Water Soluble Fertilizer Market Size, Share & COVID-19 Impact Analysis, By Type (Nitrogenous, Phosphatic, Potassic, and Others), Application (Foliar and Fertigation), Crop Type (Field Crop, Horticulture, Turf & Ornamentals, and Others), and Regional Forecasts, 2020-2032

The global water soluble fertilizer market size was valued at USD 15.08 billion in 2019 and is projected to reach USD 36.26 billion by 2032, exhibiting a CAGR of 7.12% during the forecast period. Moreover, the water-soluble fertilizers market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 6.49 billion by 2032, driven by rising demand for high-quality crops, which encourages the use of specialty fertilizers. Europe dominated the water soluble fertilizer market with a market share of 35.54% in 2019. 

The recognition and popularity of water-soluble fertilizers (WSFs) as immediate nutrient deficiency correctors are increasing globally. Earlier, WSFs were popular mainly across developed markets, but with growing research and development and the active participation of fertilizer giants, these fertilizers are becoming a prominent part of the agriculture industry in developing economies as well.

The water-soluble fertilizers market growth is fueled by the escalating demand for efficient fertilizers that can significantly uplift the nutrient uptake within crops and provide nutrients in a regulated manner. Rising adoption of advanced farming practices, coupled with proliferating demand for fruits, vegetables, and other high-value crops with high nutritional value, is expected to contribute positively to boosting the market revenue.

Global Water Soluble Fertilizer Market Key Takeaways

Market Size:

• 2019 Value: USD 15.08 billion
• 2032 Forecast Value: USD 36.26 billion, with a CAGR of 7.12% from 2020–2032

Market Share:

• Europe led the water soluble fertilizer market with a 35.54% share in 2019 and remains dominant due to high adoption of specialized fertilizers.
• By type, the nitrogenous segment is projected to hold a 66% share in 2025.

Key Country Highlights:

• The water soluble fertilizer market in Japan is expected to reach USD 603.07 million by 2025.
• The U.S. market is projected to reach USD 6.49 billion by 2032, driven by rising demand for high-quality crops.
• China is forecast to witness a strong CAGR of 5.66%, while Europe is anticipated to grow at a CAGR of 3.93% during the forecast period.

The outbreak of COVID-19 disrupted the Supply Chain Management of Plant Nutrition Products.

The outbreak of the pandemic has negatively impacted the global market due to various socio-economic changes that have emerged during this pandemic. A halt in the manufacturing of specialty fertilizers across several prominent specialty fertilizer-producing regions due to lockdowns has led to a slowdown in overall production. Trade restrictions imposed globally by various countries have disrupted the supply chain of these fertilizers; however, with the easing of restrictions, conditions are expected to improve in the upcoming months.

In developing economies, the demand for water-soluble fertilizers may remain sluggish in the upcoming months due to a slowdown. Hence, declining demand for premium agriculture products reduces farmers' spending on pricey agricultural inputs.  However, the demand for WSFs is predicted to gain strong traction in the forthcoming years due to a predictable increase in demand for quality fertilizer inputs to address the demand for food security. The pandemic has encouraged people to opt for a healthier lifestyle and boost immunity and hence the demand for nutrient-rich food such as fruits, vegetables, and nuts are predicted to rise. Rise in the demand for premium agricultural products in the upcoming years will offer growth opportunities for specialty fertilizers.

WATER SOLUBLE FERTILIZERS MARKET TRENDS

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Increasing Investment by Key Market Players in Product Development to Fuel the Market

Market players operating in the WSF market have realized the future growth potential of water-soluble fertilizer and hence, are making continuous efforts to innovate and launch new products in the market to establish their prominence. Companies are stepping up their production capacities of various WSF grades and expanding their global reach, which is aiding the popularity and demand for these fertilizers across countries where agriculture is practiced primarily. For instance, the Gujarat Agro Industries Corporation (GAIC) imported a water-soluble fertilizer product launched under the brand name ‘Agro’ in January 2020. The products included in the brand are customized grades of stage-specific and crop-specific fertilizers. Europe witnessed a growth from USD 5.12 Billion in 2018 to USD 5.36 Billion in 2019.

WATER SOLUBLE FERTILIZERS MARKET GROWTH FACTORS

Proliferating Demand for High-Value Crop Produces to Support Market Growth

The demand for water-soluble fertilizers is projected to witness continuous growth during the forthcoming years due to the rising requirement for specialty fertilizers to enhance the production of high-quality crops. The growing world population in several developing and underdeveloped countries has raised concerns over food security and existing food production solutions.

Growing government initiatives to promote specialty fertilizers and the launch of programs to educate farmers about the novel fertilizer type and its benefits will aid market growth. However, the high price of these specialized fertilizers can act as a major restraint on market growth, which in turn requires government subsidy facilities.

RESTRAINING FACTORS

High Price of Water-soluble Fertilizer Products to Restrain the Market Growth

The high price of specialty fertilizers such as water-soluble fertilizers and controlled fertilizers can act as a major restraint on the market growth during the forecast period. Low-cost effectiveness of these fertilizer varieties can restrict their use in countries where per capita income is low. Fertilizer industry stakeholders are investing in R&D activities to innovate more efficient fertilizers. The companies are also focusing on manufacturing technologies to increase production efficiency and to make these products more affordable to the crop producers, including low-margin farmers.

