Fertilizer Additives Market is Expected to Grow at 5.82% Through 2032

Published Date : 07 Apr 2023

The demand for fertilizer additives is influenced by how well and how much output is improved by their use. Increasing urea demand and growing efforts to develop new techniques for making fertilizer.

By 2032, the global fertilizer additives market size is expected to reachUSD 2.06 billion by 2032, representing a 5.82% CAGR from 2023 to 2032. The fertilizer additives market was valued for USD 1.17 billion in 2022

Market Overview:

An injection of chemicals known as fertilizer is made into the soil to provide vital nutrients for crop growth. The two most popular forms of fertilizers are the organic and inorganic varieties. Organic fertilizers are produced using sewage sludge with carbon content, farm waste, livestock manure, industrial waste, and agricultural waste. However, the production of their inorganic counterparts necessitates the use of several chemicals and extra nutrients. They are a rich source of potassium, nitrogen, phosphorus, and other nutrients needed for sustainable food production and good crop output, and they are primarily used to replenish specific soil constituents that are deficient in the soil.

In addition, they increase the soil's ability to retain its fertility and store water. To transfer the appropriate traits based on climate, soil type, and crop type across geographical boundaries. These formulations employ a special combination of fertilizer additives. The ability of the product to prevent the oxidation of vital nutrients like phosphorus, sulfur, potassium, and nitrogen. Increased awareness of soil degradation brought on by traditional agricultural practices and a lack of agricultural land are the two main factors affecting fertilizer sales globally.

Government organizations from various regions intend to use a variety of resources to educate farmers about the benefits of fertilizer additives and persuade them to adopt value-added fertilizers due to the rapid rise in environmental consciousness caused by greenhouse gas emissions.

Fertilizer Additives Market Report Scope:

Report Coverage Details
Market Size in 2022 USD 1.17 Billion
Projected Forecast Value in 2032 USD 2.06 Billion
Growth Rate 5.82% from 2023 to 2032
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
By Function
  • Inhibitors
  • Dust-Control Agents
  • Antifoam Agents
  • Coating Agents
  • Granulation Aids
  • Anti-Caking Agents
  • Other
By Form
  • Granular
  • Powdered
  • Prilled
By Type
  • Urea
  • Ammonium Nitrate
  • Ammonium Phosphate
  • Ammonium Sulfate
  • Others
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Report Highlights:

  • By Function, The market segment currently dominated by anti-caking agents is anticipated to expand at a remarkable CAGR from 2023 to 2032. The demand for granulated and powdered fertilizers is on the rise due to lump formation, which is what is causing the segment growth. Anti-dusting was ranked as the second most significant component of the product in 2018. When moving and storing fertilizers where there is a possibility that they might be exposed to dust, anti-dusting is crucial. Hydrophobic substances are also referred to as "water repellents." They don't allow the quality of fertilizers to be impacted by atmospheric moisture. It is believed that moisture causes the nitrogen, phosphorus, and potassium content of fertilizers to decrease.
  • By form, The most market revenue is anticipated to come from the prilled segment between 2023 and 2032. In the process of prilling, molten solids, solid solutions, or slurries are converted into uniform, spherical molecules. Drops of melted prilling substance are dripped from a tall prilling tower's top and allowed to coagulate or freeze in midair. Prills are a typical delivery method for fertilizers like ammonium nitrate, urea, and NPK. Prilled urea is highly recommended due to its better resistance to breakdown when mixed with other fertilizer components. On the other hand, the granular form sector is predicted to develop at the fastest CAGR from 2023 to 2032. The granular fertilizers are easily stored, have controlled nutrient release, and have a low cost. It is mandatory to follow the production instructions while using granular fertilizer additives.
  • By Type, The largest market share in 2022 belongs to urea, which is also expected to experience rapid growth during the anticipated period. The most popular nitrogen fertilizer in agriculture is urea, but when it is applied to the soil, ammonia volatilization results in significant nitrogen damage. Due to their capacity to bind dust, granular anti-caking additives are added during the initial stage of urea production to stop nitrate leaching and ammonia volatilization. Since ammonium nitrate is inexpensive, farmers are expected to use it more and more frequently. Ammonium nitrate quickly absorbs moisture due to its hygroscopic characteristics, which lowers its mechanical properties and increases the possibility of dust formation.

