Controlled-release Fertilizers Market

The global Controlled Release Fertilizer Market is on a trajectory of significant expansion, with an estimated value projected to reach USD 3.2 billion by 2029 from the 2024 valuation of USD 2.4 billion, indicating a significant Compound Annual Growth Rate (CAGR) of 6.0%. The market is driven by N-stabilizers fertilizers due to their predefined and patterned release of nutrients and growing importance in the cultivation of industrial crops and high-value crops. Technology implementation in countries such as the US, Canada, Brazil, Japan, and China concerning irrigation, machinery, and big data analysis for precision farming is expected to be a supporting factor toward market growth of controlled-release fertilizers.

The agricultural and environmental benefits associated with controlled-release fertilizers are the major factors contributing to the growth of this market globally. Reduction in the availability of arable land has resulted in the increased use of controlled-release fertilizers due to their ability to improve the efficiency of crop production per hectare. These fertilizers provide flexibility in application and ensure equal distribution of nutrients to crops. They also enable the synchronized release of nutrients as per the plants’ needs during their growth cycle. Slow-controlled-release fertilizer can reduce toxicity, especially for seedlings, because the use of conventional fertilizers has a high ion concentration, which induces osmotic stress and causes damage at different growth stages. The use of controlled-release fertilizers can save labor, time, and energy. These factors can provide the greatest benefits for majority of consumers and propel the growth of the controlled-release fertilizers market.

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Market Dynamics

Driver: Rising environmental concerns

A significant portion of the fertilizers applied is lost from the soil and plant system by leaching, runoff, denitrification, and volatilization and pollutes the soil, water and air. This causes detrimental effects to the environment. With the rising awareness on sustainability, The fertilizer industry and governments worldwide are taking steps to educate farmers about Fertilizer Best Management Practices (FBMP). These practices are related to the proper use of fertilizers in the correct quantity, at the right time, and in the right place. Controlled-release fertilizers reduce nutrient loss, use water efficiently, and prolong irrigation cycles in drought-prone environments. Controlled-release fertilizers are fertilizer products with characteristics that allow increased uptake of nutrients and reduced potential for nutrient loss as compared to appropriate reference fertilizer products. The controlled-release fertilizers market continues to grow as they prove to be an efficient alternative to conventional fertilizers because of their low impact on the environment and resource- and labor-saving attributes.

Restraint: High upfront costs and limited RoI

The cost of producing controlled-release fertilizers is significantly higher than that of conventional soil-applied fertilizers due to the need for complex production processes. According to the International Fertilizer Association (IFA), the prices of controlled-release fertilizers have remained four to six times higher than conventional NPK (nitrogen, phosphorus, and potassium) prices. This is a major obstacle for this market.

Unlike conventional fertilizers, repeated application of controlled-release fertilizers is not necessarily due to their programmed and predefined release pattern. However, the initial cost required to be invested by the farmer is very high. This limits the use of controlled-release fertilizers only to high-value cash crops, thereby restricting the market’s growth in other broad-acre crops, such as rice and wheat, since the return on investment for these crops has been quite low for farmers in developing countries. Adoption of controlled-release fertilizers would increase if farmers benefited economically through subsidies or high return on investment (RoI).

Opportunity : Improved nutrient management through precision farming

Precision farming has the potential to improve production and nutrient use efficiency. It ensures that nutrients do not leach from or accumulate in excessive concentrations in parts of the field. Precision farming has been gaining importance in developed countries for efficient usage of the fertigation method. Controlled-release fertilizers play an important role in this approach. The release patterns and coating technology of controlled-release fertilizers can be fed into the information system, which can further provide an accurate analysis of the crop nutrient requirements, application rate, and mixing ratio required within the fertigation system. The increase in awareness of precision farming practices and the ability of controlled-release fertilizers to provide nutrients systematically and improve crop production is presenting them with wide range of opportunities. With the growing technological innovations, controlled release fertilizers market is anticipated to capitalize on these opportunities to augment the growth of modern data drive agriculture systems.

Challenges: Lack of awareness among farmers

Awareness about specialty fertilizers like controlled-release fertilizers among farmers in developing countries remains limited. Farmers are unaware of the usage method and the cost-effective benefits of specialty fertilizers. Additionally, in developing countries, farmers lack knowledge about the basic nutrient requirements of the soil.

Farmers are accustomed to the method of using primary nutrients, but the nutrient response ratio of these is not encouraging due to imbalanced fertilization and the lack of use of secondary macronutrients. Moreover, limited awareness about the brands exists because the market is highly fragmented at the regional level. Despite considerable efforts by agronomists across the globe in recent years, farmers are unaware or have limited knowledge about controlled-release fertilizers and their benefits in increasing yield. Conversely, in countries such as India and China, where agriculture is a major source of income for more than half of the population, farmers are not willing to take risks in terms of production capacity. Furthermore, the high costs deter farmers from using these fertilizers. Farmers need to change their perspective to understand the use and benefits of specialty fertilizers like controlled-release fertilizers. This presents a challenge for the growth of the controlled-release fertilizers market.

CONTROLLED-RELEASE FERTILIZERS MARKET ECOSYSTEM

In the type segment, the market for slow-release fertilizers is projected to grow at the highest CAGR during the forecast period.

