The global NPK fertilizers market is valued at USD 3.03 billion in 2023. The market is progressing at an annual expansion rate (CAGR) of 3.9%, reaching a value of USD 4.44 Billion by 2033.
Dairy products, meat products, bakery products, and beverages are among the industries that are increasing their demand for NPK fertilizers. This is driving the market to grow.
NPK nutrients (feed-grade and food-grade) are categorized under this generic term as fertilizers containing 2 to 3 nutrients, multiple scoring formulations, and distinct processing methods. This fertilizer increases nutrient and water efficiency and reduces application costs. In addition to enhancing the quality and yield of crops, their use increases their productivity. Increasing awareness of NPK fertilizers' benefits is also boosting the market's growth.
In addition to fertilizing the soil, NPK Fertilizers provide essential micronutrients. It is composed of three chemicals: nitrogen, phosphorus, and potassium in a ratio of 16-16-16. In gardens, grass-fed trees, shrubs, evergreens, flowers, and vegetables, nitrogen, potassium, and phosphorus are the most commonly used nutrients.
Organic fertilizers and synthetic fertilizers are both available on the market. Natural fertilizers usually take longer to work, but they are more effective than synthetic fertilizers. Natural fertilizers include mushrooms, horse or poultry manure, blood meal, bone meal, and compost. Synthetic fertilizers are made of chemicals, so they work faster. Powdered fertilizers last longer than liquid fertilizers. It is used as a fertilizer in the agricultural industry to meet the demands of healthy crops.
In the agricultural industry, NPK fertilizers are widely used to ensure healthy plant growth and are available in a variety of forms, including liquid, gas, and granular. In addition to reducing fertilization costs, it also increases demand for NPK fertilizers by ensuring nutrient and water efficiency.
Market Dynamics of NPK Fertilizers
| Attribute | Details |
|---|---|
| NPK Fertilizers Market Size Value in 2023 | USD 3.03 Billion |
| NPK Fertilizers Market Forecast Value in 2033 | USD 4.44 Billion |
| NPK Fertilizers Market CAGR Global Growth Rate (2023 to 2033) | 3.9% |
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By 2033, the NPK fertilizers market is predicted by FMI to reach over USD 4.44 Billion. In the first half of 2022, the global market increased at a CAGR of 5.5% which is the market share valued at USD 2.92 Billion. Though not equally distributed throughout all regions, this growth is stronger in developing markets, where it is predicted to reach at the end of 2023 valued at USD 3.03 Billion with a CAGR of 3.9%.
Short Term (2022 to 2025): Raw materials and products were in high demand for the manufacturing business and its employees. Due to the pandemic, NPK Fertilizers have become more valuable due to increased demand. Furthermore, there was a scarcity of labor as well as a lack of raw materials to manufacture the products.
Medium Term (2025 to 2028): There are several factors driving growth in this business, including the demand for high-efficiency fertilizers, the increasing use of precision agriculture, the ease of use and application, and the improved crop protection afforded by NPK Fertilizers (feed grade and food grade).
Long Term (2028 to 2033): There is a growing interest in sustainable farming, fertilizer formulations, soil research, and other studies around the world, as well as innovations in these fields. The transition to more organic and wholesome food processes is accelerating in farming systems to provide the right nourishment through sustainable practices.
| Historical CAGR (2017 to 2022) | 5.5% |
|---|---|
| Historical Market Value (2022) | USD 2.6 Billion |
| Forecast CAGR | 3.9% |
High Demand for Fresh Fruits, Vegetables, etc.
There is an increasing demand for high-quality compost due to the increase in accuracy in cultivating, usability, and application of NPK manures, and improved crop security provided by NPK manures. The global NPK fertilizer market is also growing due to the rising consumption of fresh fruits and vegetables, wheat, and rice, among others.
As NPK fertilizers provide secondary and micronutrients to plants and fruits during greenhouse farming, they are inconsiderable demand among greenhouse farmers. Periodic application of NPK fertilizers ensures maximum productivity of high-quality fruits during greenhouse farming processes.
The Rise in the Usage of Precision Farming
Advancements in farming and agriculture techniques have spurred the growth of NPK fertilizers. As most leading manufacturers are well aware of consumer demand for high-quality food grains and foodstuffs.
