The liquid fertilizer market involves products such as nitrogen, phosphorus, potassium, and others that are supplied to plants and crops in a liquid form. Liquid fertilizers are highly concentrated, rapid-acting, and easy to apply. They provide readily available nutrients to plants, enhancing foliage production and root development. The demand for liquid fertilizers is increasing owing to their high solubility and mobility in soil. In particular, organic and hydroponic farming practices have led to substantial adoption of these fertilizers.
The Global liquid fertilizer market is estimated to be valued at US$ 33.16 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Liquid Fertilizer Market Demand are Yara International ASA, Nutrien Ltd, Israel Chemical Ltd., Haifa Chemical Ltd, GrupaAzoty, The Mosaic Company, SociedadQuímica y Minera de Chile S.A., K+S Aktiengesellschaft, Plant Food Company Inc., EuroChem Group, Annadata Organic, AgroLiquid, Agrobio Chemicals, Van Iperen International, BMS Micro-Nutrients NV, ICL Fertilizers, IFFCO, Nortox, Safsulfur, and SQM. Liquid fertilizers provide various opportunities in organic farming owing to their easy application and higher efficiency. Many companies are expanding their production facilities globally to cater to the rising demand for liquid fertilizers especially in Asia Pacific and Latin America.
Market drivers: The growing organic farming practices across the globe are a major market driver for liquid fertilizers. According to FAO, the area under organic cultivation is growing in double digits each year as consumers are demanding chemical-free food products. Organic farmers prefer liquid fertilizers as they are readily absorbed by plants and more efficient.
Market restraints: High transportation cost of liquid fertilizers due to their bulk and weight act as a major market restraint. Unlike dry fertilizers, liquid fertilizers require specialized tanks for storage and transportation. This increases overall costs for manufacturers and distributors. Moreover, stringent regulations regarding the use of certain fertilizer components also restrain market growth.
Segment Analysis
The liquid fertilizer market is dominated by water soluble sub segment. Water soluble fertilizers are easy to apply through drip or sprinkler irrigation systems. They dissolve quickly in water and are efficiently absorbed by plant roots. This advantage over other types of fertilizers has made water soluble sub segment dominant with over 30% share in the overall liquid fertilizer market. The nitrogen sub segment is another major shareholder with over 20% share. Nitrogen is a major essential plant nutrient and nitrogen based fertilizers see widespread demand from major crop producing regions.
Global Analysis
The North American region dominates the global liquid fertilizer market with over 30% share. This is primarily due to large scale agriculture in countries like United States. Corn is the dominant crop in US requiring heavy usage of fertilizers. Fertilizer usage is also high for other major crops like wheat and soybean. The Asia Pacific region is the fastest growing market for liquid fertilizers growing at around 7% CAGR during the forecast period. Rising population and agriculture production in countries like China and India is driving increased consumption of fertilizers. South America is another high potential region where liquid fertilizer demand is rising steadily, fueled by large scale crop production countries like Brazil. Countries in Europe and Middle East & Africa also contribute to global liquid fertilizer demand but their shares are relatively smaller.
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