The Global Specialty Fertilizers Market was valued at USD 24.88 Billion in 2022 and is projected to reach USD 42.37 Billion by 2030, registering a CAGR of 7.00% for the forecast period 2023-2030.
Market Definition
The market for specialty fertilizers is expanding due to factors such as the decreasing amount of arable land available, the increasing in food demand, increased environmental concern and supportive government policies and regulation. Nonetheless the market for specialist fertilizer is growing more slowly due to high production cost, opportunity for market expansion is anticipated as precision farming technology become more widely used. The lack of knowledge among farmer presents a problem for the market participants though. Another significant trend in this industry is the growing application of nanotechnology in agriculture. Increasing agriculture output through the use of contemporary farming technique due to standard fertilizers used in conventional agriculture operation to create agriculture produce are insufficient to met food needs. Additionally, the market is growing due to research and investment aims to introducing new types of fertilizers.
Market Size:
- 2022: USD 24.88 Billion
- 2030: USD 42.37 Billion
- CAGR (2023-2030): 7.00%
Specialty Fertilizers Market Dynamics
Drivers Propelling the Demand for Specialty Fertilizers include
Growth of turf grass and cereal crops increases the use of specialty fertilizers : Over the past several years, there has been a notable surge in the popularity of sports like golf. The number of golfers grew from 61 million to 66.6 million in 2022, according to data from the golf course industry. This rise occurred over a five-year period. As a result, there is now much more need to preserve the growth and health of turf grasses. The weather and various agricultural inputs, such as fertilizer applied to the turf, affect the golf courses' overall health and beauty. These fertilizers aid in promoting turf grass growth and enhancing its resilience and strength. Yara International, ICL, Haifa Group, Willbur-Ellis, Kingenta Ecological Engineering Co. Ltd., and Brandt are some of the key companies, which supply specialty fertilizers for use on turf grass. Important food grains including corn, wheat, and pulses are in high demand, and both the harvested area and demand are gradually growing. The increase in the area used to produce cereal crops is driving up the need for agri-inputs. Additionally, farmers are increasingly turning to fertilizers with improved efficiency, like controlled-release fertilizer, agricultural micronutrients, and tailored fertilizers, as a result of the significant increase in demand for agricultural produce.
For instance, in October 2023, Food and Agriculture Organization of the United Nations latest forecast for global cereal production in 2023 is raised by 3.8 million tons from the previous forecast and now stands at 2 819 million tons, 0.9 percent (26.5 million tons) higher year on year.
Specialty fertilizers high efficacy and ease of application contribute to the market's expansion : The need for wholesome food is rising as a result of the population's rapid expansion. Therefore, in order to meet the growing demand for food around the world, it is imperative to increase and maintain higher crop yields. Conversely, less arable land is becoming available for crop cultivation due to a number of important issues, including climate change and the overuse of chemical fertilizers. When fertilizers like potassium nitrate are applied to crops without taking into account the soil nutritional status and nutrient requirement an excessive number of fertilizers is used which depletes the soil nutrient value and cause deficiency in micronutrient like zinc, iron, boron, manganese and other. For example, the FAO status of the world soil resources 2022 data indicated that zinc and sulfur shortage are becoming more common in Asia, in addition, the weather pattern brought on by global warming such as decreased rainfall are having an effect on the condition on the soil and reducing the amount of arable land. As a result, business is implementing cutting edge technologies are and introducing novel specialty fertilizers solution to address certain nutritional deficit in the soil in various nations.
For instance, in February 2023, The Andersons, Inc. announces the launch of a new line of granular micronutrients branded MicroMark DG. These engineered plant nutrient products feature dispersing granule (DG) technology, resulting in homogenous spherical granules for easier blending, spreading, and most importantly increased efficacy. With The Andersons DG technology, granules break down in the soil into thousands of sub-particles which increase the coverage and availability to crops.
