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The water soluble fertilizers market is estimated to grow at a CAGR of 5.69% between 2022 and 2027. The size of the market is forecast to increase by USD 2.75 billion. The growth of the market depends on serval factors, including an increase in demand from developing countries, growth in the fertilizer industry, and a reduction in arable land.
This report extensively covers market segmentation by type (fertigation and foliar), application (nitrogenous, potassic, and phosphatic), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global water soluble fertilizers market as a part of the global fertilizers and agricultural chemicals market within the overall global chemical industry. The market covers fertilizers such as nitrogen, phosphorus, potassium, calcium, magnesium, sulfur, chlorine, iron, boron, manganese, zinc, copper, molybdenum, and nickel. Agricultural chemicals include insecticides, fungicides, herbicides, bio-pesticides, fumigants, and rodenticides. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The reduction in arable land is notably driving the market growth, although factors such as volatility in raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Water-Soluble Fertilizers Market Driver
The reduction in arable land is notably driving market growth. Factors like rapid industrialization and urbanization have reduced arable land. Additionally, inappropriate agricultural practices and deforestation have led to the reduction of the fertility of arable land globally. Food production can be increased only by improving the yield from the existing farms. Hence, the use of water-soluble fertilizers can help in improving the yield of food crops.
Furthermore, research shows that owing to the increasing population worldwide, the demand for food grains will significantly increase by 2030. By 2030, developing nations, such as Brazil, and India, will require an additional 120 million hectares of land to fulfill the demand for food grains. Hence, the shrinkage of global arable land is expected to drive the demand for fertilizers, to meet the growing food requirements. Therefore, this is expected to support the growth of the market during the forecast period.
Significant Water-Soluble Fertilizers Market Trend
The rise in demand for micronutrient-based water-soluble fertilizers is an emerging trend in the market. Micronutrients are trace minerals required in small quantities by plants. Irrespective of the low quantity requirement of micronutrients, some of the critical plant functions are limited by the deficiency of micronutrients resulting in low yield, reduced growth, and other plant abnormalities. The micronutrients, including zinc, iron, and magnesium, are required at different stages of plant growth.
Fertilizers that are water-based can be easily applied to plants and are used to overcome micronutrient deficiency in plants. These fertilizers improve the nutritional content of horticultural crops, including fruits and vegetables. Hence, these factors will support the growth of the market during the forecast period.
Major Water-Soluble Fertilizers Market Challenge
Volatility in raw material prices is a major challenge impeding market growth. Fertilizers that are water-soluble mainly include substances derived from nitrogen, potassium, and phosphorus. Furthermore, natural gas, potassium chloride, sulfur, and coal are used to produce such fertilizers. Hence, an increase in raw material prices increases the production cost and reduces the profit margins of manufacturers.
Natural gas is one of the major raw materials used to produce nitrogen-based water-soluble fertilizers. The hydrogen required to produce such fertilizers is extracted from natural gas. Thus, an increase in natural gas prices adversely affects the demand for these fertilizers. Therefore, fluctuations in raw material prices can have a negative impact on the global market during the forecast period.
Key Water Soluble Fertilizers Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Water Soluble Fertilizers Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cifo Srl - The company operates under one segment. The company under this segment offers manufacturing and production of agricultural chemicals. The key offerings of the company include water-soluble fertilizers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the fertigation segment will be significant during the forecast period. Fertigation is a process that combines fertilization and irrigation by introducing fertilizers, soil amendments, and other chemical products into the irrigation system. This method is mainly used in extensive agriculture and horticulture applications. The better efficiency and high utilization rate of fertilizers used for this application make them suitable for fertilizers that are water-soluble.
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The fertigation segment was valued at USD 4.85 billion in 2017 and continued to grow until 2021. A few of the various benefits of fertigation include uniform distribution of nutrients, improved nutrient absorption, the controlled absorption rate of fertilizers used for plant growth, minimized nutrient loss, reduces soil erosion, and direct application of nutrients to the roots. Furthermore, the process reduces water consumption and minimizes the risk of diseases, including soil-borne diseases contracted by roots. Therefore, the above-mentioned factors are expected to drive the demand for fertigation, thereby fueling market growth during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to vendors is Europe. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In Europe, many countries, including Spain, Ukraine, Germany, Russia, and the UK, exhibit a high demand for these fertilizers. A few of the major factors increasing the regional growth include the rising demand for specialty fertilizers to enhance the quality of production, changing climatic conditions, and the high penetration of companies that produce specialized fertilizers in the region is expected to propel the growth of the regional market during the forecast period.
Furthermore, the agriculture sector in Europe is well-developed and uses various technologies to improve farming. Farmers use digital technologies and precision agriculture (PA), to identify optimum conditions for plant growth. Hence, growth in the agriculture sector in Europe will also increase the demand for these fertilizers during the forecast period.
After recovering from the COVID-19 pandemic, the European region again suffered faced supply chain disruptions and a sinking economic downturn due to the Russia-Ukraine war impact of the Russia-Ukraine war.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Fertigation and Foliar), Application (Nitrogenous, Potassic, and Phosphatic), and Geography (Europe, North America, APAC, South America, and Middle East and Africa).
Water Soluble Fertilizers Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.69% |
Market growth 2023-2027 |
USD 2.75 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.56 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Spain, Russia, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Captain Polyplast Ltd., CF Industries Holdings Inc., Cifo Srl, Compagnie Financiere et de Participations Roullier, E.I.D. Parry India Ltd., Green Has Italia SPA, Grupa Azoty SA, Gujarat State Fertilizers and Chemicals Ltd., Haifa Negev technologies Ltd., Indian Farmers Fertiliser Cooperative Ltd., Industries Qatar Q.P.S.C, Israel Chemicals Ltd., KS Aktiengesellschaft, Nutrien Ltd., Sinofert Holding Ltd., Sociedad Quimica y Minera de Chile SA, The Mosaic Co., Uralchem JSC, Yara International ASA., and Zuari Agro Chemicals Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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