Fertilizer Additives Market Size, Share & Growth Report 2031

Report Description

The global fertilizer additives market size was valued at around USD 3.4 billion in 2021 and is expected to surpass USD 4.8 billion by 2030, expanding at a CAGR of 3.9% during the forecast period, 2022–2030. The growth of the market is attributed to the increasing demand and usage of fertilizers for agricultural purposes.

Fertilizer additives are chemical substances added to fertilizers to improve the quality and stability of the fertilizer. Fertilizer additives control and inhibit the loss of essential macro and micronutrients such as nitrogen, potassium, phosphorus, and sulfur present in the soil. Such additives are applied to various fertilizers and ensure fertilizer's accurate applications. Additives are utilized in the field to maintain the fertilizer’s granularity and prevent the formation of lumps in the fertilizers during monsoon.

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Fertilizer additives minimize the production cost of fertilizers by reducing downtime, and capacity utilization, and enhancing the recovery of nutrient inputs. Various types of fertilizer additives are available in the stores including granular, prilled, and powdered fertilizer additives. These chemical additives have anti-caking agents, anti-dusting agents, anti-foaming agents, coating agents, drying agents, hydrophobic agents, coloring agents, corrosion inhibitors, granulation aids, and others.

The first artificial fertilizer was invented by the agricultural chemist John Bennet Lawes. He patented the manufacturing process of artificial fertilizers and initiated the chemical fertilizer and fertilizer additives industry. Furthermore, the rising concerns towards yield enhancement led to various formulations of fertilizers that incorporate fertilizer additives to impart necessary properties as per soil type, crop type, and climate conditions.

COVID-19 IMPACT

The outbreak of the COVID-19 pandemic has affected the global fertilizer additives market to some extent. Subsequent lockdowns, curfews, and several restrictions on social gatherings and movement result in the halt of various business and manufacturing activities during the pandemic. Food and agricultural business activities were forced to shut down due to the pandemic, leading to decreased demand for fertilizers.

Shortage of migrant labor poses great challenges in the time of harvesting and inaccessibility to market products amid the COVID-19 crisis further disrupting the supply chain for various agrochemical products. Additionally, the decline in the prices of agricultural products reduced the demand for fertilizer additives and hence decrease its production during the 2nd quarter of the pandemic.

Several manufacturing companies also shut down or slow down their operations, due to the risk of infection. Prohibiting local and international transport services, crop producers were seriously affected which inhibits their access to intermediatory inputs such as fertilizers and impacts the growth of the global fertilizer market. However, after the 3^rd quarter, the government take precautionary measures to relax some of the agricultural activities and hence gained its market position slowly.

Market Dynamics

The fertilizer additives market report presents a complete overview of market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.

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Major Trends

Surging demand for urea-based fertilizer

The extensive adoption of urea-based fertilizers is a key market trend in the global fertilizer additives market. Urea contains the highest nitrogen amount among solid fertilizers. Thus, urea is primarily known for its nitrogen content. Urea has high relative humidity than calcium ammonium nitrate and ammonium nitrate which can withstand both humid and hot climates. As a result, urea-based fertilizers are highly preferred in the global market.

For instance, according to International Fertilizers Association (IFASTAT), total urea consumption in 2017 was 51,141.0 thousand metric tons, which expand to reach 52,258.9 thousand metric tons in 2019 across the globe.

High consumption of Potash and Phosphate-based fertilizer additives

High consumption of potash and phosphate-based products along with increasing concerns towards yield enhancement has led to various formulations of fertilizers that incorporate unique mixes to provide necessary properties such as soil type, crop type, and different climate conditions across regions. This trend and typical usage formats offer tremendous growth opportunities for the fertilizer additives market.

Key Drivers

Rising demand for food and increasing concern over food security

The rising demand for food and increasing concern over food security across the globe are key success drivers for the growth of the global fertilizer additives market. The increasing population around the world with limited arable land has resulted in a shortage of food. In compliance with the condition, fertilizer additives are widely utilized in farming activities to enhance yield production. For instance, many governments took several initiatives to raise awareness of using additive fertilizers among farmers for proper utilization of the product for the growth of vegetables, fruits, nuts, and others.

As a result, there has been growing adoption of sulfate of potash (SOP) or potassium sulfate among the farmers in order to increase their crop yields which in turn, influences the sales of fertilizer additives in the market. Additionally, rapid urbanization coupled with rising disposable incomes among consumers is the anticipated increase in the demand for high-quality food items leading to an increase in the demand for additive fertilizers.

Extensive usage of fertilizer additives

The use of fertilizer additives in various applications is expected to drive the global fertilizer additives market. Fertilizer additives are applied to various forms of fertilizers and ensure accurate application of fertilizers on the land. Depending on the manufacturing process, the particles of mineral fertilizers can be of various sizes and shapes, which include granules, pellets, ‘prills,’ crystals, and fine powder (dust). Most of the fertilizer additives are combined into granular fertilizers as compared to other forms of application.

The use of fertilizer additives during farming also helps the grower to maintain the quality of the production. The combination of fertilizer additives and fertilizers helps in improving and increasing the yield. For instance, granular or dry fertilizers are available in the dry pelleted form, unlike spikes, liquid, and powder fertilizers. The main advantage of using granular fertilizers is that they are similar to time-release capsules, allowing nutrients to flow out over time, instead of flooding the plants with nutrients.

Emergence of nutrient enrich fertilizers

The annual consumption of food and agricultural commodities such as feed additives, fuels, and industrial inputs has significantly increased, with the rapid growth of the population across the globe. This in turn resulted in an increasing expansion of agricultural activities in parallel with increasing demand for agricultural products. In compliance with the condition, fertilizer additives are widely adopted to enhance the nutrition level of fertilizers. This influences the sales of fertilizer additives to a great extent.

Additionally, with increasing research and development activities within the manufacturing companies, there have been ongoing developments within the manufacturing units that result in the introduction of different unique mixes of fertilizer additives for different purposes including nitrogen, urea, ammonium nitrate, mono ammonium phosphate, ammonium sulfate, and others. In such a way, the emergence of nutrient enriches fertilizers augmented the growth of the fertilizer additives market.

Existing Challenges

Side effects associated with fertilizer additives

The global fertilizer additive market is subjected to several limiting factors that have an adverse effect on market growth. Fertilizer additives when infused with fertilizers enhanced the soil quality and its stability. However, the high presence of synthetic chemical substances such as nitrogen, potassium, phosphorous, and others in the soil, poses a great risk to the ecosystem. Excessive usage of chemical fertilizers results in soil acidification and lessens soil fertility.

Chemical fertilizer used in conventional agricultural activities also leads to eutrophication or hypertrophic action of fresh water that makes freshwater bodies heavily enriched with nutrients and minerals due to runoff from land. Thereby, it pollutes water and damages aquatic life. Additionally, consuming food crops that are grown using chemical fertilizers poses some minor and adverse health hazards.

Exposure to these inorganic compounds can cause irritation of the eye, skin, throat, nose, and lungs. Moreover, it can increase the chances of developing cancers in human health. The rising awareness regarding the environmental effects of these chemical additive fertilizers repelled the farmers to use fertilizer additives and hence limited its market growth.

Increasing demand for organic-based fertilizers

Organic-based fertilizers are considered as far more sustainable alternatives for the environment. Confronting the detrimental effects of chemical fertilizers, governments put stringent regulations on the chemicals that might lead to health hazards. Along with such initiatives taken by governments, manufacturing companies are contributing effortlessly to developing organic-based fertilizers which are more eco-friendly solutions for different agricultural purposes. The rising awareness of the benefits of such sustainable fertilizers and switching over them increases the demand for organic fertilizers in the market while reducing the fertilizer additives market growth.

