Report Overview
The global Fertilizer market is experiencing significant growth, valued at USD 195,310.00 million in 2023 and projected to reach USD 251,970.00 million by 2031. This expansion indicates a compound annual growth rate (CAGR) of 3.24The global fertilizer market continues to evolve with robust segmentation across various dimensions, reflecting diverse agricultural needs and technological advancements. Segmented by product type into organic and inorganic categories, the market caters to a spectrum of agricultural practices worldwide. Organic fertilizers, leveraging natural components, appeal to environmentally conscious consumers seeking sustainable farming solutions. In contrast, inorganic fertilizers, characterized by synthetic formulations, dominate global agriculture due to their consistent nutrient composition and higher yields. In terms of form, fertilizers are classified into dry, liquid, and other specialized forms, addressing varied application requirements and logistical considerations in agricultural practices. The preference for liquid fertilizers is growing owing to their ease of application and rapid nutrient uptake by crops. Alongside traditional nitrogenous and potassic fertilizers, calcium ammonium nitrate emerges as pivotal, balancing nitrogen release and calcium enrichment critical for plant health and productivity.
Global Fertilizer Market report scope and segmentation.
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Report Attribute |
Details |
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Base Year |
2023 |
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Forecast Years |
2024 – 2031 |
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Estimated Market Value (2023) |
USD 195,310.00 Million |
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Projected Market Value (2031) |
USD 251,970.00Million |
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Segments Covered |
By Product Type: By Form: By Fertilizers Type: By Application Mode: By Crop Type; & By Region. |
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Forecast Units |
Value (USD Million or Million) |
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Quantitative Units |
Revenue in USD million and CAGR from 2024 to 2031. |
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Regions Covered |
North America, Europe, Asia Pacific, Rest of the World. |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Middle East, Africa, Latin America, among others. |
Global Fertilizer Market dynamics
The global fertilizer market is a crucial component of the agricultural sector, playing a vital role in enhancing crop productivity and ensuring food security. With a growing global population, the demand for agricultural products is continually rising, driving the need for efficient and effective fertilizers. The market encompasses various product types, including nitrogenous, phosphatic, and potassic fertilizers, each addressing specific nutrient requirements of crops.
The nitrogenous fertilizer segment, dominated by urea, ammonium nitrate, and ammonium sulfate, due to its essential role in promoting plant growth and increasing crop yields. Phosphatic fertilizers, such as diammonium phosphate (DAP) and monoammonium phosphate (MAP), are critical for root development and flowering, while potassic fertilizers like potassium chloride and potassium sulfate enhance water retention and disease resistance in plants. The market is also witnessing a growing trend towards specialty fertilizers, including micronutrient and biofertilizers, driven by the need for sustainable and precise farming practices.
Global Fertilizer Market drivers
The rising population will escalate the demand for fertilizers
The relentless rise in the global population is a significant driver of the fertilizer market. As of 2023, the world's population has surpassed 8 billion and is projected to reach 9.7 billion by 2050. This substantial increase necessitates a corresponding rise in food production to ensure food security. Fertilizers are essential in this endeavor as they enhance soil fertility and boost crop yields. For example, in countries like India and China, where population density is high, the use of fertilizers has been instrumental in achieving the Green Revolution. In India, the introduction of high-yield variety (HYV) seeds combined with the extensive use of chemical fertilizers transformed the country from a food-deficient nation to one of the largest producers of wheat and rice.
Impact of COVID-19 Pandemic
The COVID-19 pandemic had a profound impact on the global fertilizer market, disrupting supply chains, affecting production, and altering market dynamics. During the early stages of the pandemic, lockdowns and restrictions imposed by governments worldwide led to significant logistical challenges. Transportation disruptions hindered the movement of raw materials and finished products, causing delays and shortages in the supply of fertilizers.
Manufacturing plants faced operational challenges due to labor shortages and the implementation of safety protocols to prevent the spread of the virus. This resulted in reduced production capacity and increased operational costs. Additionally, the closure of international borders and restrictions on trade impacted the export and import of fertilizers, further straining the supply chain. These disruptions led to price volatility and uncertainty in the market.
- Restraints:
Impact of chemical fertilizers on soil quality, texture, and climate may restrict market demand
Chemical fertilizers have significantly enhanced agricultural productivity, contributing to the sustenance of billions of people worldwide. However, the growing reliance on these fertilizers raises concerns about their long-term impact on soil quality, biodiversity, and climate, potentially hindering future market demand. Excessive use of chemical fertilizers can lead to soil degradation. Over time, this results in soil acidification, reducing essential components like humus and organic matter, which are crucial for maintaining soil health and fertility. A study published in the Journal of Environmental Management found that long-term use of chemical fertilizers can decrease soil organic matter content by up to 40%.
