Liquid Fertilizer Market by Application, Type, and Geography - Forecast and Analysis 2023-2027

Liquid Fertilizer Market Forecast 2023-2027

The liquid fertilizer market is estimated to increase by USD 2.31 billion at a CAGR of 3.63% between 2022 and 2027. The expansion of the market hinges on various factors, such as rising demand for nitrogen-based fertilizers, their convenient application, and increasing requests from developing nations. However, challenges include strict regulations governing the handling, storage, and transportation of liquid fertilizers, health risks associated with their usage, as well as constraints related to the limited availability of raw materials and the high cost.

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

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Market Segmentation

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.

Market Dynamics and Customer Landscape

The market is witnessing remarkable growth driven by various factors, such as increasing demand from farmers cultivating high-value crops like fruits, vegetables, and turf & ornamental plants. Liquid fertilizers offer a convenient and absorbable form of nutrients, addressing micronutrient deficiencies and enhancing the quality of crops such as tomato, potato, onion, cabbage, and cauliflower. Moreover, their compatibility with irrigation systems, including sprinklers, makes them an efficient choice for application. However, challenges persist, including concerns about water and environmental pollution due to their toxicity and potential impact on plant foliage. Despite these challenges, the market continues to expand, with liquid fertilizer consumption steadily increasing in metric tons, reflecting its significance in modern agricultural practices. 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 market is experiencing significant growth, driven by the increasing demand for nitrogen-based fertilizers. Nitrogen, a vital nutrient for plant growth, is easily absorbed in its nitrogenous form, making it highly sought after by farmers for its effectiveness in greening up lawns and enhancing crop yields. This demand is further propelled by the expanding agricultural sector worldwide, as seen in India's notable increase in agricultural GDP share. Liquid fertilizers offer a convenient solution for farmers, particularly for high-value crops like fruits and vegetables, including tomatoes, potatoes, onions, cabbage, and cauliflower.

Moreover, their compatibility with irrigation systems such as sprinklers makes them an efficient choice for enhancing the quality and yield of horticultural and field crops. However, challenges related to water pollution and environmental toxicity necessitate stringent regulations on their handling and usage. Despite these challenges, the Market is poised for continued growth, driven by the imperative need to address micronutrient deficiency and optimize crop production.

Significant 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 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.

Further, 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 market 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 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.

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 companies, including:

• 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

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Largest Market Segmentation 

In the market, various factors influence its segmentation. Farmers are primary stakeholders, utilizing liquid fertilizers across diverse sectors such as Turf & Ornamental, Field Crops, and Horticultural Crops. Concerns like water pollution and environmental pollution drive demand for more eco-friendly solutions. Liquid fertilizers address issues like micronutrient deficiency and enhance plant foliage absorption. With a focus on high-value crops like fruits and vegetables, liquid fertilizers aim to improve fruit quality in crops such as tomatoes, potatoes, onions, cabbages, and cauliflowers. They are compatible with various irrigation systems, including sprinklers, facilitating efficient liquid fertilizer consumption and contributing to increased yields in terms of metric tons and economic worth.

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 5.48 billion in 2017 and continued to grow until 2021. As per the 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.

Key Regions

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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 has 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.

In addition, 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 during the forecast period.

Segment Overview

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. 

• Type Outlook
  • Nitrogen
  • Phosphate
  • Potassium
  • Micronutrients

• Application Outlook 
  • Cereals and grains
  • Oilseeds and pulses
  • Fruits and vegetables

• 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

The market is experiencing significant growth driven by various factors, such as the increasing adoption of liquid fertilizers due to their ease of application and ability to ensure uniform distribution of nutrients. Liquid fertilizers, particularly Foliar liquid fertilizers, are witnessing rising consumption, especially in high-value crops like fruit crops, which leads to improved quality of fruits. Turf and ornamental crops, along with field crops like maize, benefit from the adoption of liquid fertilizers, enhancing yield per area of land. However, challenges persist, including concerns about toxicity and environmental pollution, particularly regarding leaching losses and eutrophication. Despite challenges, the market continues to expand globally, catering to the demands of modern agriculture amidst factors like human population growth, urbanization, and soil erosion.

Moreover, the market is experiencing notable trends driven by various factors, including the increased demand for UAN formulations in Turf & Ornamental and Horticultural crops. Micronutrient deficiency is being addressed with liquid fertilizers formulated for absorbable forms that effectively nourish plant foliage. The market encompasses diverse Crop Types, such as Turf & Ornamental, where liquid fertilizers are preferred due to ease of application. With a significant area under cultivation globally, liquid fertilizer consumption continues to rise, measured in metric tons and worth. Advancements in irrigation systems like sprinklers and micro-irrigation contribute to the market's growth, reducing application costs and addressing concerns such as leaching losses of nutrients and soil pH. 

Market Scope
Report Coverage	Details
Page number	173
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.63%
Market growth 2023-2027	USD 2.31 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.17
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 48%
Key countries	US, China, India, Germany, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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
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, and Market condition analysis for the 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 companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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