Water-soluble Fertilizers Market

The global water-soluble fertilizers market size is estimated to be valued at USD 18.3 billion in 2023 and it is projected to reach USD 25.1 billion in 2028, growing at a CAGR of 6.5%. Water soluble fertilizers can be dissolved in water and added or leached out of the soil easily. With water-soluble fertilizers, it is easy to control the precise amount of nutrients available to plants. These water-soluble fertilizers contain the NPK number listed on the label, which is not the actual depiction of the concentration, but the grade in which it is available. The N is for nitrogen, the P is for phosphorus, and the K is for potassium or potash. Nitrogen is the most essential nutrient. It controls the processes used to make proteins vital to new protoplasm in the cells. Nitrogen is essential for the production of chlorophyll and is responsible for leaf growth. Phosphorus is necessary for photosynthesis and provides a mechanism for energy transfer within the plant. Potassium, or potash, provides the manufacturing and movement of sugars and starches, as well as growth by cell division. Apart from this, the fertilizer also contains trace amounts of micronutrients for the overall development of the crop.

Growers are increasingly accepting water-soluble fertilizers in their routine program due to the growing awareness regarding precision agriculture which requires frequent and precise application of fertilizers. Additionally, greenhouse production, rising environmental concerns, high effectiveness of water-soluble fertilizers, ease of application, and limited availability of arable land are some of the major factors driving the demand in the market.

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Water-soluble Fertilizers Market Dynamics

Driver: Ease of application

Water-soluble fertilizer is a multi-compound fertilizer that can be dissolved in water and is easily absorbed by crops. Its absorption, and utilization is relatively high compared to conventional chemical fertilizers. In some extremely water-scarce areas, large-scale farms and high-quality high-value-added cash crops, people often use a different irrigation system; at the time of irrigation, the fertilizer is dissolved in the water, that is, the integration of water and fertilizer.

Restraint: Growth in the organic fertilizers industry

Organic farming  is an agricultural process that uses biological fertilizers and pest control acquired from animal or plant waste. The organic industry witnesses strong growth across emerging economies, with increasing awareness about environmental protection, food safety, and animal welfare. Organic practices in agriculture reduce the usage of chemical fertilizers, which are substituted by organic manures to provide sustained nutrients to plants. Organically produced farm outputs fetch higher premiums over conventional ones, which attracts farmers to opt for organic farming.

Opportunity: Growing demand for water-soluble nutrients

Water soluble fertilizers include NPK, ammonium sulfate, dipotassium phosphate, potassium nitrate, and monopotassium phosphate. The growing population is increasing the demand for food crops, food grains, vegetables, and fruits. The rising adoption of micro irrigation, as it distributes fertilizers evenly and improves growth efficiency, will increase demand for the product. The availability of agricultural loans by the Indian Government, along with the implementation of the “Make in India” policy, will result in fueling the growth of the market.

Challenge: Rising prices of natural gas

According to the World Bank, fertilizer prices have risen since 2022 due to rising input costs, supply disruptions, and export restrictions in China. The Ukrainian conflict has increased concerns about fertilizer affordability. The rising natural gas prices, particularly in Europe, resulted in widespread ammonia production cuts—an important input for nitrogen-based water-soluble fertilizers. Natural gas is a major raw material in the production of water-soluble fertilizers, wherein the price of natural gas decides the margin for manufacturers. Even if fertilizer prices remain constant, the increase in natural gas prices is expected to cut margins.

Water-soluble Fertilizers Market Ecosystem

Based on Type, Nitrogenous is anticipated to dominate the market

Nitrogenous fertilizers as per the management practices, are invariably applied at the early growth stages of the crop. The nitrogenous fertilizer industry includes the production of synthetic ammonia, nitric acid, ammonium nitrate, and urea. Nitrogen is absorbed by the plant roots in two forms: nitrate (NO3) and ammonia (NH4). Most crop plants prefer nitrogen in nitrate form. Nitrogen-deficient plants produce smaller than normal fruits, leaves, and shoots and can develop bigger than normal later.

The foliar mode of application is projected to grow at a significant rate during the forecast period.

