Controlled Release Fertilizer Market
Controlled Release Fertilizer Market By Product (Polymer Sulfur Coated Urea/Sulfur Coated Urea Controlled Release Fertilizer, Polymer Coated Urea and Polymer Coated NPK Controlled Release Fertilizer), By Crop, By Region - Forecast 2021-2031
Controlled Release Fertilizer Market Outlook
That global sales of controlled release fertilizer will likely reach US$ 3 Bn by the end of 2021. Adoption of various measures to grow and deliver quality crops is the key reason driving sales of controlled release fertilizer.
In addition, manufacturers of controlled release fertilizer are focusing on increasing the efficiency of the crops that would help the growth of the same in the long run. Thus, the sales of controlled release fertilizer are expected to surpass US$ 4.9 Bn by registering a modest CAGR of 5% through the assessment period 2021-2031.
|Market Size Value in 2021||US$ 3 Bn|
|Project Market Forecast Value in 2031||US$ 4.9 Bn|
|Global Growth Rate (2021-2031)||5%|
|Market Share of U.S||45%|
Demand Analysis of Controlled Release Fertilizer from 2016 to 2020 Vs Market Projections for 2021 to 2031
As per Fact.MR, sales of controlled release fertilizers expanded at around 4% CAGR from 2016 to 2020, attributed to mounting concerns regarding degrading agricultural soil quality and increasing emphasis on improving crop production efficiency.
Production levels somewhat declined during the COVID-19 pandemic, as key chemical manufacturing industries implemented partial to complete shutdowns of factory operations, with a view to contain further spread of infections. Manufacturers were compelled to slash nearly 60% of global output, leading to substantial shortfalls in demand-supply dynamics.
As the previous fiscal drew to a close, prospects exhibited signs of recovery, as restrictions on production activities were lifted. Future expansions propsects are reliant on the ever expanding potential from emerging third world economies. Thus, due to the aforementioned reasons, the sales of controlled release fertilizer are expected to reach US$ 4.9 Bn, expanding 1.6x from 2021 to 2031.
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Rising Emphasis on Agricultural Practices Reforms Widening Controlled Release Fertilizer Adoption?
Agricultural productivity and efficiency has become the epicentre of major debates on improvements in crop production. The concept of agricultural productivity goes beyond just enhancing overall crop yield to encompass practices such as organic fertilizer input, proper irrigation and preventing soil degradation by mitigating usage of chemical fertilizers.
Controlled release fertilizers are therefore a solution to attain this dimension of productivity. Being comparatively eco-friendly than conventional fertilizers, they provide maximum nutrient retention to crops. Gradual micronutrient release into the soil helps retain soil fertility, providing farmers with more cultivation cycles.
As per the Food & Agriculture Organization, global demand for food, particularly cereals, for both plant and animal feed, is projected to reach around 3 billion tons by 2050. Consequently, more fertile land would be needed for agriculture, for which uptake of non-detrimental fertilizers will increase, propelling sales of controlled release fertilizers.
Third World Economies to Yield Maximum Revenue Returns to Key Manufacturers?
As per the United Nations, global population amounted to around 7 billion as of 2020. By 2050, it is anticipated to surge further, to 9.7 billion. Hence, food demand is expected to accelerate by anywhere between 59% and 98%. Consequently, agricultural markets are expected to become highly intertwined. Bulk of this growth is expected from 3rd world economies, such as Brazil, India and Africa.
Consequently, prominent controlled release fertilizer manufacturers are establishing production units across these nations. Governments are allocating a hefty proportion of their budgets towards improving agricultural productivity, which is providing a significant impetus for major players.
Players are especially emphasising on advocating sustainability, introducing highly soil friendly controlled release fertilizers. For example, in November 2021, Sociedad Quimica Y Minera de Chile (SQM) has implemented a six-point green production approach, in collaboration with Recynor, named Recypampa. This aims to reduce generation of domestic and industrial waste to attain carbon neutrality.
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High Demand Growth in U.S on back of Non-Agricultural Applications?
From the regional perspective, the U.S accounts for over 1/4th revenue in the global market for controlled release fertilizers. This region has been identified for its consistent growth in quality of fertilizers and has provided potential market opportunities.
Non-agricultural applications, which include golf courses, turf gardens and lawns, are boosting demand in the country. According to the National Golf Foundation, around 2 million acres of land in the United States is being used as golf courses. This is creating immense opportunities for controlled release fertilizers to be used for continuous nutrient supply.
Furthermore, strict rules and regulations regarding fast food consumption is accelerating the consumption of crops and lentils in the region. Health benefits of vegetarian and vegan food is another reason for the increasing demand for crops. This, in turn, is increasing the sales of controlled release fertilizers. Thus, a 40% market share for controlled release fertilizers in the upcoming forecast period is projected for the U.S market.
China’s Bulk Demand for Fertilizers Augmenting Global Sales of Controlled Release Fertilizers?
East Asia is one of the lucrative markets for controlled release fertilizer in terms of consumption. China is at the forefront of demand with robust agricultural production in the region accounting for bulk demand of controlled release fertilizer. In addition, China is the world leader for the production of fruits, vegetables, and food grains, as it utilizes high grade fertilizers to increase crop yield and better crop performance thus accounting for a large chunk in the global controlled release fertilizer market.
Moreover, China’s controlled release fertilizers consumption, in particular, has been growing substantially in the past decade, and is anticipated to rise at a CAGR of around 10% during forecast period. Unmatched benefits of controlled release fertilizers over conventional ones such as the gradual release of nutrients into the soil, have fetched notable traction over the past half of a decade. Thus, According to Fact.MR, Asia China is expected to account for 25% market share for controlled release fertilizers in the assessment period 2021-2031.
Inhibition of Soil Degradation Boosting Uptake of Polymer Coated NPK Fertilizers?
Owing to ease of availability and affordable pricing, nitrogen-based controlled release fertilizers have gained traction over the last decade. Furthermore, controlled release nitrogen fertilizers have sparked interest in the fertilizer landscape because of their potential N2O emission-reducing properties.
Polymer coated NPK controlled release fertilizers gradually release nutrients over extended periods: usually ranging from as short as 3 months to as long as 18 months, preventing soil degradation. Thus, polymer coated NPK fertilizers are expected to generate 45% market share in across the forecast period.
Controlled Release Fertilizers for Fruits & Vegetables to Experience Substantial Growth?
Increasing inclination towards consuming raw fruits and vegetables along with using them in different recipes is positively influencing the controlled release fertilizers industry. Growing concerns regarding health has pushed people to take health related problems seriously. In addition, fruits and vegetables work as medicines that naturally heal the body.
Furthermore, obesity and heart related problems have forced people to indulge in a healthier lifestyle. Also, vegetarianism and veganism are gaining traction all over the world due to dietary fiber present in fruits and vegetables. This, in turn, is propelling the demand for fruits and vegetables. Thus, according to Fact.MR, fruits & vegetables account for over 2/5th market share through 2031.
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Prominent controlled release fertilizer manufacturers are effectively collaborating with or acquiring existing small, medium and large-scale manufacturers to expand their market presence. Key developments are as follows:
- In August 2021, Eurochem Agro Gmbh signed an agreement to acquire the Serra do Salitre phosphate project in Brazil. Currently, the project is 50% complete whereas fertilizer production is expected to commence from 2023. The acquisition is expected to help reduce dependence on third-party phosphate supplies, simultaneously generating phosphates and complex fertilizer production in Brazil
- In July 2020, Haifa Group signed a MoU with AgrIOT. This will help the company to detect nutritional deficiency in plants and recommend treatments through smartphones. The technology assists in addressing nitrogen, phosphorus and potassium deficiencies within plants and help farmers reduce future costs. It will also permit frequent monitoring of crop development
- In October 2021, Israel Chemicals Limited announced its decision to expand the existing partnership with Haldor Topsoe, intending to enter a long-term supply arrangement for potassium nitrate, an important inorganic fertilizer for crops
|Historical Data Available for||2016-2020|
|Market Analysis||US$ Mn for Value & ‘000 Units for Volume|
|Key Regions Covered||
|Key Countries Covered||
|Key Segments Covered||
|Key Companies Profiled||
|Pricing||Available upon Request|
Key Segments Covered
- Polymer Sulfur Coated Urea/Sulfur Coated Urea Controlled Release Fertilizer
- Polymer Coated Urea Controlled Release Fertilizer
- Polymer Coated NPK Controlled Release Fertilizer
- Controlled Release Fertilizers for Cereals & Grains
- Controlled Release Fertilizers for Oilseeds & Pulses
- Controlled Release Fertilizers for Fruits & Vegetables
- Controlled Release Fertilizers for Other Crops
- FAQs -
As of 2021, the market for controlled release fertilizer reached nearly US$ 2.7 Mn
The controlled release fertilizer industry is expected to surpass a CAGR of 5% from 2021-2031.
From 2016-2020, controlled release fertilizer sales surged at around 4% CAGR
The controlled release fertilizer market is expected to reach US$ 4.9 Bn by 2031
Increased emphasis on enhancing crop production efficiency by improving soil quality is driving sales of controlled release fertilizers
Haifa Group, Eurochem Agro GmbH, Yara International and Greenfield Agro Sdn Bhd are some prominent manufacturers of controlled release fertilizers
Polymer coated NPK is expected to hold 45% market share for controlled release fertilizers.
Fruits and vegetables are expected to possess 40% of market share for controlled release fertilizers.
The controlled release fertilizer industry is expected to possess nearly 40% market share throughout U.S.
China is anticipated to register an impressive 10% CAGR from 2021 to 2031