Fertilizer Market Size, Share, Industry Analysis, Trends Report, Growth, 2030

Fertilizer Industry Prospective:

The global fertilizer market size was worth around USD 201.45 billion in 2022 and is predicted to grow to around USD 261.81 billion by 2023 with a compound annual growth rate (CAGR) of roughly 3.33% between 2023 and 2030.

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Fertilizer Market: Overview

Fertilizer is a material that is added to the soil to improve its nutrient composition. Fertilizers can either be synthetic or natural depending on the raw materials used during fertilizer preparation. The end goal of fertilizer application to plant tissues or soil is to ensure that the soil contains enough nutrients to support and facilitate plant growth. As agricultural needs have evolved with time, the need for district and more efficient fertilizers has also changed. Modern agricultural practices focus mainly on three essential fertilizer components including potassium (K), phosphorous (P), and nitrogen (N). In some cases, certain fertilizers may also contain rock flour as an additional ingredient. Fertilizer application to the soil also differs depending on cultural and available farming practices.

For instance, some farmers may choose to use liquid fertilizers while other farmer groups may prefer dry fertilizer brands. In addition to this, there is a growing demand for natural or organic fertilizer options since they contain less harmful chemicals. However, excessive or uncontrolled use of fertilizers is a matter of concern since it is known to disrupt the original soil texture and lead to global warming.

Key Insights:

• As per the analysis shared by our research analyst, the global fertilizer market is estimated to grow annually at a CAGR of around 3.33% over the forecast period (2023-2030)
• In terms of revenue, the global fertilizer market size was valued at around USD 201.45 billion in 2022 and is projected to reach USD 261.81 billion, by 2030.
• The fertilizer market is projected to grow at a significant rate due to the rising demand for food products as the world population is rising
• Based on application segmentation, agriculture was predicted to show maximum market share in the year 2022
• Based on product segmentation, inorganic was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Fertilizer Market: Growth Drivers

Rising demand for food products as the world population is rising may cause higher demand for fertilizers

The global fertilizer market is projected to grow owing to the increasing demand for food products across the globe. The world population is growing rapidly. By 2050, as per official reports, over 9.5 billion people are expected to be living on Earth. As estimated by the United Nations (UN), around 140 million babies are born every year. The growing number of people on the planet is putting immense pressure on the agricultural sector to meet the most basic needs of humans and animals alike. As per the Agricultural Ministry of India, the country produced a record-breaking 112.74 million tons between July 2022 and June 2023. Similar statistics are observed globally however, the production quantity is still not sufficient to feed people worldwide.

As per Action Against Hunger, around 783 million people across the globe remain hungry. The number is only an estimate and the amount can be higher. The gap between the supply and demand of food products is further increased owing to the growing number of natural diseases globally leading to crop damage. As per the Food and Agriculture Organization (FAO), natural disasters have led to the loss of over USD 3.8 trillion in livestock production and crop worth in the last 3 decades. In 2022 alone more than 400 natural disasters were recorded across the globe. The world is witnessing a steady change in climate conditions which is a primary reason for weather unpredictability.

Rising investments by government agencies to promote the agricultural industry may fuel market demand

The demand for fertilizers is expected to generate higher revenue as a result of increasing investments by the regional governments to improve agriculture infrastructure and attract more stakeholders in the global fertilizer market. In August 2023, the United States Agency for International Development (USAID) announced that it would make investments in the agricultural sector of Mozambique. The investment portfolio is expected to be worth USD 170 million and is expected to help the region navigate sudden weather changes that the area is subject to frequently.

Fertilizer Market: Restraints

Impact of chemical fertilizers on soil quality, texture, and climate may restrict market demand

The global fertilizer industry is expected to be restricted due to the growing concerns over the negative impact of excessive use of fertilizers on soil compositions and eventually on the land quality. Overuse of chemical fertilizers is known to cause soil acidification thus leading to reduced quantities of other essential components such as humus, organic matter, and species of other beneficial organisms that may otherwise contribute to overall positive crop yield. In addition to this, it can also lead to alteration in soil pH level. In some cases, they are known to emit greenhouses thus contributing to climate change.