Raw material availability and pricing challenges in the global fertilizer market
The global fertilizer industry plays a vital role in feeding the world, but its growth faces a significant hurdle the restrain of raw material availability and price. These factors create a delicate balance that can disrupt production, impact costs, and ultimately threaten food security. Key raw materials for fertilizer production, such as potash (potassium chloride) and phosphate rock, are finite resources. Their depletion poses a long-term threat to fertilizer production capacity. While new reserves are discovered, their geographic distribution and extraction costs can present challenges. Additionally, global conflicts and trade wars can disrupt the supply chains of these essential raw materials, leading to shortages, price hikes, and difficulty for fertilizer companies to secure reliable sources. For instance, the ongoing Russia-Ukraine war has significantly impacted the global potash supply, as Russia is a major producer of this crucial fertilizer component..
- Opportunities:
Growing agricultural demand in emerging markets presents opportunities for the development of micronutrient-enriched fertilizers
The global fertilizer industry is on the brink of substantial growth, driven significantly by the untapped potential in emerging markets. While established agricultural regions have well-established fertilizer practices, developing economies in Africa and Southeast Asia represent a vast opportunity for specialized solutions. According to the Food and Agriculture Organization (FAO), agricultural production in sub-Saharan Africa is expected to nearly double by 2050, creating a substantial demand for fertilizers to enhance crop yields and ensure food security. The distinct soil conditions and crop varieties in these emerging markets necessitate tailored fertilizer blends rather than generic solutions...
- Segment Overview
BY PRODUCT TYPE
In the fertilizer market, products are broadly categorized into two types: organic and inorganic fertilizers. This classification is essential for understanding the variety of fertilizers available, their sources, and their impacts on agriculture and the environment.
Organic fertilizers are derived from natural sources such as animal manure, compost, bone meal, and plant residues. They contain essential nutrients in a natural form, which are released slowly into the soil as they decompose. This slow release improves soil structure, increases water retention, and promotes beneficial microbial activity. Organic fertilizers are environmentally friendly, reducing the risk of soil and water contamination.
BY FORM
In the fertilizer market, fertilizers are categorized based on their physical form, including dry, liquid, and other specialized formulations. Each form has distinct characteristics, applications, and benefits suited to different agricultural practices and crop needs.
DRY
Dry fertilizers, also known as granular fertilizers, are solid substances that come in granules, pellets, or powders. They are widely used in agriculture due to their ease of application and storage stability. These fertilizers can be applied directly to the soil through broadcasting, side-dressing, or incorporating into the soil.
Global Fertilizer Market Overview by Region
The North America fertilizer market is a significant sector driven by advanced agricultural practices and high crop demand. Fertilizer consumption in this region is influenced by technological advancements, large-scale farming, and the need for efficient crop production to meet both domestic and export demands. The market is segmented into the U.S., Canada, and Mexico, each with unique agricultural practices and market dynamics.
The U.S. is the one of the largest market for fertilizers in North America, driven by extensive agricultural activities and a focus on maximizing crop yields. The country utilizes a balanced mix of organic and inorganic fertilizers, with a strong emphasis on nitrogenous fertilizers such as urea and ammonium nitrate due to their effectiveness in enhancing crop growth. According to a study by the University of Illinois, U.S. farmers applied approximately 22 million tons of fertilizer in 2019, with nitrogen accounting for about 58% of total use.
Global Fertilizer market competitive landscape
The Fertilizer market is characterized by the presence of many global, regional, and local providers. The market is highly competitive, with all the players competing to gain maximum market share. Intense competition, frequent changes in government policies, and regulations are key factors that impact market growth. The manufacturers compete based on cost, product quality, reliability. The manufacturers must provide cost-efficient and high-quality Fertilizer to sustain their presence in an intensely competitive market environment.
Global Fertilizer Market Recent Developments
- In December 2022, OCP Group had launched a new strategic program for 2023-2027 devoted to raising fertilizer production, investing in new green fertilizers and renewable energy.
- In March 2024, EuroChem inaugurated a new phosphate fertilizer plant in Serra do Salitre, Brazil. The $1 billion facility boasts a 1 million tonne annual capacity and eco-friendly features.
- In November 2023, EuroChem-BMU completed pilot tests for producing mineral NPS fertilizers with elemental sulfur and delivered the first 4-kiloton batch to the Russian market. The addition of sulfur in these fertilizers enhanced nutrient absorption and improved crop yields by addressing soil sulfur deficits, as demonstrated in field studies across China, North America, and Latin America.
- In March 2022, EuroChem Group AG completed the purchase of a controlling 51.48% share in Brazilian distributor Fertilizantes Heringer S.A., further strengthening the Group’s production and distribution capabilities in Brazil, one of the most important crop nutrient markets in the world.
Scope of global Fertilizer market report
Global Fertilizer report market segmentation
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ATTRIBUTE |
DETAILS |
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By Product Type |
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By Form |
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By Fertilizers Type |
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By Application |
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By Crop Type
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Customization Scope |
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Pricing |
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