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The water soluble fertilizers market size is forecast to increase by USD 3.57 billion at a CAGR of 6.84% between 2023 and 2028. The water-soluble fertilizers market is experiencing significant growth, driven by the rising demand for nutrients such as Nitrogen, Phosphorus, and Potassium from developing countries. The adoption of precision farming techniques is also fueling market growth, as farmers seek to optimize crop yields and reduce waste. However, health concerns regarding the use of synthetic fertilizers, particularly those containing nitrates, are challenging the market. The Ukrainian conflict and rising natural gas prices have led to increased production costs for synthetic ammonia, a key ingredient in the production of Nitric acid and Ammonium nitrate, two common forms of water-soluble Nitrogen fertilizers. Organic farming practices, which rely on natural sources of nutrients, are gaining popularity as an alternative to synthetic fertilizers. Despite these challenges, the market is expected to continue growing due to the increasing demand for food production and the need for efficient farming practices.
Water-soluble fertilizers, a crucial component in modern agriculture, play a significant role in enhancing crop growth by providing essential nutrients in a readily available form. These fertilizers contain nitrogen, phosphorus, and potassium, the primary macronutrients required for plant growth. The market for water-soluble fertilizers has witnessed steady growth due to increasing population and food demand. The availability of natural resources like nitrogen, phosphorus, and potassium has influenced the production of water-soluble fertilizers. The Ukrainian conflict and volatile natural gas prices have impacted the production of synthetic ammonia, a key ingredient in the manufacture of nitric acid and ammonium nitrate, leading to a rise in the demand for alternative sources like urea.
Moreover, organic farming practices have gained popularity, leading to a rise in demand for specialty fertilizers. However, the high cost of these fertilizers and the availability of cheaper conventional fertilizers continue to be a challenge. Dry water-soluble fertilizers and fertigation techniques, including foliar application, have gained popularity due to their nutrient accessibility and efficiency. The agriculture sector's continuous quest for higher crop yields and improved nutrient uptake drives the growth of the water-soluble fertilizers market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The fertigation segment is estimated to witness significant growth during the forecast period. Water soluble fertilizers play a significant role in modern agriculture, particularly in the application of fertigation. This process involves integrating fertilization and irrigation by introducing nutrients, soil amendments, and other chemical products into the irrigation system. Fertigation is commonly employed in extensive field crops cultivation and horticulture, as it ensures optimal nutrient availability and efficient use of fertilizers. Notable fertilizer manufacturers, such as Nutrien, Casa do Adubo, and others, offer a range of water soluble fertilizers for this purpose. These include urea, ammonium nitrate, ammonia, potassium chloride, Monoammonium phosphate (MAP), and Di-ammonium Phosphate (DAP). The advantages of fertigation include uniform nutrient distribution, improved nutrient absorption, controlled absorption rate, minimized nutrient loss, reduced soil erosion, labor cost savings, and direct application of nutrients to the roots.
Furthermore, it minimizes water consumption and decreases the risk of diseases, including soil-borne diseases that can affect root growth. Water soluble fertilizers, as part of fertigation, contribute to increased crop harvest and overall agricultural productivity. With a growing global population, the demand for efficient agricultural practices and higher yields is essential.
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The fertigation segment was valued at USD 5.08 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 38% 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.
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The market in Europe has witnessed significant growth due to the high demand for these fertilizers in countries like Spain, Ukraine, Germany, Russia, and the UK. The primary use of water-soluble nitrogenous fertilizers, such as urea and nitrates, is in the cultivation of field crops, including wheat and maize. The increasing population and the need to enhance crop harvest quality have fueled the demand for specialty fertilizers in Europe. Furthermore, the changing climatic conditions and the presence of leading fertilizer producers, such as Nutrien, Casa do Adubo, and Polysulfate, in the region are anticipated to boost the market growth during the forecast period.
Our researchers analyzed the data with 2023 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.
Increase in demand from developing countries is the key driver of the market. The market is experiencing significant growth due to the increasing agricultural activities in key countries such as China, India, Brazil, Indonesia, and Pakistan. The agricultural sector in these nations is expanding to meet the rising food demand, leading to a heightened need for efficient and effective fertilizers. Water soluble fertilizers, which include Nitrogen sources like Nitric acid, Ammonium nitrate, and Urea, as well as Phosphorus and Potassium sources, offer several advantages. Their ease of application and superior performance make them a preferred choice for farmers. Additionally, the adoption of technology-driven irrigation systems, such as micro drip irrigation, is fueling the demand for water soluble fertilizers.
Moreover, APAC is a significant consumer of fertilizers globally, and this trend is expected to continue due to the region's agricultural growth. Key nutrients like Nitrogen (from sources such as Synthetic ammonia and Natural gas), Phosphorus, and Potassium are essential for optimal crop growth. The Ukrainian conflict and fluctuating natural gas prices have not significantly impacted the production of water soluble fertilizers, ensuring a stable supply for the market.
