MARKET OVERVIEW- GLOBAL NPK FERTILIZER MARKET
Nitrogen, phosphorus, and potassium (NPK) are vital nutrients in commercial fertilizers. The major factor that drives the market for NPK fertilizers is the elimination of nutritional deficiency in crops and other plants that can be caused due to intensive cropping. Increased consumption of vegetables and fruits, along with the rising productivity of crop-based products, is anticipated to drive NPK fertilizers’ growth in the global market. Additionally, an increase in the advancement of new technology and new ideas in agricultural farming is one of the key factors for the growth of the NPK Fertilizers Market. Further, increasing demand among consumers for quality products, fruits, and vegetables with minimum use of fertilizers is a significant factor propelling the demand for nitrogen, phosphorus, and potassium (NPK) fertilizers. Furthermore, growing agricultural sector in developing countries is expected to act as an opportunity for the market.
MARKET DRIVERS
Increased consumption of vegetables and fruits, along with the rising productivity of crop-based products, is anticipated to drive NPK fertilizers’ growth in the global market. Adoption of the latest farming technologies in line with enriched crop productiveness and the widespread usage of NPK fertilizers are factors augmenting the global market stance. Further, the demand for NPK fertilizer is also higher in the plant and reduce the application cost and improved efficiency of the fertilizers are attracting the farmers to use NPK fertilizer. Also, the increase in the demand for food and food products because of the prompt boost in the population is a key factor driving the growth of the NPK Fertilizer Market.
NPK fertilizers are in high demand in the market as they improve soil nutrients, boost plant water content, and improve the overall health of plants. Water-soluble NPK fertilizers enjoy higher demand in the market due to their usage in drip irrigation and foliar applications. Thus, the balanced and adequate utilization of NPK fertilizers can increase crop yield and support the surge in production. Furthermore, rising awareness regarding quality food products and disease outlook in livestock has amplified the demand for NPK fertilizer products in the international market.
MARKET OPPORTUNITIES
Growing agricultural sector in developing countries is acts as opportunity for the market. As in developing countries agriculture is regarded as one of the major sources of livelihood, employment, and income, especially for rural economies. The structure of agricultural production in developing regions such as India, Africa, China, and others has radically changed over the last few decades due to the increasing industrialization of agriculture, incorporation of new technologies, and various agricultural initiatives taken by governments. Moreover, increasing adoption of precision farming, ease of use and application, and improved crop protection by NPK fertilizers are major factors that create opportunities for the market.
MARKET RESTRAINTS
The less awareness of the importance of using Nitrogen, phosphorus, and potassium in the crop is the major factor restraint the NPK fertilizer Market growth. Stringent government regulations by various government bodies is expected to acts as a hurdler for the market growth over the forecast period. Furthermore, raising concern for health ultimately affects chemical fertilizer market growth. So, people are strictly avoiding chemical fertilizers used in food and food products is the major factor restraining the market growth.
MARKET GROWTH CHALLENGES
The fertilizer industry faces some serious challenges in the form of availability and fluctuating priced of raw materials required to produce fertilizers. These raw materials include ammonia, nitrogen, phosphate, potash, and others. Since agricultural production mainly depends on the cost and quality of fertilizers, the high prices associated with fertilizers and manure can consequently affect the prices of plant-based foods as well. Furthermore, Government are lowering subsidies for NPK fertilizer owing to increase in the cost of production is major challenge for the growth of NPK fertilizer market growth.
CUMULATIVE GROWTH ANALYSIS
The report provides in-depth analysis of global NPK Fertilizer market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. With increasing demand for various NPK Fertilizer in various applications has led the increasing demand for market and is expected to witness the growth at a CAGR at specific CAGR from 2021-2028.
NPK FERTILIZER MARKET SEGMENTAL OVERVIEW
The global NPK Fertilizer market comprises of different market segment like product type, form, application, livestock and geography.
NPK FERTILIZER MARKET BY TYPE
Types of NPK fertilizer studied in the global NPK fertilizer market are
- Phosphorus
- Nitrogen
- Potassium
- Others secondary nutrients and micronutrients
Phosphorus segment commanded largest share in the NPK fertilizer market. Phosphorus act as an important in the cell division and new tissue development process. Adding phosphorus into soil help to promote root growth and protect plant from winter hardiness or shocks also help to stimulate tillering and provide quick maturity.
