Fertilizer Additives Market Size, Global Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Fertilizer Additives Market


The global fertilizer additives market size was estimated at USD 3.25 billion in 2018 and is expected to grow at a CAGR of 3.1% over the forecast period. The robust growth of fertilizer industry along with rising population & decreasing per capita arable land is expected to drive the demand.

The ability of the product to prevent loss of key nutrients such as phosphorous, sulfur, potassium, and nitrogen is expected to augment the growth over the forecast period. Moreover, it is used during transportation and storage of fertilizers to inhibit the caking and corrosion. It is also used to prevent the moisture and lump formation in fertilizers, which are generally caused by the humid climatic condition.

U.S. is one of the major markets within North America. The country has witnessed a revival in the agricultural sector which has led to the growing demand. The product is most commonly used as anti-caking agent in the U.S. due to variation in storage temperatures.

The nutrition level of fertilizers is enhanced by the utilization of additives as they help in reducing nitrogen, potassium, sulfur, and phosphorous ion losses caused due to immobilization, denitrification, leaching, and volatilization. Among all additives, nitrogen based products are considered highly important as nitrogen is a very crucial component for the growth of a plant.

They are mixed with readily available or water-soluble fertilizers which enhances the ability of nitrogen ions to remain in soil for a longer duration of time. These are added shortly before adding the fertilizer to the soil or during its manufacturing process.

The demand for fertilizer additives depend significantly on the consumption of fertilizers in agrochemical market. The future growth of fertilizer additives, both from a volumetric perspective as well as a value-based standpoint, is highly dependent on harmonizing agricultural standards across the globe and the indoctrination of novel farming practices among farmers, especially in the economically backward regions of Africa, India, and Latin America. Going by empirical data on agricultural output, it is, highly evident that the rise in food demand is expected to drive the production of food, which, in turn, is likely to generate a demand for fertilizer additives across the industry.

Function Insights of Fertilizer Additives Market

Anti-caking, anti-dusting, corrosion inhibitors, and anti-coating are some of the major functions of the product. The anti-caking function dominated the fertilizer additives market in 2018 as it is observed to be particularly important during monsoon. This is due to the fact that flakes are formed when they are stored during monsoon season. Safe storage and the transportation of fertilizers is possible by using additives. .

Anti-dusting was considered as the second most important function of the product in 2018. Anti-dusting is of utmost importance during the transportation and storage of fertilizers where there is a possibility of them getting exposed to dust.

Hydrophobic agents are also known as water repellants. They do not let moisture in the atmosphere affect the quality of fertilizers. Moisture is said to reduce the content of essential nutrients such as nitrogen, phosphorus, and potassium from fertilizers.

End-Product Insight

End-product segment was dominated by urea in 2018. Urea is readily available and can be easily synthesized, making it the most commonly used nitrogenous fertilizer. Urea market is expected to witness growing demand from emerging countries such as India and Brazil. It is characterized by high nitrogen content, which has made it a popular option among farmers. Besides, it is easily available in the market and extensively used by farmers, particularly in the emerging Asia Pacific region.

Ammonium nitrate is one of the major sources of nitrogen because it contains both nitrate and ammonia. It has a high proportion of nutritional content and is cost effective as compared to other nitrogenous product, which has led to its increased popularity among farmers. It is the second most commonly used nitrogenous product after urea. The popularity of ammonium nitrate has grown significantly in emerging economies of Asia Pacific and Latin America, which are considered to be price sensitive regions. Growing demand for ammonium nitrate can be attributed to its low price and high nitrogen & ammonium content.

Ammonium phosphate has a high content of phosphorus, which is one of the macronutrients essential in fertilizers. However, it is known to take up moisture, both in the field as well as in storage. The hydrophobic properties of fertilizers are used to avoid these occurrences. Based on application, there are two main grades of ammonium phosphate fertilizers available in the market, namely ammonium polyphosphates (APP) and diammonium phosphate (DAP).

Regional Insights of Fertilizer Additives Market

The Asia Pacific market reflects the highest CAGR of 3.3%, in terms of revenue, from 2019 to 2025. The robust growth of agriculture sector in emerging economies such as China and India are projected to boost the demand for additives over the forecast period. Agriculture is a primary sector and is a major factor in determining the GDP of the economies in this region such as India, China, Bangladesh and, Sri Lanka.

North America is projected to grow at the second highest CAGR in the forecasted year. The fertilizer additives market in North America is dominated by the U.S. Urea and ammonium nitrate were the most popular fertilizers in this region in 2018. Growing fertilizer industry coupled with crops nutrient management planning has resulted in the growing demand of additives in North America.

In Europe, abundant land availability and suitable weather conditions have facilitated the production of multiple crops. European Commission have set various regulations on manufacturing and use of the product. For instance, it is mandatory for the additive manufacturers to take approval of the active ingredients from the commission before launching a product.

Fertilizer Additives Market Share Insight

Ongoing research and development in the field of fertilizers has made the market highly consolidated. Leading participants such as KAO Corporation, Novochem Group, Clariant, Solvay and Filtra Catalysts & Chemicals Ltd are investing in research & development to improve their product offering and acquire a large market share.
The other players such as Forbon Technology, ChemSol LLC, Michelman, Tolsa Group, and Amit Trading Ltd are also trying to expand their presence in the global market by engaging in mergers & acquisitions, collaboration & joint venture and new product development.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Fertilizer Additives Market Research Report

This report forecasts revenue growth at a regional & country level and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the fertilizer additives market report on the basis of function, end-product and country:

Function Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Corrosion Inhibitors
  
Hydrophobic Agents
  
Anti-dusting Agents
  
Anti-caking Agent
  
Slow Release Coatings
  
Urea
  
Ammonium Nitrate
  
Ammonium Phosphate
  
Others
  
Others

End-product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Urea
  
Ammonium Nitrate
  
Ammonium Phosphate
  
Ammonium Sulphate
  
Others