Slow-release fertilizers play a key role in soil fertility and plant nutrition. They contain nitrogen in a form that can delay the initial availability. Even in uncertain weather conditions, a sustainable and continuous supply of nitrogen is available to the soil. The slow-release fertilizers are increasing at a pleasant rate due to their application and usage in lawns and home gardens. It can help to reduce mowing frequency and improve lawn quality.  Low-maintenance lawns need around 1–2 pounds of nitrogen per year; medium maintenance requires 3 pounds of nitrogen per year; and high-maintenance grounds such as the golf course or athletic fields need 4–6 pounds of nitrogen per year. Such huge demand can be fulfilled by the slow-release fertilizers very easily since it has a high amount of nitrogen in content. The growing traction towards efficient maintenance of lawn and turf grass is propelling the growth of slow-release fertilizers.

In the end-use segment, non-agricultural applications are expected to account for a major share of controlled-release fertilizer applications.  

Non-agricultural end uses include turf & ornamentals, nurseries & greenhouses, and other non-agricultural uses. The growth in purchasing power and the rising environmental issues have led to an increase in the demand for controlled-release fertilizers (CRFs) in non-agricultural. Ornamental crops include cut flowers, loose flowers, ornamental plants, herbs, and shrubs for topiary and gardening. The main purpose of liming and fertilizing these crops is to neutralize the acidity of the soil. The easy application of controlled-release fertilizers on ornamental crops is a major factor driving its market. For more than a decade, CRF has been used for turf & ornamental grass in the US; however, its demand has been increasing recently in developing countries. Thus, the easy application of controlled-release fertilizers on ornamental crops is a major factor driving its market.

The controlled-release fertilizers market in the North American region is expected to grow at the highest CAGR during the forecast period

Increasing growth of high-value crops and rising awareness among farmers about the environmental benefits of controlled-release fertilizers are expected to provide more scope for market expansion.  The demand for controlled-release fertilizers is expected to rise due to the shrinking arable land in the North American region. The US dominated the controlled-release fertilizers market due to its advanced farming practices and growing awareness of sustainability. Furthermore, the area under turf and ornamentals is steadily growing due to the increasing demand for flowers, this is propelling the demand for controlled-release fertilizers. R&D investments in the development of coated fertilizers by key players are expected to boost the market in the next five years in the North American region.

Key Market Players

The key players in this market include Yara (Norway), Nutrien Ltd. (Canada), Mosaic (US), ICL (Israel), Nufarm (Australia). These players focus on strategies such as mergers and acquisitions, joint ventures, collaborations, product launches, and expansions to strengthen their market position. These players have significant market presence and established  distribution networks in all the major regions such as Asia Pacific, Europe, North America, South America and Rest of the World (Middle East and Africa).

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Scope of the Report

Target Audience

• Controlled- Release Fertilizer manufacturers, formulators, and blenders
• Specialty Fertilizer Traders, Fertilizer traders, suppliers, distributors, importers, and exporters
• Fertilizer coating technology providers and polymer manufacturers
• Polymer coating technology-focused market entrants
• Agricultural cooperative societies
• Commercial research & development (R&D) organizations and financial institutions
• Fertilizer associations and industry bodies such as the International Fertilizer Association (IFA) and the Association of American Plant Food Control Officials (AAPFCO)
• Government agricultural departments and regulatory bodies such as the US Environmental Protection Agency (EPA), US Department of Agriculture (USDA) - Animal and Plant Health Inspection Service (APHIS), and Canadian Food Inspection Agency (CFIA)

Controlled- Release Fertilizers Market:

By Type

• Slow-release Fertilizers
  • Urea-formaldehyde
  • Urea isobutyraldehyde
  • Urea acetaldehyde
  • Other slow-release fertilizers
• Coated & Encapsulated Fertilizers
  • Sulfur-coated
  • Polymer-coated
  • Sulfur polymer-coated
  • Other coated & encapsulated fertilizers
• Nitrogen Stabilizers
  • Nitrification Inhibitors
  • Urease Inhibitors

By Mode of Application

• Foliar
• Fertigation
• Soil
• Other Modes of Application

By End Use

• Agriculture
  • Cereals & Grains
  • Oilseeds & Pulses
  • Vegetables
  • Fruits
  • Plantation Crops
• Non-Agriculture
  • Turf & Ornamentals
  • Nurseries & Greenhouses
  • Other non-agricultural crops

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In January 2024, Yara has collaborated with Pursell Agritech. This partnership aims to Pursell’s innovative coating technology and Yara’s improved product portfolio with competitively priced products. Through this partnership, Pursell Agritech and Yara launched PurMidas a controlled-release fertilizer specifically designed for turf applications which can deliver 7:1 ratio of nitrogen to sulfur.
• In November 2023, Nutrien, Ltd. Partnered with CoteX Technologies to explore the commercialization of a sustainable and affordable way to deliver coating technology for nitrogen fertilizers to large care crops.
• In June 2022, ICL signed a long-term supply agreement with India Potash Limited to supply organic polysulfate. This strategic partnership involves the supply of Polysulphate up to 2026, with the option of renewal. The duration spans five years, encompassing a total volume of 1 million metric tons. This collaboration underlines ICL’s dedication to providing sustainable agricultural solutions and aligns with the growing emphasis on controlled-release fertilizers. By supplying Polysulphate, ICL contributes to India’s agricultural goals while prioritizing environmental responsibility and enhanced crop nutrition.

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