Nano Fertilizers Market Expected to Reach $8.7 Billion by 2033

According to a new report published by Allied Market Research, titled, “Nano Fertilizers Market," The nano fertilizers market size was valued at $2.3 billion in 2023, and is estimated to reach $8.7 billion by 2033, growing at a CAGR of 14.3% from 2024 to 2033.

Introduction

Nano fertilizers industry have been primarily designed for agricultural use, where they play a pivotal role in enhancing crop yield and quality. They provide nutrients in a form that plants can readily absorb, addressing specific deficiencies. For example, nano-encapsulated nitrogen or phosphorus fertilizers ensure prolonged availability in the soil, minimizing nutrient loss due to runoff or volatilization. In addition, nano fertilizers contribute to precision farming by facilitating site-specific nutrient management. Nano fertilizers have found applications in hydroponic systems and controlled environment agriculture (CEA), where precise nutrient management is crucial. Their high solubility and bioavailability make them ideal for nutrient solutions in hydroponics, ensuring optimal plant growth without the risk of nutrient imbalances.

Nano fertilizers significantly enhance nutrient use efficiency (NUE) by providing nutrients in a readily available form and minimizing losses. This is particularly important for macronutrients such as nitrogen, phosphorus, and potassium, which are often lost through leaching or volatilization in traditional fertilizers. By improving NUE, nano fertilizers reduce the overall quantity of fertilizer required, leading to cost savings for farmers. The use of nano fertilizers can help mitigate environmental issues associated with traditional fertilizers. Nutrient runoff from conventional fertilizers often leads to eutrophication of water bodies, resulting in algal blooms and aquatic ecosystem degradation. Nano fertilizers reduce this risk by ensuring controlled release and targeted delivery of nutrients, thereby minimizing excess application and subsequent runoff. The integration of nano fertilizers into agri-tech solutions, such as precision agriculture and smart farming, has gained momentum. By incorporating nano fertilizers with technologies such as drones, IoT devices, and soil sensors, farmers can achieve real-time monitoring and precise nutrient applications.

Market Dynamics

An increase in demand for nutrient efficiency in farming is expected to drive the growth of market. Improved nutrient efficiency is a key benefit of nano fertilizers, which distinguish themselves from traditional fertilizers by their ability to release nutrients gradually over time. The gradual release of nutrients not only enhances nutrient efficiency but also supports the long-term health of plants. By providing a consistent supply of essential nutrients, nano fertilizers promote steady growth and development, preventing nutrient deficiencies that could stunt crop productivity. This approach minimizes the fluctuations in nutrient availability that can often occur with traditional fertilizers, helping plants maintain balanced nutrition throughout their growth cycles. Nano fertilizers are engineered to release nutrients in a controlled manner, ensuring that they are available to plants as needed, without excess or waste. In 2022, the Indian government introduced Nano Urea (liquid) and Nano DAP (liquid) to reduce dependency on traditional fertilizers and improve nutrient absorption. These fertilizers are designed to be more efficient, with a single 500 ml bottle covering an acre of farmland.

However, high production costs of nano fertilizers is expected to hamper the growth of market. Nano fertilizers involve the use of nanotechnology to manipulate materials at the molecular or atomic level. This process requires sophisticated equipment, high precision, and specific raw materials, all of which contribute to the overall cost. The production of nano fertilizer often involves the synthesis of nanoparticles that need to be finely tuned to ensure optimal performance in terms of nutrient release and absorption by plants. These production methods demand specialized knowledge and research, which adds to the complexity and expense. Additionally, the cost of sourcing high-quality raw materials for nano fertilizer, such as nanoscale metals or other chemical compounds, further escalates the price.

Segments Overview

The nano fertilizers market analysis into raw material, method, application area, and region. On the basis of raw material, the market is divided into nitrogen, silver, carbon, zinc, and others. On the basis of method, the nano fertilizers market is categorized into spray or foliar, and soil treated. On the basis of application area, the market is classified into cereals & grains, oilseeds & pulses, fruits & vegetables, and others. Based on region the market is divided into North America, Europe, Asia-Pacific, and LAMEA.