Fertilizer Market: Opportunities

Rising demand and awareness of organic fertilizers hold tremendous growth opportunities

The global fertilizer market is projected to register high demand for organic and chemical-free fertilizers. There is a significant market for organic food products. End-consumers are becoming increasingly aware of the several environmental and health benefits of organic food that is produced without the help of chemicals in any form. In 2022, the global organic food market was valued at USD 184 billion and during the projection period, it is expected to grow at a CAGR of over 11%. This trend has encouraged more farmers to opt for organic fertilizers since they offer high crop yield and quality without impacting soil composition.

In March 2023, Windfall Bio, an emerging agriculture technology (ag-tech) company, announced that it has closed USD 9 million worth of seed funding offered by UNTITLED and Mayfield. Windfall Bio is working on developing the world’s first methane-to-organic fertilizer solution. Through the research, the company aims to convert harmful methane emissions into organic fertilizers. In October 2023, Uterra, a leading company with investments in the agricultural and real-estate sector, announced that it will be investing USD 20 million in the Ras Al Khaimah region of the United Arab Emirates (UAE). The company has bought a plot spread across 33,000 m2 and will be using the area for the production of micro-biological organic fertilizer to be used in the agriculture industry.

Fertilizer Market: Challenges

High cost of fertilizers and reduced profits in the agriculture sector may challenge market adoption

The global market for fertilizers is projected to be challenged by the high expenses associated with organic fertilizers. In addition to this, farmers across the globe are registering reduced profit margins. Several reports worldwide indicate that farmers are unable to generate expected profit results and they are steadily shifting focus to other means of employment. This trend could act as a challenge leading to a reduced growth rate.

Fertilizer Market: Segmentation

The global fertilizer market is segmented based on application form, product, and region.

Based on application, the global market segments are gardening, horticulture, agriculture, and others. In 2022, the highest revenue-generating segment was agriculture. In several countries, farming is the largest form of employment. For instance, India's agriculture industry employed over 145 million people in the fiscal year 2023. Fertilizers are key components to quality crop yield. They are used in every crop season and as the pressure on the agricultural sector is mounting at an alarming level, the revenue in the agricultural sector is likely to reach new heights.

Based on product, the global fertilizer industry is divided into liquid and dry.

Based on product, the global market is divided into inorganic and organic. In 2022, the former was the leading revenue generator. Chemical fertilizers currently dominate the industry since they enjoy the benefits of a mature market. However, the demand and consumption of the organic sector is growing at a faster rate due to the rising consumer awareness and demand for organic food products. More than 25% of the Indian population currently prefers organic food thus contributing to segmental demand.

Fertilizer Market: Report Scope

Fertilizer Market: Regional Analysis

Asia-Pacific is expected to register the highest growth rate during the projection period

The global fertilizer market is expected to register the highest demand in Asia-Pacific. India and China are the world’s largest agricultural countries. Currently, China produces the highest number of crops catering to the demands in the regional and international markets. In August 2023, the Chinese government announced that it would increase agricultural investments in the coming years. On the other hand, India is also accelerating crop production. For instance, India’s Union budget for fiscal year 2022-2023 focuses on introducing digital technology in the regional agricultural industry thus promoting higher interest of existing and new players. All of these factors will work in tandem to improve fertilizer demand.

In December 2023, Rallis India, a Tata Chemicals subsidiary, announced the introduction of a patented zinc-based fertilizer called NAYAZINC with extensive soil applications. In October 2023, the Union Cabinet of India approved INR 22,300 crore to be used for subsidies for rabi fertilizer. Europe is one of the leading revenue generators. France is the region’s largest agricultural producer as it is one of the leading food exporters in the world.

Fertilizer Market: Competitive Analysis

The global fertilizer market is led by players like:

• Uralkali
• Yara International
• ICL Group
• The Mosaic Company
• Haifa Group
• Potash Corporation of Saskatchewan (now Nutrien)
• CF Industries
• Bunge Limited
• Agrium (now part of Nutrien)
• Sinofert Holdings Limited
• EuroChem
• IFFCO (Indian Farmers Fertiliser Cooperative)
• K+S Group
• Coromandel International
• OCP Group.

The global fertilizer market is segmented as follows:

By Application

• Gardening
• Horticulture
• Agriculture
• Others

By Form

• Liquid
• Dry

By Product

• Inorganic
• Organic

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa