Chemical Fertilizers Market Size, Share, Growth, Forecast 2030

Industry Perspective:

The global chemical fertilizers market size was evaluated at $18.1 Billion in 2022 and is slated to hit $23.1 Billion by the end of 2030 with a CAGR of nearly 9.1% between 2023 and 2030.

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Chemical Fertilizers Market: Overview

Chemical fertilizers including urea, diammonium phosphate, and single superphosphate are utilized for maintaining the proportion of nitrogen, phosphorus, and potassium in the soil. The chemical fertilizer is referred to as a synthetic compound manufactured from sewage as well as animal waste and nitrogenous or phosphatic materials apart from other ingredients. A large number of the chemical fertilizers utilized in farming activities include NPK fertilizers that are rich in nitrogen, phosphorous, and potassium. Reportedly, chemical fertilizers add secondary nutrients including magnesium, sulphur, and calcium to the soil.

Key Insights

• As per the analysis shared by our research analyst, the global chemical fertilizers market is projected to expand annually at the annual growth rate of around 9.1% over the forecast timespan (2023-2030)
• In terms of revenue, the global chemical fertilizers market was evaluated at nearly $18.1 billion in 2022 and is expected to reach $23.1 billion by 2030.
• The global chemical fertilizer market is anticipated to record massive growth over the forecast period owing to the surging population and limited availability of arable land has led to the use of chemical fertilizers for enhancing crop yield.
• Based on macronutrients, the nitrogen fertilizers segment is predicted to contribute majorly towards the market growth over the forecast timeline.
• In terms of application, the soil treatment segment to make major contributions towards the global market proceeds over 2023-2030.
• Region-wise, the Latin American chemical fertilizers market is projected to register the highest CAGR during the assessment period.

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Chemical Fertilizers Market: Growth Factors

Less availability of cultivable land and need for improving crop yield to boost the global market trends

Growing need for optimizing productivity and yield through the help of traditional farming activities will embellish the growth of the global chemical fertilizers market. Humungous demand for sustainable farming activities at reduced cost has promulgated the demand for chemical fertilizers in the farming sector.

Surging population and limited availability of arable land have led to use of chemical fertilizers for enhancing crop yield, thereby spurring global market trends. Reportedly, chemical fertilizers are used for enhancing the natural productivity of young-of-year culture organisms that benefit the growth of crops. Apart from this, organic fertilizers in combination with chemical fertilizers are used in increasing the yield of rice bran and dried grains, and cottonseeds.

In addition to this, the large-scale use of ammonium sulphate, urea, and ammonium phosphate for providing nutrients to crops for their growth will steer the expansion of the chemical fertilizers market across the globe. Humungous demand for increasing production of cereals with a rise in the global population across the globe has generated a massive need for increasing crop yield, thereby steering the growth of the global market.

Chemical Fertilizers Market: Hindrances

Rise in the costs of raw materials used for manufacturing chemical fertilizers to hinder the global industry surge

High raw material costs and strict government laws pertaining to volatile compounds emission in the atmosphere will put brakes on the global chemical fertilizers industry surge. In addition to this, the rise in use of natural fertilizers and the growing demand for green products will hinder global chemical fertilizer industry expansion.

Chemical Fertilizers Market: Opportunities

Cost-effectiveness of the compounds to open new growth opportunities for the global market

Chemical fertilizers are cheaper in comparison to organic ones and this can open new growth opportunities for the global chemical fertilizers market. Moreover, they can be customized for fulfilling the needs of crop soil and thus making them perfect products for planting crops in soil. This will generate new growth avenues for the global market.  

Chemical Fertilizers Market: Challenges

Easy access to substitutes for the compound can prove to be the biggest challenge for industry growth across the globe

Rise in the use of bio-fertilizers along with growing concerns over the arability of soil due to the wide use of chemical fertilizers has posed a major challenge in the path of growth of the global chemical fertilizers industry. Moreover, the easy availability of product alternatives can prove to be the biggest threat to the growth of the global industry.