Emerging Opportunities

Surging demand for food coupled with heavy investments in emerging countries

The increasing per capita income along with rapid urbanization has resulted in the growing demand for food in emerging countries. Additionally, there have been high investments in advanced agricultural activities and facilities which provide intense growth opportunities across the emerging market. According to International Finance Corporation data, two-thirds of the world’s poor population globally has worked in rural areas.

Governments around the world are taking various initiatives to complement the increasing investment in agriculture sectors. It encourages the farmers with substantial aid and minimizes their burden of agricultural expenses. Governments increased the accessibility of the farmers to adopt fertilizers as well as fertilizer additives for high-yield production, with such massive investment activities. This is attributed to the growth of the global fertilizer additive markets to a great extent.

For instance, the Brazilian government took up measures to provide subsidies to the farmers to reduce the cost of fertilizers and lessen their expenditures. In fact, Brazil became the world’s fifth-highest fertilizer consumer and second-leading phosphate fertilizers and potash importer. Thereby, significant consumption of both fertilizers and additive fertilizers to scale up food production leads to the expansion of the global fertilizer additive market potential.

Scope of the Report

The report on the global fertilizers additive market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

A granular segment to expand at a robust growth rate

Based on type, the global fertilizer additives market is segmented into granular, prilled, and powdered. The granular segment accounts for the major market share and is projected to reach a high CAGR of 4.5% in the coming years, owing to its low cost, easier storage, and better control of nutrient release. The addition of fertilizer additives to granules protects the granules from external environmental conditions and enhances their shelf life. Among other benefits, some properties of granules help farmers evaluate the quality of the fertilizer.

Anti-caking agents’ segment to register a considerable CAGR

Based on function, the fertilizer additive market is divided into anti-caking agents, anti-dusting agents, anti-foaming agents, coating agents, drying agents, hydrophobic agents, coloring agents, corrosion inhibitors, granulation aids, dust suppressors, and colorants. The anti-caking segment is witnessed to register a considerable 55.2% market share in 2022 and is expected to expand at a CAGR of 4.5% during the forecast period, due to its increasing demand from NPK, DAP and Urea based fertilizers to reduce the rising fertilizer caking problem. Anticaking fertilizer additive is utilized to prevent the formation of lumps in the fertilizers and eases the fertilizers' packaging, transport, storage, and consumption.

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The urea segment shares a large market revenue

Based on application, the global fertilizer additives market is fragmented into urea, ammonium nitrate, mono ammonium phosphate, ammonium sulfate, diammonium phosphate, potassium magnesium sulfate and triple super phosphate (TSP), and others. The urea segment holds a large market share in 2021, due to the increasing demand for nitrogenous fertilizers in the agricultural sector to supply optimum nutrition to crops.

Urea contains a high concentration of nitrogen about 46% which stimulates the enhancement of yield production. Urea is a cost-effective additive as it is a naturally occurring substance and is widely used as nitrogen fertilizer across the world. Nitrogen fertilizers break down by microorganisms present in the soil into nitrates and get deposited and travel easily through the soil.

Asia-Pacific to dominate in the global market

In terms of region, the global fertilizer additives market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia-Pacific is witnessed to contribute large market revenue in the fertilizer additives market and is expected to dominate the global market, during the forecast period, due to the emerging economies and expansion of agricultural sectors and services mainly in China and India. In countries, such as India, and Bangladesh, the agriculture sector becomes the primary sector and the major factor determining the GDP of each country.

The rising concerns over nitrogen losses through ammonia volatilization and nitrate leaching drive the increasing demand for fertilizer additives in order to inhibit losses and enhance the application of fertilizers. Moreover, the Latin America, Europe, and Middle East & Africa fertilizer additives market size is anticipated to grow at a substantial CAGR of 4.5% during the forecast period.

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