Global Water Soluble Fertilizer Market to Reach US$ 13,599 Million by 2032

01 March 2024, New Delhi: The Global Water Soluble Fertilizer market is set to witness unprecedented growth, poised to reach a substantial value of US$ 13,599.4 million by 2032. The market, currently valued at US$ 7,110.1 million in 2022, is anticipated to grow at a robust CAGR of 6.7%. This surge is attributed to the rising demand for high-value crops, the need for sustainable agriculture, and technological innovations in fertilizer application methods.

Key Drivers:

1. Food Security Imperative: With the global population on the rise, the need for food security has become paramount. Water-soluble fertilizers play a crucial role in enhancing crop production, mitigating the limitations posed by scarce agricultural land and nutrient deficiencies.
2. Advantages Over Traditional Fertilizers: Water soluble fertilizers offer several advantages over traditional counterparts, including high consumption rates, increased crop production in constrained regions, and improved nutrient availability in the soil. Technological advancements in application methods, such as foliar and fertigation techniques, further enhance their effectiveness.
3. Government Initiatives: Governments worldwide are actively promoting the use of specialized fertilizers. Initiatives to educate farmers about the benefits of water-soluble fertilizers and subsidies to offset their high costs are expected to drive market expansion.

Water-Soluble Fertilizers Market Dynamics

Driving Force: Simplified Application Process

Water-soluble fertilizers are compound fertilizers easily dissolvable in water and boast high absorption rates by crops compared to traditional chemical fertilizers. Particularly in water-scarce regions, large-scale farms, and high-value cash crop cultivation, an integrated irrigation system is often employed. This involves dissolving the fertilizer in water during irrigation, streamlining the application process, and enhancing absorption and utilization.

Challenging Factor: Surge in the Organic Fertilizers Sector

The organic farming sector, utilizing biological fertilizers and pest control derived from plant or animal waste, is experiencing substantial growth, especially in emerging economies. Increasing awareness regarding environmental preservation, food safety, and animal welfare propels this growth. Organic agricultural practices reduce reliance on chemical fertilizers, opting for organic manures to provide sustained nutrients to plants. The higher premiums commanded by organically produced outputs make organic farming an attractive choice for farmers, impacting the demand for water-soluble fertilizers.

Opportunity: Escalating Demand for Water-Soluble Nutrients

Water-soluble fertilizers, encompassing NPK, ammonium sulfate, dipotassium phosphate, potassium nitrate, and monopotassium phosphate, are witnessing heightened demand due to the global population surge. As the need for food crops, grains, vegetables, and fruits rises, the adoption of micro-irrigation, promoting even fertilizer distribution and enhanced growth efficiency, is expected to boost demand. Initiatives like agricultural loans by the Indian Government, coupled with the implementation of the “Make in India” policy, are anticipated to further fuel market growth.

Obstacle: Soaring Natural Gas Prices

Fertilizer prices have experienced an upward trajectory since 2022, influenced by escalating input costs, supply disruptions, and export restrictions, particularly in China. The Ukrainian conflict has added concerns about fertilizer affordability globally. The surge in natural gas prices, notably in Europe, has led to widespread cuts in ammonia production—a vital component for nitrogen-based water-soluble fertilizers. Since natural gas plays a crucial role in manufacturing these fertilizers, increased prices are anticipated to squeeze margins for manufacturers, even if fertilizer prices remain stable. This poses a significant challenge for the industry.

Market Dynamics by Category:

• Liquid Fertilizers: Liquid water soluble fertilizers are expected to reach over USD 1.3 billion by 2032, gaining popularity for their versatility in application and advantages in water conservation.
• Nitrogenous-Based Fertilizers: Dominated by calcium nitrate, this category is projected to lead in terms of volume, crucial for plant growth, color, vigor, and yield.
• Foliar Feeding: Anticipated to contribute over 30% of total revenue by 2032, foliar feeding is recognized for preventing nutrient deficits and promoting plant development, particularly in cold climatic zones.
• Cereals Sector: Water-soluble fertilizers in the cereals sector are projected to grow at a rate of about 6%, aligning with the increasing demand for grains globally.

Country-wise Insights:

• United States: Leading the market due to a growing demand for high-quality crop nutrition products.
• Europe: Holding the largest market share, driven by widespread adoption and the entry of international producers.
• South Korea: Experiencing rising demand due to urbanization, economic growth, and government subsidies.
• Japan: Projected to grow at the fastest CAGR of 5.33%, attracting increased investment from multinational agricultural giants.

Key Players’ Strategies: 

Major industry players, including Nutrien Ltd., Israel Chemicals Ltd., and Haifa Chemicals, are strategically enhancing their product portfolios through mergers, acquisitions, and product launches. Nutrien Ltd.’s acquisitions in South America and the United States demonstrate a commitment to market dominance.

Conclusion: 

The water-soluble fertilizers market promises a dynamic and prosperous future, driven by global agricultural needs, technological advancements, and strategic industry initiatives. The industry is primed for growth, and stakeholders are gearing up to capitalize on emerging opportunities.

The insights are taken from a report on Global Water Soluble Fertilizer Markets by Persistence Market Research.

Also Read: Secretary Agriculture Releases Two Whitepapers by Kisan-Vigyan Foundation on India’s Food Security

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