The adoption of precision farming is the upcoming trend in the market. Water soluble fertilizers play a crucial role in precision farming, a modern agricultural technique that optimizes resource usage for crop cultivation. This method employs advanced technology such as high-precision positioning systems, smart sensors, and satellite imagery to enhance farming practices. By utilizing water soluble fertilizers in precise quantities, farmers can effectively manage their input levels and minimize costs. The growing popularity of precision farming, particularly in developing countries like China, India, and Bangladesh, is driving the demand for these fertilizers. Water soluble fertilizers, which contain essential nutrients such as Nitrogen, Phosphorus, and Potassium in soluble forms, enable farmers to optimize crop nutrition and improve yields.
Moreover, the production of water soluble fertilizers relies on raw materials like natural gas, which has seen fluctuating prices due to geopolitical events such as the Ukrainian conflict. However, the industry continues to adapt, with synthetic alternatives like ammonia derived from Nitric acid and Urea being produced when natural gas prices are high. Organic farming practices also offer a sustainable alternative, although they may not provide the same level of nutrient availability as synthetic fertilizers. In conclusion, precision farming's increasing adoption, driven by its cost-effectiveness and yield improvements, is fueling the demand for water soluble fertilizers. Despite challenges such as fluctuating raw material prices, the market is expected to grow steadily during the forecast period.
Health concerns regarding the use of water-soluble fertilizers is a key challenge affecting the market growth. Water soluble fertilizers are essential agricultural inputs that enhance crop yield and productivity through the absorption of essential nutrients such as Nitrogen, Phosphorus, and Potassium. These nutrients are vital for plant growth and development. However, the long-term use of these fertilizers can pose health and environmental risks. Chemicals in water soluble fertilizers, including cadmium, aluminum, copper, and lead, can contaminate water bodies and adversely affect the environment. Human consumption of contaminated water can lead to severe health issues, including hypertension, skin diseases, and kidney failure. Furthermore, the application of chemical fertilizers to crops can increase the risks of cancer, including leukemia, large intestine cancer, and prostate cancer.
However, the ongoing Ukrainian conflict and fluctuating natural gas prices have affected the production and pricing of synthetic ammonia, a primary component of water soluble fertilizers. This, in turn, has influenced the production and availability of nitric acid and ammonium nitrate, two other essential ingredients in water soluble fertilizers. Organic farming practices offer a sustainable alternative to water soluble fertilizers, providing nutrient-rich soil and reducing the risks of health and environmental hazards. In conclusion, while water soluble fertilizers play a crucial role in modern agriculture, their long-term use poses significant health and environmental risks. The ongoing geopolitical and economic challenges in the fertilizer industry further highlight the need for sustainable and eco-friendly agricultural practices.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
Cifo Srl - The company offers manufacturing and production of agricultural chemicals. The key offerings of the company include water-soluble fertilizers.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
Water-soluble fertilizers have gained significant attention in agriculture, horticulture, and gardening activities due to their high nutrient accessibility for crops. These fertilizers contain essential macronutrients such as nitrogen, phosphorus, and potassium in water-soluble forms, making them easily absorbable by plants. The nitrogenous segment, which includes ammonium nitrate, urea, and nitric acid, dominates the market. The nitrogen market is influenced by factors such as population growth and food demand, which increase the need for crop cultivation. Natural gas prices and the Ukrainian conflict have impacted the production of synthetic ammonia, a primary component of nitrogenous fertilizers. However, the organic farming trend and environmental concerns have led to an increase in demand for natural fertilizers.
Moreover, the phosphatic and potassic fertilizers, part of the phosphatic and potassium segments, are crucial for crop growth and nutrient balance. Specialty fertilizers like polysulfate and dry water-soluble fertilizers cater to specific crop requirements. NPK fertilizers and foliar segment fertilizers are widely used in field crops, oilseeds, grain plantations, fruits, vegetables, and horticultural crops. Advanced farming techniques like fertigation and foliar application have increased the demand for water-soluble fertilizers. Cultivation of crops for food consumption and food security is a significant driver for the market. The nutrient requirements for various crops, land availability, and environmental concerns are essential factors influencing the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.84% |
Market growth 2024-2028 |
USD 3.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.94 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Spain, Russia, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Captain Polyplast Ltd., CF Industries Holdings Inc., Cifo Srl, Compagnie Financiere et de Participations Roullier, EID Parry India Ltd., Green Has Italia SPA, Grupa Azoty SA, Gujarat State Fertilizers and Chemicals Ltd., Haifa Negev technologies Ltd., Indian Farmers Fertiliser Cooperative Ltd., Industries Qatar Q.P.S.C, Israel Chemicals Ltd., KS Aktiengesellschaft, Nutrien Ltd., Sinochem Group Co. Ltd., SQM S.A., The Mosaic Co., Uralchem JSC, Yara International ASA, and Zuari Agro Chemicals Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, 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 market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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