Specialty Fertilizers Market (By Type: Controlled Release Fertilizers, Slow-release Fertilizers, Fortified Fertilizers, Stabilized Fertilizer, Others; By Form: Dry, Liquid; By Application Method: Foliar, Fertigation, Soil; By Crop Type: Cereals & grains, Oilseeds & Pulses, Fruits & Vegetables, Turf & Ornamentals, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global specialty fertilizers market size was exhibited at USD 24.9 billion in 2022 and is projected to hit around USD 48.89 billion by 2032, growing at a CAGR of 6.98% during the forecast period 2023 to 2032.

Key Pointers:

• North America generated the maximum revenue share in the global market.
• By Type, the controlled-release fertilizers segment is expected to record the largest market share between 2023 and 2032.
• By Crop Type, the cereals and grains segment contributed the biggest revenue share in 2022.

The high nutrient use efficiency and precise & localized application associated with the specialty fertilizers help reduce growers’ dependency on commercial fertilizer usage and simultaneously achieve higher quality crops and yields with a lower environmental impact. This trend is expected to drive the market significantly in value sales during the forecast period.

Specialty Fertilizers Market Report Scope

Market Dynamics

Drivers: Favorable government policies and regulations

Government policies and regulations have always been one of the key factors propelling and promoting the production of a particular commodity or system.

Labeling and manufacturing guidelines for specialty fertilizers, which serve as a mark of a superior standard or trust, have been mandatorily adopted and regulated in many nations, especially the US and European countries. Domestic fertilizer regulatory agencies promote these products under government policy frameworks to minimize the environmental hazards caused by leaching and nutrient loss. For instance, China’s guiding catalog of Industrial Infrastructure Adjustment (2011 edition) classified CRFs as encouraging items, indicating the development of CRFs to speed up during China’s 13th five-year plan from 2016–2020.

The five-year plan indicates reduced use of pesticides and fertilizers and the introduction of water, food control, and safety management. During the last 15 years, the share of CRF has witnessed a growth rate of 6% in the country. China has included water-soluble micronutrients under record filing, which is one way to register fertilizers, as it is easier and does not require explicit administrative approval. The European fertilizer industry has made huge improvements in the energy efficiency of its ammonia production through European Green Deal. In the future, ammonia will be produced with zero or near-zero carbon footprint. The government of India has imposed no restrictions on the import of MOP. To trade MOP as fertilizers in the country, the importer must obtain a license/registration under FCO from the states/UTs where the importer intends to sell the same. They also provide concession—to claim it under the Concession Scheme, the importer must apply to the Department of Fertilizers to be listed as an importer under the guidelines on the Concession Scheme issued on 5.8.2002. Such government policies and well-defined regulations act as a boosting factor for the growth of this market at the global level.

Restraints: Improper management of controlled-release fertilizers

The application costs of CRFs are comparatively low due to the fewer labor requirements and reduced application cycles. However, training and management of CRFs are prerequisites for adopting the technology. Improper application methods and storage techniques can deteriorate the results expected from these fertilizers. Furthermore, there is a lack of awareness about the brands in the market due to the unorganized market presence. Despite considerable efforts by agronomists, most farmers do not prefer CRFs.

The mixing rate of fertilizers for fertigation or soil application is of prime importance to ensure proper diffusion of the nutrients into the soil and avoid nutrient leaching. On the contrary, managing conventional fertilizers requires minimal conditions; hence, farmers show a high preference for using conventional fertilizers. Appropriate training/knowledge to the farmers on controlled-release technology and management of these fertilizers must be provided to fully utilize their benefits to increase crop productivity. Regulated labeling of CRFs, such as in the US, emphasizing the directions of use and hazards associated (serious soil degradation, nitrogen leaching, soil compaction, reduction in soil organic matter, and loss of soil carbon) with improper management, must be encouraged across the globe.

The Asia Pacific is one of the leading markets for CRFs due to its large agricultural area and the rising awareness about sustainable cultivation to meet the growing food demand. Hence, government awareness campaigns in developing countries could encourage more farmers to adopt this technology.

Opportunities: Crop-specific nutrient management through precision farming

Precision agriculture focuses on growing crops efficiently in a site-specific manner with specialized application equipment, which can help retain water and nutrients in the root zone. The work scheme of precision agriculture can be summarized in three stages:

• Geo-referenced remote area information using certain sensors
• Analysis of data obtained through an appropriate system of information processing
• Adjustment of the amount applied depending on the needs of each location

Precision farming can improve production and nutrient use efficiency, ensuring that nutrients do not leach from or accumulate in excessive concentrations in parts of the field. Precision farming has been gaining importance in developed countries for efficient usage of fertigation. The release patterns and coating technology of CRFs can be fed into the information system for an accurate analysis of the nutrient requirements of crops, the application rate, and the mixing ratio required within the fertigation system. Precision agriculture involves a growing range of digital technologies to make farming more efficient while increasing crop yields and quality.

Various precision agriculture tools support the 4Rs by helping farmers monitor and meet crops’ nutrient needs, such as soil sensors, variable rate prescriptions, yield maps, decision support software, soil mapping, multispectral imaging, auto-guidance systems, and leaf color charts. Precision farming also combines data analytics, AI, and sensor systems to determine how much fertilizer and water plants need at any given time and by deploying autonomous vehicles to deliver nutrients in prescribed amounts and locations. Installing precision systems is costly, so only large-scale operations tend to have them. In contrast, precision farming using CRFs is a sustainable approach. Advanced CRFs are inexpensive and could be a front-line technology to help farmers sustainably increase crop production.

