Specialty Fertilizers Market Size, Share & Trends Analysis Report 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), By Technology (Controlled-release Fertilizers, Water-soluble Fertilizers, Liquid Fertilizers, Micronutrients, Others), By Form (Dry, Liquid), By Crop Type (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, Others), By Applications (Fertigation, Foliar, Soil), By Region (North America, Europe, Asia Pacific, Central & South America, The Middle East & Africa) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Specialty Fertilizers Market Size

The global specialty fertilizers market size was valued at USD 33.72 billion in 2024 and is expected to reach from USD 35.20 billion in 2025 to USD 49.46 billion in 2033, growing at a CAGR of 4.4% over the forecast period (2025-33).

The global adoption of precision agriculture technology is gaining traction as a vital solution for meeting the food production demands of a rapidly increasing population. This shift towards precision farming is anticipated to significantly drive the growth of the global market. Unlike traditional fertilizers, specialty fertilizers are designed to be more efficient and effective, catering to specific soil and plant conditions. Their ability to release essential nutrients and regulate moisture levels enhances nutrient uptake, minimizes nutrient loss, and reduces the toxicity associated with high ionic concentrations.

Specialty fertilizers not only increase the return on investment for growers but also help meet the demand for high-quality crops, resulting in better profit margins compared to conventional high-volume fertilizers. Key components include potassium sulfate, diammonium phosphate, potassium nitrate, phosphoric acid, mono-ammonium phosphate, UAN (urea ammonium nitrate), monopotassium phosphate, calcium nitrate, ammonium nitrate, urea, potassium chloride, and ammonium sulfate.

As the emphasis on efficient and sustainable agricultural practices grows, the market for specialty fertilizers is poised for substantial expansion.

The below table shows a comparison of fertilizer total production across the 2019-2022 period:

Source: Annual Reports, Investor Presentations & Straits Research Analysis

Specialty Fertilizers Market Trends

Increased focus on sustainable agricultural practices

The demand for sustainable farming solutions is shaping the global market. Modern farming practices prioritize nutrient management, minimizing environmental impact while improving crop yields. Specialty fertilizers, such as slow-release or controlled-release fertilizers, help farmers reduce nutrient losses to the environment, particularly through leaching or runoff.

Enhanced efficiency fertilizers ensure nutrients are released at a controlled pace, matching the plant’s uptake needs, reducing overuse, and minimizing environmental risks. This trend is driven by the increased awareness of climate change, soil degradation, and water contamination issues associated with conventional fertilizer use.

•  For instance, in the U.S., the adoption of controlled-release fertilizers has significantly improved nitrogen use efficiency, with studies showing that using these plant nutrients can reduce nitrogen leaching by up to 30%.

As governments and international bodies push for more sustainable farming systems through regulations and incentives, farmers are turning to specialty fertilizers to meet these sustainability goals without sacrificing productivity.

Adoption of precision agriculture

Over the past few decades, precision farming has transitioned from an academic research focus to a highly profitable practice in agriculture. Precision farming mainly involves monitoring soil conditions by examining moisture, nitrates, and electrical conductivity on a weekly basis. A vital element of precision farming is the precise dosage of nutrients to crops at the right time.

Controlled-release fertilizers (CRF) are essential inputs in precision farming, fulfilling this demand. Applying controlled fertilizers using precision farming technologies can also help prevent issues like fertilizer drain-off, excessive fertilizer leaching, and the subsequent increase in biological oxygen demand (BOD) of water bodies.

• For example, in the United States, farmers utilizing precision agriculture technologies report a 10-20% reduction in fertilizer usage while maintaining crop yields, showcasing the effectiveness of controlled-release and water-soluble specialty plant nutrients in enhancing agricultural productivity and sustainability.

Specialty Fertilizers Market Growth Drivers

Growing global population and food demand 

The rising global population is a key driver for the global market. With the global population expected to reach 10 billion by 2050, there is an increasing need for higher agricultural productivity to meet food demands. Specialty fertilizers provide enhanced efficiency in nutrient delivery, ensuring crops receive the essential nutrients needed for optimal growth, thus maximizing yield per hectare.