The foliar mode of the application provides high resistance to diseases & pests, improved drought 7 soil salinity tolerance, rapid utilization of applied nutrients, and high resistance to physiological disorders. Soil nutrients are not always available due to leaching; foliar fertilization applies the nutrients directly on the leaf, where the plant mostly needs them. With foliar applications, all nutritional problems can be tackled because the leaf absorbs all the essential nutrients.

Field crop segments is projected to grow at the fastest rate during the forecast period.

Field crops include corn, rice, sorghum, soybeans, winter wheat, durum wheat, and spring wheat. The effects of climate change on crop production will vary by region and will largely affect soil condition and water quality. The demand for both of these crop types is rising, owing to its increasing demand among consumers, hence,the adoption of the alternative farming method is driving the demand for water-soluble fertilizers in the market.

The liquid segments hold a significant share in the water-soluble fertilizers market by form during the forecast period

Based on form, the market is segmented into dry and liquid. Liquid fertilizers help provide plants with the food they need to survive. These fertilizers are absorbed by plants through leaf pores and roots. They are rich in growth hormones and micronutrients, hence, are widely used to grow crops such as maize.

Europe: Water-soluble Fertilizers Market Snapshot

Europe holds the highest market share during the forecast period.

The agriculture industry in Europe is witnessing technological advancements and the farming community  is adopting innovative technologies. A majority of the arable farmland in Europe is used for cereal production,as per the data published by the World Bank in 2021. In 2021, approximately 161.5 million hectares of land in the EU were under agricultural cultivation (Source: Eurostat). Agriculture is the main occupation in France and Italy. The land in these countries has mountainous and hilly regions, terrains, and coastal areas. Most of this land is utilized for agriculture. This region witnesses the production of diverse crops and is divided between small-sized farms regulated. The western region witnesses a high adoption of highly intensified farming systems. The extensive research & development activities in the region have helped in the introduction of customized and crop-specific products.

Water-Soluble Fertilizers Market Share

Key players in this market include Nutrien (Canada), Israel Chemical Company (Israel), Sociedad Química y Minera De Chile (SQM) (Chile), K+S Aktiengesellschaft (Germany), Yara International (Norway), Haifa Chemicals Ltd (Israel), Coromandel International Ltd (India), The Mosaic Company (US), Hebei Monband Water Soluble Fertilizer Co., Ltd (China), EuroChem (Switzerland), Agafert (India), SPIC  (India), Aries Agro Ltd (India), Azoty Group (Poland), Vaikic-Chim (Bulgaria), Gujarat State Fertilizers & Chemicals Ltd (India), Incitec (Australia), IFFCO (India), Mangalore Chemicals & Fertlizers Ltd (India), and DFPCL (India).

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Scope of the Report

Water-Soluble Fertilizers Market Segmentation

The study categorizes the Water-soluble fertilizers market report based on By Type, Mode of Application, Crop Type, Form, and Region.

Market, By Type

• Nitrogenous
• Phosphatic
• Potassic
• Micronutrient

Market, By Mode of Application

• Fertigation
• Foliar

Market, By Crop Type

• Field Crop
• Horticulture Crops
• Turf & ornaments
• Others

Market, By Form

• Dry
• Liquid

Market By Region

• North America
• Europe
• Asia Pacific
• Rest of the World

Water-Soluble Fertilizers Market Recent Developments

• In July 2022, Nutrien announced that the company entered into an agreement to acquire Casa do Adubo, a Brazilian company, for approximately USD 400 million.  This acquisition includes 39 retail locations, under the brand Casa do Adubo, and 10 distribution centers, under the brand Agrodistribuidor Casal. This acquisition will strengthen the company’s footprint in the South American market and help to gain share in the water-soluble fertilizers market.
• In June 2022, Israel Chemical Ltd. announced a long-term agreement with India Potash Limited (India) to supply polysulfate with a renewable option. The availability of polysulfate is expected to boost the Government of India’s organic agriculture program. It will also help ICL penetrate and serve the Indian farmers as per their requirements and strengthen its position in the Indian and Asian markets.
• In February 2022, Yara acquired a 14% stake in the Brazilian online farm products trade platform Orbia, majorly owned by Bayer AG (Germany). Yara aimed to derive 25% of its sales from online channels by 2025.

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