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water-soluble fertilizer market is experiencing significant growth and dynamic trends driven by factors such as increasing demand for high-efficiency fertilizers, advancements in agricultural technology, and growing awareness of sustainable farming practices. Water-soluble fertilizers, also known as soluble fertilizers or liquid fertilizers, are formulations that dissolve readily in water, allowing for rapid nutrient uptake by plants and efficient nutrient utilization. One prominent trend in the market is the rising demand for water-soluble fertilizers as farmers seek to improve crop yields, enhance nutrient management, and minimize environmental impact. With global population growth and changing dietary preferences driving demand for food, feed, and fiber, there's a growing need for fertilizers that can maximize crop productivity while minimizing resource inputs and environmental footprint.
Moreover, advancements in agricultural technology and precision farming practices are driving innovation in the water-soluble fertilizer market. Manufacturers are developing new formulations and delivery systems that enhance the efficiency, efficacy, and convenience of water-soluble fertilizers for farmers. These innovations include controlled-release fertilizers, fertigation systems, and micronutrient-enriched formulations that enable targeted nutrient application, reduce nutrient losses, and optimize crop nutrition throughout the growing season. Additionally, there's a growing emphasis on tailor-made fertilizer solutions that address the specific nutrient requirements and agronomic challenges of different crops, soil types, and climatic conditions, enabling farmers to achieve optimal yields and quality.
Furthermore, the water-soluble fertilizer market is benefiting from regulatory changes and sustainability initiatives driving the adoption of environmentally friendly and socially responsible farming practices. Regulatory agencies and industry associations are increasingly promoting the use of water-soluble fertilizers as part of integrated nutrient management strategies that minimize nutrient runoff, leaching, and pollution of water bodies. Additionally, there's a growing demand from consumers and retailers for sustainably produced food products, driving adoption of water-soluble fertilizers that support responsible nutrient stewardship, soil health, and ecosystem resilience.
Additionally, the water-soluble fertilizer market is witnessing increasing demand from emerging economies and regions facing challenges such as water scarcity, soil degradation, and climate variability. As farmers in these regions seek to improve agricultural productivity, enhance food security, and adapt to changing environmental conditions, there's a growing market for water-soluble fertilizers that offer advantages such as precise nutrient delivery, reduced fertilizer wastage, and improved crop resilience to abiotic stresses. Moreover, as global agricultural trade continues to expand, there's a corresponding increase in demand for water-soluble fertilizers to meet the nutrient requirements of high-value crops grown in diverse agro-climatic zones and exported to international markets.
However, the water-soluble fertilizer market faces challenges such as pricing pressures, supply chain disruptions, and knowledge gaps among farmers. While water-soluble fertilizers offer several advantages over conventional fertilizers, including faster nutrient uptake, reduced soil salinity, and improved crop response, they may be perceived as more expensive or complex to use by some farmers. Additionally, fluctuations in raw material prices, energy costs, and transportation logistics can impact production costs and pricing dynamics in the water-soluble fertilizer market, posing challenges for manufacturers and distributors.
Moreover, there's a need for greater education and extension services to raise awareness about the benefits and best practices of water-soluble fertilizers among farmers, particularly in developing countries and smallholder farming communities. Investing in farmer training programs, demonstration plots, and knowledge-sharing platforms can help build capacity, foster adoption, and promote sustainable use of water-soluble fertilizers as part of integrated nutrient management strategies.
Water Soluble Fertilizer Market Highlights:
Water Soluble Fertilizer Market Overview
Water Soluble Fertilizer Market Size was valued at USD 17,371.3 million in 2021. The Water Soluble Fertilizer market industry is projected to grow from USD 18,492.1 million in 2022 to USD 37,144.16 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.2% during the forecast period (2023 - 2032). The growing population coupled with the increasing government investment to support the agricultural sector is likely to increase the demand for water-soluble fertilizer which in turn would boost its market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Water Soluble Fertilizer Market Trends
- Rising Demand For High-Value Crops And Organic Agriculture
There is a rising demand for high-value crops and organic agriculture as consumers become more aware of the health and environmental benefits of these products. The consumers rising awareness regarding organic farming has created lucrative growth for organic fertilizers. Key manufacturers in the market have started manufacturing environment-friendly fertilizers products by using natural and non-harmful materials. High-value crops are crops that are typically sold at a higher price due to their unique characteristics or attributes, such as flavor, quality, or nutritional content. These crops can include specialty fruits and vegetables, herbs, and spices, as well as niche crops such as quinoa and kale. Organic agriculture refers to a production system that emphasizes the use of natural fertilizers and processes, rather than synthetic chemicals, to grow crops and raise livestock. Organic agriculture aims to promote soil health and biodiversity, reduce pollution, and minimize the negative impacts of farming on the environment. Demand for high-value crops and organic agriculture has increased in recent years as consumers become more interested in the health and environmental impacts of their food choices. In addition, the trend toward plant-based and sustainable diets has also contributed to the demand for these products. For Instance, According to FiBL, Europe's total farmland's organic area share grew from 3.1% in 2018 to 3.4% in 2020. Similarly, in Latin America, the percentage of organic farming rose from 1.1% in 2018 to 1.4% in 2020. The need for fertilizers is growing with an increasing demand for organic food items.
