Fertilizer Additives Market: Introduction
Fertilizer additives are chemicals that are used to provide solutions for the problems arise during application, handling, production, transportation and storage of the fertilizers. Without use of fertilizer additives fertilizers may have irregular shape, excessive porosity, high moisture and lack of granule stability. Use of fertilizer additives not only solves these problems but also enhances the performance of the fertilizers to an extent.
The major functions of fertilizer additives are to avoid caking, to reduce dust formation during production and handling, to avoid wetting of the fertilizers, to differentiate the products, and to provide the aesthetics to the fertilizer granules.
Various fertilizers are available in the market including MAP, CAN, NPK, AN, PK, KCL, NP and DAP amongst others. All these fertilizers needs one or more additives for enhancing its performance across its value chain. Major types of fertilizer additives are anticaking agents, dust suppressors, drying agents, granulation agents, and coloring agents.
Anticaking agents are majorly used type of fertilizer additive. It may be separately used or can be used in combination of various other additives. Urea fertilizer needs comparatively less fertilizer additives than other fertilizer products, however other nitrogenous fertilizer are major consumer of fertilizer additives such as anticaking, dust suppressor, and others. Anti-caking agent segment accounted for the major segment and is expected to grow at higher CAGR with the growth in fertilizer industry.
The fertilizer additives market is segmented, on the basis of applications, into N (Nitrogen), P2O5, K2O, and others. Liquid fertilizers consume corrosion inhibitors additives and defoamers are added during the phosphoric acid production. Global fertilizer industry consumes more nitrogen fertilizers and therefore the demand for the fertilizer additives is expected to be driven by the nitrogen application segment, during the forecast period.
The global fertilizer additives market is estimated at US$ 956.2 Mn by 2018, in terms of value and is projected to reach US$ 1,445.8 Mn, by 2028 while growing at a CAGR of 4.2% over the forecast. Global fertilizer additives market is expected to represent the incremental opportunity of more than US$ 489.5 Mn between 2018 and 2028.
Global fertilizer additives market is projected to grow at a decent rate over the forecast period
Fertilizer additives finds application in various fertilizers, such as Nitrogen fertilizers NPK, MAP, DAP, PK, KCL and sulfate among others. Nitrogen fertilizer holds a leading share of the demand of fertilizer additives. According to FMI analysis, the demand from N (Nitrogen) segment is estimated to grow in line with the growing population and developments in agricultural sectors of developing economies, such as China and India.
Global fertilizer demand is expected to register a growth rate of more than 1.8% because of developments in fertilizer industry, rising demand for food for increasing population, changing eating habits and improvements in economies of developing countries. Moreover, high penetration of fertilizer additives in the emerging markets is expected to provide acceleration to the growth of the fertilizer additives market during the forecast period.
However, the use of fertilizer additives makes fertilizers expensive than fertilizers without the fertilizer additives. Similarly, low awareness among the manufacturers from developing countries about benefits of the fertilizer additives may act as a restraining factor for the market growth. Also, the increase in subsidies provided by governments of various countries on conventional fertilizers may act as a restrain factor for the growth of the fertilizer additives market.
Asia Pacific Excluding Japan (APEJ) to lead the global fertilizer additives market and after APEJ, MEA is expected to be a fast growing market during the forecast period
A regional perspective shows that, the fertilizer additives market is dominated by the North America region owing to the large number of producers and consumers of fertilizer additives. Also the stringent regulations for the chemical productions and pollution due to fertilizer dust, is attributed for the large share of North America. During the forest period, APEJ is projected to be a high growth region.
This is attributed to the presence of developing economies, including China and India, and also presence of countries, including India, Pakistan, Indonesia, and China, which are agriculture-dependent. Moreover, around 60% of the global population lives in India and China. Growing infrastructural developments in APEJ along with increasing agricultural production is expected to help APEJ to achieve dominant position in the global fertilizer additives market, during the forecast period.
The N (Nitrogen) segment is expected to have a high impact in the APEJ fertilizer additives market. Major applications of anti-caking fertilizer additives in N (Nitrogen) fertilizers, the segment is expected to lead in the APEJ fertilizer additives market, during the forecast period.
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Large manufacturers hold key share in the global fertilizer additives market
Global fertilizer additives market is fragmented with to the presence of few large players and many small manufacturers. Despite this, predominant manufacturers in the fertilizer additives market reported to hold more than a quarter of the global fertilizer additives market share. Regional fertilizer additives markets have different scenario in terms of supply and distribution of fertilizer additives. While a large amount of fertilizer additives produced is exported by APEJ, Most of the fertilizer additives are produced in North America is consumed within the region with the rest is exported to the South America.
The regional markets has of number of local manufactures which are engaged in the sales of fertilizer additives, Such small manufacturers are all listed under the category of Tier 3 in the global fertilizer additives market. The large manufacturers holding a large share in the fertilizer additives market are listed under the Tier 1 category of the global fertilizer additives market. The remaining players are listed under the Tier 2 category.
Key trends in the global fertilizer additives market
The demand and supply of fertilizer additives in different regions depend on the macro-economic factors which are affecting the fertilizer additives market. Moreover, the shifting of demand for conventional fertilizers to improved and advanced fertilizers can be attributed to the rising demand for food and availability of less agricultural land. The market has witnessed a number of expansions and mergers. Large players in the fertilizer additives market are trying to push the products in the market by agreements and collaborations with other players in the market.
Fertilizer additives manufacturers are also exploring the untapped market through joint ventures. A number of expansions have also been seen in the market which depicts increasing demand for fertilizer additives. Fast growing markets, such as China and India, are the growth centers for fertilizer additives. For instance, in 2016, ArrMaz acquired 100% shares of its joint venture ArrMaz Chemicals Yunnan, China. This will help the company to strengthen its position in Asia.
The demand for anti-caking agent has been largely dominated the fertilizer additives market and is anticipated to represent well over 55% share of the total market, in terms of value in 2018.
Key players in the global fertilizer additives market
Some of the players reported in this study on the global fertilizer additives market include Clariant AG, Arkema S.A., Dorf Ketal, ArrMaz, Michelman, Inc., and Hubei Forbon Technology Co Ltd among others.
Fertilizer Additives Market: Segmentation
- Anti-caking Agents
- Dust Suppressors
- Drying Agents
- Granulation Agents
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific Excl. Japan
- Middle East and Africa