MicroGranular Fertilizer Market Size, Share & Trends Analysis Report By Type (Straight Fertilizers, Complex Fertilizers), By Crop Type (Grains and Cereals, Pulses and Oilseeds, Commercial Crops, Fruits and Vegetables, Other Crop Types) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global microgranular fertilizer market was valued at USD 8,483.80 million in 2022. It is projected to reach USD 12,786.78 million by 2031, growing at a CAGR of 3.80% during the forecast period (2023-2031). 

Chemical ingredients in fertilizers, which can be natural or synthetic, help plants grow and produce more. Fertilizers may increase the soil's inherent fertility or replenish the chemical ingredients that previous crops removed from the soil. Fertilizers with nitrogen, potash, and phosphate are examples of contemporary fertilizers. Certain "micronutrients," including zinc and other metals, which are essential for plant growth, are also included in some fertilizers. The hyper-targeted micro granules provide nutrients more closely matched to the plant's needs and facilitate absorption. Our PLANTAR participates in an innovative, earth-friendly way of fertilizer. They improve timing and fertilization effectiveness, lower leaching losses, and boost production.

Market Dynamics

Global microgranular fertilizer market drivers

Depleting soil quality and declining agricultural land

The growing use of mineral fertilizers caused the overabundance of fertilizers in the soil. Research presented at the 2017 United Nations Convention to Combat Desertification (UNCCD) in Ordos, China, found that the pace of fertile soil loss is estimated to be 24 billion metric tons per year. Biodegradable polymer coatings are effective in the long-term conservation of soil fertility and the regulated release of nutrients into the soil while minimizing nutrient losses, such as ammonia volatilization.

Furthermore, a study by the University of Sheffield's Grantham Centre for Sustainable Futures found that excessive residues of non-biodegradable fertilizers and intensive agricultural practices have caused soil degradation to develop at a rate where erosion is 100 times faster than soil formation. Due to national governments' lucrative deforestation programs, Asia has the highest percentage of degraded forest land. By 2050, their arable area is expected to diminish slowly, according to the FAO study's forecasts. Research by the European Commission's Joint Research Centre (JRC) found that excessive fertilizer use resulted in an increase in short-term yields at the expense of long-term sustainability. Furthermore, 20% of the global croplands saw a fall in productivity. It is anticipated that this will increase the demand for micro granular fertilizers.

Global microgranular fertilizer market restraint

Environmental implications of chemical-based fertilizers

Chemical fertilizers have been used since the 1930s and are crucial for the economically efficient production of commercial crops. However, using chemical fertilizers excessively releases a substantial amount of greenhouse gases into the environment. Overfertilizing a necessary nutrient can be harmful because "fertilizer burn" can happen when too much fertilizer is used, which damages or even kills the plant and causes the leaves to dry up. Another significant issue with chemical fertilizers is that they need to be environmentally friendly. When the extra nutrients from all the fertilizer flow into our water bodies, they generate algae blooms by penetrating through the soil and contaminating the groundwater and other water sources. Using fertilizers and other nutrients can have adverse effects on the environment. Still, the fertilizer industry is leading the charge to initiate and support research and regulation that produce best practices to mitigate or completely prevent any such effects. Chemical fertilizers' negative impacts may limit their use in the following years, which is what is limiting the global fertilizers market's expansion.

Global microgranular fertilizer market opportunities

Technological innovations

The need for food has increased due to the growing population, necessitating larger quantities of fertilizer to boost output. But the subsequent loss of arable land has made it more difficult for farmers to increase production. In recent years, technical and scientific advancements have improved the efficiency of applying micro granular fertilizers, enabling farmers to maximize fertilizer advantages while lowering the dangers of over-, under-, and improper use. Huge yields and minimal environmental impact have been demonstrated by innovation paired with best fertilizer management practices in supply, rate, timing, and place.

Energy is used up throughout the fertilizer-producing process. Both the generation of nitrogen and the creation of dry phosphate fertilizers need natural gas. Up to 90% of the cost of producing nitrogen fertilizer can be attributed to natural gas. The world's fourth-largest producer of nitrogen-based fertilizers and the second-largest producer of phosphate is both in the United States. Government regulations also promote switching from other fuel sources to natural gas as a fuel, which has a beneficial impact on demand by causing problems with energy supply or cost. Due to the significant environmental effects of chemical-based micro granular fertilizers, which are a contributing factor to climate change and global warming, manufacturers are developing less environmentally damaging goods.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global micro granular fertilizer market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 3.7% during the forecast period. Due to the high boron level in arid regions and the lower content in moist areas, the red soil in southern China is frequently low. Additionally, the widespread adoption of high-yielding seed varieties has increased the proportion of trace elements absorbed from the soil, leading to micronutrient deficiencies throughout the nation's principal agricultural regions. Israel Chemicals Ltd. and Yara China Limited are the two most prominent businesses in the country that sell items linked to micro granular. Since 36.5% of Indian soils are zinc deficient, zinc deficiency is the most common micronutrient in all Indian geographies. The heavy production of wheat and rice has further contributed to the soil's zinc shortage. According to projections, India's need for zinc micro granular fertilizers will rise due to the country's zinc shortage.

