Global Dry Fertilizer Market Size (2024 – 2030)

The global Dry Fertilizer Market reached a valuation of USD 198.77 billion in 2023 and is projected to attain USD 258.94 billion by 2030. This market is experiencing a robust Compound Annual Growth Rate (CAGR) of 3.85% between 2024 and 2030. Factors propelling industry expansion include the increasing adoption of organic fertilizers and consistent advancements in research and development within the sector.

Overview of the Dry Fertilizer Market

Dry fertilizers are typically formulated to be incorporated into the soil, gradually releasing nutrients to plants over time. This method allows growers to blend the fertilizer into the soil at recommended rates, ensuring sustained accessibility to plants over specific durations.

Both natural and synthetic fertilizers are applied to plant tissues or soil to supply one or more essential nutrients required for plant growth. The rising demand for enhanced soil nutrients, coupled with increased crop yields, is anticipated to drive fertilizer demand further in the forecast period. Additionally, the growing adoption of organic fertilizers is expected to encourage farmers to utilize fertilizers more efficiently and safely.

The global agricultural industry is grappling with various challenges. The United Nations projects that by 2050, the world population will surpass 9 billion individuals, placing significant pressure on the agricultural sector. This strain is exacerbated by labor shortages and the shrinking availability of arable land due to rapid urbanization. The Food and Agriculture Organization estimates that over 70% of the global population will reside in urban areas by 2050. Faced with diminishing arable land worldwide, farmers are increasingly turning to fertilizers to enhance their agricultural output. Nitrogen, a critical plant nutrient, is naturally present in the atmosphere, though only a few plants can absorb it. Therefore, it is supplied to plants in the form of nitrogenous fertilizers. These products, available in various types such as calcium ammonium nitrate, ammonium sulfate, ammonia, among others, with varying nutrient compositions, help regulate plant growth for accelerated yields and improved texture.

Impact of COVID-19 on the Dry Fertilizer Market

The fertilizer industry has experienced significant disruptions worldwide since the onset of the COVID-19 pandemic. Initial lockdown measures led to disruptions in shipments due to labor shortages and the temporary closure of several fertilizer plants located within integrated chemical complexes.

China, as the epicenter of the pandemic, faced substantial early impacts. However, the country's conditions have stabilized, and fertilizer production costs have increased across the industry. Consequently, the overall impact of COVID-19 on the fertilizer industry is considered moderate.

Travel restrictions resulted in fertilizer stockpiling, particularly in Hubei, a major producer of phosphoric acid and phosphate.

Market Drivers

The increasing adoption of Organic Fertilizer is propelling market growth.

The agriculture sector is progressively limiting the use of chemical fertilizers, instead embracing natural and biofertilizers globally to promote not only plant growth but also soil health. These organic fertilizers, also known as "soil conditioners," are derived from plant or animal waste due to their ability to retain water and nutrients over extended periods. Moreover, organic fertilizers are less harmful, readily decomposable, reusable, safe, environmentally friendly, and can withstand temperatures up to 45 degrees Celsius or higher, enabling longer storage durations.

Ongoing research and development efforts in the sector are driving market expansion.

Major fertilizer suppliers are augmenting their Research and Development (R&D) investments due to stringent regulations and the complexities of product formulations, as fertilizer sales are influenced by climatic conditions and crop variations. Furthermore, leading suppliers are implementing new technologies in their production facilities to increase capacity and reduce manufacturing costs.

Market Restraints

The high cost associated with products is impeding market growth.

Fertilizer prices, including ammonia, DAP, and potash, surged due to tight supplies and strong demand in 2018 compared to previous periods. In the third quarter of 2018, ammonia prices rose due to numerous plant adjustments, resulting in supply constraints. Additionally, potash prices remained firm in the second quarter of 2019 due to prevailing tightness in supply. The current fertilizer landscape indicates higher prices in 2019, as the production costs of ammonia, DAP, and potash have escalated.

Dry Fertilizer Market - By Product:

• Urea
• Methylene Urea
• Ammonium Nitrate
• Ammonium Sulfate
• Ammonia
• Calcium Ammonium Nitrate
• Others

Regarding product categories, the ammonia segment secured the second position in 2021, contributing approximately 18% to the total revenue. This surge is credited to its heightened resistance against leaching losses and exceptional solubility. Ammonia stands as a crucial pillar within the nitrogen-based fertilizer sector due to its significantly higher nitrogen content compared to other industrial variants. It can be directly applied as a plant nutrient to the soil or converted into various forms of nitrogen fertilizers. Additional segments in this market include ammonium sulfate nitrate, calcium nitrate, and amide fertilizers (such as diammonium phosphate, calcium cyanamide, etc.). In calcium nitrate, nitrogen is present in the form of nitrate, produced through the reaction of crushed limestone and nitric acid. Amide fertilizers are water-soluble and readily decompose in the soil.