Regional Insight:

From 2023 to 2032, the Asia Pacific region is expected to experience the highest CAGR for growth. The agricultural sector's growth in developing countries like China and India is primarily responsible for the expansion. The agricultural sector has a significant impact on the GDP of countries like China and India. Farmers are under more pressure to produce more food because there is currently less land that can be used for farming. Due to the rise in demand for fertilizers, these factors have boosted the market for additives. China's agriculture sector has made strides and advanced technologically over the past few years.

On the other hand, the rising demand for agricultural products in North American countries like the United States, Canada, and Mexico is expected to cause the market for fertilizer additives to grow throughout the forecast period. The US ranks second globally in the production of phosphate and is the world's fourth-largest producer of nitrogen fertilizers.

The US controls the majority of the world's phosphorus production and exports, and it also establishes guidelines for fertilizer additions in North America. The demand for fertilizers and, consequently, fertilizer additives has grown significantly in the nation. Anti-caking additives were the most frequently used fertilizer additives in the US due to the wide range of storage temperatures.

Market Dynamics:


The urea market is growing

Growing global demand for urea-based fertilizers is one of the primary drivers of the market's expansion. For instance, the International Fertilizers Association (IFASTAT) reports that the total amount of urea consumed worldwide increased from 51,141.0 thousand metric tons in 2017 to 52,258.9 thousand metric tons in 2019. Since urea has the highest nitrogen content of any solid fertilizer, it is by far the most widely used and significant source of nitrogen for agricultural use. Additionally, urea has a high relative humidity, which helps it withstand hot and humid conditions. It is preferred over ammonium nitrate and calcium ammonium nitrate (CAN) because it can be used in both solid and liquid forms, and its demand is increasing in the market.


Chemical fertilizers' effects on the environment

The amount of nutrients in the soil decreases over time as crop plants are harvested. Then, these nutrients are replenished either naturally through decomposition or the use of fertilizer. As a result, fertilizer is a crucial part of contemporary agriculture. Although chemical fertilizers are largely responsible for the world's sufficient crop production, their excessive use is posing serious problems for both the present and the next generation, including air, water, and soil pollution, degraded lands, depleted soils, and increased greenhouse gas emissions. These artificial fertilizers are becoming dangerous not only for our environment but also for people, animals, and microscopic life.


Utilizing and handling fertilizers is becoming simpler

By making the fertilizers' granules harder and more durable, fertilizer additives offer a long-term solution to fertilizer additives. A lot of fertilizers are sold as granular or powdered goods. In fertilizer caking and lump formation could consequently result in product loss. To avoid this, fertilizer additives like anti-caking agents make it simpler to apply and handle fertilizers during storage, consumption, and transportation while also preventing fertilizers from caking and lumping. The market is expanding as a result of the addition of fertilizer additives because fertilizers are now easier to handle and apply.


The cost of raw materials is excessive

There has been a lot of recent research on fertilizer additives using novel materials. However, the industrial-scale production of fertilizer additives is constrained due to the high cost of raw materials. The rising cost of raw materials may therefore limit market growth during the anticipated period. Transport network failures on the national and international levels hurt crop producers by limiting their access to intermediate inputs like fertilizers and lowering the demand for fertilizer additives. The ability to increase fertilizer output is just one of the advantages of fertilizer additives.

Recent Development:

  • January 2021, A startup in Pennsylvania named Phospholutions secured USD 10.3 million in funding from VC investors for its Series A round. RhizoSorb, a product by Phospholutions, is a fertilizer additive that can be used in conjunction with phosphate fertilizers or added to them during production.
  • April 2020, Limus Clear a new urease inhibitor was launched by BASF and limus clear is used with liquid fertilizer to increase nitrogen availability and reduce nitrogen losses.

Major Key Players:

  • Chemical Co. Ltd
  • Clariant
  • Calnetix Technologies
  • Solvay
  • Filtra Catalysts & Chemicals Ltd
  • Tolsa Group
  • KAO Corporation
  • ChemSol LLC
  • Forbon Application
  • Chemipol
  • Calnetix Technologies LLC
  • British Sulphur
  • Michelman
  • Cameron Chemicals
  • Lignotechagro
  • Golden Grain Group Limited
  • Europiren B.V
  • Rock Chemie Co
  • Saudi Specialty Ind.
  • Volant Chem

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