Additionally, due to heavy wheat farming, manganese shortage in the soil is most common in the northern Indian states. Manganese availability in the soil has further decreased due to processes like leaching. As a result, the demand for micro granular fertilizers based on manganese has increased nationwide. Government-led programs, such as the Merchandise Exports from India (MEIS) and the Mission for Integrated Development of Horticulture (MIDH), encourage exporters or farmers to send their produce, including fruits and vegetables, to specific markets.

North America is expected to grow at a CAGR of 4.00% during the forecast period. According to studies conducted by the Pioneer Company, the use of starter fertilizers, such as micro granular fertilizer, can improve corn seedlings when the nodal root system's growth is hampered by the weather, hindered by the state of the seedbed, harmed by pests, or affected by other causes. The studies also demonstrate that starting fertilizers, such as micro granular fertilizer, may be more advantageous to farmers utilizing no-till or high-residue farming practices, particularly in northern states, or in coarse-textured (sand or silt) soils, or in soils with low phosphorus contents. As a result, in the years to come, the market need for microgranular fertilizers may increase due to rising maize costs and modifications in farming methods. The United States Soybean Sustainability Assurance Protocol states that environmental protection control mechanisms and laws should be continuously improved, as nitrogen losses from one of the most widely farmed crops, soybean, represent the most significant environmental hazard. This is anticipated to drive the micro granular fertilizer market during the projected period.

Additionally, to reduce the hazards of over-application and promote the use of microgranular micronutrient fertilizers, the Canadian Food Inspection Agency (CFIA) announced the reintroduction of higher tolerance levels for micronutrient fertilizers. Canola is also particularly susceptible to zinc and boron deficiencies in Southern Alberta. Cereal crops, such as wheat and barley, growing on sandy soils in Central and North-Central Alberta need an appropriate supply of copper micronutrient fertilizers. Therefore, when people become more aware of the need to reduce deficiencies and increase crop yields, they may use micro granular fertilizers to expand the market under study. The wages paid to farm workers in North America have increased significantly, substantially affecting farmers' income. Farm workers are still required to operate the machinery throughout the crop cycle even if sophisticated farming equipment is available, such as fertilizer spreaders for fertilizer application. Utilizing micro granular fertiliser can help reduce agricultural labour costs because it only needs to be administered once throughout the full crop cycle.

Germany is a major producer of crops like rye, oats, potatoes, and fodder beets in Europe. Yields have grown due to the direct and efficient application of micro-granular fertilizer containing nutrients like manganese and phosphate to various crops. To use micro-granulated fertilizer products on these crops, extensive research is being conducted. The British Carrot Association claims that more than 9,000 hectares are used to cultivate carrots, the country's most important vegetable crop. Carrot production totals around 700,000 metric tons annually, with sales of EUR 290 million. The planting of carrots is delayed, and the growing season is reduced by 18% due to too much rain in the spring. Excessive rainfall may induce nitrogen leaching due to drainage beyond the root zone. Therefore, microgranular urea and NPK fertilizers can address this issue by gradually releasing nitrogen to the plant's needs. The baseline nutrient stores in the United Kingdom are substantially higher in relatively young soils. But even in micronutrient fertilizers, there are still nutrient imbalances. This seriously jeopardizes the ability of microgranular micronutrient fertilizers to increase agricultural output.

In South America, Brazil holds the most significant market share for microgranular fertilizers and is actively expanding its agricultural land. The most important portion of nitrogen fertilizer is consumed as urea. Brazil is the world's biggest supplier of soybeans. However, Brazil's widespread manganese deficiency negatively influences crop productivity and increases the demand for potassium fertilizer to lower the soil's acidity. This opens up new business opportunities for companies that make high-quality microgranular manganese and potassic fertilizers, stimulating the need for fertilizer. Agriculture production is anticipated to rise in 2020 due to the FAO and the Argentine government's collaboration to improve food security in the nation. The study explores crop growers' preference for fertilizers with rapid absorption. This is possible because nutrients have a longer window of availability in the soil and are becoming more effective. This could help the market for microgranulated fertilizers grow.

Segmental Analysis

The global micro granular fertilizer market is segmented by type and crop type.

Based on product type, the global micro granular fertilizer market is bifurcated into straight fertilizers and complex fertilizers. 