So, the market is anticipated to grow as the need for high-efficiency fertilizers for improved crop yield and quality grows. There has been an increase in precision farming in several countries, which has resulted in improved crops, reduced labor costs, and increased water conservation.
As a result, these factors will continue to remain key factors driving the growth of the NPK fertilizers market in the future. In recent years, agricultural technology developments and improvements in crop fertility have been making NPK Fertilizers (feed and food-grade) a more popular product on the global market.
Demand for Highly Effective Fertilizers is on the Rise
The cultivation of vegetables in greenhouses and polythene houses can provide significant production facilities if the conditions are regulated and the heating is adequate. The addition of carbon dioxide to the air inside, artificial heating, artificial lighting, and regular irrigation are all ways to increase photosynthesis.
The use of such farming techniques provides plants with a level of safety against harsh weather conditions, allowing them to grow pesticide-free plants, practice all-year gardening, create all-in-one gardening locations, and offer other benefits.
As a result, greenhouses and polythene houses are becoming more popular for growing plants, resulting in a higher demand for fertilizers, such as NPK, across both commercial greenhouses and high-end greenhouses.
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The Rise in Intensive Agriculture Practices
As a result of intensive agricultural practices using chemical fertilizers, wildlife is lost, soil and water pollution is caused, and animal welfare is poor. Therefore, the impact of intensive traditional farming and the addition of chemicals can also result in soil degradation and water shortages.
Feed-grade fertilizers are also toxic, decreasing soil fertility, polluting water, and destroying soil quality. Therefore, toxic feed-grade fertilizers can strangle market growth.
Fluctuating Prices, Storage, and Handling Costs
Some of the factors limiting market growth include supply cycle issues, fluctuating storage and handling costs associated with production and use, and strict government regulations. The growth of NPK Fertilizers in the global market may be hampered.
The world is experiencing a surge in advanced trends, including sustainable farming, fertilizer formulations, soil research, and other studies. These trends are accelerating the transition of farming systems toward organic and wholesome food processes in order to meet the nutritional needs of the populace in a sustainable manner.
Therefore, the global NPK fertilizer market is expected to grow over the forecast period. This is because of the growing awareness of health issues, healthy foods, research, studies, and new trends in farming practices.
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The NPK fertilizers market, based on type, has been segmented into phosphorus, nitrogen, potassium, and others. It is estimated that the phosphorus segment may dominate the market in 2023 and is also projected to be the fastest-growing segment during the forecast period.
The phosphorus market is growing at a CAGR of 4.5% and is expected to reach USD 2.2 Billion by the end of the analysis period. Phosphate is becoming more widely used in the food industry because of its lower price than traditional food additives. Phosphate costs less than other food additives, thus making it more widely used.
Phosphorus is a nutrient that is necessary for plant growth. It is essential for root development, plant maturity, and seed development. Phosphorus, along with nitrogen and potassium, is one of the most significant elements for plant life. Modern agriculture is dependent on phosphorus-based fertilizers since soil phosphorus levels are depleted for a variety of reasons, including rain.
Taking into account the ongoing post-pandemic recovery, growth in the nitrogen segment is readjusted to a revised CAGR of 3.4% for the next ten years. While Potassium's global segment is expected to grow by 3.8% in the next ten years, driven by the USA, Canada, Japan, China, and Europe.
The NPK fertilizers market, by form, has been segmented into powder, liquid, and others. By 2023, powder-based NPK fertilizers are expected to dominate the market and grow at the highest CAGR.
Powdered fertilizers are more shelf-stable than liquid fertilizers (food-grade), are easier to apply and transport, and have a longer shelf life. The powder segment of NPK fertilizers is driven by these factors.
Based on application, the NPK fertilizers (food-grade) market is segmented into dairy products, bakery products, meat & meat products, and beverages. Due to the growing demand for processed and packed meat around the world, especially in developing countries such as India, China, and Brazil, the meat & meat products segment is expected to dominate the market by 2023.
Due to rising consumer income and urbanization, particularly in South Asia, the market in the Asia Pacific is growing due to changing food consumption patterns. As a result of increasing disposable incomes and growing per capita incomes in most countries in the region. The growth can also be attributed to the increasing demand for quality processed and packaged food in the region.