The water-soluble fertilizers demand is projected to witness continuous growth during the forthcoming years due to the rising requirement of specialty fertilizers to enhance the production of high-quality crops. The growing world population in several developing and under-developed countries has raised concerns over food security and existing food production solutions. Growing initiatives by the government to promote specialty fertilizers and the launch of programs to educate farmers about the novel fertilizer type and its benefits will aid the market growth.
Water Soluble Fertilizer Market Segment Insights
Water Soluble Fertilizer Product Type Insights
Based on product type, the Water Soluble Fertilizer market segmentation includes Nitrogenous, Micronutrients, Phosphatic, and Potassium. The nitrogenous segment held the majority share in 20221 contributing to around a market value of USD 6,624.1 million of Water Soluble Fertilizer market revenue. Nitrogenous Fertilizers are mineral and organic materials which are utilized to provide plants with nitrogen nourishment. They are broken down into three categories: urea, ammonium nitrate and calcium nitrate. Moreover, nitrogenous fertilizers are utilized as a primary fertilizer and supplemental feeding. In addition, this type of fertilizer helps soil maintain carbon, which further helps to retain water and ultimately reduces runoff and improves downstream water quality. Besides this, the growing population has increased the demand for a large number of crop production of fruits, and vegetables which has ultimately increased the demand of nitrogenous fertilizer owing to its ability to nourish the soil and lead to better yield of crops. For instance, according to MRFR analysis, in India, vegetable production is anticipated to total about 200 million metric tonnes in the fiscal year 2022. These produce items include, among others, potatoes, tomatoes, onions, eggplants, and cabbage. The nitrogenous segment accounted for the market share of 38.13% in 2021 and is projected to register a CAGR of 7.8% during the forecast period.
Figure 2: Water Soluble Fertilizer Market, By Product Type, 2021 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Water Soluble Fertilizer Field Type Insights
Based on field type, the Water Soluble Fertilizer market segmentation includes fields and horticulture crops. The horticulture crops segment held the majority share in 2021 contributing to around ~65-70% of the Water Soluble Fertilizer market revenue. Horticultural crops are utilized to improve the living environment and diversify human meals. Examples of horticultural crops include fruits, vegetables, flowers, ornamentals, and lawn grasses. These crops are often grown on a smaller scale and with more intensive management than agronomic crops. Some horticultural plants are raised for their aesthetic appeal and recreational purposes. Besides this, the growing government investment in order to boost the horticulture sector is likely to increase the demand as well as sales of water-soluble fertilizers in the upcoming years which in turn would boost its market growth. For instance, in October 2022, The Environment Secretary announced a further USD 15.04 million investment in automation and robotics through the Farming Innovation Programme, in addition to the more than USD 84.25 million already spent on industry-led research and development. The fund will match funds for initiatives that will promote economic growth, ensure food security, and uphold environmental obligations under the name "UK Research and Innovation" (UKRI). Robots that search for fruits and vegetables, automated vegetable harvesters, and novel types of fertilizer are examples of previous supported initiatives. The Horticulture crops segment is expected to grow at a market CAGR of 7.4%.
Water Soluble Application Gender Insights
Based on application, the Water Soluble Fertilizer market segmentation includes fertigation and foliar. The fertigation segment held the majority share in 2021 contributing to around ~55-60% of the Water Soluble Fertilizer market revenue. Fertigation is the process of applying fertilizers or nutrients through an irrigation system to an agricultural system. The nutrient inputs are dissolved in water and then immediately absorbed by plants when they take up water. Farmers in ancient Rome actually used sewage to water their crops, but the name has changed greatly since then. It is a combination of the terms "fertilizer" and "irrigation," and it has been around as a concept for hundreds of years. Moreover, sprinkler, drip, and soaker irrigation systems are just a few of the irrigation techniques that can be utilized in conjunction with fertigation, but drip irrigation is the most advantageous and compatible. Fertigation is thought to be the most exact and regulated way to apply fertilizer when compared to band or broadcast approaches, and it often requires less fertilizer overall than other methods. Fertigation is also frequently used in soilless or hydroponic growth systems because it is by far the simplest method for giving plants in these environments the precise nourishment they require. Due to their significance in the growth and development of plants, phosphorus, potassium, and nitrogen are the most often employed substances in fertigation systems owing to their importance in the growth and development of crops. Besides this, the various benefits offered by the fertigation system are likely to increase its demand among farmers in the upcoming years which in turn would boost its market growth. The fertigation segment is expected to grow at a market CAGR of 7.3%.