Recent Developments
In September 2023, Cinis Fertilizer has today signed a long-term agreement with K+S Minerals and Agriculture GmbH (“K+S”) regarding the purchase and delivery of potassium chloride to Cinis Fertilizer’s first two production facilities in Örnsköldsvik and in Skelleftea, Sweden.
In September 2022, ICL announced a new era in controlled release fertilizers with the launch of eqo.x, a rapidly degradable release technology designed for open field agriculture. This innovative solution is made possible through a biodegradable coating, which will help farmers maximize the performance of agricultural crops while reducing the environmental impact, by reducing the loss of nutrients and increasing the nutrient use efficiency (NUE) by up to 80%.
Restraint
Farmers adoption rate may be affected by variation in the premium price and availability of raw materials demanded by specialty fertilizers : The net profit margin that farmer receive from the sale of crop is directly correlated with the pace at which fertilizers are adopted. Farmers overall input expenditure is greatly impacted by fluctuation in the crop market price. Therefore, the farmer implement cost cutting strategies such as moving to alternative less expensive agriculture input that are offered on the market when the market price of the product decline. One of the main inputs utilized in the manufacturing of fertilizers is a natural gas. Natural gas price availability due to the impact of the Russia Ukraine war on natural gas availability. One of the main inputs needed to produce fertilizers, ammonia, was influenced by the increase in gas prices. For example, the world bank report that the price of natural gas in the US increased from USD 3.85 Billion barrels of petroleum liquid to USD 6.37 Billion. Comparably the EU’s limit on the use of the Belarus territory for transit have resulted in a 50% decrease in the country exports of fertilizers including potash, overall specialty fertilizers may need of raw material and that are not widely available this is the reason of rising of prices, this can make difficult to farmers to buy these fertilizers they need at reasonable prices. Specialty fertilizers are more expensive than traditional fertilizers this made with higher quality ingredient and require more specialize manufacturing process, due to this factor hinder the growth of specialty fertilizers market.
For instance, in December 2021, US sanctions against the Belarusian fertilizer producer Belaruskali, introduced in August, finally came into force. In this regard, the Lithuanian railway Lietuvos gelezinkeliai (LG) and the port of Klaipeda must stop transshipment of potassium.
Challenges
Lack of infrastructure and labor shortage.
Facilities and equipment specific to the manufacturing of specialty fertilizers are needed. This can provide a serious obstacle to entrance for new business and make it challenging for already established once to increase their output. Specialty fertilizers production calls for knowledgeable, experienced laborers with particular training. But there is a global labor shortage in the agriculture industry for skilled people. Because of this it could be challenging for business to hire the personal required to create specialized fertilizer. The lack of infrastructure and labor shortage can lead various challenges, can drive up the production cost, which in turn can drive up specialty fertilizers, this may result in farmers being unable to buy specialty fertilizers. The paucity of workers and restricted production capacity may limit the availability of specialist fertilizers this may cause market shortage of specialized fertilizers.
Opportunities
Nutrient management targeted to individual crop using precision farming.
Using specialized application equipment to grow crops effectively and site specifically can help keep water and nutrient in root zone. This is known as precision agriculture. Precision agriculture has three main stages in its work plan, employing specific sensors to gathered geo reference information from remote areas, analyzing the data using an appropriate information processing system and adjusting the amount applied based on-site requirement. Also, precision farming data can be utilized by agrochemical companies to enhance their customer service toward farmers. By preventing nutrients from or building up in areas of the field where they shouldn’t precision farming can increase output and optimize the usage of nutrient. In wealthy nations precision farming is becoming more and more popular as means of effectively using fertigation. For an accurate estimate of the nutrient requirement of crops, the application rate and mixing ratio necessary within the fertigation system can be loaded with the release pattern and coating technology of CRFs. A wide range of digital technologies are being used in precision agriculture to improve farming efficiency and boost crop yield and quality.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 24.88 Billion |
| Market Forecast in 2030 | USD 42.37 Billion |
| Compound Annual Growth Rate (CAGR) | 7.00 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Technology, By Application Method, By Crop Type & By Region |
| By Type |
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| By Technology |
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| By Application Method |
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| By Crop Type |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Specialty Fertilizers Market
The Specialty Fertilizers Market is segmented by type, technology, application method, crop type and region.
