Worldwide Fertilizer Industry to 2025 - Key Drivers and Restraints

DUBLIN, Nov. 3, 2020 /PRNewswire/ -- The "Fertilizer Market - Forecasts from 2020 to 2025" report has been added to ResearchAndMarkets.com's offering.

The fertilizer market is evaluated at US$206.392 billion for the year 2019 growing at a CAGR of 1.98% reaching the market size of US$232.221 billion by the year 2025.

A fertilizer is a type of material that is primarily applied to soil or the tissues of plants or crops with an aim to supply the necessary nutrients that are essential for the growth of plants. The nutrient capacity of the soil decreases after every harvest which is replenished by using fertilizers. The primary factors that are driving the market growth include the globally growing demand for food coupled with a significant decrease in the arable land globally. Rapid urbanization and industrialization are some of the major factors responsible in the reduction of the arable land as well as the quality and quantity of the available resources such as land, air, and water among others.

Thus, an increase in agricultural output is required in the limited available resources which have led the farmers towards the increased usage of fertilizers primarily for increasing the output. The global population has been rising constantly and with the increasing global population as well as the urban population, the demand for nutritional food is increasing. Increasing emphasis on sustainable farming practices across the globe is another factor that is bolstering the growth of the fertilizer market. The use of synthetic fertilizers derived from fossil fuels has led to increased agricultural production on limited arable land across the globe. However, growing awareness and concern over their adverse effects on soil productivity and environmental quality is forcing scientists to discover alternatives such as fertilizers made from organic materials. The use of or organic fertilizers leads to sustainable farming thereby leading to food safety and sustainable crop production.

Growing global population

One of the key factors supplementing the fertilizer market growth is the globally growing population. According to the statistics by the United Nations, the global population is projected to reach 9.7 billion by the year 2050. With the growing population, the economic conditions are also expected to get better day by day, as more and more people will move to cities that will further lead to job creation. Thus, all these factors are projected to significantly boost the demand for food as the number of undernourished people will decrease in the coming years. As per the reports by the FAO, the demand for cereals, for both food and animal feed uses is projected to reach some 3 billion tonnes by 2050, which was around 2.1 billion tonnes in the year 2009.

This population growth is putting pressure on limited available natural resources such as land and water in terms of rapid urbanization and growing food demand. According to the FAO statistics, an estimated 821 million people, that is, one out of every nine people in the world, are undernourished. Thus, a need to increase the agricultural output is further amplifying the usage of fertilizers for the enhancement of the quality and the quantity of food globally. Since the arable land is limited as a fact that urbanization and industrialization the expansion of which is considered tougher.

Growing focus on organic farming

The growing demand for organic fruits and vegetables in both developed and developing economies have led the focus of farmers towards organic produce. The major factors supplementing the demand for organic products is the growing disposable income coupled with the rising awareness among the consumers regarding the effects of various agrochemicals on human health and the environment is continuously boosting the demand for organic fruits and vegetables across different regions.

This is further expected to propel the business growth opportunities for organic fertilizer manufacturers over the course of the next five years. Moreover, according to the IFOAM Organics International statistics, around 2.8 million organic producers were reported in 2018. Also, a total of 71.5 million hectares of land was organically managed at the end of 2018. This, further shows that the farmers around the globe are emphasizing more on organic produce, to tap the growing potential of that market.

Decreasing arable land

One of the prime factors supplementing the fertilizer market globally is the significant decrease in the arable land in many parts of the world. Since, fertilizers are essential for the supply of necessary nutrients to the soil as well as plant tissues to replenish their nutritional capabilities, which results in faster and enhanced growth. Arable land refers to that piece of land that is capable of being plowed and can be used to grow crops on it. Rapid urbanization and industrialization have together led to a significant decline in the available arable land globally. This can be backed up by the fact that according to the data from the World Bank Group, the arable land in many developed economies such as the United States and Japan has declined significantly. The arable land in Japan reached 4,184,000 hectares by the year 2016 from 4,282,000 hectares in 2010. Similarly in the United States of America, it decreased from 155,926,203 hectares in 2010 to 152,262,500 hectares by the year 2016 (Source: The World Bank Group).

Participation by market players

There is a high volume of companies working in the fertilizer market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better products and services to their customers worldwide, which is further expected to propel the growth of the market in the coming years. For instance, the Indian Government announced its plans to reduce the dependency on fertilizer imports as a part of their Self Reliant India scheme and announced the construction of five new fertilizer manufacturing plants across the country by the year 2023 to meet the growing domestic demands.

