Water Soluble Fertilizers Market

Water-soluble Fertilizers Market Size & Growth (2022 - 2027):

The market for water-soluble fertilizers was worth US$ 18.20 billion in 2021 and is expected to reach US$ 21.12 billion by 2026, rising at a compound annual growth rate of 5.69% during the forecast period.

Water-soluble fertilizers are mainly used to control the number of nutrients to provide to plants. These fertilizers can be mixed with water and, therefore, are easily applied by fertigation or foliar application. Water-soluble fertilizers are multi-compound fertilizers that can be dissolved in water. Plants absorb them quickly and, therefore, their absorption and use are relatively high compared to conventional chemical fertilizers. These fertilizers are better suited to modern irrigation systems. In addition, they also help prevent contamination of groundwater. Because of these advantages, water-soluble fertilizers are preferred over typical chemical fertilizers.

Water-soluble fertilizers are very suitable for advanced irrigation technologies. Not only do they save water and fertilizers, but they also reduce labor costs. These fertilizers have fewer impurities and have low conductivity compared to chemical fertilizers. Also, the concentration of fertilizer is easy to adjust. It is also considered a safe chemical option for young plants. All these benefits of water-soluble fertilizers have a positive impact on the growth of the world market. Some of the main factors that stimulate the growth of the global water-soluble fertilizers market are its application in greenhouses, economic incentives with fertigation to reduce the consumption of groundwater, government subsidies for the adoption of this technology, and a higher demand for systems of micro-irrigation. 

However, factors such as the high cost compared to other soil fertilizers, their negative seasonal impact and the requirement for a high initial installation cost may slow the growth of the market in the near future. The demand for and adoption of drip irrigation has increased as it saves water and is suitable for all land, including hilly land, dry land, rugged topography and areas with shallow soil layers. The increase in government initiatives aimed at increasing agricultural production, as well as the implementation of various subsidies to promote the use of drip irrigation will have a positive impact on this industry.

The strong market growth is linked to the rapid urbanization of developing cities, large-scale industrialization, combined with a high demand for energy. 10This has resulted in the conversion of forest areas to arable land. On the other hand, previously, arable land has lost its fertility due to global climate change and farming methods. The Food and Agriculture Organization of the United Nations (FAO) has predicted that developing countries, including China and India, will need more than 120 million hectares of farmland by 2030 to meet the food needs of their growing population. To solve this great challenge of zero hunger, water-soluble fertilizers are a vital solution to help farmers sustainably maximize yields, accelerate the maturity of crops while maintaining overall plant health, despite the desertification of agricultural land and the degradation of soil quality.

Recent developments:

On January 10, 2020, Gujarat Agro Industries Corporation in India has imported over 300 tonnes of water-soluble fertilizers from China. The imported products will be sold to farmers under the brand name of 'AGRO'.

In order to control the expenses related to imports of water-soluble and chloride-free potassium sulfate, Alkim Alkali Kimya A.S. (Alkim), a renowned sodium sulfate producers in Turkey has reached out to Veolia to use the latter's HPD crystallization technique to prepare potassium sulfate in crystalline and fully-soluble form.

Drivers and Restraints:

There are several growth factors for the global water-soluble fertilizer market. The exponential growth of the population in the Asia-Pacific region would increase the demand for food and nutrition. More stomachs to fill and people to feed is the primary driver of the growth of these fertilizers, especially in developing countries such as India, China, Bangladesh and others. Water-soluble fertilizers are considered traditional agricultural components, and developing countries that do not have strict environmental regulations are, therefore, the largest consumers of these fertilizers.

The main challenge in the market of water-soluble fertilizers is their adverse side effects that cause severe damage to the environment. Water-soluble fertilizers are always associated with algal blooms, degradation of the water table and soil quality. Also, the rise of organic farming and the organic revolution will hamper the growth of water-soluble fertilizers, especially in developed countries that have strict environmental regulations regarding the use of these chemicals.

WATER-SOLUBLE FERTILIZERS MARKET REPORT COVERAGE:

Market Segmentation:

Water-Soluble Fertilizers Market – By Type of Crop:

• field

• horticultural
• lawn and ornamental plants

Agriculture fields account for the prominent portion of this market, which is likely to expand with a considerable growth rate in the future. 

Water-Soluble Fertilizers Market – By Application:

• fertigation
• foliar method

The fertigation method is most commonly used to apply these fertilizers.

Water-Soluble Fertilizers Market – By Type:

• nitrogen
• potassium
• phosphate
• micronutrients

The segments of potassium and micronutrients are presumed to show enormous growth among other types, as there is a balanced need for all plant nutrients. 

Water-Soluble Fertilizers Market – By Region:

• North America
• Europe
• Asia-Pacific
• Middle East and Asia
• Latin America

Europe water-soluble fertilizers market has dominated the global business with a revenue share of more than 38% in 2018. North America and Asia-Pacific followed Europe. Asia-Pacific is expected to grow at a faster rate in the coming years.

Asia-Pacific water-soluble fertilizers market will experience a significant increase due to the rise in agricultural yields in countries such as China, India, Thailand and Australia. The population increase, the improvement in income associated with the growth of the middle class, will stimulate the demand for food and agricultural products, which in turn will increase market expansion.

Key Market Players:

Among the main companies that dominate the global water-soluble fertilizers market, for their products and services, are PR Agro Nutri Private Ltd. (India), CF Industries (United States), The Mosaic Company (United States), Israel Chemicals (Israel), Eurochem ( Switzerland), Terra Nitrogen Company (United States), PT Petrokimia Gresik (Indonesia), Sinofert Holdings (Hong Kong), Americas Petrogas (Canada) and Sirius Minerals (United Kingdom).