Liquid fertilizer market

Market Size and Trends

The liquid fertilizer market is estimated to be valued at USD 22.17 Bn in 2024 and is expected to reach USD 33.16 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.  

The growing adoption of precision farming and environment-friendly fertilizers is supporting the increased usage of liquid fertilizers among farmers globally. The market is expected to witness significant growth over the forecast period. The rise in population and declining availability of cultivable land is increasing the demand for high crop yields, propelling the need for efficient nutrient delivery systems like liquid fertilizers. Furthermore, liquid fertilizers have better absorption rate and ensure uniform distribution of nutrients to plants, thereby improving crop quality and yield.

Rising Global Population

As the world's population continues to grow at a significant pace, the demand for food is expected to rise exponentially in the coming years. It is estimated that the global population will reach nearly 10 billion by 2050 which will require enormous amount of food production. With limited agricultural land available and degrading soil health in many regions, there is an urgent need to boost crop yields in a sustainable manner. Liquid fertilizers can play a vital role here as they help maximize the nutrient uptake by plants. Being soluble in water, liquid fertilizers are easily absorbed by plant roots and ensure that key macro and micronutrients reach different parts of the crop. This leads to higher productivity even when applied in smaller quantities. With agricultural outputs needing to increase substantially, liquid fertilizers are expected to gain more popularity among farmers globally as they seek to feed the swelling population.

Market Concentration and Competitive Landscape

Increasing Organic Farming Trend

In recent times, consumers have become more aware of the ill-effects of excessive use of chemical fertilizers on soil health and environment. There is a rising preference for organic and natural products grown through sustainable agricultural methods. In response, many farmers are gradually shifting towards organic cultivation practices. However, organic farming poses its own set of challenges as nutrients cannot be supplemented quickly to restore depleted soil fertility. Liquid organic fertilizers have emerged as an effective solution here as they contain essential nutrients in readily available forms. Products derived from natural sources like seaweed, humic acid, compost teas, etc. are solubilized and utilized efficiently by plants. This helps organic farmers stay competitive in terms of yields while maintaining the integrity of their farms. With the organic trend gaining momentum worldwide, liquid fertilizers developed from renewable sources can experience expanding demand from growers committed to ecological production.

Market Challenges: The higher costs of production and storage tanks

The liquid fertilizer market faces several challenges. Farmers may be hesitant to switch from traditional solid fertilizers, requiring education on the benefits of liquids. The higher costs of production and storage tanks compared to solids can also discourage adoption. Distribution presents logistical difficulties due to the physical nature of liquid products. Environmental regulations tightly control fertilizer runoff to prevent water pollution, increasing production expenses.

 Market Opportunities: Advantages of Precise Nutrient Application

The ability to precisely apply nutrients promotes higher yields for farmers. This targeted approach also reduces fertilizer use and lowers costs over time. As the agricultural industry faces pressure to sustainably intensify production, liquids provide a solution. Their flexibility allows formulations tailored for specific crops and soils. Manufacturers stand to benefit from expanded market share if these advantages reach more end users.

Insights, By Crop Type: Increased Feed Demand Drives the Cereals & Grains Segment

In terms of crop type, cereals & grains contributes 41.5% share of the market owing to its widespread use as a key ingredient in animal feed such as poultry, cattle, and aquafeed. Cereal crops like corn, wheat, and barley are planted on massive scales globally to meet the burgeoning demand for animal proteins. As population and incomes rise, consumption of meat, dairy and seafood has increased substantially. This amplified demand for feed grains in turn promotes higher usage of fertilizers to maximize crop yields from cereal farming. Liquid formulations are increasingly preferred over solid fertilizers for cereal crops since they allow for precise application of nutrients, higher absorption rates and more uniform distribution in large agricultural fields. With continuing urbanization and diet changes worldwide, demand for animal proteins will grow steadily, maintaining the need for huge volumes of cereals and feed grains to be produced each season. This sustained production requirement drives robust usage of liquid fertilizers to nourish cereal crops.

Insights, By Compounds: CAN Dominates due to Balanced Nutrition

In terms of compounds, Calcium Ammonium Nitrate (CAN) contributes 37.8% share of the market owing to its balanced nutritional profile. CAN contains nitrogen, calcium, and nitrates in readily available forms for plant uptake. The 28% nitrogen content in CAN makes it an appealing choice for boosting crop growth and productivity. In addition, it supplies important calcium which is instrumental in nutrient transport, cell structure, and enzyme activity within plants. CAN also improves soil structure and aeration due to its neutral pH levels. Its balanced nourishment from three essential elements allows farmers to maximize yields from a single fertilizer application. Unlike certain other compound formulations, CAN poses minimal risks of foliage burning even at high application rates. Its storage stability and low hygroscopic nature relative to urea also provide logistical and handling benefits. These versatile attributes have earned CAN widespread popularity amongst growers across a range of agricultural soils and climates.