Challenges: Lack of domestic infrastructure for manufacturing specialty fertilizers in India

India is agriculture-dependent, with the agricultural sector meeting most of the total demand. Agriculture is the most important end-user sector for fertilizers, and demand is increasing rapidly. Due to limited domestic availability, India imports fertilizers such as muriate of potash (MOP) and other specialty fertilizers.

According to Gujarat State Fertilizers & Chemicals Limited, India consumes about 1.25 lakh tons of calcium nitrate, a water-soluble fertilizer, worth INR 225 crore per year, which is completely imported; about 76% comes from China. The import of water-soluble fertilizers is higher as compared to domestic production, with more than 80% potassium nitrate (13-0-45), 95% potassium sulfate (0-0-50), and mono-ammonium phosphate (12-61-0) being imported. Only 16% of the total demand for specialty fertilizers is met through domestic production because of a lack of technologies and high production costs.

However, India’s Rashtriya Chemicals and Fertilizers Ltd, National Fertilizers Ltd, Madras Fertilizers Ltd, Fertilisers and Chemicals Travancore, and India Potash Ltd. are expected to sign a three-year deal for potash, and specialty fertilizers with Russian companies, including Phosagro and Uralkali in 2022, to meet the demand for fertilizers in the country, which may help alleviate the effects of this challenge.

UAN Provides Prolonged Nutrition to the Plants and have High Application Efficiency

UAN is one of the predominant nitrogen fertilizer sources used on pastures in the US. It provides prolonged nutrition in plants with nitrogen and has high application efficiency in all climatic zones, including dry climates. UAN application is widely used in liquid fertilizer compared to solid and granular types. The Asia Pacific holds the largest share of the specialty fertilizers market for phosphorus, owing to the high production of cereals & grains and fruits & vegetables in China, India, and Japan.

UAN is an excellent irrigation fertilizer for cereal production and irrigated plant cultivation. The application of UAN could significantly increase the yield, promote the absorption and utilization of nitrogen, and reduce the residual amount of soil nitrogen. As a liquid nitrogen fertilizer, UAN is simple to combine with other nutrients or chemicals and is suitable for sprinkler fertigation. It can be mixed with herbicides, pesticides, and other nutrients, allowing farmers to save labor costs by applying multiple materials at once rather than in separate applications.

Micronutrients are Essential for Plant Growth, Which Drives Demand For Micronutrient Fertilizers

Micronutrients consist of a fine blend of mineral elements comprising zinc (Zn), copper (Cu), manganese (Mn), iron (Fe), boron (B), and molybdenum (Mo). Mineral elements nurture horticultural crops, cereals, pulses, oilseeds, spices, and plantations. Despite their low demand, critical plant functions are hindered if micronutrients are unavailable, which results in plant deformations, lower yield, and diminished growth. Micronutrients are crucial for plant growth and play an important role in balancing crop nutrition. Micronutrient deficiency is easily identified from visual symptoms on crops and by testing soil and plant tissues. To understand these visual symptoms, it is necessary to know the role each micronutrient plays in plant growth and development.

Micronutrients are important in crop nutrition because of the increased demand for higher-yielding crops and intensive cropping. Plants require micronutrients in relatively trace amounts, which play an important role in plant metabolism, chlorophyll synthesis, production of carbohydrates, and fruit and seed development. Apart from the direct benefits of increased crop production, micronutrients increase the efficiency of macronutrient fertilizers. The most common method of micronutrient application for crops is soil application.

The South America is Growing With the Fastest CAGR During the Forecasted Period

The South American market includes Brazil, Argentina, Chile, and the Rest of South America. According to USDA, Brazil is one of the few nations in the world with the ability to boost agricultural yields and area. The rising adoption of agrochemicals, advancements in farming techniques in Brazil & Argentina, and extensive distribution channels of global agrochemical players are projected to drive market growth.

Brazil and Argentina occupied the major market share for specialty fertilizers in South America in 2021. However, according to FAO, these countries also depend on other nations for fertilizers since domestic production could not meet the rising demand in 2020. The climatic conditions of these countries help in the cultivation of diverse crops. Soybean, sugarcane, corn, rice, fruits, and vegetables are the major crops cultivated in this region.

Other growth drivers include the use of new techniques and technologies to bring unusable and barren lands into productivity. Crop production in South America has risen dramatically in recent decades and is expected to rise further as growers expand the planted area and push for higher yields. This will support specialty fertilizer consumption.

Some of the prominent players in the Specialty Fertilizers Market include:

• Agrium Inc.
• Coromandel International Limited
• EuroChem Group
• Haifa Chemicals Limited
• ICL Fertilizers 
• Israel Chemical Limited
• Kugler Company
• Mosaic
• Nutrien Ltd.
• OCP Group 
• Sinochem Group
• Sociedad Quimica Y Minera S.A
• The Mosaic Company
• The Potash Corporation of Saskatchewan Inc.
• Vardhaman Fertilizers and Seeds Pvt Ltd.
• Verdesian Life Sciences, Sungro Seeds Ltd.
• Yara International ASA 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Specialty Fertilizers market.

By Type

• Controlled Release Fertilizers (CRFs)
• Slow-release Fertilizers (SRFs)
• Fortified Fertilizers
• Stabilized Fertilizer
• Others

By Form

• Dry
• Liquid

By Application Method

• Foliar
• Fertigation
• Soil

By Crop Type

• Cereals & grains
  • Corn
  • Wheat
  • Rice
  • Others (Barley, Sorghum, and Millets)
• Oilseeds & Pulses
  • Soybean
  • Canola
  • Others (Peas, Cotton, and Legumes)
• Fruits & Vegetables
  • Root & Tubers
  • Citrus Fruits
  • Brassicas
  • Others (Berries, Melons, Pome Fruits, and Stone Fruits)
• Turf & Ornamentals
• Others 

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)