The global controlled-release fertilizers market size is projected to reach USD 2.9 billion by 2028 from USD 2.2 billion by 2023, at a CAGR of 5.9% during the forecast period in terms of value. The global market has witnessed significant growth and established its dominance in the global agriculture industry. According to the World Bank Report 2023, approximately 9.2% of the world’s population faced hunger in 2022, compared with 7.9% in 2019. The rising levels of hunger and food insecurity highlight the urgent need to increase agricultural productivity to ensure food availability. Thus, the increasing demand for enhanced agricultural output while reducing environmental effects is one of the main driving factors. These fertilizers deliver nutrients gradually, enhancing plant absorption while lowering leaching and runoff, which helps reduce water pollution. Furthermore, the use of controlled-release fertilizers is accelerated by the push for sustainable agricultural practices, which are complementary to their advantages.
Controlled-release Fertilizers Market Drivers: Increasing Global Population and Food Demand necessitating higher agricultural productivity drives Growth in Controlled-release Fertilizers Market
The growing worldwide population is driving tremendous expansion in the market for the high demand for food. The need for food products grows along with the growth of the global population. According to FAO 2021, the world's population, now 5,300 million, is increasing by approximately 250,000 people every day. It is estimated that 1,000 million people will be born during this decade. As the global population expands, so does the demand for food products that cater to diverse dietary needs, preferences, and health considerations. This demand extends not only to staple crops like grains but also to fruits, vegetables, and other agricultural products. To keep up with this demand, agricultural systems need to produce more crops on the same or even a shrinking land area.
While increasing agricultural productivity is essential, it must be done in a sustainable manner to avoid negative environmental impacts. Conventional fertilization practices can lead to nutrient runoff, water pollution, and soil degradation. This is where controlled-release fertilizers come into play. Controlled-release fertilizers provide a controlled and gradual release of nutrients to plants over an extended period. These controlled-release fertilizers match the nutrient uptake patterns of crops more closely, minimizing nutrient wastage and enhancing nutrient use efficiency. This efficiency not only contributes to higher yields but also reduces the risk of nutrient runoff, which can harm water bodies and ecosystems.
Nitrogen Stabilizers Is One Of The Controlled-Release Fertilizer Types Which Accounted Second Highest Market Share in 2022
Nitrogen stabilizers are gaining popularity in the agricultural market due to their ability to improve nitrogen use efficiency and reduce nitrogen losses to the environment. Nitrogen is a vital nutrient for plant growth, but it can be easily lost from the soil through processes like leaching (movement of nutrients with water through the soil profile) and denitrification (conversion of nitrate into gaseous forms). Nitrogen stabilizers are additives that can be combined with traditional fertilizers to slow down the conversion of ammonium-based fertilizers into nitrates, thus reducing nitrogen losses.
Farmers are becoming more educated about the consequences of nutrient losses and the benefits of controlled-release technologies. This increased awareness drives the demand for solutions like nitrogen stabilizers. Moreover, as sustainable farming practices gain prominence, farmers are seeking ways to minimize their environmental footprint. Nitrogen stabilizers align with these goals by minimizing nitrogen losses and promoting responsible nutrient management.
Argentina is expected to be the fastest-growing market in the South American region during the forecast period.
Argentina is poised to emerge as the fastest-growing player in the controlled-release fertilizers market within South America. Argentina places considerable emphasis on sustainable farming practices, aligning with global trends and consumer preferences. Controlled-release fertilizers offer a solution to minimize nutrient runoff, reduce environmental impact, and promote soil health, making them a natural fit for the country's sustainable agriculture initiatives.
Argentina's dominance in the South American controlled-release fertilizers market is enhanced by a convergence of favorable conditions. Its strong agricultural foundation, commitment to sustainable practices, emphasis on innovation, and strategic export position create a conducive environment for both the production and adoption of controlled-release fertilizers. This dominance is expected to fuel continued growth in the sector, as Argentina solidifies its role as a key player driving the evolution of agricultural practices in the region.
Controlled-release Fertilizers Market Share
The key players in this market include Yara (Norway), Nutrien Ltd. (Canada), Mosaic (US), ICL (Israel), Nufarm (Australia), Kingenta (China), ScottsMiracle-Gro (US), Koch Industries (US), Helena Chemicals (US), and SQM (Chile).