On the basis of raw material, the silver segment is expected to be the fastest growing segment in the market during forecast period. Nano fertilizer represent a groundbreaking advancement in agricultural technology, offering enhanced efficiency, precision, and sustainability. Silver plants, typically grown for ornamental, medicinal, or niche industrial purposes, require precise nutrient management to achieve optimal growth, quality, and value. Nano fertilizers offer a tailored nutrient delivery system, ensuring that plants receive essential micro- and macronutrients with minimal waste. Nano fertilizers are engineered at the nanoscale to have a high surface-area-to-volume ratio, improving their solubility, bioavailability, and nutrient uptake. When applied to silver crops, these fertilizers can stimulate root development, enhance photosynthesis, and improve overall plant health.

On the basis of method, the soil treated segment is expected to be the fastest growing segment in the market representing the CAGR of 14.18% during the forecast period. Soils treated with nano fertilizer often exhibit improved microbial activity, as these fertilizers can enhance the bioavailability of essential nutrients like nitrogen, phosphorus, and potassium. The nanoparticles act as carriers, protecting nutrients from chemical reactions in the soil that could otherwise render them unavailable to plants. In addition, nano fertilizer often come with slow-release properties, ensuring a consistent supply of nutrients over time, which is crucial for prolonged crop growth cycles. The application of nano fertilizers can mitigate the impact of soil degradation.

On the basis of application area, the fruits and vegetables segment is expected to be the fastest growing segment, growing with the CAGR of 14.86% during the forecast period. For fruits, nano fertilizers are particularly beneficial in improving fruit quality parameters such as size, color, flavor, and nutritional content. For example, nano zinc oxide and nano iron have been shown to enhance fruit sweetness and vitamin content in crops such as apples, mangoes, and citrus fruits. These fertilizers also play a crucial role in stress tolerance, enabling fruit crops to withstand abiotic stressors like drought, salinity, and temperature extremes, which are becoming increasingly prevalent due to climate change. In vegetable cultivation, nano fertilizers improve both growth and post-harvest quality. Leafy greens, tomatoes, cucumbers, and peppers respond well to nano formulations, as these enable rapid nutrient uptake, leading to vigorous plant growth and higher yields.

Regional Analysis

Region-wise, Asia-Pacific is expected to be the fastest growing region in the nano fertilizers market forecast. The Asia-Pacific region, home to some of the world's largest agricultural economies, has seen rise in adoption of nano fertilizers in recent years. Nano fertilizers, designed with particles at the nanoscale, are emerging as a crucial innovation in sustainable agriculture. These fertilizers enhance nutrient delivery and improve plant efficiency, contributing to more efficient and effective farming practices.. In India, where agriculture forms the backbone of the economy, nano fertilizers are gaining significant traction. The Indian government, along with companies like Indian Farmers Fertilizer Cooperative Limited (IFFCO), has been actively promoting nano urea as a sustainable alternative to conventional fertilizers. Nano urea has demonstrated enhanced nitrogen use efficiency, reducing the need for large volumes of traditional urea while improving crop productivity. This aligns with India's goals to reduce fertilizer subsidy costs and environmental pollution caused by excessive fertilizer use.

Competitive Analysis

The key players operating in the nano fertilizers market share include Indian Farmers Fertiliser Cooperative Limited, Indogulf BioAg LLC, Nanotech-Agri, Ray Nano Science & Research Center, Kanak Biotech, EuroChem Group AG, Lazuriton Nano Biotechnology Co., Ltd., Geolife Agritech India Pvt. Ltd., Coromandel International Ltd., and Aqua Yield Operations, LLC.

In February 2023, India's Union Minister of Chemicals and Fertilizers, Mansukh Mandaviya, inaugurated two nano-urea plants operated by the Indian Farmers Fertiliser Cooperative (IFFCO) in Uttar Pradesh. He also announced that a government expert panel had approved the launch of nano di-ammonium phosphate (DAP), aiming to reduce dependency on imported fertilizers and enhance domestic production

Key Market Insights

• On the basis of raw materials, nitrogen segment dominated the nano fertilizers market accounting for more than half of the market share in 2023.
• On the basis of method, soil treated was the most lucrative segment representing the CAGR of 14.2% during the forecast period.
• On the basis of application area, cereals and grains was the highest revenue contributor in the market representing the CAGR of 13.9% during the forecast period.
• Region wise, Asia-Pacific dominated the market accounting for more than one third of the market share in 2023.