Agriculture

Fertilizer Market

Global Industry Analysis and Forecast 2024-2031

Pages : 120

Base Year : 2023

Released Year : March 2024

Format :Pdf Ppt Xls

Report ID:KR502

Author : Saket A.

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Base Year

2023

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Forecast Year

2024-2031

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Historical Years

2019-2022

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Market Value (2023)

USD 154.68 Billion

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Forecasted Value (2031)

USD 208.22 Billion

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CAGR (2024 - 2031)

3.99%

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Fastest Growing Region (2024 - 2031)

Asia Pacific

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Largest Region

Asia Pacific

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By Type

Organic, Inorganic.

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By Form

Dry, Liquid.

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By Application

Agriculture, Horticulture, Gardening, Others


Market Perspective

The global Fertilizer Market was valued at USD 154.68 billion in 2023 and is projected to reach USD 208.22 billion by 2031, growing at a CAGR of 3.99% from 2024 to 2031.
The global fertilizer market is witnessing dynamic shifts influenced by various factors that are shaping agricultural practices worldwide. Rapid population growth, coupled with increasing food demand, continues to drive the demand for fertilizers, especially in emerging economies. Additionally, the growing adoption of advanced agricultural techniques, such as precision farming and controlled-release fertilizers, is influencing market dynamics.
 
Climate change and environmental concerns are prompting the industry to innovate towards sustainable fertilization methods. This includes the development of eco-friendly fertilizers, such as bio-based and organic fertilizers, to reduce the environmental footprint of agricultural activities. Furthermore, government initiatives and regulations aimed at promoting sustainable agriculture are supporting market growth and product development strategies.

Geopolitical factors, such as trade tensions and regional conflicts, further impact the global fertilizer market by affecting supply chains and pricing dynamics. Moreover, advancements in technology, such as digital farming solutions and blockchain-based supply chain management, are enhancing efficiency and transparency across the fertilizer market.

Analyst Review of Fertilizer Market

The global fertilizer market is experiencing robust growth, driven by increasing agricultural activities worldwide. Key players such as Yara International and Nutrien are capitalizing on the growing demand for crop nutrients. Several factors such as population growth, shrinking arable land, and changing dietary habits propel market expansion. Additionally, sustainable agriculture practices and technological advancements are shaping the industry landscape. Despite challenges such as fluctuating raw material prices and environmental concerns, the market remains resilient. With innovative product offerings and strategic investments, companies are poised to observe continued success in meeting global food security needs.

Market Definition

The fertilizer market is a vital component of global agriculture, encompassing a range of products aimed at improving soil fertility and enhancing crop yields. The market caters to a diverse array of agricultural activities, including large, medium, and small-scale commercial agriculture, and specialized horticulture. Moreover, it encompasses gardening and other related activities that require nutrients to enhance the quality of soil. Fertilizers are available in various forms, including granular or dry, liquid, and foliar, to suit different application methods and crop requirements. Market dynamics are influenced by various factors such as population growth, food demand, environmental concerns, and technological advancements, thereby driving innovation and shaping industry trends.

Market Dynamics

The persistent increase in the global population continues to exert pressure on agricultural systems, driving the demand for food and boosting agricultural productivity. As the world population approaches 8 billion, projections indicate a pressing need to produce 50-70% more food by 2050 to meet rising demand. This surge in demand underscores the critical role of fertilizers in enhancing crop yields and ensuring food security. Moreover, dietary shifts toward protein-rich diets, particularly in emerging economies, amplify the demand for agricultural products and, in turn, fertilizers. Addressing this escalating demand requires sustained investments in agricultural inputs, including fertilizers, to optimize productivity and mitigate the risk of food shortages, thereby underscoring the pivotal role of population dynamics in driving the fertilizer market expansion.

Advancements in agricultural technologies are rapidly revolutionizing farming practices and reshaping the fertilizer market landscape. Innovations such as precision agriculture, automated machinery, and digital farming solutions enable farmers to optimize resource utilization, enhance crop monitoring, and customize fertilizer applications based on precise agronomic data. For instance, precision agriculture technologies, including GPS-guided tractors and sensor-based monitoring systems, enable the targeted application of fertilizers, thereby minimizing both waste and environmental impact while maximizing efficiency. Furthermore, advancements in fertilizer formulations, such as controlled-release and bio-based fertilizers, offer sustainable alternatives to traditional chemical fertilizers, aligning with consumer preferences for eco-friendly agricultural practices. Embracing these technological innovations is essential for stakeholders to stay competitive in the dynamic fertilizer market and meet the evolving demands of modern agriculture.

Segmentation Analysis

The global fertilizer market is segmented based on material type, end-use, and geography.