NPK FERTILIZER MARKET BY FORM
The major forms of NPK fertilizers includes
- Powder
- Liquid
- Others (crystal, Pills and pellets)
The powder form NPK fertilizer segment commanded the largest share in the NPK fertilizer market. Powdered NPK fertilizer are most cost-effective as they eliminate the expenses of shipping and handling of water. They also reduce the spoilage of liquid based products also other type of NPK fertilizers form have a relatively short lifespan or temperature tolerance. Moreover, the powder form NPK fertilizer have a long shelf life compared to other NPK fertilizer form and it is easy to apply and transport. These all factors are driving the growth of Powder from NPK fertilizer demand.
NPK FERTILIZER MARKET BY APPLICATION
The applications of NPK fertilizer are following
- Dairy products
- Meat and meat products
- Bakery products
- Beverage
The dairy products segment holds the largest share in the NPK fertilizer market. NPK fertilizer is an essential material to produce the milk. NPK are used to crop which is grown for feed also mixing liquid NPK with other liquid feed to provide essential nutrients to the crops. Additionally, increased demand for processed and packed food around the world is a major factor driving growth for NPK fertilizer demand in dairy product segment.
NPK FERTILIZER MARKET BY LIVESTOCK
On the basis of livestock, the NPK fertilizer market is segmented into
- Ruminants
- swine, poultry
- others (pets, equine and aquatic animals)
The ruminants segment commanded the largest share in the NPK fertilizer market. Nitrogen is an essential nutrient for the productivity of ruminants. Nitrogen is also an important environmental pollutant and also goof for respiratory problems. Nutrients like phosphorus play vital role in building bones and teeth also it increases feed intake. Phosphorus is also used for metabolizing fat, carbohydrates and protein.
NPK FERTILIZER MARKET BY GEOGRAPHY
The global NPK fertilizer market is studied for the following region
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
The Asia-Pacific region segment commanded the largest share in the NPK fertilizer market. Rising consumer income and changing food consumption and rising urbanization are the major factor driving the growth of NPK in the Asia-Pacific region. Additionally, increased demand for processed and packed food in this region is a major factor driving growth for NPK fertilizer demand in the Asia-Pacific region. The growth of the NPK fertilizers demand for food products in Asian market countries like India, China and Japan observed as they are interested in adopting new technology.
COVID-19 IMPACT ANALYSIS ON GLOBAL NPK FERTILIZER MARKET
COVID-19 has various impact in different countries depending on their cultural norms, mitigation efforts, and health infrastructure. The economies in low and middle-income countries is affected negatively due to loss of income, the shutdown of business, human and goods movement restrictions imposed by governments, de-globalization and breakdown of markets because of both demand shocks and supply constrain. The outbreak of COVID in the NPK Fertilizers Market caused distribution since it spread was across the globe. The COVID-19 outbreak will have negative impact on the NPK fertilizers market.
COVID-19 impacted the various sector and industries. At the initial stages of the pandemic, the world experienced, ‘supply shocks’. The shutdown of economic activities affected all the agriculture sector. Due to transportation barriers, NPK fertilizer market demand is reduced. Also, the businesses observed major impacts on their international market as Government has shut down national and international import and export activities to stop coronavirus spread. In 2020, due to the disturbance in logistics and transportation, a huge slowdown in sales of agriculture crop protection chemicals was observed.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of NPK Fertilizer market is majorly focused on expanding the global growth of NPK Fertilizer with new product innovation, business expansion, increasing presence of range of manufacturer operating in NPK Fertilizer has led the growing demand for the market. Besides, the market offers range of products in different application to fulfill the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- Borealis AG
- Akzonobel
- Yara International ASA
- The Mosaic Company
- Israel Chemicals Ltd.
- The Potash Corporation of Saskatchewan Inc. (Part of Nutrien)
- Eurochem
- K+S Aktiengesellschaft
- Alltech
- Skw Stickstoffwerke Piesteritz Gmbh
- Aditya Birla Chemicals
- FEECO International, Inc
- Helena Agri-Enterprises, LLC
- AgroLiquid
- Coromandel International Limited
- Adventz Group
- DFPCL
- HELM AG
RECENT DEVELOPMENT:
November 2021: Coromandel International Ltd. Has announced the establishment of its new sulfuric acid plant in Vishakhapatnam, India.
August 2021: Helena Agri-Enterprises has signed a distribution agreement with Vive Crop.
April 2021: Acron Group has completed the upgrade of its unit at the Veliky Novgorod site, and increased its capacity from 600 to 2,050 tons per day.
