The global water soluble fertilizer market was valued at $12.52 billion in 2016 and is forecast to grow at a steady CAGR of 8.4% between 2017 and 2024, culminating in 2024 global revenue of $21.07 billion. Population expansion coupled with rising demand for food security in developing regions is anticipated to remain the primary driving factor for market growth over the forecast period.
Global fertilizer Nutrient consumption (in Million Metric tons)
Key Product Categories & Technologies
As the name indicates, water soluble fertilizers (WSF) are completely soluble in water and they contain most of the nutrients needed for the plant growth. Water-soluble fertilizers are applied to the crops during irrigation. The advantage of applying them is that one can regulate the concentrations of the nutrients according to the need of the crop. There are four different categories in WSF based upon their chemical composition, nitrogenous, phosphatic, potassic and micronutrient. On the basis of types of application, the WSF is segmented into Foliar and Fertigation.
Fertigation was the maximum in 2016 and shown over 67% of the global revenue share and is expected to show high gains owing to high crop productivity and less labor cost involved in the process. The demand for fertigation will show high growth with respect to its low cost as compared to the foliar applications.
Foliar is direct application on to the leaves. High effectiveness resulting in improved yield will drive the demand for fertilizer. Increasing demand for fruits and exotic flowers will stimulate the growth of the market over the forecast period. Foliar has shared 30.9% of the overall volume and will execute constant growth with respect to rising application in various fruits & vegetables including tomatoes, beans, and melons. However, high cost as compared to fertigation will pose a challenge to its growth.
Plant roots absorb Nitrogen in the form of Nitrate or Ammonical form. Nitrogen-based fertilizers were the major key player in the product category and shared 63% of market value in 2016. Since these fertilizers increase the productivity and improves the texture, demand is expected to sustain in the forecast years. Global ammonia capacity is expected to reach 323 Mt by 2024 and to see maximum growth in Africa and North American region. Similarly Global Phosphate rock supply is expected to increase by 12% by 2024 and to reach 370 Mt of Phosphate concentrate by 2024 and potassium supply is expected to increase to 87 K2O Mt by 2024 with 17.1% increase compared to 2016.
“Optimal Price Point (OPP) for Water Soluble Fertilizer Market”
Estimated Average cost of water soluble fertilizer – $ xx globally. The pricing and business models in the water soluble fertilizer market are unique in different regions. With growth in environmental concerns, technological advancements, and shifting farmer preferences OPP and range of acceptable Prices (RAP) are going to change over the forecast period. We at Ameri Research continuously track these prices with our proprietary pricing model.
The Association of American Plant Food Control Officials (AAPFCO) has adopted Enhanced efficiency fertilizers to minimize the potential of nutrient loss to the environment, as compared to reference soluble sources. EEF includes slow-release or controlled-release fertilizers. Several companies have marketed thin Polymer coated urea (PCU) products as controlled release N sources, for example POLYON-coated urea by Pursell, ESN by Agrium, Osmocote by Scotts, and Meister by Chisso-Asahi.
Fertilizer industry is ever-growing industry and there is continuous improvement in technology and economical processes to fulfill the market demand. For example Ms. Saipem developed Snamprogetti Urea Technology and Uhde’s Duel pressure Ammonia technologies to decrease the production cost and improve the plant capacity significantly.
Top Players, Company Share, Competitive Dynamics & M&A Insights
On the basis of region it can be segmented into North America, Europe, Asia-Pacific, and Rest of the World. India and China account for 41% of global consumption. In 2016, Europe accounted largest market share in the water-soluble fertilizers market, followed by North America and Asia-Pacific.
Global Top market players in WSF are Yara International ASA (Norway), PotashCorp, Mosaic, Coromandel International Ltd., Haifa Chemicals Ltd. Other prominent players in this market are Acron Group, Arab Fertilizers & Chemicals, Belaruskali, CF Industries Holdings, EuroChem, ICL, Intrepid Potash,IFFCO ,TCL,Zuar, K+S AG, Migao Corporation, Monsanto, Office Chérifien des Phosphates, Sinochem Group, Sinofert Holdings, Sapec Group, United Chemical Company, and Vale,K+S AKTIENGESELLSCHAFT (Germany), Agrium Inc. (Canada), Israel Chemical Limited (Israel), and Sociedad Quimica YMinera SA (SQM) (Chile).
Many companies are finding their own strategies to increase their market size. Coromandel SQM, is a joint venture between Coromandel International Limited, India’s largest phosphatic fertilizers producer in private sector and SQM. In February 2016, Voskresensk Mineral Fertilizers Company switched to producing water-soluble fertilizers on an industrial scale. Yara acquired OFD Holding from Omimex Resources Inc. for fertilizer production facilities in Colombia and distribution companies in Colombia, Peru, Mexico, Costa Rica, Panama, and Bolivia. Sinochem Fertilizer acquired Yunnan Phosphate mines and their Upstream Resource Acquisition Strategy Achieved Great Progress. China’s leading company in fertilizer Kingenta performed well in 2015 with Total revenue of 2.71 billion USD up by 30.89% and with net profit of 169.76 million USD, up by 28.24%.
Growth Drivers & Restraints
Demand for basic food crops, for high value crops such as fruit and vegetables, for animal products along with population growth will enhance the demand in coming years. The adoption of latest technologies which will help in increase in the yield is another factor or the growth. Variation in weather conditions and shortage of raw material supply may slow down the production rate. Phosphate fertilizers market price trend is anticipated to change. Strict Environmental laws and awareness towards organic farming may affect the increased consumption and demand of water soluble fertilizer in coming years.
The horticulture segment is expected to show the highest growth rate and demand for WSF. Due to the development latest techniques and climatic fluctuations are encouraging the European region to invest more in R&D and to show maximum growth rate.
This report provides factors about current markets trends, product category, technologies, and market drivers and M&A. Provides market and technology projections for the upcoming years including the present technology and trends
- Market growth drivers
- Top players
- Product outlook
- Technology outlook
- North America
- Asia Pacific
- Middle East and Africa
- Fertigation and Foliar