Fertilizer Market Size, Share, Industry, Forecast and outlook (2023-2030)

Global Fertilizer Market is segmented By Product Analysis (Nitrogen N (Urea, Ammonia, AN/CAN, DAP/MAP, NPK, UAN, others), Phosphate P205 (DAP/MAP, NPK, SSP, TSP, others), Potash), By Crops (Wheat, Maize, Rice, Other Cereal, Oilseeds, Cotton, Sugar Crops, Fruits & Vegetables, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023 - 2030

Fertilizer Market Overview

The Global Fertilizer Market reached US$ 210.5 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 308.6 billion by 2030. The market is growing at a CAGR of 4.9% during the forecast period 2023-2030.

The Global Fertilizer Market is projected to grow significantly in the forecasting period. Factors such as the increasing global population, rising food demand, and the need to improve agricultural productivity are driving the growth of the fertilizer industry. The market is expected to experience a steady increase in demand, particularly in emerging economies with a growing focus on enhancing agricultural output.

Adopting advanced farming techniques, such as precision agriculture, further contributes to the demand for fertilizers. Government initiatives and subsidies aimed at promoting sustainable agricultural practices are expected to boost the fertilizer market. Rising awareness about the importance of balanced nutrient management and soil fertility also drives fertilizer market demand.

Fertilizer Market Scope

Fertilizer Market Dynamics

Increasing Global Population and Rising Food Demand Drives The Market Growth

As the global population increases and food demand rises, the fertilizer market is poised to expand significantly. The expanding population puts pressure on agricultural systems to produce more food. Fertilizers play a crucial role in improving crop productivity and enhancing agrarian yields.

As farmers strive to meet the growing food demand, the fertilizer market experiences a corresponding surge in demand. According to the United Nations, the global population has rapidly increased from 2.5 billion in 1950 to an estimated 8.0 billion as of mid-November 2022, with an additional 1 billion people added in just over a decade and 2 billion in just over two decades.

The Need for Enhanced Agricultural Productivity Creates Opportunities for Market Growth

The need for enhanced agricultural productivity is a driving force behind the expected expansion of the fertilizer market. As the demand for food continues to rise, farmers and farming industries seek ways to increase crop yields and improve productivity. This creates a significant market opportunity for fertilizers. Fertilizers play a crucial role in enhancing agricultural productivity by providing essential nutrients to plants.

They replenish the soil with key elements such as nitrogen, phosphorus, and potassium, essential for plant growth and development. By ensuring that crops receive an optimal balance of nutrients, fertilizers help maximize their yield potential, which creates opportunities for the fertilizer market.

Environmental Concerns  Hamper the Market Growth

Fertilizer use can contribute to environmental issues like water pollution and greenhouse gas emissions. Environmental regulations and concerns may restrict fertilizer usage, impacting the market growth.

Fertilizer Market Segment Analysis

The Global Fertilizer Market is segmented based on type, crops, and region.

Increased Demand for Versatility and Cost-Effective Fertilizers is Driving Urea Segment Growth

The urea segment has emerged as the dominant force in the Global Fertilizer Market. The urea market represents a substantial portion of the overall fertilizer market in terms of production volume and revenue. The high demand for urea fertilizers stems from their versatility and cost-effectiveness, making them a preferred choice for farmers worldwide. The large-scale use of urea in various crops and regions has contributed to its dominance in the market.

Many fertilizer manufacturers also dedicate production facilities to urea, ensuring its consistent supply and expanding product lines. For instance, in January 2020, Nutrien Ltd completed the acquisition of Agrosema Commerical Agricola Ltd, a strategic move aimed at strengthening its presence in the Brazilian market and expanding its operations in the region.

 
Source: DataM Intelligence Analysis (2023)

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Fertilizer Market Geographical Penetration

Increasing Demand for Fertilizer with High Consumption of Food in Asia Pacific

The Asia Pacific region has been dominating the global fertilizer market, exerting significant influence and holding a substantial market share. The Asia Pacific region has a large population, including countries with high agricultural output and consumption.

