Specialty Fertilizer Market

Market Definition

The market refers to the segment of the agricultural industry focused on high-performance fertilizers designed to enhance crop productivity and quality. This market encompasses a wide variety of fertilizer types, including urea ammonium nitrate, calcium ammonium nitrate, and others.

It also includes technologies such as controlled-release fertilizers, water-soluble fertilizers, liquid fertilizers, and micronutrients, which cater to the specific nutrient needs of crops at different growth stages. The report presents an overview of the primary growth drivers, supported by regional analysis and regulatory frameworks expected to impact market development over the forecast period.

Specialty Fertilizer Market Overview

The global specialty fertilizer market size was valued at USD 25.62 billion in 2023 and is projected to grow from USD 27.05 billion in 2024 to USD 41.24 billion by 2031, exhibiting a CAGR of 6.21% during the forecast period.

The market is driven by the growing need for high-efficiency fertilizers that support precision agriculture and sustainable farming. The increasing adoption of advanced agricultural technologies and the shift toward fertilizers with controlled nutrient release is accelerating market growth. As soil quality declines and climate variability affects crop yields, farmers are adopting specialty fertilizers to improve productivity and optimize resource use.

Major companies operating in the specialty fertilizer industry are PhosAgro Group, EuroChem Group, ICL, Uralchem, Mosaic, SQM, CF Industries Holdings, Inc., Tessenderlo Group, OCP Group, Yara, K+S Aktiengesellschaft, Fertiberia, Compass Minerals, Grupa Azoty, and Haifa Negev technologies LTD.

Water-soluble fertilizers are gaining significant traction in the agricultural sector due to their ability to provide precise and efficient nutrient delivery. These fertilizers completely dissolve in water, allowing for uniform distribution through irrigation systems such as drip or sprinkler irrigation.

• In August 2024, ICL announced a 5-year distribution agreement with AMP Holdings Group Co. Ltd. Valued at approximately USD 170 million, the agreement aims to expand ICL’s specialty water-soluble fertilizer offerings, designed for cash-crops such as apples, watermelons, and vegetables.

Key Highlights:

1. The specialty fertilizer market size was recorded at USD 25.62 billion in 2023.
2. The market is projected to grow at a CAGR of 6.21% from 2024 to 2031.
3. North America held a market share of 33.24% in 2023, with a valuation of USD 8.52 billion.
4. The urea ammonium nitrate segment garnered USD 5.74 billion in revenue in 2023.
5. The controlled-release fertilizers segment is expected to reach USD 11.27 billion by 2031.
6. The cereals & grains segment is expected to reach USD 14.66 billion by 2031.
7. The fertigation segment is expected to reach USD 17.21 billion by 2031.
8. Asia Pacific is anticipated to grow at a CAGR of 7.19% during the forecast period.

Market Driver

Rising Demand for High-Efficiency Fertilizers

The global market is significantly driven by the rising demand for high-efficiency fertilizers. Factors such as declining soil fertility and climate variability are prompting farmers to use controlled-release and water-soluble formulations for precise nutrient delivery.

This helps enhance crop yields while reducing the risk of leaching and runoff. The focus on efficiency and environmental performance is making these fertilizers a preferred option across both developed and emerging agricultural regions.

• In May 2024, Coromandel International Limited introduced 10 new crop protection products aimed at improving crop yield, managing pest infestations, and promoting sustainable farming in India. The launch included three patented products, five generic formulations, and a neem-coated bio soil and plant health promoter as part of the initiative. The company partnered with ISK Japan to introduce a patented solution, prachand, for protecting paddy crops from stem borers and leaf folders.

Market Challenge

High Cost of Production and Application

One of the major challenges in the specialty fertilizer market is the high cost of production and application. These fertilizers often involve advanced formulations, precision technologies, and specialized materials, making them more expensive than conventional fertilizers. This becomes a barrier for small and medium-scale farmers, especially in developing regions where cost sensitivity is high.

Limited awareness and access to credit further add to the problem. To address this challenge, key players are collaborating with governments to introduce subsidy programs and public-private partnerships. These initiatives aim to lower the financial burden on farmers and promote wider adoption. Expanding distribution networks and offering training on efficient applications can further improve affordability and drive market growth.

Market Trend

Shift Toward Water-Soluble Products

The market is experiencing a strong shift toward water-soluble fertilizers. These products dissolve completely in water and allow precise application through fertigation systems. This method delivers nutrients directly to the root zone, enhancing uptake efficiency and minimizing nutrient losses.

Farmers are adopting these fertilizers to increase efficiency and maximize yield, especially in high-value crops like fruits and vegetables. Water-soluble fertilizers support controlled dosing and fit well with modern irrigation methods. Their use is expanding in regions facing water stress, as they promote better water management.

• In April 2023, Zuari FarmHub Limited launched a 100 percent water-soluble fertilizer named 'Poorna Advanced' in collaboration with Novozymes South Asia Pvt. Ltd. The product features innovative LCO Promoter Technology, which enhances nutrient absorption by activating a signaling pathway between plant roots and beneficial soil microbes.