By Type
The urea ammonium nitrate (UAN) segment held the largest market share in 2022 : By type is sub segmented into urea ammonium nitrate, calcium ammonium nitrate, monoammonium phosphate, sulfate of potash, potassium nitrate, urea derivative, blends of NPK, others. The urea ammonium nitrate accounted for highest market share in global specialty fertilizers market for 2022. Urea ammonium nitrate is one of the most predominant nitrogen fertilizers sources used on pastures in the US. It has a great application effectiveness in all climatic zones, especially arid ones, and prolong nutrition in nitrogen rich plants. Compared to solid and granular form of fertilizers, UAN application is more common in liquid fertilizers. The market for phosphorus specialty fertilizers is dominated by the Asia Pacific region because of the regions significant output of fruits, vegetables, and cereal and grains in China and India. For growing irrigated plant and producing grain, UAN is great irrigation fertilizers, applying UAN could lower the quantity of leftover soil nitrogen, boost nitrogen absorption and use and greatly enhanced yield. UAN is liquid nitrogen fertilizers that works well for sprinklers fertigation and easy to mix with other nutrients or chemicals.
On the other hand, the blends of NPK segment have the significant market share over the forecast period, The large market share of this segment is mainly attributed to factors such as the growing population and the need to improve crop yields and soil fertility, the increasing demand for balanced nutrient solutions in agriculture, and the rising adoption of precision farming techniques. Moreover, the rising focus of governments in various countries to promote specialty urea fertilizers, advancements in fertilizer manufacturing techniques, and rising companies' focus on the development of customized formulations are further expected to support the growth of this market across the globe.
By Technology
The water-soluble fertilizers segment was the leading segment in 2022 : By technology, which is divided into controlled-release fertilizer, water-soluble fertilizer, agricultural micronutrient, and customized fertilizer, other. The water-soluble segment accounted for largest share 40% in global specialty fertilizers market for 2022. Due to its greater availability from manufactures and more affordable price point when compared to CRF, agriculture micronutrient and tailored fertilizers, water soluble fertilizers have the largest market share. There are several applications for water soluble fertilizers such as seed soaking, foliar feeding. Their adaptability renders them ideal for an extensive array of crops and cultivation circumstance, because water soluble fertilizers are less likely to volatize into the atmosphere or leak into groundwater than traditional fertilizers, they are typically considered to be more environmentally benign. In contrast, the controlled-release fertilizer has shown a higher CAGR growth owing to the new product launch by manufacturers and technological advancement in terms of targeted consumption and further reducing the environmental impact caused by excessive fertilizer consumption.
On the other hand, the agriculture micronutrient segment is anticipated to expand over the forecast period, micronutrient is critical for crop nutrition balance and for the growth of plants, it is simple to detect micronutrient deficiencies in crops through testing of the soil and plant tissues as well as visible indication. Due to the growing need for intensive farming and higher yielding crops micronutrient are crucial to crop nutrition, micronutrient improve the effectiveness of fertilizers containing micronutrient in addition to the obvious advantages of higher crop yield.
By Application Method
The fertigation segment was the leading segment in 2022 : By application method, which is divided into soil, foliar, and fertigation. The fertigation segment accounted for largest share 40% in global Specialty Fertilizers market in 2022. The increasing use of water-soluble fertilizers has led to a notable increase in fertigation application method. Fertigation is the process of applying fertilizers through an irrigation system after it has been combined with water usually with aid of drip system or a micro sprinkler additionally, growing effect and investment in the construction of cutting edge and higher capacity fertilizer sprinkler will accelerate market expansion.
foliar segment is anticipated to register rapid growth in forecast period, wing to the rising popularity among farmers as it ensures uniform application of nutrients to the crops. Foliar application provides supplementary feeding to complete soil fertilization and increase productivity. In addition, foliar application can be applied at specific stages of crop development to boost yield and improve quality.
