(MENAFN- GlobeNewsWire - Nasdaq) The global fertilizer market size was estimated at USD 202.20 billion in 2023 and is expected to be worth around USD 276.92 billion by 2034 with a CAGR of 2.9% from 2024 to 2034. The Asia Pacific fertilizer market size was valued at USD 101.10 billion in 2023.Ottawa, Oct. 08, 2024 (GLOBE NEWSWIRE) -- According to Precedence Research, the global fertilizer market size will reach around US$ 214.10 billion by 2025 and is projected to reach US$ 269.11 billion in 2033. The fertilizer market is driven by the rising focus to increase Agriculture output and the increasing demand for organic fertilizers.
Chemical fertilizers degraded soil fertility, creating challenges in the agriculture sector. Thus, the agriculture sector increasingly focuses on the green revolution and sustainable farming practices. This, in turn, boosts the usage of organic and bio-based fertilizers, aligning well with environmentally friendly agricultural practices. With the growing trend toward precision agriculture, which is taking advantage of technological integration to maximize fertilizer use, governments are encouraging farmers to convert farmland into organic farms.
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Key Insights
The Asia-Pacific has generated highest market share of 50% in 2023. Based on form, the dry fertilizer segment has captured market share of 82.50% in 2023. Based on application, the agriculture segment has generated market share 46.1% in 2023. Based on product, the organic segment has garnered market share of 94% in 2023.
Asia Pacific has Dominated the Fertilizer Market
Asia Pacific dominated the fertilizer market in 2023 due to its diversified agricultural land and rising farming practices. In contrast, modern agricultural techniques like precision farming and controlled-release fertilizers have been used, ensuring high crop yield. Moreover, India has 179.8 million hectares of agricultural land, the largest in the world, followed by China (165.2 million hectares).
The rising demand for high-quality agricultural produce and government support to promote organic farming further contributed to the regional market growth. The Indian government assists in promoting organic farming across the country through various schemes, such as Paramparagat Krishi Vikas Yojana (PKVY), Mission Organic Value Chain Development for North Eastern Region (MOVCDNER), and National Food Security Mission (NFSM).
In July 2024, Indian Farmers Fertiliser Cooperative Limited (Iffco) launched a campaign called "Nano Fertilizer Usage Promotion Mahaabhiyan" to encourage farmers to use nano-fertilizers for sustainable agricultural practices. In July 2024, Union Minister Amit Shah announced the launch of the AGR-2 Scheme for farmers in Gujarat. Under the scheme, the government will provide farmers with a 50% subsidy on nano-fertilizer purchases for the financial year 2024-2025. In April 2024, the Africa Fertilizer Financing Mechanism (AFFM) received US$ 7.3 million in funding from Global Affairs Canada to transform African agricultural land into a more sustainable, competitive, and productive industry.
The Middle East and Africa is expected to witness the fastest growth during the forecast period. With a significant increase in the demand for organic products, organic farming practices are gaining traction in the Middle East countries. This, in turn, boosts the demand for organic or biofertilizers to enhance crop quality, thus propelling the market in the region.
Fertilizer Market Revenue Share, By Region, 2023
| Region | Share (%) |
| Asia Pacific | 50 |
| North America | 22 |
| Europe | 20 |
| LAMEA | 8 |
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Report Highlights
Form Insights
The dry segment dominated the fertilizer market in 2023 due to the heightened usage of dry fertilizers. Dry fertilizers are solid, granulated or powdered fertilizers helpful for field crops, like grains, cereals, and oilseeds. They are highly effective and easy to apply. Dry fertilizers have long shelf life due to their low moisture content, which also reduces the chances of spoilage. They are more cost-effectives and easy to manufacture, transport, and store than liquid form. With an emphasis on ecologically friendly agriculture practices, dry fertilizers are increasingly being used to meet the requirements of modern farming while addressing sustainability concerns.
The liquid segment is expected to grow at the fastest rate during the forecast period due to the increasing demand for high-efficiency fertilizers. They are widely used in precision and irrigated farming techniques. These fertilizers, which contain unique substances, make this targeted application possible. They are the best choice for immediate results, as they dissolve quickly into the soil. Moreover, they can be combined with other nutritional products and applied to crops for better results.
In September 2023, Nutrition Technologies introduced Vitalis, a liquid biofertilizer derived from insects.
| Report Coverage | Details |
| Fertilizer Market Size in 2023 | $202.20 | |
| Fertilizer Market Size by 2033 | $269.11 | |
| Fertilizer Market CAGR | 2.9% from 2024 to 2034 |
| Fertilizer Market Segmentation | Form, Application, Product, and Region |
| Fertilizer Market Companies | Haifa Group, Nutrien Ltd., Yara International ASA, CF Industries Holdings Inc., Syngenta AG, Bunge Limited, Israel Chemicals Ltd., Indian Farmers Fertilizer Cooperative Limited, Sumitomo Chemical Co. Ltd, Gemlik Fertilizer Inc. |
Product Insights
The organic segment led the fertilizer market in 2023, accounting for a major market share. There are numerous benefits associated with organic fertilizers , such as improved soil aeration, increased crop life, ease of use, and reduced environmental impact. Organic fertilizers improve soil structure and increase the retention of nutrients by converting organic fertilizers into amino acids and humic acids that significantly enhance soil properties and plant growth. Additionally, root-leaching chances are reduced by organic fertilizers' long-term nutrient availability. They improve plant health naturally by balancing the soil ecosystem. Moreover, rising government initiatives to promote sustainable farming practices augmented the segment.
In December 2023, the Government of India introduced various schemes to promote the use of organic fertilizers among farmers.
