Controlled Release Fertilizer Market Size By Product (Polymer Sulfur Coated Urea/Sulfur Coated Urea, Polymer Coated Urea, Polymer Coated NPK), By Crop (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Spain, Italy, China, India, Japan, Australia, Indonesia, Malaysia, Brazil, Mexico, South Africa, GCC), Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024
Latest Update: Aug 2019 | Published Date: Jan 2017 | Report ID: GMI1112 | Authors: Kiran Pulidindi, Soumalya Chakraborty Report Format: PDF
Controlled Release Fertilizer Market size exceeded USD 2.4 billion in 2015 and will witness growth of over 5.6% from 2016 to 2024.
China Controlled Release Fertilizer Market size, by crop, 2013 - 2024 (USD Million
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Increasing population across the globe has catapulted the demand of various crop products, and with reducing arable land the adoption of various sustainable agricultural products is increasing. This will affect the controlled release fertilizer market positively in coming years. Robust urbanization and industrialization activities has reduced arable land and had put the pressure on farmers to increase their yield in order to gain profit. The product’s ability to control fertilizer’s release in soil so that they can coincide with the crops or plant nutrient requirement makes it the suitable choice for various farmers, nursery and husbandry owners. In developed economies such as U.S. the arable land is decreasing, it had reduced from 4,099,606.8 sq. km in 2009 to 4,058,625 sq. km. in 2016. Of the total world’s land area there is only around 10% of arable land, and also according to WHO the agricultural output needs to be increased by 50% per hectare to cater the demand of various crop and food products round the globe. This will increase the focus on fertilizers that will help in improving land productivity and soil properties. These aforementioned factors are likely to impact controlled release fertilizer market positively over the forecast timeframe.
Global warming has some adverse effects on agricultural productivity, it is expected that the crop yield will decrease by 25% till 2030. It is anticipated that food/crop products demand will increase by 35% and about three fourth of this demand is met by increasing the crop yield and productivity. To increase land fertility and crop yield the demand of these engineered fertilizers is expected to augment over the forecast time period.
Availability of various low-price substitutes such as NPK fertilizers and urea may hinder the demand of these engineered fertilizers in near future. The product is expensive due to the special polymer coatings on conventional fertilizers. Most of the agriculture-based economies in Africa and Asia Pacific are not aware of the benefits of product and its high cost makes it less desirable by farmers.
The different types of controlled release fertilizer are sulfur coated urea or polymer sulfur coated urea, NPK and polymer coated urea. Sulphur coated urea holds majority share in the overall market and shows a significant CAGR of around 6.2% from 2016 to 2024. Sulfur coated urea have urea granules with sulfur coatings on them, they contain around 20% sulfur and 35% nitrogen. The polymer sulfur coated urea has urea granules coated with polymers and sulfur. In 2015 this segment holds revenue of around USD 1.2 billion and will show compounded annual growth rate of around 6% over forecast timeframe.
Polymer coated urea also hold almost about 25% of the global controlled release fertilizer market, this is owing to their ability to improve nitrogen absorption efficiency and reduce the nitrogen loss in environment. It can maintain the nutrients level in the soil throughout the harvest season and this ability of them will help in getting the good compounded annual growth rate over forecast timeframe.
The various types of crops for which controlled release fertilizer used are fruits & vegetables, grains and cereals, oilseeds & pulses and others. The others include ornamental plants, turfs and other gardening plants. Increasing demand of cereals and grains as these are primary food source makes it the major segment for the utilization of these fertilizers. This segment holds around 40% of the controlled release fertilizer market and on the basis of revenue it holds around USD 895 million in 2015. This segment showcases the CAGR of around 6% till 2024.
Increasing real income in emerging nations has catapulted the gardening and landscaping industry and this will positively affect the demand of these engineered fertilizers. Increasing awareness about the gardening will help in upscaling the product demand as various hobby gardeners and cultivators also uses such products.
Asia Pacific controlled release fertilizer market holds the largest share in 2015, due to presence of various agricultural-based economies in region. Adoption of various sustainable cultivation techniques in region due to changing climatic conditions and reducing arable land will also contribute towards product market growth. Asia Pacific will show significant CAGR of 7% over forecast time spell.
Europe will showcase a sluggish growth rate of around 1.5% due to presence of various other substitute and other types of fertilizers. Also, reducing agricultural activities in various developed nations reduces the demand of the product.
Competitive Market Share
The companies in controlled release fertilizer market are adopting various inorganic growth strategies to get a better hold on the market. For instance, BASF SE and Compo GmbH has done strategic partnership and are developing applications and software that will help in enhancing crop quality, this will certainly help in gaining a substantial hold on the market. The major players in market are BASF SE, Yara International, Agrium, Inc, Dupont, Greenfeed Agro, Scotts Miracle-Gro, Israel Chemicals, ICL Specialty Fertilizers, Kingenta, etc.
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Controlled release fertilizer is designed specially to impart long term effect on soil, these engineered fertilizers are coated for providing such effects on the soil. Rising population along with escalating food product demand has urged need to increase the crop yield from agricultural land. The demand of fertilizers is going to augment as in various emerging nations with increasing farming income, various agriculturalist and farmers are shifting their focus towards environment friendly fertilizers.
Asia Pacific is the largest market and will be going to escalate over the forecast timeframe as economies such as Thailand, China, India are gradually shifting towards better farming methodologies. Although high product price makes it unattractive at initially, but it can be characterized with its higher efficiency.
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