Fertilizer Additives Market expected to reach $4.7 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, "Fertilizer Additives Market by Form, Type, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,"the global fertilizer additives market was valued at $3.2 billion in 2020, and is projected to reach $4.7 billion by 2030, growing at a CAGR of 4.1% from 2021 to 2030.

Fertilizer additives are added to fertilizers to inhibit and stimulate the loss of micro-nutrients and macro-nutrients such as nitrogen, calcium, and iron from fertilizers.

Nitrogen containing fertilizer or nitrogen-based fertilizer is widely used fertilizers for improving the crop growth and quality. However, nitrogen-based fertilizers are prone to volatilization that leads to loss of nitrogen content present in the fertilizers. In order to overcome this problem, nitrogen stabilizers (type of fertilizer additive) can be incorporated during formulation of these fertilizers. In addition, other fertilizer additives such as urease and nitrification inhibitors can also be used to minimize leaching of nitrogen content into groundwater that also leads to substantial loss of nitrogen content. Moreover, these fertilizer additives increase the time and amount of nitrogen availability to the crops. This in turn improves nitrogen absorption by plants. All these factors tend to drive the demand in the global fertilizer additives market.

However, fertilizer additives are made from the chemical synthesis process that may cause several environmental problems. For instance, excessive use of fertilizer additives may affect the accumulation of heavy metals in soil and plant systems. Furthermore, fertilizer additives contain several harmful chemicals that when applied in excessive amounts may release greenhouse gases into the atmosphere and the eutrophication of waterways. Moreover, several regulatory bodies such as the United States Environmental Protection Agency (U.S.EPA), Central Pollution Control Board (CPCB), European Commission, and others have put efforts on reducing the dependency on chemical-based fertilizers owing to their harmful side effects which in turn may restrain the customers from purchasing fertilizer additives. In addition, the governments of both developed and developing economies have put more emphasis on organic farming which in turn may hamper the growth of the fertilizer additives market during the forecast period. 

Fertilizer additives provide anti-caking and anti-foaming characteristics to the fertilizer. The foam may coagulate on the surface thereby causing problems on the surface coatings. Fertilizers trigger insufficient absorption of nutrients by soil &plants, which leads to the loss of soil fertility and retard plant growth. Moreover, fertilizers are also available in a powdered or granular form and the chances of caking are high in these materials, thereby leading to product loss. Therefore, anti-caking agents as well as corrosion inhibitors are deployed to facilitate easy packaging and transportation. These fertilizer additives are often deployed in the production stage of the fertilizers and even mixed during their application in the field, which is anticipated to offer new growth opportunities during the forecast period.

The fertilizer additives market is segmented on the basis of form, type, application, and region.

By form, the market is divided into granular, prilled, and powdered. The granular form dominated the global market in terms of revenue in 2020, with over two-third of the total share. Granular fertilizers resemble a small grain or a particle. Some of the properties that determine the quality of the granule are particle size, particle density, bulk density, particle shape, crushing strength, flowability, and coefficient of friction. These properties help farmers evaluate the quality of the fertilizer. Furthermore, fertilizer additives are added to the granules for protecting the granules from external environment and to enhance their shelf life.

By type, the market is divided into anti-caking agents, antifoam agents, dust control coatings, coloring agents, granulation aids, corrosion inhibitors, hydrophobic additive, and others. The anti-caking agent type dominated the global market in terms of revenue in 2020, with over one-third of the total share. Anti-caking agent is used as a fertilizer additive, which helps prevent the formation of lumps during storage. Owing to the formation of salt bridge and capillary adhesion, the caking process takes place in fertilizers during storage. There are various factors that lead to the formation of caking in fertilizers such as chemical composition of the fertilizer, moisture content, particle structure, temperature, pressure, storage time, and others. Controlled storage, better packaging, and addition of anti-caking agent in fertilizers are the different methods used to prevent the caking process in fertilizers. The most effective one is the addition of anti-caking agent. The anti-caking agents are made of powerful surfactants, surface tension modifiers, parting agents, and crystal habit modifiers.

By application, the market is divided into urea, diammonium phosphate, ammonium nitrate, triple superphosphate, monoammonium phosphate, and others. The urea type dominated the global market in terms of revenue in 2020, with over three-eighth of the total share. Urea is a naturally occurring organic compound, which contains high amount of nitrogen. It can be synthesized in labs, which are called as synthetic urea and are widely used as nitrogen fertilizer across the world. It is one of the low cost fertilizers available in the market. The manufacturing process of urea takes place by combining ammonia and carbon dioxide. Both granulated urea and prilled urea are available in the market. Granulated urea is harder as compared to prilled urea, which creates less dust when transported and handled. The granules of urea are manufactured by passing the liquid urea through a fluid bed granulation system, which creates hard and evenly sized granule of urea

Region-wise, the fertilizer additives market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The LAMEA fertilizer additives market size is projected to grow at the highest CAGR during the forecast period and accounted for 60%fertilizer additives market share in 2020.The growth of agricultural industries drives the demand for fertilizer additives in LAMEA. The main factors that supplement the market growth are developing economies, increase in investment in agricultural sector, use of modern technology in agriculture, and discovery of new applications of fertilizer additives. Global players have entered the market for catering to the increased demand for fertilizer additives in LAMEA and exploit the opportunity in the emerging LAMEA market.

Key players operating in the global fertilizer additives market include ArrMaz Products Inc., CHEMIPOL, S.A., Clariant AG, Emulchem, KAO Corporation, LignoStar, Michelman Inc., Novochem Group, Solvay, and Tolsa SA.

COVID-19 Analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The fertilizer additives market has little impact due to the wake of the COVID-19 pandemic, owing to the disruptions in the supply chain for various agrochemical products. According to a report published by the Organization for Economic Co-operation and Development (OECD), the decreased consumer demand has put downward pressure on the prices and production of fertilizer additives. Furthermore, to control the surge of novel coronavirus cases, there is a drastic shift of investments from other sectors towards healthcare. Also, several companies have either shut down or shrank their operations due to the risk of infection among the workforce. This has temporarily hampered the demand and supply chain of fertilizer additives. In addition, the falling income of customers has led contraction in the demand for fertilizers, pesticides, and other crop protection products among the small farmers amid the COVID-19 period. However, growing awareness related to health and sustainable development has surged farming activities during the COVID-19 pandemic which in turn has increased the demand for fertilizer additives in the agricultural sector. Furthermore, several fertilizer additives manufacturing companies have adopted safety strategies and techniques which in turn may increase the demand for fertilizer additives as the market starts stabilizing. According to an article published by AgriBusiness Global, the demand for agrochemical products in Russia rose by 20% in 2021 and is expected to further grow during the second quarter of the year. In addition, as the restrictions imposed due to lockdowns are being lifted, the fertilizer additives market is expected to recover soon owing to the record food grain production in both developed and developing economies.

Key Findings of Study

• The granular form is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.3% from 2021 to 2030.
• The anti-caking agent type is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.6% from 2021 to 2030.
• The monoammonium phosphate application is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.0% from 2021 to 2030.
• LAMEA garnered the highest share of 60% in 2020, in terms of revenue, growing at a CAGR of 4.5%.