The fertilizer market is anticipated to grow at a CAGR of 4.21% over the forecast period to reach US$327.472 billion by 2029, increasing from an estimated value of US$266.487 billion in 2024.
Fertilizers are regarded to be fundamental to agriculture as they provide nutrients for plants to grow and thrive. According to the International Fertilizer Association, it is estimated that half the food eaten is produced owing to the effective usage of mineral fertilizers. With the particular increase in urbanization, there is a growing need for appropriate agricultural inputs to increase production. Among various fertilizer types, mineral and chemical nitrogenous fertilizers are the most traded in 2022, with 43%, fertilizers mixtures at 29%, and potassic mineral and chemical fertilizers at 24%.
Moreover, government policies like subsidies and incentives for fertilizer use can significantly impact market demand. For instance, in India, the anticipated growth rate for domestic sales volume of complex fertilizers, including diammonium phosphate (dap) and npk (nitrogen, phosphorus, and potassium), in the fiscal year 2025 is expected to range between 4-5%. The outlook for a normal monsoon and stable retail prices supports this growth. Lower volatility in raw material costs will enable the government to provide a corresponding nutrient-based subsidy (NBS), aiming to enhance the operating profitability of manufacturers to a normalized level.
The global human population reached 8.0 billion in mid-November 2022. Projections indicate that the world’s population will increase by nearly 2 billion individuals over the next 30 years, reaching 9.7 billion by 2050 and potentially peaking at nearly 10.4 billion in the mid-2080s. China and India remain the two most populous countries, with over 1 billion people, representing nearly 18 percent of the world’s population.
In 2023, acute food insecurity levels reached record highs due to prolonged food crises and new shocks. Approximately 238 million people across 48 countries are facing severe food insecurity, which is 10% higher than in 2022. Fertilizers play a crucial role in enhancing agricultural yields and ensuring sufficient food production to meet the needs of a growing population. The necessity to address food security concerns is expected to drive the fertilizer market’s growth in the foreseeable future.
The fertilizer market is segmented by geography into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The North American region is anticipated to hold a significant share, being one of the largest producers of crops. Asia Pacific is driven by the growing economies of China and India, which have the largest populations in the world. The demand for organic and healthy alternatives will drive the European region.
The fertilizer industry in the United States is affected by various factors, such as crop demand and output requirements, which might depend on the current rules and subsidies of the local government. In addition, producers' fertilizer purchasing decisions are affected by the fluctuations in the global prices that accompany specific crops, particularly maize and soybeans. Growth-enabling precision agricultural technological developments are also fueling the nation's demand for fertilizers.
According to USDA, crop area harvested per 1,000 acres in the United States increased from 2,91,429 thousand acres in 2020 to 2,98,863 thousand acres in 2021. The list included crops like corn, sorghum, oats, barley, rye, winter wheat, Durum wheat, rice, soybeans, peanuts, sunflower, cotton, dry edible beans, chickpeas, potatoes, canola, proso millet, and sugarbeets, with harvested acreage for hay, tobacco, and sugarcane, including double cropped acres and unharvested small grains.
Furthermore, the 2021 USDA report shows that among the fruit and vegetable agricultural businesses, there are around 3,000 that use CEA-type protection. This 2-3% is a significant sector in the US regarding total crop value. CEA-grown crops are characterized by high-value herbs, leafy greens, microgreens, berries, vine vegetables (like cucumbers, tomatoes, and peppers), flowers, mushrooms, and nursery crops. As per the estimates, more than 2,000 vertical farming operations in the US utilize fertilizers on a large scale.
Various product introductions and government initiatives greatly influence the fertilizer industry in the United States. New product innovations, such as revolutionary formulations or increased nutrient delivery systems, have the potential to stimulate market development by improving farmer productivity and performance.
Government-funded research and development programs frequently stimulate innovation in the fertilizer industry, resulting in the development of new products and methods. Owing to this, in March 2023, Secretary Tom Vilsack of the United States Department of Agriculture (USDA) announced that more than 350 independent businesses from 47 states and two territories applied for $3 billion in the first two rounds of a new grant program to increase innovative domestic fertilizer production capacity.
The organic market is driven by growing health-conscious choices amongst natural and organic food consumers. Governments often promote organic fertilizers to promote environmentally better-related inputs for food production. Inorganic fertilizers are still used for the large-scale production of crops, and they are further segmented into nitrogen, phosphate, and potassium.
Cereals and grains, including rice, wheat, and corn, are important staples for a large section of the population. Fruits & vegetables often need fertilizers to meet specific requirements of the crops. With the growing demand for horticulture farming, the need for both inorganic and organic fertilizers will go up. Oilseeds & pulses are required by a large section of the people for their daily food requirements. Others include coffee, cocoa, rubber, tea, etc.
The form of the fertilizers determines how they are spread across the field, produced, stored, or transported.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Fertilizer Market Size in 2024 | US$266.487 billion |
| Fertilizer Market Size in 2029 | US$327.472 billion |
| Growth Rate | CAGR of 4.21% |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2024 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Fertilizer Market |
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| Customization Scope | Free report customization with purchase |
The fertilizer market is segmented and analyzed as follows: