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 cereals and grains segment will be significant during the forecast period. Cereals and grains held the largest share of the segment in 2022. The cereals and grains segment dominated the application segment in the global market.
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The cereals and grains segment was valued at USD 5,478.48 million in 2017 and continued to grow until 2021. As per Organization for Economic Co-operation and Development (OECD), the production of cereals is predicted to rise by 336 Mt over the next ten years from 2021, mostly due to advances in the world's leading grain-producing nations. India, the Russian Federation (hereinafter Russia), and Ukraine will account for more than 50% of the rise in wheat output on a global scale. More than half of the anticipated increase in the output of maize will come from the US, China, and Brazil. Russia, Ukraine, Ethiopia, and India are the main producers anticipated to increase production of other coarse grains (barley, oats, rye, sorghum, millets, and other cereals), while India, China, and Thailand are anticipated to be the primary contributors to the increase in global production of rice. Thus, owing to such factors the segment is expected to grow during the forecast period.
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APAC is estimated to contribute 48% 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 is the largest and most populous region. In 2021, nearly 60% of the world's population was from APAC. Over the past 50 years, APAC experienced rapid population growth. The increasing population in APAC is driving the demand for crops, resulting in rising demand for the market. 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. In China, decreasing arable land and a growing population are the major factors responsible for the high demand for liquid fertilizer. Strong government support for agriculture is one of the primary factors for the growth of the market in India. Subsidies and incentive schemes provided by the Government of India to enhance food production will further contribute to the growth of the market in APAC.
In 2021, China, India, Indonesia, Vietnam, and Japan were the top consumers of liquid fertilizer. The increasing demand for wheat, corn, vegetables, and fruits in these countries will drive the demand for fertilizers. With the growing population, agricultural activities have increased to cater to the growing need for food. This will drive the demand for liquid fertilizer during the forecast period.
In 2020, the market in APAC witnessed the negative impact of the COVID-19 pandemic. However, by the end of 2020, the demand for liquid fertilizers in the region normalized as factories reopened, which led to the resumption of the production and distribution of liquid fertilizers. In China, phosphate fertilizer plants that had shut down resumed production and have been operating since the end of 2020. Therefore, owing to such factors it is estimated that the market in APAC will continue 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.
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Liquid Fertilizer Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.63% |
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Market growth 2023-2027 |
USD 2,314.05 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.17 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 48% |
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Key countries |
US, China, India, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AgroLiquid, Agrotiger Philippines Corp., EuroChem Group AG, Grupa Azoty, Haifa Negev technologies Ltd., Indian Farmers Fertiliser Cooperative Ltd., Israel Chemicals Ltd., KS Aktiengesellschaft, Kugler Co., Nutri Tech Solutions Pty Ltd., Nutrien Ltd., OCP Group, Plant Food Co. Inc., Plant Fuel Nutrients LLC, Polski Koncern Naftowy ORLEN SA, RLF AgTech, Sociedad Quimica y Minera de Chile SA, Tessenderlo Group NV, Twin State Inc., and Yara International ASA |
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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, and Market condition analysis for the forecast period. |
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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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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