By Crop Type
The fruits and vegetables segment were the leading segment in 2022 : By crop type, which is divided into row crops, fruits & vegetables, turf & ornamentals, and others, owing to their perishable nature and greater export volume fruits and vegetable command a higher sales price which gives them a larger market share. Furthermore, the market is witnessing a notable surge in the fruit and vegetable category due to growing demand for fruit intake among individual. The rise in fruits and vegetable can be attributed to their growing popularity and consumers shifting preference for a healthy diet. The market for high end specialist fertilizers for fruits and vegetables will continue to develop as a result of this increasing demand.
On the other hand, row crops show fastest growth over the forecast period. The higher share in terms of production and larger area harvested of row crops has been a significant contributor to fertilizer consumption.
Regional Analysis
Asia Pacific occupied the largest market share in 2022: Asia Pacific has the largest revenue market share in 2022, The increase in demand for specialty fertilizer in cereals and grains, oilseeds and pulses, fruits and vegetables, and turn and decorative plants is mostly responsible for this growth given that the region has largest agriculture sector, for example, 30% of world arable land is located in Asia Pacific, according to the food and agriculture organization for Economic Co-Operation and development. This is result of widespread agriculture technique in countries like Thailand, China, India, and others. For example, one of the biggest producer and consumer of agri input worldwide is China.
On the other hand, North America has a significant share over the forecast period, with the rising awareness of efficiency of controlled-release fertilizer due to the awareness created by the North America fertilizer industry with the 4R Research Fund, the demand for controlled-release fertilizers and micronutrients is constantly rising in the U.S. for application on these vital vegetables.
List of the prominent players in the Specialty Fertilizers Market:
- Nutrient, Ltd.
- Yara International ASA
- Israel Chemical Ltd.
- K+S Aktiengesellschaft
- Sociedad Química Y Minera De Chile (SQM)
- The Mosaic Company
- EuroChem Group
- CF Industries Holdings, Inc.
- OCP Group
- OCI Nitrogen
Segmentation Analysis of the Specialty Fertilizers Market
By Type
- Urea Ammonium Nitrate (UAN)
- Calcium Ammonium Nitrate (CAN)
- Monoammonium Phosphate (MAP)
- Sulfate of Potash (SOP)
- Potassium Nitrate
- Urea Derivatives
- Blends of NPK
- Others
- Controlled-release Fertilizer
- Water-Soluble Fertilizer
- Agricultural Micronutrient
- Customized Fertilizer
- Soil
- Foliar
- Fertigation
- Row Crops
- Fruits & Vegetables
- Turf & Ornamentals
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Specialty Fertilizers Market:
During the early month of epidemic, manufacturers biggest concerns were labor shortages and significant logistical restriction brought on by the lockdown and border closures. Due to lack of manpower throughout the period, many producers especially SMEs were forced to reduce or suspend output. The government of several nations had issue emergency notice to normalize the transportation and circulation of agriculture product and declare them essential service sector to avoid quarantine restriction in order to normal progression of crop protection and spring plowing, due to rising labor and raw material cost the companies manufacturing cost went up throughout the pandemic. The manufacturing industry and its supply chain experienced an initial shock during the pandemic initial outbreak, but the agriculture and Agri input sector was only slightly affected by rising input cost and supply chain disruption brought on by increased demand and constrained supply. Manufacture and specialty fertilizers that embraced a vertically integrated business strategy were better equipped to handle market upheaval and demand fluctuation, relied production sales to meet demand and maintain market stability during epidemic.
