Market Research Report
Global Controlled Release Fertilizers Market - 2021-2028
|Global Controlled Release Fertilizers Market - 2021-2028|
Published: July 28, 2021
Content info: 180 Pages
Delivery time: 2 business days
Controlled release fertilizer is a specialty fertilizer that enables gradual supply of nutrients to the plant in adequate dosages. This has evolved as the most reliable mode of providing nutrients in both food and cash crops owing to its efficacy in meeting the adequate plant requirements. This is accomplished by proper coating or encapsulation of the nutrients in a flexible polymer.
The Global Controlled Release Fertilizers Market valued USD XX billion in 2020 and is estimated to reach USD XX billion by 2028, at a CAGR of 6%.
The need for crop nutrition has been rising in both food and commercial crops to increase food production and quality of produce. United Nation's Food and Agriculture Organization estimated the world will need to grow 50% more food by 2050 to feed an anticipated population of 9 billion people. Nearly one-third of the world's adequate or high-quality food-producing land has been degraded due to soil erosion resulting from continual ploughing of fields and over cultivation. The growing demand for food and depletion of arable land is forcing the farming communities to produce most out of limited resources, thus boosting the need for use of fertilizers. The incorporation of fertilizers witnessed significant growth in fruits and vegetables, cereals, grains, and all other farming practices. However, it is difficult to match the nutrient requirements of plants and the use of these commodity fertilizers witness loss of nutrients into groundwater and atmosphere. It is estimated that, on an average, 16% of conventional nitrogen-based fertilizers is lost to evaporation, as NH3, N2O, N2, or runoff ammonia. These factors led to the development of specialty fertilizers like controlled release fertilizers that through their precise formulation balance crop nutrition in plants.
Global demand for fertilizers is all set to reach 200 Mt in the forecast period. The growing awareness on CRFs is likely to increase the share of CRFs to nearly 10% owing to their high use potential in cereals and grains. With controlled release fertilizers, the release of nutrients from these product groups occurs through diffusion mechanism and is solely dependent on soil temperature, which means it more closely matches the crop's nutrient requirement in terms of quantity and timing during the main growth season, thus making it suitable for use in high altitude farm lands and under unfavorable farming conditions The higher absorption efficiency, resulting economic and ecological benefits are the primary factors driving the growth of controlled release fertilizers
However, the high cost of CRFs is the primary factor hindering the growth of these material groups. The price per unit of nitrogen is nearly 40% higher for ESN than for conventional urea, which makes it difficult for farmers, especially in developing countries, to adapt.
While the global trade came to halt during the lockdowns imposed to control the spread of novel coronavirus, the food and agriculture industry has been impacted by severe freight challenges. The sales in the food industry, particularly in food service and HoReCas declined. This weakened business globally imposed a negative impact on the industry. Most of the agricultural and agrochemical products categories including specialty fertilizers like controlled release fertilizers witnessed decline in sales volume due to lack of demand and supply chain disruptions. Asia, Europe and North America, which are among the most affected regions due to covid 19, are also the most dominant markets for CRF market. This further impacted the market negatively. Adding to it, the CRFs require higher investments than commodity fertilizers, which the farmers, struck by lack of sales weren't willing to spend. Even from the production side, the R&D was halted which effected the growing controlled release fertilizers market, more than others in the industry.
Environmentally Smart Nitrogen (ESN) is significantly rising its prominence among farming communities owing to its limited impact on environment and economic benefits offered. The flexible, polymer coating allows moisture to pass through it, dissolve nitrogen inside, and then release that nitrogen when the crop needs it which not only increases nitrogen intake by the plant but also reduces nitrate leaching into atmosphere, which is harmful for the environment.
By end use, CRFs are classified into agriculture and non-agriculture. Non-agriculture use leads the market owing to the increasing usage in golf-courses, lawns, and sport fields, which attributes for the 60% of CRF market in North America. The higher cost per unit of nitrogen of CRFs is preventing farmers to adapt in large farms in this region as it'll hugely increase the initial investment. Multicote (Haifa Group), DURATION CR (Koch Turf & Ornamental) and POLYON (Nu-Tec Specialty Products) are leading in the global market for non-agricultural practices
By geography, Asia Pacific region is dominating in the sales of controlled release fertilizers owing to the demand for crop nutrition practices in countries such as China and India. In India, it is estimated that percentage of agricultural workers of total work force would drop to 25.7% by 2050 whereas total population is expected to grow to 1.64 billion. Growing practice of precision farming to enhance water efficiency owing to the increasing food demand and decreasing resources is boosting the need for specialty fertilizers like CRFs in this region. Adding to this, the government of India is promoting the use of CRFs and providing financial assistance under New Pricing Schemes on these agrochemicals, thus bolstering the market growth
The global controlled release fertilizers (CRF) market is highly consolidated with top 5 companies accounting for over 60% of global sales. Kingenta Ecological Engineering Co., LTD., Israel Chemicals Ltd., Haifa Group, and The Scotts Miracle-Gro Company are dominating the global controlled release fertilizers market.
Haifa Group is a multinational corporation and a global leading supplier of specialty fertilizers, including agricultural and industrial grade potassium nitrate. Haifa owns three production facilities in Israel, France, and the US. With 16 subsidiaries, Haifa Group's global operations span across 5 continents in over 100 countries.
Water Soluble Fertilizers
Controlled Release Fertilizers
Other Specialty Fertilizers
Other key players include Koch Turf & Ornamental, COMPO EXPERT, Agrium Inc., Helena Chemicals, Tagrow Co., Ltd., The Chisso Corporation.