The urea product segment dominated with the highest share of over 33% in revenue for the year 2021. Growth in the nitrogenous fertilizer market can be attributed to the substantial nitrogen content and cost efficiency of urea. Urea holds a pivotal position among nitrogenous fertilizers due to its nitrogen content of 46%. However, there is a risk of substantial ammonia loss through urea volatilization, caused by its rapid hydrolysis leading to the formation of ammonium carbonate. When large quantities of urea are placed in close proximity to seeds, it can potentially harm seedlings due to the rapid hydrolysis process. Therefore, it is imperative to apply urea fertilizers strategically in relation to the seeds.

Dry Fertilizer Market - By Application:

• Cereals & Grains
• Oilseeds & Pulses
• Fruits & Vegetables
• Others

In terms of application, the oilseeds & pulses segment secured the second position and is projected to achieve a Compound Annual Growth Rate (CAGR) of 5.6% in revenue during the forecast period. This growth is driven by the need to enhance seed germination rates and achieve dense pulse canopies. Oilseeds & pulses are essential crops that provide crucial proteins, vitamins, and minerals for daily human consumption. Other applications include fiber crops and ornamental plants, for which nitrogenous fertilizers are used to promote growth. To prevent overfertilization of these plants, slow-release formulations of nitrogenous fertilizers are recommended, ensuring a gradual release of nitrogen for optimal plant utilization. The cereals & grains segment held the largest revenue share of over 44% in 2021. This growth is attributed to the meticulous care required for cereals & grains to increase yields, thus generating greater profitability for farmers and the agricultural industry overall. Products such as urea, ammonium nitrate, and anhydrous ammonia are preferred for cereals & grains due to the lower quantities required to ensure sufficient nitrogen supply for optimal plant growth.

Dry Fertilizer Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

From a geographical standpoint, Europe held the third position in regional revenue in 2021 and is expected to expand with a CAGR of 6.3% in the foreseeable future. This growth is attributed to the vast expanses of grasslands and agriculture within the region. Europe predominantly imports nitrate-based fertilizers from Russia, Egypt, and Algeria, while phosphate-based products are primarily sourced from Morocco. NPK compounds are mainly imported from Norway and Russia. The Asia-Pacific region held the highest share of over 65% in revenue in 2021. This growth is fueled by the extensive cultivable land, favorable climatic conditions, and a large rural population. Major multinational nitrogenous fertilizer manufacturers are establishing production units in various Asian countries due to the rising demand and increasing focus on food security. China stands as the largest consumer of these products globally, accounting for approximately one-third of the total global product consumption. These fertilizers play a crucial role in maintaining food security in China by enabling increased growth in both non-grain and grain yields. Some key food crops cultivated in the country include barley, rice, soybeans, potatoes, tea, wheat, millets, tomatoes, cotton, and peanuts.

Dry Fertilizer Market Share by Company:

1. CF Industries Holdings
2. GÜBRETA
3. Indian Farmers Fertiliser Cooperative Limited (IFFCO)
4. Haifa Group
5. Syngenta AG
6. Unikeyterra
7. SQM S.A
8. Yara International ASA
9. Sumitomo Chemical Co Ltd
10. Gemlik Fertilizer
11. Israel Chemicals Ltd. (ICL)
12. Bunge Limited, Inc
13. Nutrien Ltd

Recently, CF Industries Holdings, Inc. announced a significant investment of approximately USD 41.4 million to enhance nitric acid production at the largest nitrogen fertilizer facility globally, located in Donaldsonville, Louisiana.

Additionally, the Haifa Group increased its fertilizer production facility's capacity in France by 8,000 MTPA. This strategic move allowed the company to boost its production capacity by up to 24,000 MTPA.

Companies in the dry fertilizer market are continually introducing new products that are poised to make a significant impact on the market in the coming years.

Notable Events in the Global Dry Fertilizer Market:

• Acquisition: In April 2020, Huber Engineered Materials acquired Miller Chemical & Fertilizer, LLC. Miller specializes in manufacturing and distributing crop protection and nutritional agrichemical products designed to enhance plant and crop production quality and yield.
• Acquisition: In 2020, Yara International acquired Agronomic Technology Corp (ATC), expanding its product portfolio and strengthening its global presence.