As a result of the growth in countries such as Australia, India, and South Korea, the Asia-Pacific market is predicted to reach USD 641.31 Million by 2033 at a CAGR of 6%. Countries such as India, China, and Japan are aiding the growth of the NPK fertilizers market across the Asia Pacific.
Among the major restraints to this market's growth is the suspicion associated with the use of NPK fertilizers.
The NPK fertilizers market in the USA currently holds the largest number of shares and registered a market valuation of USD 769.51 Million in 2023. The market is projected to reach a valuation of USD 947.27 Million by the end of 2033.
Horticultural profits, rise in disposable income among farmers, high industrialization & agriculture development coupled with huge demand from the food-processing industry are some of the factors driving the demand for NPK Fertilizers in the USA market.
Within the Europe NPK fertilizers market, Germany is the main market to target with a CAGR of 2.8% in terms of value. Currently, Germany is the leading country in this region and is accountable for the maximum market valuation.
China, the world`s second-largest economy, is forecast to reach a projected maximum market size by the year 2033, growing at a CAGR of 6.6% over the analysis period 2023 to 2033.
This is due to the high demand for application across wheat, rice, fruits, and vegetable farming. Moreover, rapid urbanization resulting in a growing population may drive the consumption of dairy products. That requires an adequate supply of nutrients such as nitrogen, phosphorus, potassium, etc.
Investing in research and development activities is essential for companies to stay abreast of customer preferences and the demands of the end-use industries to remain competitive. Efforts are being made to strengthen their foothold in the market.
This will allow them to increase their visibility within the forum. In addition, it will help enhance the further development of NPK fertilizers by enhancing their visibility within the forum.
Multi-performance variants are being introduced by several manufacturers to expand their product portfolios and attract consumers from various industry verticals. Mergers and acquisitions are among the strategies employed by companies to improve their position in the market. By implementing these strategies, the company has become more competitive and improved its market position.
The NPK fertilizers market comprises major players such as:
Numerous companies operating in this market have launched new products and are increasing their product offerings. For instance,
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | USD Billion for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Germany, UK, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey |
| Key Segments Covered | Type, Form, Application, Region |
| Key Companies Profiled | SKW Stickstoffwerke Piesteritz (Germany); Borealis AG (Austria); AkzoNobel (Netherlands); Yara International ASA (Norway); Petróleo Brasileiro S.A. (Brazil); Agrium Inc. (Canada); The Mosaic Company (USA); Israel Chemicals Ltd. (Israel); EuroChem (Switzerland); Potash Corp (Canada); K+S AKTIENGESELLSCHAFT (Germany); Alltech (USA), PhosAgro (Russia); Haifa Chemicals (Israel); Aditya Birla Chemicals (India) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The NPK fertilizers market is expected to increase at a CAGR of around 3.9% over the forecast period.
The NPK fertilizer (feed-grade and food-grade) market’s growth potential can be valued at USD 4.44 Billion by 2033.
The NPK fertilizers market is expected to reach a value of USD 3.03 Billion by 2023 end.
Asia Pacific dominates the market for NPK fertilizer (feed-grade and food-grade).
The global NPK fertilizer (feed-grade and food-grade) market is highly fragmented with the presence of various leading and emerging players including Borealis AG, The Mosaic Company, and others.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Phosphorus 5.2. Nitrogen 5.3. Potassium 5.4. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form 6.1. Powder 6.2. Liquid 6.3. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature 7.1. Organic NPK Fertilizers 7.2. Synthetic NPK Fertilizers 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. Middle East & Africa (MEA) 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Aditya Birla Chemicals 16.2. Agrium Inc. 16.3. AkzoNobel 16.4. Alltech 16.5. Petróleo Brasileiro S.A. 16.6. EuroChem 16.7. Haifa Chemicals 16.8. Israel Chemicals Ltd. 16.9. K+S AKTIENGESELLSCHAFT 16.10. Borealis AG 16.11. PhosAgro 16.12. Nutrien 17. Assumptions & Acronyms Used 18. Research Methodology
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NPK Fertilizers Market