The region's vast population creates a strong demand for food, driving extensive agricultural activities. As a result, the fertilizer market in the Asia Pacific region is experiencing substantial growth. It dominates the global market because it needs to sustain and enhance agricultural productivity to meet the population’s food requirements.

Many manufacturers also actively support the region's dominance by continuously launching new fertilizers in the market. For instance, on May 23, 2023, Bioprime AgriSolutions Pvt Ltd introduced eight climate-resilient crop products and has further plans to launch nutrient-efficient products that can reduce the reliance on synthetic fertilizers by 50 percent.

Source: DataM Intelligence Analysis (2023)

Fertilizer Market Competitive Landscape

The major global fertilizer market players include Agrium Inc., Israel Chemical Ltd. (ICL), Sociedad Química Y Minera De Chile (SQM), K+S AKTiengesellschaft, Yara International Asa, Haifa Chemicals Ltd., Compo GmbH & Co. Kg, Coromandel International Ltd., The Mosaic Company, and Hebei Monband Water Soluble Fertilizer Co., Ltd.

COVID-19 Impact Analysis

The pandemic has disrupted the global supply chain, including transporting fertilizers and raw materials. Restrictions on movement, border closures, and reduced workforce have resulted in logistical challenges, leading to fertilizer production and distribution delays. These disruptions have affected market availability and contributed to fluctuations in fertilizer prices.

However, Changes in consumer behavior and preferences during the pandemic have also influenced the fertilizer market. With the economic uncertainty caused by the crisis, consumer spending patterns have been altered, leading to shifts in food consumption. This, in turn, affects the demand for fertilizers as changes in crop planting decisions and agricultural practices occur in response to shifting consumer demands.

Artificial Intelligence Impact Analysis

Artificial Intelligence (AI) based technologies such as remote sensing, drones, and satellite imagery enable precise monitoring of crops and soil conditions. This data-driven approach facilitates targeted and optimized fertilizer application, leading to improved crop yields, resource efficiency, and cost-effectiveness. The adoption of precision agriculture techniques supported by AI contributes to market expansion as farmers seek advanced solutions for efficient nutrient management.

By Type

• Nitrogen N
  • Urea
  • Ammonia
  • AN/CAN
  • DAP/MAP
  • NPK
  • UAN
  • Others
• Phosphate P205
  • DAP/MAP
  • NPK
  • SSP
  • TSP
  • Others
• Potash
  • MOP/SOP
  • NPK
  • Others

By Crops

• Wheat
• Maize
• Rice
• Other Cereal
• Oilseeds
• Cotton
• Sugar Crops
• Fruits & Vegetables
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On April 6, 2023, Zuari FarmHub, an agritech company joined forces with Novozymes South Asia, a prominent player in biological solutions, to introduce Poorna Advanced, a 100% water-soluble fertilizer. This innovative product incorporates LCO Promoter Technology, which establishes a signaling pathway between plants and beneficial soil microbes near the plant's root system.
• In June 2022, ICL entered into a long-term agreement with India Potash Limited (IPL) to provide Polysulphate until 2026. Under the five-year contract, ICL will supply 1 million metric tons of Polysulphate. This partnership is anticipated to contribute to the growth of the Indian government's organic agriculture initiative by ensuring the availability of Polysulphate.
• In May 2022, ICL finalized framework agreements with customers in India and China for potash supply 2022. The deal with Indian customers involves 600,000 metric tons of potash, while the agreement with Chinese customers entails the supply of 700,000 metric tons. The agreed price for both contracts is set at USD 590 per ton.
• In February 2022, ICL launched lawn care fertilizers incorporating two different formulations. One option is a combination of urea coated with sulfur and a biodegradable polymer membrane known as Poly-S. The second option consists of resin-coated nitrogen combined with phosphorus and potash, referred to as PACE. These innovative formulations prevent uncontrolled shock growth in lawns, reducing mowing requirements.

Why Purchase the Report?

• To visualize the Global Fertilizer Market segmentation based on type, crops, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of fertilizer market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Fertilizer Market Report Would Provide Approximately 53 Tables, 52 Figures And 105 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies