Global Specialty Fertilizers Market Grows Steadily at a CAGR of 4.61%

Introduction

Specialty fertilizers are those utilized in unique soil and plant conditions. Specialty fertilizers release vital nutrients and regulate contact with moisture. These fertilizers accelerate nutrient uptake, reduce the likelihood of nutrient loss, and reduce the toxicity of a high ionic concentration. Numerous specialty fertilizers contain potassium sulfate, diammonium phosphate, potassium nitrate, phosphoric acid, mono-ammonium phosphate, UAN, monopotassium phosphate, calcium nitrate, ammonium nitrate, urea, potassium chloride, and ammonium sulfate. They are applied to cereals, oilseeds, fruits and vegetables, grasses, and ornamental plants.

Market Dynamics

Rising Preference for Precision Farming Techniques Drive the Global Market

Precision farming has transitioned from an academic research topic to a highly profitable agricultural practice over the past few decades. Precision agriculture focuses primarily on monitoring soil conditions by analyzing moisture, nitrates, and electrical conductivity week. Timing the application of nutrients to crops is a crucial component of precision farming. Controlled-release fertilizers (CRF) are indispensable inputs for precision agriculture, meeting the demand.

In addition, applying controlled fertilizers through precision farming technologies can prevent issues such as fertilizer drain-off, excessive fertilizer leaching, and BOD (the resulting increase in the biological oxygen demand) in water bodies. As a result, the rapid global adoption of precision farming techniques increases the use of specialty fertilizers. In addition, the surging adoption of precision farming practices and the introduction of agricultural technologies are anticipated to augment the market's growth in the coming year.

Favorable Government Policies and Companies Initiatives Creates Tremendous Opportunities

The use of specialty fertilizers to improve plant and soil health has received increasing support from various government agencies and major stakeholders. For instance, in 2020, the European Parliament, the Policy Department for Structural and Cohesion Policies (IPOL), and the Common Agricultural Policy took measures to reduce the risk of chemical pesticides, fertilizers, and antibiotics. The use of fertilizers and antibiotics in agriculture has yielded noteworthy outcomes in pursuing an environmentally sustainable system with minimal pollution and no toxins. This is evidenced by the substantially decreasing pollution levels and completely eradicating toxins.

Regional Analysis

Asia-Pacific is the most significant global specialty fertilizers market shareholder and is anticipated to exhibit a CAGR of 5.1% during the forecast period. The Asia-Pacific region, the largest agricultural sector, is expected to dominate the specialized fertilizers market in market share throughout the projected timeframe. According to the Organisation for Economic Co-operation and Development and the Food and Agriculture Organization, 30 percent of the world's agricultural land is in Asia and the Pacific. This is due to the extensive farming methods in India, China, Thailand, and other nations. For instance, China is amongst the largest producers and consumers of agricultural inputs. In 2020, according to FAOSTAT data, the country's arable land comprised approximately 8% of the world's total arable land or 119.474 million hectares.

Additionally, specialty fertilizer manufacturers in this region develop their market position through various strategies, such as launching new products and enhancing production capacity, due to the significant agricultural economies present in the area. For example, in December 2019, Mosaic China inaugurated a new Yantai Port facility with various features and capabilities, including a sophisticated Soil Lab. Additionally, the 25,000-square-foot facility has a modernized logistics tracking system to promote safer and more efficient operations.

Key Highlights

• The global specialty fertilizers market was valued at USD 46 billion in 2022. It is estimated to reach USD 47.15 billion by 2031, growing at a CAGR of 4.61% during the forecast period (2023–2031).
• Based on type, the global specialty fertilizers market is segmented into controlled-release fertilizers (CRF), slow-release fertilizers (SRF), micronutrient fertilizers, customized fertilizers, water-soluble fertilizers, and other fertilizers. The water-soluble fertilizers segment dominates the global market and is predicted to grow at a CAGR of 4.31% throughout the forecast period.
• Based on the application, the global specialty fertilizers market is segmented into fertigation, foliar, soil, and other applications. The foliar segment owns the highest market share and is estimated to exhibit a CAGR of 4.7% during the forecast period.
• Based on crop type, the global specialty fertilizers market is segmented into grains and cereals, oilseeds and pulses, fruits and vegetables, commercial crops, and other crop types. The grains and cereal segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 4.12% over the forecast period.
• Asia-Pacific is the most significant global specialty fertilizers market shareholder and is anticipated to exhibit a CAGR of 5.1% during the forecast period.

Competitive Players

1. Nutrien Ltd.
2. Yara International
3. ICLGroup
4. The Mosaic Company
5. CF Industries and Holdings, Inc.
6. Nufarm
7. SQM SA
8. OCP Group
9. Kingent
10. OCI Global
11. EuroChem
12. Coromandel International Limited
13. Deepak Fertilizers and Petrochemicals Corporation Ltd
14. Kugler Company
15. Wilbur-Ellis Company LLC
16. Koch Industries

Recent Developments

Recent Developments

• August2024 - OCI Global announced the completion of the sale of its 100% equity interests in Iowa Fertilizer Company LLC (IFCO) to Koch Ag & Energy Solutions (KAES) for USD 6 billion. The transaction was a significant milestone in OCI's strategy to unlock value for shareholders.

Analyst Opinion

As per our analyst, the global market is witnessing steady growth, fueled by the rising demand for high-efficiency fertilizers that optimize crop yields while minimizing environmental impact. This market is increasingly characterized by the adoption of precision agriculture techniques and sustainable farming practices, which necessitate specialized nutrient formulations tailored to specific crop needs.

Controlled-release and slow-release fertilizers are becoming more popular, as they offer a consistent nutrient supply over extended periods, significantly enhancing nutrient use efficiency. These innovative fertilizers help reduce nutrient losses due to leaching and volatilization, ultimately supporting both agricultural productivity and environmental sustainability.

Segmentation

1. By Type
   1. Urea Ammonium Nitrate (UAN)
   2. Calcium Ammonium Nitrate (CAN)
   3. Monoammonium Phosphate (MAP)
   4. Sulfate of Potash (SOP)
   5. Potassium Nitrate
   6. Urea Derivatives
   7. Blends of NPK
   8. Others
2. By Technology
   1. Controlled-release Fertilizers
   2. Water-soluble Fertilizers
   3. Liquid Fertilizers
   4. Micronutrients
   5. Others
3. By Form
   1. Dry
   2. Liquid
4. By Crop Type
   1. Cereals & Grains
   2. Oilseeds & Pulses
   3. Fruits & Vegetables
   4. Others
5. By Applications
   1. Fertigation
   2. Foliar
   3. Soil
6. By Region
   1. North America
      1. The U.S.
      2. Canada
      3. Mexico
   2. Europe
      1. Germany
      2. UK
      3. France
      4. Russia
      5. Italy
      6. Spain
      7. Rest of Europe
   3. Asia Pacific
      1. China
      2. India
      3. Japan
      4. South Korea
      5. Australia
      6. Taiwan
      7. Rest of Asia Pacific
   4. Central & South America
      1. Brazil
      2. Argentina
      3. Chile
      4. Colombia
      5. Rest of Central & South America
   5. The Middle East & Africa
      1. Saudi Arabia
      2. South Africa
      3. Egypt
      4. Nigeria
      5. Turkey
      6. UAE
      7. Rest of the Middle East & Africa