The global fertilizer additives market size was valued at USD 3.07 billion in 2016 and is likely to expand at a CAGR of 3.2% over the forecast period, owing to a thriving fertilizers industry. In addition, shrinking arable land, coupled with population explosion, has resulted in increased demand for fertilizers for cultivation on limited land.
Asia Pacific is expected to be a strong market in future due to a massive agriculture sector in the region. India, whose economy is completely agro-based, is projected to register a steady growth rate during the course of the forecast period.
China is also expected to witness rapid growth in terms of product demand on account of steady growth in the agricultural sector, coupled with the impact of ongoing innovations and new technologies. Agriculture accounts for nearly 15.0% of the annual GDP of China, which is expected to boost the production of fertilizer additives in the country.
The market for additives is directly proportional to fertilizer demand. Greater the demand for fertilizers, greater would be the need for additives. The agricultural output in emerging countries such as China, Indonesia, and Brazil has been on a rise, further fueling the demand for additives.
Urea dominated the global market, accounting for a 55.6% share in 2015. The segment is expected to continue its lead over the forecast period as urea can be easily synthesized and is readily available, making it a widely used nitrogenous fertilizer.
Global industry demand for ammonium nitrate was pegged at USD 483.49 million in 2015, rising at a CAGR of 4.7% from 2016 to 2024. It is more cost effective as compared to other products, which has increased its popularity among farmers; this is expected to boost the industry.
Soaring demand for food grains from an ever-growing population has resulted in increased consumption of fertilizers such as ammonium sulfate. However, since it is expensive, its popularity is expected to reduce in the coming years.
Due to population explosion, farmers are required to produce more food grains in a short span of time. In addition, the sizes of arable lands have shrunk due to growing population, further increasing pressure on farmers to produce more on less available land. This is expected to boost demand for additives in chemical fertilizers.
By function, the fertilizer additives market is segmented into corrosion inhibitors, hydrophobic agents, anti-dusting agents, anti-caking agents, and others. Anti-caking agents dominated the global fertilizer additives industry, accounting for 36.0% of the global market revenue in 2015.Soaring demand for fertilizers and rising fertilizer prices is expected to play a major role in driving industry growth over the forecast period.
Anti-dusting agents accounted for 24.4% of the global demand in 2015. Growing awareness about the importance of additives during storage and transport and rising fertilizer prices is expected to drive the segment.
Hydrophobic agents are widely used in the agriculture industry on account of its properties. Another distinct feature of the product is its low cost when compared to other fertilizer additives. This is expected to increase its demand in the industry.
From 2005 to 2014, the fertilizer consumption per hectare of arable land rose at a CAGR of 2.2%. Since 2010, economies of several countries are back on track and so are their agricultural activities. This has increased demand for chemical fertilizers, fueling the growth of the market.
In terms of revenue, Asia Pacific is considered to be the largest regional market, accounting for 58.8% of the global demand in 2015. It is expected to dominate the industry over the forecast period due to growing agricultural sectors in countries such as India, Bangladesh, and Sri Lanka.
The Europe market is expected to witness a CAGR of 2.3% from 2016 to 2024. Owing to rising initiatives taken by the European government in the agriculture sector, such as agroecology, sustainable intensification and green growth is expected to propel the industry.
North America is expected to exhibit a CAGR of 3.1% from 2016 to 2024, fueled by a growing fertilizer industry. The Latin America market was valued at USD 299.1 million in 2015 and it is expected to clock in a CAGR of 3.0% from 2016 to 2024, primarily owing to rapid developments in the agriculture sector in countries such as Brazil and Argentina.
The market is highly consolidated in nature and is dominated by key players such as Novochem Group, Solvay, and Clariant, KAO Corporation. Other players include Filtra Catalysts & Chemicals Ltd., ChemSol LLC, Forbon Technology, Arrmaz, Chemipol, Michelman, Tolsa Group, and Amit Trading Ltd. These companies, through strategic developments, aim to enter new markets and enhance their product offerings in order to gain market share and consolidate their positions in the industry.
Companies have been adopting organic and inorganic strategies such as mergers and acquisitions, expansions, new product developments, agreements, collaborations, and joint ventures in order to expand their product portfolio, geographical reach, and consequently, their market shares.
This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of latest industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global fertilizer additives market report based on end product, function, and region:
End Product Outlook (Revenue, USD Million, 2013 - 2024)
Function Outlook (Revenue, USD Million, 2013 - 2024)
Regional Outlook (Revenue, USD Million, 2013 - 2024)
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