Fertilizers Market Overview
The global fertilizers market oozed from opportunities worth $61,530 million as of 2018. And, the analyst of the report has projected the market value to increase at a positive CAGR of around 3.67% through the forecast period of 2019 to 2025. Though the growth rate is gradual at a global level, the report highlights profitable progression in Asia Pacific, which already grabbed the largest market share in the global fertilizers market in 2018, generating nearly 53% of the overall demand. According to Economic and Social Commission for Asia and Pacific (UNESCAP), agriculture accounts to a quarter of the gross domestic product (GDP) of Asia Pacific’s developing nations such as India, China, and Nepal. That being said, other developed and developing regions are also showing substantial growth potential owing to consistent zest for greater yield.
The horticulture industry is the most lucrative industry for the fertilizers marketplace, increasing at a steady CAGR of 3.7% during the aforementioned forecast period. Fertilizers are recommended for horticulture as crops require reorientation for deriving maximum benefits per unit area. For instance, overcoming P, Fe, Zn, Mg, Mn deficiencies via good management and fertilizers helps grape crop yield to expand up to 100 t/ha.
Fertilizers Market Outlook
A fertilizer is any synthetic or natural material that is applied in the soil to supply one or more essential plant nutrients. Fertilizers enhance the growth of the plant by adding additives such as nitrogen, potassium, and phosphate. Some fertilizers are used to improve soil fertility by modifying its aeration and water retention.
Fertilizers Market Growth Drivers
The innovation had paved way to environment-friendly bio-fertilizers and created a whole new revenue avenue for the players who were struggling to maintain profits under growing pollution awareness and people refrainment from chemically produced eatables. The global awareness over reducing carbon footprints on the planet is expected to drive the global ecofriendly trend and continue stroking the bio-fertilizers segment of the market.
Fertilizers are extensively used in the maintenance of flat green fields and grounds. The government policies to increase green areas to improve environmental conditions is anticipated to remain a substantial segment in the fertilizers marketplace. Moreover, the usage of green fields for sports and event purposes has also proved to be one of the notable drivers.
Fertilizers Market Trends
The company FMC acquired a part of DuPont’s Crop Protection business as a balancing deal against its merger with Dow Chemical Company which formed the DowDuPont firm in August 2017.
Fertilizers Market Challenges
As per the recent researches, the extensive use of fertilizers is prompt to contaminate the ground water to adverse levels. The stringing policies imposed by certain governments around the world has restricted the farmers to use fertilizers in their fields.
The demands for the fertilizers have increased from across the world, but the supply against the demands are not fulfilled adequately. This has increased prices in the fertilizers market. Furthermore, the production gap due to increased raw material costs and expensive import prices are affecting the fertilizers market growth.