Fertilizer Market to exceed $200 billion by 2026
Published Date: December 16, 2020 Authors: Kiran Pulidindi, Akshay Prakash
According to a new research report by Global Market Insights, Inc., the Fertilizer Market size is estimated to surpass USD 200 billion by 2026.
The ever-increasing population along with its growing demand for food across the globe will drive the fertilizer market in the near-term. These provide numerous advantages that include better crop yield in restricted areas and improve soil nutrient availability & texture. Additionally, growing initiatives to develop manure usage efficiency and decrease the effect of nutrient losses in the environment will have an opportunistic line for fertilizer market demand over the coming years. Furthermore, the development of advanced products, such as water-soluble and other specialty fertilizers, has empowered farmers to use them more efficiently, which also minimizes the risk of excess usage.
Liquid fertilizer segment will hold over 15% share in 2019 owing to their applications, i.e., these fertilizers can either be ground applied or foliar applied. Additionally, easy blending, handling, and uniformity during application make it more appropriate for both starter & in-season applications. Liquid fertilizer also uses less water, making it favorable for regions that face frequent water shortages or scarcity.
Browse key industry insights spread across 400 pages with 599 market data tables & 28 figures & charts from the report, “Fertilizer Market Size, By Form (Dry, Liquid), By Product (Organic, Inorganic), By Application (Agriculture, Horticulture, Gardening), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increasing demand for primary nutrients will surge inorganic segment growth
Inorganic segment, such as Nitrogen- (N), Phosphorus- (P), and Potassium- (K) based fertilizers, will witness around 3% CAGR and will hold dominance in fertilizer market share. This is due to the excessive usage of inorganic fertilizers for higher crop yields. Additionally, these provide an immediate supply of nutrients to plants when required. Excessive nutrient content may affect soil fertility, which will hamper segment growth in the short-term. Nevertheless, low logistics cost and immediate availability of key nutrients to the crops will drive industry growth in the coming years.
The horticulture application segment accounted for over 45% in 2019 and is estimated to grow at a substantial rate by 2026. The growth in the segment is attributed to its growing usage to produce several fruits and vegetables worldwide. Furthermore, rising government investments and initiatives to promote horticulture across different regions will surge the penetration in the fertilizer market. For instance, in 2019, the Haryana State Horticulture Development Agency (HSHDA) of India approved around 40 proposals for banana ripening chamber, mushroom cultivation, integrated post-harvest management, etc.
The Europe fertilizer market is anticipated to witness over 2.5% CAGR from 2020 to 2026. The product growth in the region illustrates that the continent has reached its limit, in terms of both fertilizer use and arable land, with the exception of Southeastern and Central Europe where crop yields lag. Furthermore, the adoption of new regulations by the EU that will limit the usage of inorganic fertilizers and promote the use of organic fertilizers across the region is anticipated to increase the consumption of organic fertilizers over the coming years.
Expansion in production capacity is prevalent among industry players
Key fertilizer industry manufacturers include CF Industries Holdings, Nutrien Ltd., The Mosaic Company, Sumitomo Chemical Co., Ltd., Haifa Group, and Yara International. These companies are focused on expanding their regional reach. For instance, in January 2019, Haifa Group expanded its Controlled Release Fertilizer (CRF) facility in France with an additional 8,000 MTPA production capability. This strategy enabled the company to increase its production capability by up to 24,000 MTPA.
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