As arable land becomes more limited, the pressure to produce more food on the same or even reduced acreage has increased. Specialty fertilizers enable higher productivity by addressing specific nutrient needs and reducing waste, making them essential in intensive farming systems. This growing demand for efficient agricultural inputs is encouraging the development and adoption of specialty fertilizers worldwide.

Government support and agricultural subsidies

Many governments, such as those involved in the Global Agriculture & Food Security Program, are encouraging the use of sustainable and efficient farming inputs, including specialty fertilizers, through subsidies and regulatory frameworks.

Agricultural policies increasingly focus on promoting fertilizers that improve nutrient use efficiency and reduce environmental harm, such as eutrophication and groundwater contamination. For instance, governments may provide financial incentives for farmers to adopt enhanced-efficiency fertilizers that limit nutrient loss and improve soil health.

In regions like Europe and North America, regulations aimed at reducing nitrogen and phosphorus pollution in water bodies are pushing farmers to shift from conventional to specialty fertilizers.

•  In 2022, the European Parliament took significant steps to diminish the risks associated with chemical pesticides and the use of fertilizers and antibiotics, promoting a more sustainable approach to agriculture that aligns with the benefits of specialty fertilizers.

Specialty Fertilizers Market Restraining Factor

High cost of specialty fertilizers

The relatively high cost of specialty fertilizers compared to conventional fertilizers poses a significant barrier to market growth, particularly in developing regions. These fertilizers often carry a premium price tag due to the advanced technologies involved in their formulation, such as slow-release coatings and the inclusion of essential micronutrients.

For smallholder farmers or those operating in cost-sensitive markets, the initial investment can be prohibitively high, even though these products may offer long-term advantages through improved yields and reduced input costs.

This cost disparity limits the adoption of specialty fertilizers, particularly in regions where farmers may lack awareness of the long-term return on investment or where immediate cost savings take precedence. Consequently, many farmers continue to rely on cheaper, conventional fertilizers, hindering the growth potential of the global market.

Specialty Fertilizers Market Opportunity

Technological Advancements

Technological advancements are revolutionizing the global market, enhancing efficiency and effectiveness in nutrient delivery. Innovations such as controlled-release fertilizers (CRFs) and nano-fertilizers are gaining traction. CRFs release nutrients gradually over time, aligning with plant uptake, which reduces nutrient loss and minimizes environmental impact.

• For instance, a study conducted by the University of Florida demonstrated that using CRFs resulted in a 30% increase in nutrient use efficiency compared to traditional fertilizers, leading to healthier crop yields with lower application rates.

Additionally, nano-fertilizers, which use nanotechnology to deliver nutrients at the molecular level, are proving effective in increasing crop productivity while using fewer resources.

Companies like Yara International and Haifa Group are leading the charge in developing these advanced fertilizers, showcasing how technology can meet the growing food demand sustainably. These innovations not only enhance agricultural productivity but also support farmers in achieving higher profit margins, driving further market growth.

Regional Insights

Asia-Pacific: Dominant region with 39.48% market share

The Asia-Pacific region is poised to dominate the global market during the forecast period, primarily due to its vast agricultural sector. According to the Organization for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO), Asia-Pacific accounts for approximately 30% of the world's agricultural land. This significant share is attributed to extensive farming practices in countries like India, China, and Thailand.

Notably, China stands out as a major producer and consumer of agricultural inputs, with its arable land comprising around 15% of the global total, totaling approximately 4,781 million hectares, as reported by FAOSTAT in 2022. Moreover, the region recorded the highest percentage of government expenditure on agriculture, reaching 5.0% in 2022, with Eastern and Southern Asia playing pivotal roles in this growth.

North America: Rapid growth in the U.S. and Canada

The North American specialty fertilizers market is experiencing rapid growth, driven by several key factors. The increasing adoption of precision farming practices heightened food security concerns, and a growing focus on environmental sustainability are all contributing to this upward trend. Moreover, the rising acceptance of organic food systems in the United States, aimed at combating obesity and cardiovascular diseases, further stimulates market growth.

The U.S. is the largest importer of fertilizers globally, accounting for over 85% of its phosphatic fertilizers from international sources. In terms of agricultural use, the country applies approximately 11.67 million tons of nitrogen, 39.73 million tons of phosphate, and 43.04 million tons of potash nutrients despite utilizing only 17.24% of its total arable land.This indicates significant potential for specialty fertilizers as North America seeks to enhance agricultural productivity while addressing sustainability challenges.

Segmentation Analysis

The global specialty fertilizers market is segmented into type, technology, form, crop type, and application.

By type 

The global market is bifurcated into urea ammonium nitrate, calcium ammonium nitrate, monoammonium phosphate, sulfate of potash, potassium nitrate, urea derivatives, blends of NPK, and others.

Urea Ammonium Nitrate (UAN) continues to dominate the global market due to its efficient nitrogen delivery and versatile application methods. Its liquid form allows for uniform distribution and precise application rates, making it particularly suitable for large-scale, mechanized farming. UAN enhances crop yield and soil health by providing readily available nitrogen, which is crucial for plant growth, especially in high-demand crops.

By technology

The global market is bifurcated into controlled-release fertilizers, water-soluble fertilizers, liquid fertilizers, micronutrients, and others.

Water-soluble fertilizers lead the market segment, driven by their compatibility with precision agriculture practices. These fertilizers enable precise control over nutrient delivery, minimizing wastage and optimizing crop health. Their integration with modern irrigation systems—such as drip and sprinkler irrigation—enhances their use in intensive horticulture and protected cultivation environments. This flexibility and efficiency make water-soluble fertilizers a preferred choice for farmers aiming for high productivity.

By form

The global market is divided into dry and liquid.Dry specialty fertilizers are favored for their long-term nutrient-release capabilities and ease of storage and transportation. Available in granules or powder, they are ideal for slow-release applications and are compatible with mechanized spreading equipment, making them efficient for large agricultural operations. Dry fertilizers are particularly beneficial for crops like cereals and grains, where prolonged nutrient availability is crucial for maximizing yields.

By crop type

The global market is divided into cereals & grains, oilseeds & pulses, fruits & vegetables, and others.The cereals and grains segment, including crops like wheat, rice, corn, and barley, represents a significant portion of specialty fertilizer consumption. Controlled-release and nitrogen-stabilizing fertilizers are commonly utilized in these crops to optimize yields while minimizing nutrient losses, especially nitrogen. Efficient nutrient management in cereals is essential for enhancing productivity and addressing the global food demand.

By application 

The global market is divided into fertigation, foliar, and soil.Fertigation is a dominant application method involving the delivery of water-soluble fertilizers through irrigation systems directly to the root zone. This method is increasingly popular in precision agriculture, where targeted nutrient management is crucial for maximizing crop yields. Fertigation allows for controlled and efficient nutrient delivery, making it particularly advantageous for high-value crops like fruits and vegetables, as well as in greenhouse settings.

Company Market Share

Companies are increasingly channeling investments into urea-based fertilizers to meet the surging demand across various end-user sectors, particularly agriculture. Urea serves as a vital nitrogen source, and its formulations are being innovated into slow-release and controlled-release varieties aimed at enhancing nutrient efficiency while mitigating environmental impact.

Major players such as Nutrien, Yara International, and CF Industries are expanding their production capacities and refining technologies to deliver enhanced-efficiency urea fertilizers. These companies recognize the growing necessity for fertilizers that not only optimize crop yields but also align with sustainability goals.

OCI Global: An Emerging Player

OCI Global is a pioneering leader in the production and distribution of nitrogen, methanol, and hydrogen, driving the decarbonization of energy-intensive industries worldwide. The company is committed to creating a cleaner future by offering sustainable solutions that enhance food security, clean feedstocks, and greener transportation.

With a robust global footprint, OCI Global leverages its advanced infrastructure and extensive network to deliver high-quality products efficiently. OCI Global's strategic initiatives include significant investments in renewable energy and advanced cryogenic technologies, aiming to reduce greenhouse gas emissions and promote environmental sustainability. 

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.