Chemical Fertilizers Market: Segmentation

The global chemical fertilizers market is sectored into macronutrients, application, product type, crop category, and region.       

In terms of macronutrients, the global chemical fertilizers market is divided into the potash fertilizers, nitrogen fertilizers, and phosphate fertilizers segments. Furthermore, the nitrogen fertilizers segment, which accounted for more than 50% of the global market share in 2022, is slated to retain its domination status even during 2023-2030.

The segmental surge in the next eight years can be owing to the massive use of large-scale use of nitrogen fertilizers for increasing crop yield in densely populated & emerging countries such as India and China. Moreover, these fertilizers are also exported by India and China to other Latin American and African countries to increase crop yield to feed the rising population of these countries. Furthermore, nitrogen fertilizers do not reduce the cultivability of the soil and hence are gaining popularity in the farming sector.

On the basis of the application, the global chemical fertilizers market is sectored into soil treatment, seed treatment, root dipping, and others. The soil treatment segment is anticipated to record the highest CAGR over the forecast timeline. The growth of the segment in the coming years can be due to its ability to purify as well as revitalize soil through the removal of contaminants as the soil is contaminated due to various chemicals & wastes such as oil, alkali, and other non-degradable substances.

Based on the product type, the global chemical fertilizers industry is sectored into DAP, complex fertilizers, Urea, SSP, DAP, and MOP.

In terms of crop category, the chemical fertilizers market across the globe is divided into vegetables, cereals, oilseeds, fruits, and others.

Recent Breakthroughs

• In December 2022, Deepak Fertilizers & Petrochemicals Corporation, a key Indian player manufacturing industrial & agricultural chemicals, fertilizers, and crop nutrients, declared that it has developed new soil nutrients to improve crop yield. The firm aims at reinforcing crop nutrient portfolio and the move will steer the growth of the chemical fertilizers industry in India.
• In the first quarter of 2023, IIT Roorkee, an educational institute of national importance based in India, introduced a center of excellence for research in chemical engineering and petrochemicals. The move will embellish the expansion of the chemical fertilizers market in India as well as the Asia-Pacific region.             
• In the first half of 2023, domestic production of Urea in India will increase with one of the five fertilizer plants going to be functional by October 2024. For the record, four of the fertilizer producing plants are already functional in India. The strategic move will boost the expansion of the chemical fertilizer business in India and will offer employment to many of the labor force and locals in the region.

Chemical Fertilizers Market: Report Scope

Chemical Fertilizers Market: Regional Insights

Asia-Pacific Chemical Fertilizers market to garner a major revenue share over 2023-2030

The Asia-Pacific, which accounted for 50% of the global chemical fertilizer market revenue share in 2022, is anticipated to dominate the regional market growth over the forecast timeline. The regional market surge over 2023-2030 can be due to escalating use of urea in agriculture activities in the countries such as India and China. Apart from this, the presence of key manufacturers in the countries such as China and India will proliferate the size of the regional market growth.

On the other hand, the chemical fertilizers industry in Latin America is predicted to record the fastest CAGR of 7.5% in the forthcoming years. The regional market expansion over the forecast timeline can be due to an increase in the need for crop yield to feed the rapidly surging population.

Chemical Fertilizers Market: Competitive Space

The chemical fertilizers market profiles key players such:

• Syngenta AG
• ARA International
• Uralkali
• Nutrien Ltd.
• The Mosaic Company
• K+S Aktiengesellschaft
• Haifa Group
• ICL Group Ltd.
• EuroChem Group
• OCP Group S.A.

The global chemical fertilizers market is segmented as follows:

By Macronutrients

• Nitrogen Fertilizers
• Potash Fertilizers
• Phosphate Fertilizers

By Application

• Seed Treatment
• Root Dipping
• Soil Treatment
• Others

By Product Type

• Complex Fertilizers
• MOP
• Urea
• DAP
• SSP

By Crop Category

• Cereals
• Fruits
• Oilseeds
• Vegetables
• Others

 By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa