Chemical Fertilizers Market Definition
The fertilizers manufacturing market consists of the sales of fertilizers by entities (organizations, sole traders or partnerships) that produce nitrogenous or phosphate fertilizers materials; produce fertilizers from sewage or animal waste; manufacture nitrogenous or phosphate materials and mix with other ingredients into fertilizers; and/or mix ingredients made elsewhere into fertilizers.
A fertilizer is defined as a substance such as a chemical mixture which is applied on soil or plants to supply nutrients essential to the growth of plants. This report covers only chemical fertilizers defined as synthetically manufactured fertilizers.
Chemical Fertilizers Market Size
The global market for chemical fertilizers reached a value of nearly $104.9 billion in 2018, having declined at a compound annual growth rate (CAGR) of -3.3% since 2014. The market is expected to grow at a CAGR of +3.7% to nearly $121.3 billion by 2022.
Growth in the chemical fertilizers market in the historic period resulted from growth in emerging markets, government support, a low interest environment, government subsidies and intensive farming techniques. Factors that negatively affected growth in the historic period were safety regulations, erratic rainfall, overcapacity in food production, and rising prices for natural gas.
Going forward, global population growth, economic growth, and adoption of advanced technologies will drive growth. Factors that could hinder the growth of this market in the future are rising interest rates, reductions in free trade, soil erosion, government regulations, increasing use of bio-fertilizers, alternative farming practices, and rising demand for organic food products.
Chemical Fertilizers Market Drivers
The key drivers of the chemical fertilizers market include:
Government Subsidies – Governments across all nations offer support in the form of incentives, subsidies, loans and tax waivers on agricultural products and fertilizers, thereby boosting the overall industry. Fertilizers subsidies are offered by governments to increase agricultural production while insulating farmers from the rising prices of fertilizers. Some governments fix the price of fertilizers at below market rates and reimburse companies for shortfalls. Some governments directly transfer fertilizers subsidies to farmers or farming communities, thus benefitting the fertilizers market. For instance, in 2014, the Chinese government announced a total fund of 122.2 billion yuan ($19.7 billion) as subsidies to farmers for the production of grains and purchase of agricultural production resources such as fertilizers and pesticides.
Chemical Fertilizers Market Restraints
The key restraints on the chemical fertilizers market includes:
Alternative Farming Practices – The fertilizers market is likely to be limited by increasing use of alternative farming practices such as aquaponics, during the forecast period. Aquaponics involves the growing of hydroponic crops along with the raising of aquatic animals (such as fish). In aquaponics system, the water containing the waste material generated from the aquatic animals is used to nourish the hydroponic plants. Fertilizers are not used in aquaponics as they can harm the aquatic animals. The rise in adoption of such farming practices is expected to impact the overall demand for fertilizers, thereby limiting the market during the forecast period.
Chemical Fertilizers Market Trends
Major trends influencing the chemical fertilizers market include:
Fertilizers From Recovered Phosphorus – Phosphorus is being recovered from sewage, manure and other sources and made available as a fertilizer. Since phosphorus is a finite source, companies are looking for ways to recycle or recapture phosphorus to be used in agriculture. Plant-available phosphorus content is increased through anaerobic digestion and composting and in sludge from sewage through acid treatment and oxidising. According to research conducted by the Luke Research Agency, Finland, manure and sludge when treated appropriately can provide more phosphorus than traditional inorganic fertilizers.
Increase in Usage of Nano-Fertilizers – Fertilizers companies are increasingly using Nano-technology to enhance the efficiency of the fertilizers. Nano-fertilizers can increase the soil fertility yield and enhance the quality parameters of the crop. Furthermore, they are non-toxic and less harmful to environment and humans, compared to the conventional fertilizers products. Nano-particles can also increase efficiency of nutrients and minimize the costs of environment protection. Major companies manufacturing Nano-fertilizers are Richfield Fertilizers Pvt. Ltd, Alert Biotech, Nanosolutions and Florikan.
Recommendations In The Chemical Fertilizers Market
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the chemical fertilizers companies to organizing field programs and raising awareness among farmers, expanding in emerging markets, developing products suitable for advanced farming, provide low-priced offerings, and explore the possibilities of extracting phosphorus from sewage and manure.
Chemical Fertilizers Market Segmentation
The Chemical Fertilizers market is segmented by type of nutrient, by crop category, by method of application, and by geography.
By Nutrient Type-
The chemical fertilizers market is segmented by type of nutrient into
The potash market is expected to be the fastest-growing segment going forward at a CAGR of 5.1%. Major drivers of the potash market segment include economic growth and the adoption of advanced technologies.
- a) Nitrogen
- b) Phosphate
- c) Potash
By Nutrient Type-
The nitrogen market is segmented by type of nutrient into
The phosphate market is segmented by type of nutrient into
- a) Urea
- b) Nitrogen - Ammonium Phosphate
- c) Nitrogen - Others
- d) Nitrogen - NPK
- e) Ammonium Sulphate
- f) Calcium Ammonium Nitrate
The potash market is segmented by type of nutrient into
- a) SSP
- b) TSP
- c) Phosphate - Ammonium Phosphate
- d) Phosphate - NPK
- e) Phosphate – Others
By Crop Category (Volume)-
- a) Potassium Chloride
- b) Potassium Sulphate
- c) Potash - NPK
- d) Potash – Others
The chemical fertilizers market is segmented by crop category into
From 2014 to 2018 the largest segment of the market segmented by type of crop was fertilizers used for growing cereals and the fastest-growing segment was for growing oilseeds.
- a) Cereals
- b) Oilseeds
- c) Vegetables
- d) Fruits
By Method Of Application (Global)- The chemical fertilizers market is segmented by method of application into
By Geography-The chemical fertilizers market is segmented into
- a) Fertigation
- b) Foliar Spray
- c) Broadcasting
- d) Drop Spreading/Placement
Asia Pacific is the largest market for the chemical fertilizers industry, accounting for 43.0% of the global market. It was followed by North America, South America, and then the other regions. Going forward, Africa and South America will be the fastest growing regions in this market, followed by Eastern Europe and Western Europe.
- o North America
- o Western Europe
- o Asia Pacific
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Chemical Fertilizers Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Nutrien Ltd.
- • Yara International
- • The Mosaic Company
- • CF Industries Holdings Inc.
- • Israel Chemicals Ltd
- • Eurochem Inc.
- • Sinofert Holdings Ltd.
- • Uralkali
- • Coromandel International Ltd.
- • Bunge Ltd.