The straight fertilizers segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.00% during the forecast period. Microgranular urea is a synthetic organic molecule that may be applied to plants and quickly absorbed by all its parts, including the vegetative mass and roots. In tank mixes with microelements and plant protection products separately, micro granular urea is beneficial for both the main application and as a top dress. During the study period, there was an increased demand for calcium ammonium nitrate worldwide because plants can easily absorb micro granular calcium ammonium nitrate, and there are fewer losses than urea fertilizers.

Additionally, unlike other components, such as ammonia, micro granular calcium ammonium nitrate fertilizers do not significantly increase soil acidity and do not escape into the atmosphere. Fertilizers frequently use micro granular calcium ammonium nitrate due to its better properties. The micro granular form of ammonium nitrate is simple to handle and rich in nutrients. However, ammonium nitrate is unsuitable for high-value crops, such as fruits and vegetables. It typically requires fertilizers with high nitrogen contents because it only contains a modest percentage of nitrogen (33.5%) in either form. As a result, the micro granular ammonium nitrate segment is growing more slowly than the overall market.

Complex fertilizers are made up of potassium, phosphorous, and nitrogen mixtures. As part of the market investigation, fertilizers with nitro phosphate complexes are being considered. The stabilizer in nitro phosphate fertilizer's granular form prevents citrate-soluble phosphates from becoming insoluble phosphates. The fertilizers' granulated shape also helps them keep top physical condition while being handled and stored. As a result, the market under study is growing because of these distinguishing characteristics. Depending on how they will be used, nitro phosphate fertilizers can include a wide variety of nutrients. Crop growers must choose the proper composition for each unique crop and soil need. This fertilizer's granule is applied directly to the soil's surface. Before planting, it is frequently sprayed as a full band beneath the soil surface or incorporated into the root zone. Additionally, complex fertilizers are more affordable per kg of nutrients than standalone fertilizers because they are combined with one or more nutrients. This is pushing farmers to use sophisticated fertilizers and accelerating the expansion of the business under investigation.

Based on crop type, the global micro granular fertilizer market is bifurcated into grains and cereals, pulses and oilseeds, commercial crops, fruits and vegetables, and other crop types. 

The grains and cereals segment owns the highest market and is estimated to grow at a CAGR of 4.0% during the forecast period. Despite bad weather (a wet spring followed by a chilly June), according to USDA-NASS, American corn producers raised the area harvested under maize to 91.7 million in 2019, an increase of 3% from the previous year. To meet the need for animal feed, human consumption, and energy needs, the yield per hectare of maize increased significantly from 10,945.2 kg/hectare in 2016 to 11,062.1 kg/hectare in 2017 (FAO). Approximately a third of the maize harvest is used to make ethanol. With an average production of 85,217 metric tons over the previous few years, the OECD/FAO research from 2018 predicted that wheat production will rise to 85,705 metric tons by 2027 to fulfill the growing demand for wheat around the world. The 2018 spring wheat production in Canada increased by 4% over the previous year to 31.3 million tons (FAO, 2018). Due to their function in crop productivity and quality, it is therefore projected that rising production will push the deployment of microgranular fertilizers.

Furthermore, it has been determined that wheat in several of the world's most populous nations, including China, India, Brazil, and Japan, lacks boron and molybdenum. One crop in this category with a lot of micronutrient deficits is barley. Microgranular fertilizers can treat deficiencies and increase crop output due to rising deficiency levels. As a result, the need for grains and cereals is growing for various uses, including feed, the energy sector, and human consumption, which is driving farmers to apply micro granular fertilizers to boost production and drive the market during the projection period.

Increased crop yield results in a shortage of nitrogen provided by fixation. To supply nitrogen fertilizer to the soil in a regulated manner, applying microgranular nitrogen may be a more practical choice. Rapeseed is a crop that Canada produces in large quantities. Recent trade accords, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which eliminates 98% of tariffs between Canada and the EU, and the Canada-EU Trade Agreement (CETA), may help the country's export market for rapeseeds. This factor will likely increase future demand for microgranular fertilizers as rapeseed yield rises.

The ongoing project TRUE, funded by the EU and carried out in collaboration with ten nations and the University of Hohenheim, started in April 2017 and is scheduled to end in March 2021. Currently, the project focuses on improving pulses' production, especially legumes, processing, improved market structures, and consumer awareness of the health benefits. Additionally, it is anticipated that this factor will increase the region's production of pulses. As a result, the market expansion under study during the forecast period is supported by rising government backing for increased pulse production and growing export demand for pulses and oilseeds.

Recent Developments

• February 2022- ProPHOS Chemicals company reinvented itself and embarked on a path of image renewal. This ambitious project stemmed from the desire to present the company to different markets with an innovative aspect.
• September 2022- Nouryon entered into a definitive agreement to acquire ADOB Fertilizers, a leading supplier of chelated micronutrients, foliars, and other specialty fertilizers. The acquisition will enable Nouryon to expand its product portfolio and broaden its offerings for customers in the crop nutrition market.