Insights, By Type: Nitrogen Dominates due to Vital Role in Plant Physiology

 In terms of type, nitrogen contributes 41.6% share of the market owing to its pivotal role in plant physiology and development. Nitrogen is a fundamental component of crucial molecules like chlorophyll, proteins, nucleic acids, and enzymes that drive photosynthesis, metabolism, and overall growth in crops. Adequate nitrogen supply is essential for healthy leaf color and coverage, strong stalks or stems, robust tillering, and heavy seed or fruit production. Its importance stems from nitrogen being the most common limiting nutrient in soils globally as nitrogenous compounds volatize or leach more readily than other elements. Continuous nitrogen deficiency can severely curb a crop's genetic yield potential. For these reasons, farmers prioritize the application of nitrogen-based liquid fertilizers like UAN and CAN to resupply depleted soil nitrogen and maximize economic returns from their harvests. Nitrogen's indispensability distinguishes it as the preeminent fertilizer type for liquid formulations catering to a diversity of agricultural systems worldwide.

Regional Insights

North America has established itself as the dominant region in the global liquid fertilizer market with 39.9% of the market share. With a strong agricultural industry and vast cultivable land, liquid fertilizers have gained widespread acceptance among farmers in countries like the U.S. Leading manufacturers have set up production facilities across major farming states to ensure steady supply and meet local demand requirements. Farmers prefer liquid varieties due to the easy application process and higher nutrient absorption rates compared to traditional granular fertilizers. States like Iowa, Illinois, and Nebraska are some of the top consumers nationally.

The Asia Pacific region has been witnessing impeccable growth and is emerging as the fastest expanding market globally. China dominates regional consumption figures but other Southeast Asian countries like India and Indonesia are displaying elevated growth rates. Favorable government initiatives to boost farm outputs through initiatives like 'Green Revolution' in India have worked as a catalyst. Manufacturers from Japan, South Korea, and Australia have augmented local manufacturing to take advantage of untapped potential. Strong economic gains coupled with rising incomes are propelling the Asia Pacific market upward. Import levels remain modest since domestic manufacturing has picked up well. However, prices may edge higher than North America owing to higher freight costs and increased local manufacturing investments.

Market Report Scope

Key Developments

• In April 2023, world's first Nano DAP Liquid Fertilizer by IFFCO was introduced.
• In 2023, Vantage Ag launched a new liquid fertilizer technology.
• In 2023, ICL launched a water-soluble micronutrient and N-P-K Fertilizers in North America.
• Nano Urea was the first product in the series of nano fertilizers, launched in February 2021 by the Indian Farmers and Fertilizer Cooperative (IFFCO) as a breakthrough solution for agricultural needs.

*Definition: The liquid fertilizer market consists of plant nutrients that are supplied to agricultural crops and turf in a liquid form rather than dry powder or granular form. Liquid fertilizers are easy to apply through irrigation systems and spread uniformly over soil. They are quickly absorbed by crops and more readily available to plants compared to dry granular fertilizers. The liquid fertilizer market offers products that are designed to provide readily available and balanced nutrition to support healthy plant growth.

Market Segmentation

• Crop Type Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Cereals & Grains
  • Oilseed & Pulses
  • Fruits & Vegetables
  • Others (Nursery plants, etc.)
•  Compound Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Calcium Ammonium Nitrate (CAN)
  • Urea-Ammonium Nitrate (UAN)
  • Potassium Nitrate
  • Phosphorus Pentoxide (P 0)
  • Others (Boron, etc.)
•  Type Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Nitrogen
  • Phosphorus
  • Potash
  • Micronutrients
•  Application Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Soil
  • Foliar
  • Fertigation
  • Agricultural fields
  • Hydroponics
  • Others (Starter solutions, etc.)
• Regional Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Yara International ASA
  • Nutrien Ltd
  • Israel Chemical Ltd.
  • Haifa Chemical Ltd
  • GrupaAzoty
  • The Mosaic Company
  • SociedadQuímica y Minera de Chile S.A.
  • K+S Aktiengesellschaft
  • Plant Food Company Inc.
  • EuroChem Group
  • Annadata Organic
  • AgroLiquid
  • Agrobio Chemicals
  • Van Iperen International
  • BMS Micro-Nutrients NV
  • ICL Fertilizers
  • IFFCO
  • Nortox
  • Safsulfur
  • SQM