In May 2020, Wilbur-Ellis Company, Inc., one of the largest family-owned companies in the world announced the launch of two new potassium fertilizer products, TILL-IT KOMPOUNDT and FOLI-GRO KILO. Similarly, in November 2019, Indian Farmers Fertiliser Cooperative Limited announced the launch of new nanotechnology-based fertilizers on field trials. The company aims to reduce the usage of chemical fertilizers. In March 2019, AmegA Sciences USA announced their entry into the specialty fertilizer market and announced the rollout of six new formulations.

Vegetables and fruits to witness a promising growth

By crop type, the vegetables and fruits segment is projected to show a promising growth over the next five years. The key factors supplementing the growth of this segment include the growing production of vegetables and fruits owing to the fact that the growing concerns regarding the health benefits on the consumption of fruits. Moreover, the growing demand for organic fruits and vegetables is also bolstering the growth of this segment over the course of the next five years. Furthermore, the growing exports of fruits and vegetables by major producing countries is also adding up to the demand for fertilizers. For instance, in Spain, the January to April 2019, the country's fruit and vegetable exports grew by 8 percent in terms of volume and 6 percent in terms of value as compared to the same period of 2018 (Source: Spanish Federation of Association of Producers and Exporters (FEPEX)).

APAC to hold a considerable share

Geographically, the Asia Pacific region is projected to hold a substantial market share throughout the course of the next five years on account of the major agricultural output giving countries such as China and India among others. Moreover, the presence of a comparatively large population base in the APAC region further leads to increased food demand. Which in turn is positively impacting the growth of the fertilizer market in the Asia Pacific region throughout the forecast period.

Key Topics Covered:

1. Introduction

1.1. Market Definition

1.2. Market Segmentation

2. Research Methodology

2.1. Research Data

2.2. Assumptions

3. Executive Summary

3.1. Research Highlights

4. Market Dynamics

4.1. Market Drivers

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of End-Users

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. Fertilizer Market Analysis, by Type

5.1. Introduction

5.2. Nitrogen

5.3. Phosphate

5.4. Potassium

6. Fertilizer Market Analysis, by Crop Type

6.1. Introduction

6.2. Cereals & Grains

6.3. Fruits & Vegetables

6.4. Oilseeds & Pulses

6.5. Other

7. Fertilizer Market Analysis, by Form

7.1. Introduction

7.2. Dry

7.3. Liquid

8. Fertilizer Market Analysis, by Geography

8.1. Introduction

8.2. North America

8.2.1. North America Fertilizer Market, By Type, 2019 to 2025

8.2.2. North America Fertilizer Market, By Crop Type, 2019 to 2025

8.2.3. North America Fertilizer Market, By Form, 2019 to 2025

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. South America Fertilizer Market, By Type, 2019 to 2025

8.3.2. South America Fertilizer Market, By Crop Type, 2019 to 2025

8.3.3. South America Fertilizer Market, By Form, 2019 to 2025

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. Europe Fertilizer Market, By Type, 2019 to 2025

8.4.2. Europe Fertilizer Market, By Crop Type, 2019 to 2025

8.4.3. Europe Fertilizer Market, By Form, 2019 to 2025

8.4.4. By Country

8.4.4.1.1. Germany

8.4.4.1.2. France

8.4.4.1.3. UK

8.4.4.1.4. Others

8.5. Middle East and Africa

8.5.1. Middle East and Africa Fertilizer Market, By Type, 2019 to 2025

8.5.2. Middle East and Africa Fertilizer Market, By Crop Type, 2019 to 2025

8.5.3. Middle East and Africa Fertilizer Market, By Form, 2019 to 2025

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. Asia Pacific Fertilizer Market, By Type, 2019 to 2025

8.6.2. Asia Pacific Fertilizer Market, By Crop Type, 2019 to 2025

8.6.3. Asia Pacific Fertilizer Market, By Form, 2019 to 2025

8.6.4. By Country

8.6.4.1. China

8.6.4.2. India

8.6.4.3. Japan

8.6.4.4. South Korea

8.6.4.5. Others

9. Competitive Environment and Analysis

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

10. Company Profiles

10.1. Yara International ASA

10.2. The Mosaic Company

10.3. Haifa Group

10.4. CF Industries Holdings, Inc.

10.5. Nutrien

10.6. K+S Aktiengesellschaft

10.7. The OCP Group

10.8. ICL Fertilizers

10.9. Syngenta AG

10.10. Sumitomo Chemical Co., Ltd.

10.11. IFFCO

10.12. EuroChem

10.13. SQM S.A.

10.14. Saudi Arabian Fertilizer Company

10.15. Uralkali PJSC

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