Global Water-Soluble Fertilizers Market - 2021-2028
A water-soluble fertilizer is a multi-compound fertilizer that dissolves in water and is therefore more easily absorbed by plants. When compared to standard chemical fertilizers, its uptake and use are comparatively high. This fertilizer can readily deliver a fixed amount of nutrient to the plants. The fertilizer's technology is ideal for modern-day irrigation systems. Furthermore, it protects groundwater from contamination. Water-soluble fertilizers are distinguished from conventional chemical fertilizers by these technological advantages. It not only saves water and fertilizer, but it also reduces labor costs as it is ideally suited for advanced irrigation technology. Furthermore, compared to chemical fertilizers, water-soluble fertilizers have less contaminants, have lower conductivity, and fertilizer concentration is easier to adjust. It's also a chemical that is safe for young seedlings. The demand for efficient fertilizers that can greatly increase nutrient uptake inside crops while also providing nutrients in a controlled manner is driving the growth of the water-soluble fertilizers market. The global water-soluble fertilizers market valued USD XX million in 2020 and is forecast to reach USD XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028)
Increasing horticulture activities to drive the market growth
Water-soluble fertilizers market expansion will be supported by a rapid increase in worldwide horticulture crop production despite rising crop prices and significant labor costs. Horticulture will benefit from the shift in attention toward dietary food and increased demand for fruits and vegetables. Water-soluble fertilizer's enable farmers to grow more food on smaller plots of land while still providing a high return on investment. For example, 192 kg of nitrogen per hectare can produce roughly 9.3 tons of grains, compared to 2.1 tons of grains without the use of nitrogenous water-soluble fertilizers. This provides farmers with an 800 percent return on investment, resulting in increased profits. To fulfil the increased food demand, this will encourage the use of water-soluble fertilizers. Water scarcity is increasing around the world, particularly in the Middle East and Africa, and advances in irrigation systems and spray application equipment will present major potential for water-soluble fertilizer market players. As a result, rising fertigation need will be supported by expanding requirements to develop agricultural in water-stressed regions.
However, the high cost of specialized fertilizers such as water-soluble fertilizers and controlled fertilizers may act as a major restraint on market expansion. These fertilizer variations' low-cost effectiveness may limit their application in countries with low per capita income. Stakeholders in the fertilizer industry are investing in research and development to develop more efficient fertilizers. The companies are also concentrating on manufacturing methods in order to improve production efficiency and make these products more affordable to crop producers, particularly those with low profit margins.
Growing nutrient demand for plant growth to escalate nitrogen consumption
Because of its widespread use in oilseed and grain plantations, the nitrogenous segment is leading the industry's expansion. Plants require nitrogen in order to create amino acids, which are the building blocks for protein synthesis. As a result, its availability to plants is critical for their growth, vigour, color, and yield. Water soluble micronutrients will grow more quickly than other items due to a scarcity of arable land. Furthermore, in recent years, increased use of NPK fertilizers with reduced levels of micronutrient contaminants, as well as high-yield crop demand, have depleted micronutrients in the soil. As a result, the market for water-soluble fertilizers will be driven by the increased demand for micronutrients.
Dry water-soluble fertilizers find wide usage in agriculture, horticulture, and gardening activities. The segment accounts for over XX% share in the water-soluble fertilizers market. This is due to the fact that it is easy to store and has a long shelf life, which drives up demand for crops throughout the year. Water-soluble fertilizers in liquid form will see substantial expansion due to rising demand in water-stressed areas. These fertilizers aid in consistent application and can be used as a starter and in-season fertilizer.
Asia Pacific is expected to dominate the global water-soluble fertilizers market in the year 2020
In agriculture-oriented Asian countries, degraded arable land and restricted water supplies are driving demand for highly effective fertilizers like WSFs. Multinational agricultural conglomerates such as ICL, Nutrien, Yara, and others have increased their investment in Asia-Pacific, as the region is growing as a viable market for advanced fertilizers with great development potential. Growth in the production of high-value crops in Asia and Southeast Asia is expected to increase water-soluble fertilizer demand across the region as urbanization, economic growth, and trade liberalization rise. Subsidizing water-soluble fertilizers in developing markets is likely to boost their use among farmers quickly. For example, to improve fertilizer use efficiency and agricultural output in India, the government of India granted numerous facilities to fertilizer companies to introduce innovatively customized and specialty fertilizer products.
Market consolidation in the specialty fertilizer business has increased in recent years, which has benefited the market. One of the best examples is Nutrien, which was formed in 2018 by the combination of Potash Corporation and Agrium. Companies operating in the global market, such as SQM and ICL, are focusing on expanding their production capacity and market presence by acquiring and collaborating with other companies. Market participants in the WSF market have recognized the future growth potential of water-soluble fertilizer and are working very hard to innovate and launch new products in order to maintain their dominance. Companies are ramping up production of various WSF grades and expanding their global reach, which is helping to boost the popularity and demand for these fertilizers in countries where agriculture is the main source of income. For example, in January 2020, the Gujarat Agro Industries Corporation (GAIC) will offer a water-soluble fertilizer product under the brand name 'Agro.' Customized grades of stage-specific and crop-specific fertilizers are included in the brand. Van Iperen International's subsidiary strengthened its foothold in the US market in December 2019. Milliken is the only firm with which the company works exclusively to provide a wide range of specialty fertilizers.
COVID-19 Impact: Negative impact on the water-soluble fertilizers market
The pandemic's emergence has had a detrimental influence on the worldwide market due to different socio-economic developments that have occurred as a result of the pandemic. Lockdowns have caused a halt in the manufacturing of specialty fertilizers in several key specialty fertilizer producing regions, resulting in a decrease in overall production. The supply chain for these fertilizers has been interrupted by global trade restrictions imposed by several countries; however, as limits are eased, conditions are likely to improve in the following months. Due to the slowing economy in developing economies, demand for water-soluble fertilizers may continue sluggish in the coming months. As a result, if demand for premium agriculture products drops, producers will spend less on expensive agricultural inputs. However, demand for WSFs is expected to grow significantly in the coming years as a result of an expected increase in demand for high-quality fertilizer inputs to address the issue of food security. Because the pandemic has prompted people to adopt a better lifestyle and strengthen their immune systems, demand for nutrient-dense foods such as fruits, vegetables, and nuts is expected to surge. Specialty fertilizers will benefit from an increase in demand for premium agricultural products in the future years.
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