WATER SOLUBLE FERTILIZERS MARKET SEGMENTATION ANALYSIS

By Type Analysis

Demand for Nitrogenous Fertilizer to Remain High

At the global level, the nitrogenous fertilizer segment is predicted to witness robust growth during the forecast years due to its contribution to higher crop yields. The demand for phosphatic fertilizers is expected to grow in the upcoming years on account of rising concerns related to crop loss due to frequently changing climatic conditions. The nitrogenous segment is expected to hold a 66% share in 2025.

By Application Analysis

Fertigation to be the Widely Adopted Application Method

At the global level, fertigation is the most preferred application method for water-soluble fertilizer, as this method effectively controls preexisting nutritional deficiency in the crop. The method is effective in saving fertilizer usage by up to 25%, and as WSFs are costly crop nutrition commodities, applying them smartly through fertigation can effectively reduce the production cost of several crops.

By Crop Type Analysis

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Horticulture Segment will Hold the Major Share”

At present, the horticulture segment is dominating the global marketplace, and it is expected to be the fastest-growing segment in the forecast period. Increasing demand for a nutrition-rich diet globally is expected to drive the high-value crop demand, which is further anticipated to boost the segment’s growth. A number of horticulture crop varieties require specialized nutrients, favorable climatic conditions, and proper conditioning for appropriate growth, and these fertilizers can fulfill that requirement efficiently. The horticulture segment is projected to generate USD 3.16 billion in revenue by 2025. 

• The field crop segment is expected to hold a 18.94% share in 2019.

REGIONAL INSIGHTS

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The Asia-Pacific market will register the fastest compound annual growth rate (CAGR) of 5.33% during the forecast period. Degrading arable land and limited water resources in agriculture-oriented Asian countries is generating the demand for highly efficient fertilizers such as WSFs. In Asia-Pacific, the investment by multinational agricultural giants such as ICL, Nutrien, Yara, and others has risen crucially as APAC is emerging as a profitable market for advanced fertilizers with high growth potential.

• The water-soluble fertilizers market in Japan is expected to reach USD 603.07 million by 2025.
• China is projected to witness a strong CAGR of 5.66% during the forecast period.

Growth in the production of high-value crops in Asia and Southeast Asia due to increasing urbanization, improving the economy, and high trade liberalization is projected to escalate the water-soluble fertilizer demand across the region. In developing markets, subsidizing water soluble fertilizer is expected to promote their usage among farmers at a speedy pace. For instance, the Government of India provided various facilities to fertilizer companies to launch innovatively customized and specialty fertilizer products to improve fertilizer use efficiency and improve agricultural productivity in the country. 

At present, Europe holds the largest portion of the water-soluble fertilizer market share, attributed to the high adoption of specialized fertilizers in countries such as Russia, Spain, and France. Changing climatic conditions in Europe, coupled with the high penetration of global specialty fertilizers-producing companies in the European market, is fuelling the market growth. Furthermore, the expansion of businesses into the aforementioned fertilizer domain by regional conventional fertilizer leaders will help enhance the market size in Europe. For instance, in 2018, Eurochem Group, a leading global agribusiness group of major market players headquartered in Switzerland, entered into the WSF business by inaugurating a USD 16 million WSF fertilizer production plant in Lithuania (Europe). Europe is anticipated to grow at a CAGR of 3.93% during the forecast period.

KEY INDUSTRY PLAYERS

Increasing Consolidation in the Global Market to Intensify Competition

Market players operating in the WSF market have realized the future growth potential of water-soluble fertilizer and, hence, are making continuous efforts to innovate and launch new products in the market to establish their prominence.

In recent years, market consolidation in the specialized fertilizer industry has increase,d and this has impacted the market positively. The establishment of Nutrien (merger of Potash Corporation and Agrium) in 2018 is one of the best examples. Companies operating in the global market such as SQM and ICL are centering on increasing their production capacities and increasing their market presence across the global market through acquisitions and collaborations.

List of Top Water Soluble Fertilizers Market Companies:

• SQM (Santiago, Chile)
• Nutrien Ltd. (Saskatoon, Canada)
• ICL (Tel-Aviv, Israel)
• Yara International (Oslo, Norway)
• Haifa Chemicals Limited (Haifa, Israel)
• The Mosaic Company (Florida, United States)
• EuroChem (Zug, Switzerland)
• Coromandel International Limited (Secunderabad, India)
• Qatar Fertilizer Company (Qatar)
• COMPO EXPERT (Munster, Germany)

KEY INDUSTRY DEVELOPMENTS:

• In January 2020, Gujarat Agro Industries Corporation (GAIC), an Indian state agency, which promotes agro-based industries, launched imported WSF products. The product will be marketed under the agency’s new-generation fertilizer brand “AGRO”.
•  In December 2019, Van Iperen International strengthened its presence in the U.S. market with its subsidiary. The company exclusively works with Milliken to offer a broad range of specialty fertilizers.

REPORT COVERAGE 

The report provides qualitative and quantitative insights into the water-soluble fertilizer market. It also offers a detailed industry analysis of the WSF market size and growth rate for all possible market segments.

An Infographic Representation of Water Soluble Fertilizers (WSF) Market

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The global water-soluble fertilizer market report also elaborates on the market dynamics and competitive landscape. It presents an overview of related markets, recent industry developments such as mergers and acquisitions, the regulatory scenario in critical countries, and key industry trends.

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Report Scope & Segmentation