Based on type, the market is bifurcated into organic and inorganic fertilizers. Inorganic fertilizers accounted for the majority share of 85.01% in 2023. This dominance can be attributed to their inherent advantages in nutrient concentration and immediate availability, which meet the exigencies of modern agriculture. Inorganic fertilizers are renowned for their cost-effectiveness and widespread accessibility, making them appealing to a broad spectrum of farmers. Additionally, their streamlined production processes ensure scalability, thereby enabling consistent supply to meet escalating global agricultural demands. Consequently, the pervasive adoption of inorganic fertilizers underscores their pivotal role in driving revenue and fostering market expansion within the global fertilizer landscape.
Based on form, the market is divided into dry and liquid. Dry form contributed the highest revenue, amounting to USD 89.29 billion in 2023. Dry fertilizers offer logistical advantages, such as ease of storage, transportation, and handling, making them preferred choices for large-scale agricultural operations. Additionally, the relatively lower production costs associated with dry fertilizers contribute to their market dominance. Moreover, the projected growth of the dry form segment at a CAGR of 3.76% over the forecast period reflects sustained demand and market expansion opportunities. As a result, the segment continues to assert its significance within the global fertilizer market, driving substantial revenue growth and industry development.

Based on application, the market is categorized into agriculture, horticulture, gardening, and others. Agricultural applications generated the highest revenue of USD 70.03 billion in 2023. This dominance can be attributed to several factors. Agriculture represents the backbone of global food production, with fertilizers playing a critical role in enhancing crop yields and ensuring food security. Additionally, the intensification of agricultural practices and the growing adoption of modern farming techniques contribute to the sustained demand for fertilizers in the agricultural sector. Furthermore, the projected increase in the agricultural segment's share to 45.91% by 2031 underscores its significance within the fertilizer market. As agricultural activities continue to evolve and expand to meet growing food requirements, the demand for fertilizers in this segment is expected to remain robust over the assessment period, driving overall market revenue growth.

Geographical Analysis

Based on region, the global fertilizer market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Asia-Pacific dominated the market in 2023, accounting for 32.76% of the total value, and is anticipated to experience the fastest growth over 2024-2031. This dominance is primarily fueled by the presence of the world’s largest agricultural economies in the region. Furthermore, the Asia-Pacific region is home to some of the world's largest agricultural economies, including China, India, and Indonesia, which collectively drive substantial demand for fertilizers to support their vast agricultural sectors. Additionally, rapid population growth, urbanization, and changing dietary preferences in the region further fuel the demand for agricultural products, bolstering the need for fertilizers. Moreover, the anticipated fastest growth in the Asia-Pacific region over the forecast period underscores its pivotal role in shaping the future trajectory of the global fertilizer market. With the continuous expansion and evolution of agricultural activities in the region, the demand for fertilizers is predicted to remain strong, leading to sustained growth and market dominance.
 
Fertilizer Market Size & Share, By Region, 2024-2031

North America generated the second largest share in the global industry, generating revenue of USD 41.1 billion in 2023, and is estimated to grow at a CAGR of 2.83% over the forecast period. The region boasts advanced agricultural practices, supported by sophisticated infrastructure and technology adoption, thereby driving the demand for fertilizers to optimize crop yields and maintain productivity. Additionally, the region's diverse agricultural landscape, encompassing crops ranging from grains and oilseeds to fruits and vegetables, contributes to the varied fertilizer requirements, fostering regional market growth. As North America continues to innovate and modernize its agricultural sector, the demand for fertilizers is expected to remain robust, leading to continued revenue growth and maintaining competitiveness within the market.

Competitive Landscape

The global fertilizer market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

The key players in the Fertilizer Market are:

  • Yara
  • Nutrien Ltd.
  • CF Industries Holdings, Inc.
  • Mosaic
  • K+S Aktiengesellschaft
  • OCP
  • EuroChem Group
  • ICL
  • Haifa Negev technologies LTD

The global Fertilizer Market is segmented as:

By Type

  • Organic
  • Inorganic

By Form

  • Dry
  • Liquid

By Application

  • Agriculture
  • Horticulture
  • Gardening
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • U.K.
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America.
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  • Check Icon Additional Company Profiles
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  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global fertilizer market is projected to reach USD 208.22 billion by 2031, growing at a CAGR of 3.99% from 2023 to 2031.
The global fertilizer market was valued at USD 154.68 billion in 2023.
The major driving factor for the market growth is the growth of the global population exerting pressure on agricultural systems, driving up demand for food and necessitating increased agricultural productivity.
Top manufacturers of fertilizer market Yara, Nutrien Ltd., CF Industries Holdings, Inc., Mosaic, K+S Aktiengesellschaft, OCP, EuroChem Group, ICL, Haifa Negev technologies LTD, and others.
Asia-Pacific is the fastest growing region with the CAGR of 4.84% in the forecasted period (2023-2031) with the market value forecasted to reach at USD 72.86 billion in 2031.
By application, agriculture will hold the maximum share in the fertilizer market with the revenue value of USD 95.60 billion in 2031.
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