FMI’s New Report on Fertilizer Additives Underlines Key Role of Strategic Joint Ventures for an Expansive Outreach
Overall, sales growth of fertilizer additives will be driven by:
Growing demand for food, translating into new technologies and improved fertilizers
Increased emphasis on making fertilizers more efficient with high output
Better performance and high crop yield
Developing landscape for sustainable technologies in the agrochemical industry
Stringency in regulations to keep soil and water pollution at bay
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Anti-Caking Agents to Lead the Market
Anticaking agents segment is projected to create 1.3X incremental opportunity till 2028, currently being the largest product type category worth US$ 527 Mn. The trend is projected to continue through 2028, considering major demand from solid fertilizers. The increasing demand for anti-caking agent is mostly attributable to its key characteristic to prevent lump formations, making for easy packaging and transportation. Representing well over 55% share of the total market, in terms of value in 2018, anti-caking agent is also expected to witness major innovations in the form of eco-friendly anti-caking agents, by 2028.
“Popular N (Nitrogen) fertilizers will drive the revenue for fertilizer additives, contributing the largest demand share in the total fertilizer market. Moreover, being an important nutrient for crop production—directly influencing the amino acid composition of protein and nutritional quality of the subsequent yield, will positively translate in widespread adoption of N fertilizer. FMI predicts high adoption of fertilizer N in fruit production, oilseeds, fodder crops, horticulture to maintain high level of quantity and quality”- Principal Analyst, Chemicals, Future Market Insights
Increasing demand for N fertilizer owing to its significant role in metabolic interactions in crops, globally is expected to open potential strategizing avenues for manufacturers, with a key critical focus on increasing crop nitrogen use efficiency to further enhance the crop quality, adds the analyst.
In the highly fragmented fertilizer additives market, Tier 1 players including Clariant AG, Arkema S.A., Kao Corporation and Koch Industries, Inc., among others hold nearly 80 percent of the total market share. With dominance well displayed by key players through an extensive product offering, FMI also underlines the critical role of organic and inorganic growth through strategic collaborations and mergers and acquisitions, across the value chain and its impact on formulating effective fertilizer additives. Whether it is Clariant AG’s agreement with SABIC and Huntsman Corporation or Arkema’s collaboration with Barrday, Inc and its expansion move in China, key players are projected to push their products in untapped markets through such joint ventures.
Additional Takeaways from the Study
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FMI, in its report on global fertilizer additives market, spots high opportunity in granulating agents segment, considering its key function in production of fertilizers
Stringent regulations focused at curbing air pollution would push dust suppressors’ sales
The fertilizer additive market is likely to benefit from nanotechnology—in the form of nanoscale additives wherein nanomaterials could either be a micronutrient, fertilizer, supplement component or a binder/water retention material
High pricing of fertilizer additives, lack of awareness, and government subsidies on conventional fertilizers could pose a challenge for market growth
High growth agriculture-dependent economies including China and India to present lucrative growth opportunities for fertilizer additives manufacturers
Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.
FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace with confidence and clarity. Our customised and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure our clients prepare for the evolving needs of their consumers.
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