The inorganic segment is expected to grow at the fastest rate during the forecast period. In modern horticulture and agriculture, inorganic fertilizers are widely used due to their effectiveness and availability in various forms. They are more user-friendly and cost-effective than their counterparts, organic fertilizers. They retain nutrients continuously, thereby enhancing soil properties and plant health.
Application Insights
The agriculture segment dominated the fertilizer market in 2023.
A significant reduction in the availability of arable land coupled with the increasing demand for food led to a high usage of fertilizers to boost agricultural output. Soil nutrient equilibrium is crucial in crop yield and soil fertility, and fertilizers help to maintain soil quality and maximize production. The rising organic food consumption and transition to organic farming practices further contributed to the segment expansion.
The horticulture segment is expected to expand at the highest CAGR throughout the forecast period.
The horticulture sector relies heavily on fertilizers that provide the quantities of nutrients required for plant growth. These vital nutrients provide a high level of nutrition to plants and hence promote fast growth. The increasing demand for high-quality agricultural products is anticipated to boost the demand for specialized fertilizers, thus contributing to segmental growth.
Market Dynamics
Driver
Rising demand for more yields
With the rising population in developing countries, the demand for agricultural produce is increasing. This significantly boosts the demand for fertilizers vital for crop yield and soil health. Moreover, increasing awareness among farmers about the importance of fertilizers in boosting agricultural output propels the market. Fertilizers are essential for plant health and growth. They improve soil fertility and replace soil nutrients taken by previous crops. Nitrogen, phosphorus, and potassium are important nutrients required for plant growth. Thus, the demand for fertilizers for high-yield output is increasing with the rising agricultural ecosystem in emerging countries, such as India and China.
Restraint
Adverse effects associated with the excessive use of fertilizers
Fertilizers are required to be used in adequate amounts, as their excessive use can cause harm to crops. While nitrogen is essential for plant growth, it is a dangerous pollutant. Its excessive use can harm plants, water bodies, animals, and humans, as it emits potent greenhouse gases and nitrous oxide. Many economies experienced meager harvests due to excessive use of nitrogen , phosphorus, and potassium (NPK) fertilizers. The set NPK ratio is 4:2:1 for agricultural applications. This balanced nutrient composition is crucial for maintaining soil health and increasing crop yields. However, even slight changes in their ratio may reduce natural nutrients from the soil, leading to reduced yield.
Opportunity
Growing emphasis on smart farming and artificial fertilizers
Smart farming techniques allow precise fertilizer application based on data-driven insights, such as crop requirements and soil moisture content, thereby reducing nutrient losses for food security. This targeted approach helps to minimize fertilizer waste by optimizing its use. Moreover, the growing focus on producing artificial fertilizers through renewable resources creates immense opportunities for market players. Artificial fertilizers reduce environmental impact and improve soil fertility.
Recent developments
In July 2024, Coromandel International launched its new Magnesium-fortified complex grade fertilizer, 'Paramfos Plus,' in Bengaluru. In July 2024, Paradeep Phosphates, a leading fertilizer manufacturer, introduced Nano Urea and Nano Diammonium Phosphate (DAP). In March 2024, EuroChem opened a phosphate fertilizer production facility in Brazil, providing farmers with 1 million tons of high-quality fertilizers each year.
Check out more related studies published by Precedence Research:
U.S. Nitrogenous Fertilizer Market - The U.S. nitrogenous fertilizer market size was valued at USD 1,1095.3 million in 2023 and is anticipated to reach around USD 1,4293.9 million by 2033, growing at a CAGR of 1.81% from 2024 to 2033. The increasing demand for nitrogen fertilizers in enhancing the quality of crops that driving the growth of the market.
Water Soluble Fertilizer Market - The global water soluble fertilizer market size was USD 15.30 billion in 2023, calculated at USD 16.07 billion in 2024 and is projected to surpass around USD 26.28 billion by 2034, expanding at a CAGR of 5% from 2024 to 2034.
Agriculture Fertilizers Market - The global agriculture fertilizers market size was USD 214.66 billion in 2023, estimated at USD 222.60 billion in 2024 and is anticipated to reach around USD 319.45 billion by 2034, expanding at a CAGR of 3.68% from 2024 to 2034.
Liquid Fertilizers Market - The global liquid fertilizers market size was surpassed at USD 15.44 billion in 2023 and it is likely to grow at USD 21.4 billion by 2032 and growing at a registered CAGR of 3.50% over the forecast period 2023 to 2032.
Green Fertilizers Market - The global green fertilizers market size was reached at USD 3.75 billion in 2023 and it is expected to hit around USD 6.72 billion by 2032, poised to grow at a CAGR of 6.7% during the forecast period from 2023 to 2032.
Top prominent players of fertilizers market
Haifa Group Nutrien Ltd. Yara International ASA CF Industries Holdings Inc. Syngenta AG Bunge Limited Israel Chemicals Ltd. Indian Farmers Fertilizer Cooperative Limited Sumitomo Chemical Co. Ltd Gemlik Fertilizer Inc.
Segments Covered in the Report
By Form
By Application
Agriculture Grains and Cereals Oilseeds Fruits and Vegetables Others
Horticulture Gardening
By Product
Organic Plant-based fertilizers Animal-based fertilizers Mineral-based fertilizers
Inorganic Nitrogen Urea Anhydrous ammonia Ammonium nitrate UAN solutions Ammonium sulfate
Phosphorus Diammonium phosphate Monoammonium phosphate Triple superphosphate Ordinary superphosphate Ammonium polyphosphate Others
Potassium Potassium chloride Potassium sulfate Potassium nitrate
By Region
North America Europe Germany UK France Italy Spain Sweden Denmark Norway
Asia Pacific China Japan India South Korea Thailand
Latin America Middle East and Africa (MEA) South Africa UAE Saudi Arabia Kuwait
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