Fertilizer Additives Market

Fertilizer Additives Market Outlook (2023 to 2033)

Worldwide demand for fertilizer additives accounts for a market valuation of US$ 3.34 billion in 2023 and is forecasted to reach US$ 4.7 billion by 2033-end. Over the next ten years (2023 to 2033), the global fertilizer additives market is projected to rise at 3.4% CAGR.

Fertilizer additives are chemicals that are used to improve the efficacy and stability of fertilizers. These additives also allow fertilizers to maintain nutrients in the soil and improve crop yield characteristics as well. Surging demand for agricultural commodities around the world to satisfy the rapidly expanding population is also projected to promulgate shipments of fertilizer additives in the long run.

Increasing investments in the research and development of new fertilizer manufacturing techniques, rising use of farming aids in agriculture, efforts to solve food shortage issues, and growing awareness regarding sustainability are other key prospects that could uplift fertilizer additive sales through 2033. The launch of supportive government initiatives to promote agricultural expansion in emerging economies is also creating new opportunities for fertilizer additive suppliers.

On the flip side, the adverse effect of the use of chemical fertilizers on the environment and the high costs of raw materials are key constraints inhibiting market expansion over the next ten years. Implementation of strict norms to regulate the use of synthetic fertilizers is forecasted to promote the popularity of biofertilizers and controlled-release fertilizers and offer new moneymaking opportunities for established as well as incoming fertilizer additive vendors going forward.

Report Attributes	Details
Fertilizer Additives Market Size (2023)	US$ 3.34 Billion
Projected Market Value (2033F)	US$ 4.7 Billion
Global Market Growth Rate (2023 to 2033)	3.4% CAGR
Asia Pacific Market Share (2023)	>50%
Key Companies Profiled	Arkema S.A Fertibon Products Pvt. Ltd. ArrMaz Timac Agro USA Chemipol S.A Neelam Aqua & Speciality Chem (P) Ltd. Hubei Forbon Technology Co. Ltd. Clariant AG Michelman Inc. Dorf Ketal

How Can New Fertilizer Additive Companies Make a Difference in This Space?

“Sustainability and Biofertilizers - Focal Point for Start-ups”

Contamination of soil is a major concern for farmers these days and implementation of stringent mandates to regulate the use of toxins in fertilizers are creating new opportunities for biofertilizer manufacturers. Incoming fertilizer additive suppliers are utilizing different ingredients to develop novel fertilizers that are compliant with sustainability mandates that are being implemented around the world.

• Earnest Earth, a new company founded in 2018 and based in the United States, develops and provides a patented biofertilizer product. The company develops it by using bioreactors to convert agricultural waste into fertilizer and also utilizes machine learning algorithms to create an optimal mixture.
• Groundwork BioAg, a start-up based in Israel, is facilitating bio-fertilization of soils through the use of fungi. The company offers a product called Rootella, a series of mycorrhizal inoculants to amplify the transfer of nutrients and ameliorate the productivity of crops by lowering water and fertilizer inputs.

Capital raise is also anticipated to be of paramount importance to aspiring fertilizer additive vendors as it allows companies to expand their R&D scope and support business development.

• In July 2022, Phospholutions Inc., a renowned company providing sustainable fertilizer technology, announced that it had received additional funding from agricultural companies to promote the commercialization of its product called RhizoSorb.

New manufacturers can benefit by learning more about aspects such as local supply, pricing trends, product standards, safety regulations, and new developments that have been discussed extensively in this fertilizer additives industry study by skilled analysts at Fact.MR, a market research and competitive intelligence provider.

Analyst’s Opinion

The global fertilizer additives market is filled with established companies such as Clariant AG, Arkema S.A, etc., and despite this, it is seen as a fragmented market owing to the presence of several domestic and regional companies. Penetrating this market could be a tough task but companies can get their money’s worth if they come up with unique products that stand out in the global landscape and comply with modern sustainability standards.

Country-wise Insights

Which Asian Countries Should Fertilizer Additive Companies Target?

“China, India – Prime Asian Markets Attracting Sizeable Investments”

Agriculture is an integral part of many Asian economies and this is what makes them highly remunerative spaces for fertilizer additive vendors. Additionally, the high availability of cheap labor and raw materials make countries such as India, China, and Indonesia hotspots for fertilizer additive manufacturers over the coming years. The growing export of grains and legumes from the aforementioned Asian countries coupled with expanding population also favors shipments of fertilizer additives in the APAC region through 2033.

