The global water-soluble fertilizers market size is projected to reach USD 23.09 billion by 2026, exhibiting a CAGR of 6.28% during the forecast period. Growing need to improve accessibility to nutritious food across the globe is expected to be the key factor driving this market in the foreseeable future. Food security is one of the greatest challenges faced by the world today, underpinned by insufficient agricultural productivity and a steadily rising world population.
The World Bank estimates that the number of people in the world will reach 9.7 billion by 2050 and agriculture will play a central role in feeding this population. Producing sufficient food will require the utilization of modern agricultural technologies and inputs such as water-soluble fertilizers. These fertilizers have proven benefits in terms of raising agricultural productivity and are, therefore, expected to experience surging demand. Widespread adoption of WSFs will, thus, be one of the top water-soluble fertilizers market trends in the forthcoming decade.
Assured Benefits of WSFs to Brighten Sales Prospects
Water-soluble fertilizers provide an optimal solution to increasing agricultural yield owing to the host of advantages offered by them. For instance, WSFs are extremely convenient to use as they are available premixed with salts and can be simply sprayed with a hose on the plants. Being water-soluble, these fertilizers are the ideal solution for feeding the necessary amounts of micro and macro nutrients to growing crops. This also makes them cost-effective and eliminates the additional cost of buying in bulk, a major hindrance with traditional fertilizers. Furthermore, the Tamil Nadu Agricultural University (TNAU) states that the fertigation process supplies water and nutrients near the active root zone which increases the absorption by plants. According to the TNAU, fertigation can increase crop yield by 25-50 percent. These advantages can, therefore, positively impact the water-soluble fertilizers industry during the forecast period.
Entry of Major WSF Manufacturers to Propel the Market in Europe
Europe, having generated a revenue of USD 5.12 billion in 2018, is anticipated to dominate the water-soluble fertilizers market share owing to the penetration of global leaders in the WSF industry in the region. Their entry into Europe is in response to the growing need to transform agricultural practices in the region to address the issue of climate change. Moreover, countries such as France and Spain are actively adopting high-end inputs to boost their agricultural productivity.
Asia-Pacific is predicted to grow at the fastest CAGR of 7.24% on account of the rapid population growth and steady degradation of arable land in the agriculture-dependent economies of the region. Rising presence of water-soluble fertilizers manufacturers in China and increasing demand for high-value crops in Southeast Asia will further accelerate the WSF market revenue in the region.
Acquisitions to Aid Large Companies Expand Their Global Footprint
The WSF market analysis shows that major players in this market are attempting to expand their businesses in other countries by acquiring local companies. Many other players are innovating on the lines of sustainability to develop novel solutions that are both lucrative and eco-friendly.
Key Industry Developments:
- January 2020: Canadian fertilizer major, Nutrien Ltd, entered into a definitive agreement with a top agriculture retailer in Brazil with 30 years of experience, Agrosema Comercial Agricola Ltda. Under the agreement, Nutrien will buy 100 percent equity of Agrosema, which will help the company establish its presence in the burgeoning agriculture sector of Brazil.
- August 2019: Yara International, the Norwegian chemical manufacturer, collaborated with Nel ASA to produce hydrogen through renewables which the company intends to use to manufacture fertilizers and make green ammonia. The companies aim to achieve carbon neutrality by 2050 through such measures.
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