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The increasing formulation of favorable government policies across various regions is touted to impel the demand for specialty fertilizers in the coming years. Several regulatory bodies are awarding grants and launching schemes for supporting production in their respective regions. As per a report by Fortune Business Insights, the global market size for specialty fertilizers is projected to grow from USD 24.85 billion in 2020 to USD 39.37 billion by 2027, exhibiting a CAGR of 6.8% from 2020 to 2027.
The surge can be attributed to rising investment initiatives. For instance, in March 2022, the U.S. Department of Agriculture (USDA) announced plans to support additional production of fertilizers for American farmers. The move was taken in a bid to enhance competition and address surging costs, including the impact of Putin’s price hike.
The USDA initiative announced the availability of USD 250 million via a new grant program for supporting sustainable, innovative, and independent American fertilizer production. In addition, the department shared plans to roll out a public inquiry seeking information regarding agricultural fertilizers, seeds, and retail markets.
Such initiatives are expected to give impetus to industry participants, augmenting revenue expansion to a considerable extent. Besides, key companies in the market are adopting a series of strategies for expanding product reach and increasing their geographical footprint.
Given below is a list of major specialty fertilizer manufacturing companies that are poised to impel the business landscape through the estimated period:
Israel Chemicals Ltd., a prominent manufacturer of specialty chemicals, has three business units. These include Innovative Ag Solutions, Potash Industrial Products, and Phosphate Solutions. The company produces solutions that have applications in fruit, sports fields & landscapes, ornamental horticulture, vegetables, and other arable crops. The company has state-of-the-art products and well-established brands that make it one of the major providers of specialty fertilizers in critical markets.
In addition, in an endeavor to expand distribution and marketing in new locations, the company has adopted a strategic merger and acquisition strategy. Considering instance, in January 2021, ICL hit the headlines for the acquisition of Fertilaqua for a valuation of USD 122 million. The deal helped ICL in leveraging Fertilaqua’s market position for enhancing the sales of organic fertilizers and other specialty plant nutrition solutions in Brazil.
Nutrien Ltd. is one of the major producers of specialty fertilizers in region of North America. The overall revenue of the company surged from USD 20.91 billion in 2020 to USD 27.71 billion in 2021. The gross margin of the crop nutrition segment mainly escalated in the U.S. market, followed by the Australian market.
Besides, the company directly reaches out to customers by associating with the region’s farmers. Citing an instance, in March 2019, Nutrien Ltd. completed the acquisition of Van Horn, Inc., the U.S. retailer, and agricultural services provider. The latter is ranked by CropLife International as the 42nd largest agricultural retailer in the U.S.
Yara International ASA is the third largest specialty fertilizer company at the global level. The company’s fertilizer segment constitutes brands such as YaraTera, YaraVita, YaraVera, Yara Liva, and YaraMila, among others. The company is focused on the development of advanced tools for precision farming and works with partners through the food value chain for the creation of more climate-friendly crop nutrition products.
Furthermore, there has been a substantial increase in the demand for organic food products. The company has adopted a series of strategies for impelling business expansion in the forthcoming years. For instance, in September 2021, Yara International increased its presence in the organic fertilizer market via the acquisition of Finland-based recycled fertilizers producer Ecolan Oy. Via this acquisition, the company planned to expand offerings to other markets in Europe. Furthermore, in January 2022, the company inked an agreement with Lantmannen for the launch of fossil-free fertilizer in the industry.
Having developed a robust product portfolio, Haifa constitutes the fourth largest player in the specialty fertilizers industry. Its portfolio comprises granular fertilizers, controlled-release fertilizers, micronutrients, water-soluble fertilizers, and others. The company is known for deploying advanced methods of fertilizer application, including foliar nutrition and fertigation.
Furthermore, Haifa uses advanced technology for enhancing product quality. The technology ensures that the plants receive optimal nutrition through their growing season. Haifa serves consumer requirements across five continents with its global presence.
Based in Morocco, OCP is a manufacturer of phosphoric acid and phosphate fertilizers. The firm has an integrated chain of two processing plants, a wide network for wharfs, four phosphate mines, and ports for fertilizer distribution. The organization is keen to expand its product portfolio in the specialty fertilizer segment by enhancing the capacity of production and the development of customized plant nutrition solutions for specific crops for addressing the global needs of farmers.
Citing an instance, OCP Africa shared plans for the expansion of its specialty fertilizers to farmers in the African market.
Impact of COVID-19 and Russia-Ukraine War Creates Food Crisis: Mitigation Efforts to Incentivize Industry Growth
The coronavirus crisis impacted several economies in terms of supply chain disruptions and reduced incomes. The pandemic along with the Russia-Ukraine war led to a food crisis across various regions. Among them, the most vulnerable countries include those facing balance of payment crises as their people struggle with falling incomes and surging costs.
To counter these crises, several steps are being taken for the efficient usage of nutrients, seeds, and fertilizers. This is expected to create a favorable ground for industry expansion in the forthcoming years.
The following years are expected to record a considerable upsurge in the demand for specialty fertilizers. This is majorly being driven by the escalating innovation in the crop nutrition industry and an increase in research & development initiatives. Additional factors favoring industry growth comprise the surging demand for high-efficiency nutrition products and the rising adoption of tailored fertilizers for addressing specific requirements associated with crop nutrition.