Controlled Release Fertilizers Market Size

Controlled Release Fertilizers Market Size

Controlled Release Fertilizers Market size estimated at USD 2.4 billion in 2015 and will witness growth of around 5.5% CAGR from 2016 to 2024.

Increasing food and crops demand along with reducing per capita share of fertile land across the globe will escalate the demand for various controlled release fertilizers in upcoming years. The global population is witnessing a sharp increase reaching 7.38 billion in 2015 with a yearly growth rate of more than 1.15% since 2010.The high population growth coupled with a rapid pace of urbanization has significantly decreased the share of agricultural or arable land per person. According to study conducted by the Food and Agriculture Organization (FAO), of the per capita availability of arable land in the world dropped to around 0.2 hectares in 2013. There is a constant need to boost the agricultural productivity across the globe and this will gradually shift focus towards good quality fertilizers to improve the soil properties and increase the land productivity. This positive trend is anticipated to have a beneficial impact on the global controlled release fertilizers market.

Shortage of food crops and adverse climatic condition is shifting the focus of agriculturists and farmers towards the acceptance of sustainable agriculture. Total malnourished population was estimated at over 800 million in 2015, of which close to 75% belong to rural areas and are completely dependent on farming for livelihood. The demand for cereals used for both animal feed and food products are estimated to reach about 3 billion tons by 2050. This will boost the demand for long-lasting fertilizers to improve the fertility of the land and to enhance the crop yield influencing the overall controlled release fertilizers market revenue.
 

Low product awareness and abundance of substitutes such as urea will restrain the growth of product market over forecast timeframe. The controlled release fertilizers are costly due to special polymer coatings on the conventional fertilizer products which may also hinder the market growth rate. The products are not popularized in economically developing and under-developed countries due to the high costs. Also, farmers of these region are not aware of the benefits of the products owing to availability of low-cost conventional fertilizers.