June 22, 2024
Liquid Fertilizer Market

Liquid Fertilizer Market trends towards sustainable agriculture

The global liquid fertilizer market has been witnessing increasing growth trends towards sustainable agriculture practices with enhanced nutrient delivery and soil health. Liquid fertilizers provide various advantages including quick availability of nutrients to crops, ease of application through drip or spray methods, and limited chances of environmental pollution. The growing demand for high-efficiency fertilizers to boost yield along with minimal wastage has been driving the demand for liquid formulations.

The Global liquid fertilizer market is estimated to be valued at US$ 22.17 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.

Liquid fertilizers are water-soluble plant nutrients that can be easily applied to soil and foliage of crops. They deliver essential macro and micro nutrients required for plant growth like nitrogen, phosphorus, potassium, and others. The homogeneous mixing and suspension of nutrients in liquid formulations ensure uniform distribution and availability throughout the soil profile. This leads to higher nutrient uptake and use efficiency compared to dry granular fertilizers. The application methods like drip irrigation also prevent nutrient run-off and leaching which are major concerns with conventional fertilizer practices.

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.

The growth in global population and rising food demand have been increasing pressures on limited arable land and water resources. This has boosted the demand for high-efficiency liquid fertilizers that provide optimum nutrients with minimal wastage. The market has been witnessing rising adoption in various crops like cereals, pulses, oilseeds, fruits & vegetables and others.

Geographically, the liquid fertilizers market is expanding across major farming regions globally. North America, Latin America, Europe, Asia Pacific, and Middle East & Africa are among the key regional markets. Developing countries are witnessing fastest growth due to increasing cultivation areas and adoption of advanced agricultural techniques.

Market Key Trends

One of the key trends in the liquid fertilizer market is the growing demand for organic- and bio-based liquid fertilizers. With the rising commercialization of organic farming practices worldwide in the last decade, the demand for non-synthetic fertilizers has increased considerably. Companies are increasingly developing formulations based on organic waste materials from industries, farms, and households which are more eco-friendly. Other major trends include the use of IoT sensors and precision farming techniques for optimized application of liquid fertilizers. Companies are focusing on sustainable agriculture by improving nutrient-use efficiency through modern technologies.

Porter’s Analysis

Threat of new entrants: The liquid fertilizer industry requires high capital investments in manufacturing plants and R&D which acts as a barrier for new companies.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and presence of many established manufacturers.

Bargaining power of suppliers: Suppliers of raw materials like potash, nitrogen, and phosphorous have moderate bargaining power due to the availability of substitutes.

Threat of new substitutes: Potential threat from substitutes like solid fertilizers and organic fertilizers.

Competitive rivalry: Intense competition among major players to gain market share and profitability.

Geographical Regions

North America leads the liquid fertilizer market in terms of value owing to the high demand for liquid fertilizers from countries like the US and Canada for cereals, oilseeds, and fruits & vegetable crops. The region accounts for around 30% share of the global market.

Asia Pacific is the fastest growing region for liquid fertilizers due to a surge in agricultural activities and rising population in countries such as China, India. Government initiatives and growing awareness about liquid fertilizers benefits among farmers are boosting the adoption. The region is estimated to expand at a CAGR of over 7% during the forecast period.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it