Water Soluble Fertilizer Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Water Soluble Fertilizer market has held the largest market share among the region in the Water Soluble Fertilizer market. Asia-Pacific is the most populated region in the world, consisting of some of the major economies, including China, India, Japan and others. The growing innovations by major players operating in the region are likely to create huge opportunities for its market growth. For instance, in October 2020, Gujarat State Fertilizer and Chemicals India Ltd launched calcium nitrate and boronated calcium nitrate. In agriculture, calcium nitrate is used as a water-soluble fertilizer. Additionally, this chemical is utilized to strengthen cement concrete as well as for wastewater treatment. Furthermore, in July 2018, Transworld Furtichem Pvt. Ltd, a significant fertilizer manufacturer in India, and Compo Expert Gmbh, a leading producer of specialty fertilizers for commercial use and a portfolio company of the international private equity firm XIO Group with its London headquarters, have agreed to a strategic partnership. Transworld Furtichem will cooperate with Compo Expert for the brands NovaTec and Basfoliar in India as a result of this extensive and forward-looking collaboration. The development of new technologies, localization of production, and joint commercialization of the highly effective, ecologically friendly Compo Expert fertilizer products will be closely coordinated between the parties.
Apart from this, the recent export of various types of water-soluble fertilizer is set to boost its market growth. For instance, according to MRFR analysis, in 2021, India exported more than 84 thousand metric tonnes of nitrogenous fertilizers. The South Asian nation also exported 29.12 thousand metric tonnes of potash and 49.32 thousand metric tonnes of phosphate fertilizers that year. Furthermore, the prices of some water-soluble fertilizers were USD 1102.69/MT, including mono ammonium phosphate, potassium nitrate USD 1123.69/MT and urea phosphate were USD 984.54/MT.
The major countries studied are the US, Canada, Mexico, the UK, France, Germany, Italy, Spain, China, India, Japan, Australia and New Zealand, South America, the Middle East, and Africa.
Figure 3: WATER SOLUBLE FERTILIZER MARKET SHARE BY REGION, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The North American region includes major markets such as the US, Canada, and Mexico. The growing production of various types of fertilizer across the region such as potassium, ammonia, nitrogen and many more is set to positively influence its market growth. For instance, according to the International Fertilizer Association in 2020, ammonia was manufactured in the United States in 36 domestic plants, and it was transported throughout the nation by pipeline, rail, barge, and truck. The United States produced 11.6% of the world's nitrogen in 2018, placing it second behind China, which produced 24.6% of it, and ahead of India, the third-largest producer with 11.3% of the world's supply. In terms of phosphate output, the U.S. came in second place with 9.9% of worldwide production, below China (37.7%), but ahead of India (9.8%), which generated 9.8% of the world's supply. Canada produced the most potassium potash, accounting for 31.9% of the world's supply. Belarus comes in second place, producing 16.5% of the world's supply. In addition, the U.S. ranks seventh with a share of roughly 4.6% in nitrogen exports.
Europe basically includes the UK, Germany, France, Italy, Spain, and Rest of the Europe are all included in the analysis of the European market. Europe continues to hold a significant share in the global Water-Soluble Fertilizer market, owing to the presence of major players in the region coupled with the various strategies adopted by them to expand its product portfolio. For instance, in February 2022, EuroChem Group a leading worldwide fertilizer manufacturer announced that, after the submission of a legally binding bid, it has entered into an exclusive agreement to acquire the nitrogen business of the Borealis group. In the centre of significant crop-producing regions in Austria and France, Borealis runs fertilizer production facilities. Borealis is one of Europe's top fertilizer manufacturers, supplying roughly four million tonnes of products annually in Western, Central, and South East Europe through the Borealis L.A.T distribution network, including approximately 0.08 million tonnes of technical nitrogen solutions and approximately 0.15 million tonnes of melamine. Apart from this, the recent government policies regarding fertilizer are expected to positively influence its market growth. For example, in July 2019, European Union introduced a new regulation which intends to synchronize standards for all Member States and allow the free circulation of fertilizing products within the European Union.
Water Soluble Fertilizer Key Market Players & Competitive Insights
The key players are increasing their investment in research & development to innovate and add new features in the water soluble fertilizer which is expected to boost the growth of the market further. In addition, the companies’ strategic initiatives including expansion to new markets that have significant growth potential, entering into long-term contracts and agreements with domestic and international raw material suppliers, mergers and acquisitions, and technological innovation & incorporation in the manufacturing facilities are used by different players in the market to strengthen their presence in the market. Moreover, the competitors in the water soluble Fertilizer industry must incorporate sustainable materials and production techniques to capitalize on the trend of increasing demand for environment-friendly products across the globe.
One of the key business strategies deployed by the water soluble fertilizer industry to gain a competitive advantage among the competitors is on lowering their environmental footprint and investing in research and development along with strategic growth initiatives such as acquisitions and product launches to strengthen their market position and capture a large consumer base.
The Mosaic Company is a parent company of IMC Global Inc. and the Cargill Crop Nutrition fertilizer business of Cargill. The company is engaged in manufacturing and marketing concentrated phosphate and potash crop nutrients. The company has been organized into three business segments which include Phosphates, Potash, and Mosaic Fertilizantes. The phosphates segment is operated in Florida, which manufactures concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana. The potash business segment operates its manufacturing facilities in Canada and the U.S. and its sales include domestic and international sales. And Mosaic Fertilizantes segment includes five phosphate rock mines, four phosphate chemical plants, and a potash mine in Brazil. The company is serving its products to more than 40 countries, which covers North America & South America business locations in 9 countries
Yara International is a crop nutrition company a produces, distributes, and sells nitrogen-based mineral fertilizers and related industrial products. The company operates in 60 countries globally and the business area comprises the bases chemicals, mining applications, and transport reagents commercial units, with production plants in Germany, Brazil, South Africa, Sweden, France, and Malaysia. The company’s regional segment Europe, the Americas, Asia-Pacific, and Africa operates in a fully integrated setup, compromising production, supply chain, and commercial operations, producing and delivering existing fertilizers solutions, in addition, to commercializing and new offerings under the guidance of Farming Solutions. The company also owns a few the brands like YaraTera, YaraBela, YaraMila, YaraLiva, YaraVita, YaraRega, and YaraSuna.
Eurochem Group (Eurochem) is a manufacturer of nitrogen, phosphate, and potash fertilizers and also certain industrial and mining products. The company is engaged in activities spanning mining, logistic, fertilizer production, and distribution. The company not only manufactures phosphate fertilizers, and nitrogen fertilizers but also urea, ammonia, ammonium nitrate, urea ammonium nitrate, complex fertilizers, nitrate phosphate, and many more. The company operates its manufacturing facilities in North America, Europe, Asia-Pacific, and Africa. And Russia, Belgium, Lithuania, and China are the countries that are engaged in producing nitrogen, phosphate, and potash fertilizers.
Key Companies in the Water Soluble Fertilizer market include
- The Mosaic Company
- Yara International
- Eurochem Group
- Coromandel International
- Nutrien Ltd.
- SQM S.A
- Qatar Fertilizer Company
- Koch Industries, Inc.
- Haifa Negev Technologies Ltd
- ICL Growing Solutions
Water Soluble Fertilizer Industry Developments
June 2022: Koch Ag & Energy Solutions (KAES), an American provider of value-added agriculture and energy solutions, “successfully” completed its acquisition of the Jorf Fertilizer Company III (JCF III). JCF III is owned by OCP Group, Morocco’s phosphates mining and fertilizer giant. With this acquisition with Koch has reached a new stage through the establishment of a Moroccan-based Joint-Venture, which confirms the common goal to provide farmers with high-quality and reliable Moroccan phosphate fertilizers.
July 2022: EuroChem Group AG announced that it has entered exclusive negotiations to acquire the nitrogen business of the Borealis group after having submitted a binding offer. This acquisition will result in creating opportunities for further growth in the European market together with Borealis’ company.
October 2019: SQM launches a new water-soluble product for European markets that is potassium nitrate with iodine. Containing 13.7% nitrogen, and 46.3% potassium, Ultrasoline K Plus is backed by more than 100 field trials with growers says the company. This product will deliver distinct benefits for root growth, above-ground plant growth, photosynthesis, nitrogen metabolism, abiotic stress tolerance, and less fruit rot.
Water Soluble Fertilizer Market Segmentation
Water Soluble Fertilizer Product Type Outlook
- Nitrogenous
- Micronutrients
- Phosphatic
- Potassium
Water Soluble Fertilizer Field Type Outlook
- Fields
- Horticulture Crops
Water Soluble Fertilizer Application Outlook
- Fertigation
- Foliar
Water Soluble Fertilizer Regional Outlook
-
North America- US
- Canada
- Mexico
-
Europe- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
-
Asia-Pacific- China
- Japan
- India
- Australia and New Zealand
- Rest of Asia-Pacific
-
Rest of the World- South America
- The Middle East
- Africa
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