Water Soluble Fertilizer Market

Market Snapshot

According to Future Market Insights' most recent market survey, the Global Water Soluble Fertilizer Market is expected to reach a market valuation of US$ 17,623.1 Mn in 2022 and expand at a CAGR of 6.5% between 2022 and 2032. By the end of the forecast period, the market is expected to be worth US$ 33,080.9 Mn.

Water soluble fertilizers are mostly used to maintain the fertility of the soil, prompting root & shoot development, maintain NPK nutrient balance, and help for Instant uptake of nutrients by plants, and maintain drippers free of salts in the drip irrigation system.

Globally, the popularity and acceptance of water-soluble fertilizers as instant nutrient deficit correctors were mostly popular in developed markets, but because of increased research and development efforts and the involvement of major fertilizer companies, these fertilizers are now widely used in both developed and developing nations.

The need for effective fertilizers that can increase crop nutrient uptake significantly and deliver nutrients in a controlled way is driving the expansion of the market for water-soluble fertilizers. The use of modern agricultural techniques and the demand for fruits, vegetables, and other high-value crops with high nutritional content are both anticipated to have a beneficial impact on the market revenue. Increasing consumption in the agricultural industry is expected to create a demand for Water Soluble fertilizers during the forecast period.

Historical (2016-21) Vs. Forecast (2022-32) Market Outlook

Over the period covered by the study (2016-2021), the market for water-soluble fertilizers was recorded to grow at a phenomenal CAGR of 5.7% between 2016 and 2021, mostly due to the increasing awareness of soil fertility and productivity management among farmers.

Whereas, as per the latest survey conducted by FMI, the water-soluble fertilizer market is expected to progress at a CAGR of 6.5% between 2022 and 2032. The benefits of soil fertility management to reduce arable land loss and meet increasing global food needs are anticipated to drive the scale of the water-soluble fertilizer industry. Significant changes in agricultural practices and a positive outlook for technology and innovation practices to enhance agricultural fertility are expected to boost the demand for the global water-soluble fertilizer market.

Market Dynamics

The usage of nitrogenous-based fertilizers for agricultural crops will spur demand for water-soluble fertilizers.

The water-soluble nitrogen-based fertilizer segment is expected to create a demand of over 7.0 million tons by 2032. Water-soluble nitrogen-based fertilizers include urea, ammonium nitrate, calcium nitrate, ammonium sulphate nitrate, and magnesium nitrate. Nitrogen is essential for the synthesis of amino acids, the building blocks of protein required for plant growth and development.

Additionally, nitrogen is also an important component of chlorophyll, which is required for several enzymatic reactions. Thus, nitrogen supply to plants regulates their growth, color, vigor, and yield. Calcium nitrate quantitatively dominates the segment of water-soluble nitrogen-based fertilizers. Thus, the rising usage of nitrogenous-based fertilizers for crops is expected to boost the demand for the water-soluble fertilizer market.

Global population growth and rising food consumption will be expected to boost the demand for water-soluble fertilizers.

The need for water-soluble fertilizers will be primarily driven by the increasing population and the rising need for food on a global scale in the upcoming years. This is due to the fact that these fertilizers have several benefits over traditional fertilizers, such as a high rate of consumption, greater crop production in limited regions, and also an improvement in nutrient availability in the soil.

Farmers can now employ water-soluble fertilizers effectively because of technological developments in application methods like foliar and fertigation techniques. This has also reduced the chance of overusing water-soluble fertilizers in a particular location. Additionally, as Belarus and Russia export roughly 40% of the total potash fertilizer, there is a substantial fertilizer supply constraint as a result of the conflict between Russia and Ukraine. All these above-mentioned facts are expected to show a positive outlook for the water-soluble fertilizer market.

Nikhil Kaitwade

Principal Consultant

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Category-wise Insights

Which is the widely adopted application method for water-soluble fertilizer?

Fertigation is the most preferred application segment as this method can effectively control the pre-existing nutritional deficiency in crops. The technique successfully reduces fertilizer usage by up to 25%, as WSFs are expensive crop nutrition products, applying them wisely through fertigation can successfully lower the production costs of numerous crops.

Fertigation can minimize water use by 60%, land use by 5%, fertilizer use by 40%, labor costs by 70%, and yields under normal conditions by 30%. Fertigation presents an excellent chance to bring together decision-makers, academics, promoters, and producers and will boost the rapid development of fertilizer-saving technology and advance the science and technology of water-soluble fertilizer production and application.

Region-wise insights

How is Europe faring in the global Water Soluble Fertilizer market?

Europe is the leading Water soluble fertilizer producer, holding the majority of shares approximately 38-40% in global revenue in 2022, as a result of the adoption of precision farming, demand for high-efficiency fertilizers, protection of crops, ease of use and application, and related environmental concerns are some of the major factors that augment the market growth.

France was the highest consumer of water-soluble fertilizers due to aging farming demography and agricultural land conversions. This is expected to increase the sales of Water soluble fertilizer among the growing food and agricultural industry, thus creating a lucrative opportunity for the water-soluble fertilizer market in the Europe region

What are the prospects for the Water Soluble Fertilizer market in the Asia-Pacific region?

The market is expected to expand at the fastest rate in the Asia Pacific. India and China have the fastest-growing agricultural sector with huge arable and irrigated land. Irrigated land is approximately 50 percent of the total arable land of 130 million hectares in China. According to the overall planning made by the government, irrigated land will increase by 25 percent by 2030. The increasing irrigation and various fertilizer & Fertigation techniques are anticipated to boost the demand for Water Soluble fertilizers in the Asia Pacific region.

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Competitive Landscape

The leading competitors in the sector have a sizeable portion of the moderately fragmented market for water-soluble fertilizers. With the opening of new sales and marketing facilities around the world, a number of industry participants are concentrating on extending their regional reach.

Additionally, product differentiation, mergers, and acquisitions are important techniques used by industry participants to improve their profitability and foster industry growth in the near term. These players have a solid manufacturing foundation and intend to increase their current production capacities to meet the demand. For instance,

• In 2019, K+S announced to expand its production capacity of magnesium sulphate anhydrous in Europe by investing around USD 38 million. This is expected to increase the competitiveness and market position of the company across the European fertilizer industry.
• The Mosaic Company developed “Micro Essentials” using their patented technology Fusion. Micro Essentials is a unique, nutritionally balanced fertilizer granule containing nitrogen, phosphorous, sulphur, and zinc. Micro Essentials improves nutrient uptake, offers uniform nutrient distribution, and season-long sulphur availability.
• Haifa Group’s mono potassium phosphate nitrogen-free water-soluble fertilizer is a highly efficient source of phosphorous and potassium for plants.

A similar development has been tracked by Future Market Insights in its latest market study.

Scope of the Report

Market Segmentation

By Form:

• Dry [Granules, Powder]
• Liquid

By Type:

• Nitrogen(N),
• Potassium(K),
• Phosphate(PO43-),
• Secondary Nutrients
• Micro-nutrients

By Application:

• Foliar
• Fertigation

By Region:

• North America
• Latin America
• Europe
• South Asia Pacific
• East Asia
• Middle East & Africa