India’s primary economic growth is supported by the agriculture industry and supportive government initiatives to improve the agricultural output of the country are also estimated to offer highly opportune growth opportunities for fertilizer additive suppliers over the next ten years. Similarly, the growing focus of the Chinese government to improve economic growth through the agricultural sector is also projected to bolster demand for fertilizer additives in the country throughout the forecast period.

Where Should Fertilizer Additive Vendors Invest in the North American Region?

“Canada and United States to Be Lucrative Markets”

Evolving consumer preferences have not influentially changed the fertilizer additives industry in the North American region. The use of nitrogen, urea, and phosphorus-based fertilizers still accounts for a prominent share in countries such as Canada, Mexico, and the United States, which allows fertilizer additive companies to run their business as they are used to without making substantial changes.

Growing focus on maximizing the agricultural output of Mexico and Canada to satisfy the amplifying demand from their growing population is projected to boost sales of fertilizer additives in these countries going forward. The presence of key fertilizer manufacturers in the United States also makes it a highly bankable space for fertilizer additive companies in the future.

What’s Augmenting Market Growth in European Countries?

“Rising Focus on Sustainability to Single-handedly Drive Fertilizer Additive Sales in Europe”

Consumers in European countries are more aware of sustainability and prefer to opt for organic and bio-based agricultural produce, which is pushing fertilizer manufacturers to opt for natural and organic additives. The presence of key chemical manufacturing companies, growing adoption of precision agriculture, and high emphasis on maintaining soil health are other key prospects that are driving shipments of fertilizer additives in countries such as Germany, France, and the United Kingdom through 2033.

Category-wise Insights

Which Type of Fertilizer Additives is Most Sought After?

“Anti-caking Fertilizer Additives Account for Dominant Market Share”

Anti-caking fertilizer additives are extensively utilized for maintaining the surface area of the fertilizers produced. Most fertilizers being stored in controlled temperatures catch moisture and coagulate forming clumps. Therefore, the utilization of anti-caking additives is set to thrive in the fertilizer additives market.

Silicon dioxide, iron ammonium citrate, and yellow prussiate of soda are the potent anti-caking agents used in fertilizer additives. Demand for anti-caking agents has been fluctuating for the past half-decade, owing to their negative effects on crops and end-use consumers.

By the mid-term forecast period, cheaper natural substitutes are expected to penetrate the market, closing the doors for conventionally used fertilizer additives. Apart from anti-caking agents, drying agents, dust suppressors, and granulation additives also play a major role in driving the growth of the fertilizer additives market.

Which Fertilizers are Being Extensively Used Worldwide?

“Nitrogen-based Fertilizers to Lead Revenue Generation”

Based on application, the global fertilizer additives market is segmented into nitrogen, phosphorous pentoxide, potassium oxide, and others.

Nitrogen plays a pivotal role in high-yield crop development and this is what makes nitrogen-based fertilizers an in-demand product. The use of nitrogen-based fertilizer additives allows the soil to retain critical elements such as nitrogen that improve the yield of crops while reducing the environmental pollution that is caused due to the loss of nitrogen gas.

• Kula Bio, a start-up founded in 2018 and focusing on disrupting the synthetic fertilizer industry, is developing sustainable nitrogen fertilizers. The company uses its proprietary bio-fertilization solution and uses active microorganisms to produce and fix nitrogen in soil efficiently.

Competitive Landscape

Leading fertilizer additive manufacturers are focusing on expanding their product portfolio by launching new products and deploying strategies that allow them to reach new target audiences.

• In April 2020, BASF, the largest chemical producer in the world, announced its entry into the protected urea space launch of a urease inhibitor named Limus Clear. The product was designed to be used with liquid fertilizer to minimize the loss of nitrogen and support crop development.

Key Segments of Fertilizer Additives Industry Research

• By Type :

  • Anti-caking Agents
  • Dust Suppressors
  • Drying Agents
  • Granulating Agents
  • Others

• By Application :

  • Nitrogen
  • Phosphorous Pentoxide
  • Potassium Oxide
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA