"Yield Higher Revenue with our Exclusive Insights "
The global specialty fertilizers market size was USD 24.26 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with specialty fertilizers witnessing a negative impact on demand across all regions amid the pandemic. Based on our industry analysis, the global market will exhibit a lower growth of 2.4% in 2020 as compared to the average year-on-year growth during 2016-2019. The market is projected to grow from USD 24.85 billion in 2020 to USD 39.37 billion in 2027 at a CAGR of 6.8% in the 2020-2027 period. The growth in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The global specialized fertilizers market is driven by increasing innovation in the crop nutrition industry and rising research & development on them. The adoption of tailored fertilizer products to address specific crop nutrition requirements is an emerging trend in this industry. The growth of this market is driven by the proliferating demand for high-efficiency nutrition products for crop growth. The demand for agricultural products that can fulfill all the nutritional requirements for growing plants is rising significantly across the globe, which is projected to accelerate the market size. In North America, the adoption of the product is increasing significantly, attributable to the high awareness about the benefits offered by it. High income, hence high affordability for expensive crop nutrition products by farmers of the region, is further contributing to the amplifying the growth of the market.
Disruptions in Supply Chain Management due to COVID-19 to Impede Specialty Fertilizers Market Growth
The sudden coronavirus outbreak has negatively impacted specialty fertilizers production across the globe. The product rates are likely to increase, owing to its shortages and higher production costs. But, the downstream demand is uncertain and export market pressures remain high, both of which put this market under greater pressure in 2020. Producers should look for gaining new growth opportunities amid the difficulties. The global industry experienced sluggish growth due to the novel coronavirus. Logistical restrictions and labor shortages have become top concerns for producers. Many producers, particularly small and medium-sized enterprises (SME), have had to stop or halt production. In order to guarantee the normal progression of production and spring plowing, governments of several regions have issued an emergence notice to confirm the transportation and circulation of agricultural products.
Presently, the situation has improved, with the number of new confirmed cases falling. Although prices of products used in the agricultural sector have been affected by the pandemic, the impact is substantially minor than in other commodities such as chemicals, metals, and many more. Similarly, prices can recover and stabilize within the next few months by inspiring farmers to plant more and thus to spend higher amounts on agri-inputs.
For instance, according to the planting forecast for spring 2020 of the United States Department of Agriculture (USDA), U.S. growers are planning to shift more acreage to major plantation crops such as maize and soybeans. Maize acreage is expected to increase by 8% to 97 million acres from the previous year, and soybean acreage is predicted to grow by 10% to 83.5 million acres compared to last year. These factors are expected to serve as new opportunities for major players.
Request a Free sample to learn more about this report.
Escalating Focus on Innovative and Budget-friendly Crop-nutrition Products is a Vital Trend
Realization of the rising necessity of effective fertilizers to support a variety of crop and plant growth under various environmental conditions is proliferating the demand for innovative agricultural solutions. Leading players, as well as governments, are trying to cut down the production cost and retail prices of this type of fertilizers so that they can be made easily available for farmers with varying economic abilities.
Rapidly Rising Global Population to Drive the Growth of the Market
The global market is fueled by the rising world population, contributing to increasing the stress over food security. Specialty fertilizers are high-efficiency, concentrated, and tailor-made fertilizers that can enhance the crop yield by offering important nutrients required by plants. Declining arable land across the globe and increasing soil contamination is stressing the adoption of smart fertilizers that can effectively promote plant growth in adverse conditions.
Increasing Inclination towards Precision Farming Practices to Boost Growth
The adoption of precision farming practices and the arrival of novel technologies in the aforementioned farming is projected to support the growth of the market during the forecast period. Moreover, the increasing investment by key market players in innovating and commercializing effective specialty fertilizers in the global market will further boost the growth.
Low Cost-effectiveness of the Product Can Hamper Growth
The high price of fertilizers, such as micronutrient fertilizers and customized fertilizers, is expected to act as a major restraint for the growth of the specialized fertilizers market. The utilization of easily available and cost-effective ingredients for the formulation of the product can help overcome this restraint.
To know how our report can help streamline your business, Speak to Analyst
Water-soluble Fertilizers Segment to Hold Major Market Share
The demand for water-soluble fertilizers (WSFs) is expected to remain high throughout the forecast period as they are very efficient in improving the quality and quantity of crop yields. The compatibility of WSFs with modern irrigation technology and low water requirements for their usage is expected to contribute to enlarging their demand. The demand for micronutrient fertilizers across the horticulture industry is expected to showcase considerable growth as horticulture crops are grown in many countries that are deficient in significant micronutrients. The rising demand for fertilizers that can act on and address specific crop-related problems and help in their healthy growth is projected to aid the demand for customized fertilizers during the forecast period.
Fertigation Segment to Grow Significantly in the Upcoming Years
The rising innovation in irrigation technology is projected to act as a fueling factor for the increased adoption of fertigation methods for specialty fertilizers during the forecast years. The use of this method or drip irrigation is a time and labor-saving application method for fertilizers; hence their popularity is projected to increase crucially and boost the market growth. The use of this method can also save energy and water. Therefore, they are an efficient solution to grow fiber crops in countries or regions where water is scarce.
Fruits & Vegetables Segment to Dominate the Global Market
The demand for cereals is increasing at a rapid pace as several kinds of cereal are consumed as staples across the globe. This segment is projected to hold a considerable specialty fertilizers market share as the growing world population is leading to the increased concern over food security. Hence, the adoption of the product in promoting cereal crop yields is projected to rise crucially. The demand for fruits and vegetables is growing across several developed and developing economies due to their high nutritional value. Moreover, the demand for organic fruits and vegetables is surging due to their considerable health benefits. To support the rapid growth of organic fruits and vegetables, the adoption of these fertilizers such as micronutrient fertilizers is projected to rise among farmers.
North America Specialty Fertilizers Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The Asia-Pacific market is expected to grow at a CAGR of 7.36% during the forecast years. Rising innovation in the agriculture sector in agri-dominant economies such as China and India will fuel the product's adoption within the region. Increasing governmental support to promote the usage of novel and specially formulated fertilizers by offering subsidies on them is predicted to accelerate the utilization of specialized fertilizers among farmers of the region.
The rising demand for organic products in Europe and the high spending power of consumers is expected to boost the demand for specialty fertilizers in the agriculture industry of the region. In various European economies, high-value crops and other horticultural crop production is increasing significantly, which is expected to further contribute to the amplifying demand for micronutrient fertilizer mixes, water-soluble fertilizers, and customized nutrient mixes for crops. In South America, the market growth is associated with the high crop production capacities in countries such as Brazil and Argentina. Additionally, the increasing adoption of advanced farming products and inputs, coupled with the usage of specialty agrochemicals within the region, is expected to stimulate market growth within the region.
To know how our report can help streamline your business, Speak to Analyst
North America is anticipated to dominate the global market owing to the increasing adoption of quality crop nutrition products in the region. The demand for efficient fertilizers that can handle the nutritional requirements of plants and offer them the required nutrition at appropriate time intervals is increasing in countries such as the U.S. and Canada. Higher awareness among farmers of the region about different specialty fertilizers available in the market and the positive aspects associated with their use is contributing to the growth of the regional market. Moreover, the presence of leading producing companies such as FMC Corporation, Nutrien Ltd., and others are supporting the market growth in the region significantly.
Companies to Focus on Innovative Product Launches and Mergers & Acquisitions
Dominant market players in the industry such as Nutrien Ltd., Israel Chemicals Ltd., Haifa Chemicals, and others are centering on strengthening their product portfolios of specialty fertilizers. Nutrien Ltd. is emerging as one of the prominent players in the industry. It was formed in the year 2017 after the merger of two global fertilizer giants, namely, PotashCorp and Agrium. The company is focusing on product launches, acquisitions, and collaboration strategies to increase its market dominance and share.
January 2020 - Nutrien Ltd. announced its deal of acquiring Brazilian Ag retailer, Agrosema Comercial Agricola Ltda. This acquisition is a strategy to penetrate deeper into the traditional or specialized fertilizer market in South America.
January 2018 - Nutrien Ltd. announced that it has entered into an agreement to acquire Agrichem, a leader in specialty plant nutrition products manufacturing, based in Brazil.
An Infographic Representation of Specialty Fertilizers Market
To get information on various segments, share your queries with us
The specialty fertilizers market report provides qualitative and quantitative insights into the market dynamics. It also offers a detailed analysis of the market size and growth rate for all possible market segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends and forecasts.
ATTRIBUTE | DETAILS |
Study Period | 2016-2027 |
Base Year | 2019 |
Forecast Period | 2020-2027 |
Historical Period | 2016-2018 |
Unit | Value (USD Billion) |
By Type |
|
By Application Method |
|
By Crop Type |
|
By Geography |
|
Fortune Business Insights says that the market size was valued at USD 22.92 billion in 2018 and is projected to reach USD 38.66 billion by 2026.
Growing at a CAGR of 6.89%, this will exhibit considerable growth in the forecast period (2019-2026).
Water-soluble fertilizers segment is expected to be the leading segment based on type during the forecast period.
Increasing acceptance towards modern farming products and practices, rising implementation of precision farming, and increasing innovation in the agriculture industry are driving the growth of the market.
Israel Chemical Ltd., Nutrien Ltd., Yara International ASA, and Haifa Chemicals Ltd. are few of the key players present in the global market.
North America is expected to hold the highest share in this market.
Fruits & Vegetables segment is expected to hold the major market share throughout the forecast period.
Rising innovation in the plant nutrition industry and increasing adoption of tailored fertilizers or crop nutrition products are the key market trends that are driving the growth of the market.