The high nutrient use efficiency and precise & localized application associated with specialty fertilizers help reduce growers’ dependency on commercial fertilizer usage and simultaneously achieve higher quality crops and yields with a lower environmental impact. This trend is expected to drive the market significantly in value sales during the forecast period.
According to MarketsandMarkets, the global specialty fertilizers market size is estimated to be valued at USD 24.3 billion in 2022 and is projected to reach USD 33.7 billion by 2027, recording a CAGR of 6.8% in terms of value.
Specialty Fertilizers Market Opportunities
The specialty fertilizers market presents several promising opportunities for growth and innovation. As agriculture faces increasing pressure to improve efficiency and sustainability, specialty fertilizers offer tailored solutions to address specific crop needs and environmental concerns. Here are some of the specialty fertilizers market opportunities are:
- Precision Agriculture Integration: With advancements in technology, precision agriculture is becoming more widespread. Specialty fertilizers can be customized to suit precise soil and crop requirements identified through data analytics, satellite imagery, and IoT devices. Integrating specialty fertilizers with precision agriculture techniques enhances nutrient management, reduces waste, and improves crop yields.
- Bio-based and Organic Formulations: Growing consumer demand for organic and sustainable products is driving the development of bio-based and organic specialty fertilizers. These formulations utilize natural ingredients, such as compost, biochar, and organic matter, to provide nutrients while improving soil health and reducing environmental impact. Manufacturers have the opportunity to capitalize on the shift towards organic farming by offering certified organic specialty fertilizers.
- Customized Nutrient Blends: Different crops and soil types have varying nutrient requirements throughout their growth stages. Specialty fertilizers allow for the formulation of customized nutrient blends tailored to specific crops, soil conditions, and climate factors. By offering targeted solutions, manufacturers can cater to the diverse needs of farmers and maximize the efficiency of nutrient uptake.
- Water-Soluble Fertilizers: Water scarcity is a significant challenge in agriculture, particularly in arid regions. Water-soluble specialty fertilizers dissolve easily in irrigation water, ensuring efficient nutrient delivery to plants while minimizing runoff and leaching. The adoption of water-soluble fertilizers is expected to increase, especially in greenhouse and hydroponic farming systems, where precise nutrient management is crucial.
- Enhanced Efficiency Fertilizers (EEFs): Enhanced Efficiency Fertilizers, including controlled-release fertilizers and slow-release fertilizers, are designed to deliver nutrients to plants gradually over an extended period. EEFs reduce nutrient losses due to leaching and volatilization, improving nutrient use efficiency and minimizing environmental pollution. The demand for EEFs is growing as farmers seek sustainable solutions that optimize nutrient utilization and minimize environmental impact.
- Microbial and Biostimulant Additives: Incorporating microbial inoculants and biostimulants into specialty fertilizer formulations can enhance soil microbial activity, promote plant growth, and improve nutrient uptake. Microbial additives, such as mycorrhizal fungi and nitrogen-fixing bacteria, contribute to soil fertility and plant resilience. Biostimulants derived from seaweed extracts, humic substances, and amino acids stimulate plant growth and enhance stress tolerance. Integrating these additives into specialty fertilizers offers multifaceted benefits for crop production and soil health.
- Market Expansion in Emerging Economies: Emerging economies, particularly in Asia-Pacific and Latin America, are experiencing rapid urbanization, changing dietary preferences, and increasing agricultural intensification. This creates opportunities for specialty fertilizer manufacturers to expand their presence in these markets by offering innovative products tailored to local crop systems and environmental challenges.
South America is growing at the fastest CAGR during the forecasted period.
The South American market includes Brazil, Argentina, Chile, and the Rest of South America. According to USDA, Brazil is one of the few nations in the world with the ability to boost agricultural yields and area. The rising adoption of agrochemicals, advancements in farming techniques in Brazil & Argentina, and extensive distribution channels of global agrochemical players are projected to drive market growth.
Brazil and Argentina occupied the major market share for specialty fertilizers in South America in 2021. However, according to FAO, these countries also depend on other nations for fertilizers since domestic production could not meet the rising demand in 2020. The climatic conditions of these countries help in the cultivation of diverse crops. Soybean, sugarcane, corn, rice, fruits, and vegetables are the major crops cultivated in this region.
Other growth drivers include the use of new techniques and technologies to bring unusable and barren lands into productivity. Crop production in South America has risen dramatically in recent decades and is expected to rise further as growers expand the planted area and push for higher yields. This will support specialty fertilizer consumption.
The key players in this market include Nutrien Ltd. (Canada), Yara (Norway), ICL (Israel), The Mosaic Company (US), CF Industries and Holdings, Inc. (US), Nufarm (Australia), SQM SA (Chile), OCP Group (Morocco), Kingenta (China), K+S Aktiengesellschaft (Germany), OCI Nitrogen (Netherlands), EuroChem (Switzerland), Coromandel International Limited (India), Zuari Agro Chemicals Ltd. (India), and Deepak Fertilizers and Petrochemicals Corporation Limited (India)
- In September 2022, ICL launched Eqo.x, a rapidly biodegradable release technology for open-field agriculture. The solution will help farmers maximize agricultural crop performance by reducing nutrient loss and increasing NUE to 80%.
- In September 2022, Coromandel launched an organic specialty fertilizer, Cumist Calcium. The new product will provide specialty nutrients and improve efficiency and soil health. The product launch will help Coromandel broaden its specialty fertilizer portfolio.
- In June 2022, K+S signed an agreement with Cinis Fertilizer for the synthetic production of SOP. K+S intended to supply Cinis Fertilizer with its entire MOP requirements. In return, K+S Aktiengesellschaft could purchase up to 600,000 tons of SOP per year from Cinis Fertilizer.
- In June 2022, ICL announced a long-term agreement with India Potash Limited (India) to supply polysulfate through 2026 with a renewable option. The availability of polysulfate is expected to boost the Government of India’s organic agriculture program. It will also help ICL penetrate and serve the Indian market’s potential for specialty fertilizers.
- Which region is projected to account for the largest share of the specialty fertilizers market?
- What is the current size of the global specialty fertilizers market?
- Which are the key players in the market, and how intense is the competition?
- What are the benefits of using specialty fertilizers?