Specialty Fertilizer Market Report Snapshot

Segmentation	Details
By Type	Urea Ammonium Nitrate, Calcium Ammonium Nitrate, Monoammonium Phosphate, Sulfate of Potash, Potassium Nitrate, Urea Derivatives, Blends of NPK, Others
By Technology	Controlled-release Fertilizers, Water-soluble Fertilizers, Liquid Fertilizers, Micronutrients, Others
By Crop	Cereals & Grains, Fruits & Vegetables, Oilseeds & Pulses, Others
By Application	Fertigation, Foliar, Soil
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Type (Urea Ammonium Nitrate, Calcium Ammonium Nitrate, Monoammonium Phosphate, Sulfate of Potash, and Potassium Nitrate, Urea Derivatives, Blends of NPK, Others): The urea ammonium nitrate segment earned USD 5.74 billion in 2023 due to its high nitrogen content and suitability for precision farming applications.
• By Technology (Controlled-release Fertilizers, Water-soluble Fertilizers, Liquid Fertilizers, and Micronutrients): The controlled-release fertilizers held 27.30% of the market in 2023, due to their efficiency in minimizing nutrient loss and enhancing crop yield.
• By Crop (Cereals & Grains, Fruits & Vegetables, Oilseeds & Pulses, and Others): The cereals & grains segment is projected to reach USD 14.66 billion by 2031, owing to increasing global demand for staple foods and large-scale farming practices.
• By Application (Fertigation, Foliar, Soil): The fertigation segment is projected to reach USD 17.21 billion by 2031, owing to its compatibility with modern irrigation systems and efficient nutrient delivery.

Specialty Fertilizer Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America specialty fertilizer market share stood around 33.24% in 2023 in the global market, with a valuation of USD 8.52 billion. This dominance is attributed to the widespread adoption of precision agriculture across the U.S. and Canada. The region's large-scale commercial farming operations and government initiatives focused on sustainable agriculture fuel market growth. 

Farmers in North America are increasingly shifting toward high-efficiency, controlled-release fertilizers to improve nutrient uptake and reduce environmental impact. The presence of leading fertilizer manufacturers and a well-established distribution network are further driving market growth in this region.

• According to a report published by the India Brand Equity Foundation (IBEF) in February 2025, the Indian chemical industry is currently valued at USD 220 billion and is projected to reach USD 300 billion by 2030. The industry is projected to reach USD 1 trillion by 2040, fueled by increasing domestic demand, expanding export potential, and supportive government initiatives aimed at boosting manufacturing and innovation.

Asia Pacific is poised to grow at a significant growth at a CAGR of 7.19% over the forecast period. This growth is fueled by rising food demand driven by population expansion in countries such as India and China. Governments across the region are promoting balanced nutrient application and modern farming practices through various incentive programs. 

The region is also seeing a shift toward high-value horticultural and plantation crops, which require customized nutrient inputs. Additionally, water scarcity issues are encouraging the use of fertigation systems, boosting demand for water-soluble and specialty fertilizers.

Regulatory Frameworks

• In the United States, specialty fertilizers are regulated under the authority of individual state departments of agriculture. However, the Association of American Plant Food Control Officials (AAPFCO) provides model language and standards that many states adopt to ensure consistency. Specialty fertilizers must comply with labeling requirements, nutrient content accuracy, and safety regulations set by these state agencies.
• The Environmental Protection Agency (EPA) in the U.S. oversees aspects related to environmental impact, especially regarding runoff and water quality.
• In India, the regulation of specialty fertilizers falls under the Fertilizer (Control) Order, 1985 (FCO), administered by the Department of Fertilizers, Ministry of Chemicals and Fertilizers. Amendments to the FCO have introduced categories such as water-soluble fertilizers, customized fertilizers, and fortified fertilizers.

Competitive Landscape

The specialty fertilizer market is highly competitive with key players actively investmenting in research and development to create advanced formulations such as controlled-release, slow-release, and water-soluble fertilizers. These innovations aim to improve nutrient use efficiency and crop performance while aligning with evolving environmental standards. 

Companies are also expanding their production capacities and distribution networks to cater to growing demand across different regions, particularly in high-growth markets. Collaborations with agri-tech firms and digital agriculture platforms have emerged as a common strategy to deliver integrated solutions that combine specialty fertilizers with precision application technologies. 

Sustainability is another focal area, with several companies adopting circular economy principles and working toward low-carbon production processes.

• In May 2023, Yara International announced plans to build a new global production plant for specialty crop nutrition products and biostimulants. The facility, set to be one of the largest in the world, will enhance Yara’s ability to increase yields and improve crop quality, supporting food security and climate change mitigation.

List of Key Companies in Specialty Fertilizer Market:

• PhosAgro Group
• EuroChem Group
• ICL
• Uralchem
• Mosaic
• SQM
• CF Industries Holdings, Inc.
• Tessenderlo Group
• OCP Group
• Yara
• K+S Aktiengesellschaft
• Fertiberia
• Compass Minerals
• Grupa Azoty
• Haifa Negev technologies LTD

Recent Developments

• In April 2024, Van Iperen International revealed plans to scale up its GreenSwitch Nitrate factory in The Netherlands, situated at the Agro Energie Hardenberg biogas facility. The facility manufactures the world’s first liquid potassium nitrate fertilizer with a near-zero carbon footprint, utilizing an organic nitrogen source.