Controlled-release Fertilizers Market : Analysis and Forecast by 2025
The growing population in contrast with the decreasing arable land is one of the reasons behind the steadily increasing demand for controlled release fertilizers. Rapid urbanization has reduced the area of land available for agriculture and this has created a pressure to make use of good quality fertilizers so as to increase land productivity. Shortage of food crops and adverse climatic conditions are shifting the focus towards sustainable agriculture and this will fuel the growth of the global controlled release fertilizers market. Need for fertilizers so as to improve crop yield is aiding the growth of the market.
Controlled release fertilizers provide better performance as compared to conventional fertilizers as they extend the nutrient intake time, and this is expected to help the market to grow in the years to come. Reduced labor cost and low risk of use are some other factors boosting their demand. Government initiatives are also expected to play a key role in the development of these fertilizers and drive the growth of controlled release fertilizers.
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On the other hand, there are a few factors which are holding back the growth of the market to its fullest potential. These include, high price of controlled release fertilizers as compared to conventional ones and lack of awareness about this fertilizer in developing and under-developed countries. Many farmers are unaware of the potential benefits of controlled release fertilizers. This is also a factor restricting the growth of the market. However, with advancements in technology, the price of controlled release fertilizers may decrease and this will help fuel their demand.
Global Controlled-release Fertilizers Market: Overview
Controlled-release fertilizers are fertilizers that are capable of releasing nutrients in the soil in a controlled manner over an extended time frame. This technique, as compared to the fast-release technique of several conventional fertilizer varieties, is made possible with the help of encapsulating nutrient granules in polymeric coatings. Studies have demonstrated that controlled release of nutrients is more effective in providing nutrients to crops as compared to the fast-release technique as the availability of nutrients coincides with crop’s nutrient requirement - enhancing the efficiency of crop nutrition, improving crop quality, and increasing yield.
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Controlled-release fertilizers are also known to exert lesser impact on the environment as compared to fast-release fertilizers as they are not washed through or off farmlands, diminishing the possibility of chemicals in fertilizers leaching into water bodies or causing pollution. Earlier used mostly for nursery container crops, the rising awareness about these benefits of controlled-release fertilizers has extended their usage to conventional farming these days.
Global Controlled-release Fertilizers Market: Key Trends
The vast rise in global population and urban settlements and the resultant reduction in arable land are leading to a scenario wherein the demand for food products is rising and agricultural yield is failing to sustain these demands. Attempts to solve these issues are leading to an increased focus on sustainable agriculture practices, driving the demand for fertilizers with enhanced efficiency, such as controlled-release ones. In the next few years as well, the mounting demand for food products and limited arable lands will be key to the overall development of the global controlled-release fertilizers.
Global Controlled-release Fertilizers Market: Market Potential
Mergers, acquisitions, and expansion of knowledge base to be able to develop innovative products are some of the key strategies adopted by players operating in the global controlled-release fertilizers. Recently, ICL Innovation, a subsidiary of ICL (Israel Chemicals Ltd.), has recently entered into a multi-year research and development collaboration with Evogene Ltd., a company operating in the field of research and development related to crop production improvement. The collaboration will work towards the discovery of novel crop enhancers for the enhancement of nutrient uptake efficiency of selected crops.
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Under the collaboration, Evogene will work towards utilizing its computational discovery platform for identifying the potential of some compounds to improve the efficiency of nutrient use by crops. Successful candidates identified from the research activities could be used in ICL's future products.
Global Controlled-release Fertilizers Market: Regional Analysis
From a geographical perspective, the global market for controlled-release fertilizers is dominated by the Asia Pacific market. The region single-handedly accounts for over half of the overall revenue generated by the global market and is both a high-production as well as high-consumption region. Rising government support for improvement of the agriculture industry in most agro-based economies and high population base in the region play a key role in encouraging the adoption of a variety of fertilizers that are capable of boosting food production. In the Asia Pacific controlled-fertilizer market, China accounts for a dominant share, in terms of production as well as consumption.
The region features the presence of some of the world’s leading controlled-fertilizer manufacturers and low manufacturing costs owing to cheap labor and sustained supply of raw materials are bringing in more companies in the region. In the next few years, Asia Pacific is expected to retain its dominant position in the global controlled-release fertilizers market.
Global Controlled-release Fertilizers Market: Competitive Dynamics
The market features a largely fragmented vendor landscape with a large number of companies operating in emerging economies such as India, Malaysia, and China. Cheap labor and steady availability of raw materials allow companies operating in such areas to economically expand their production capacities and supply products in the domestic markets with high-growth potential at low costs.
Some of the leading companies operating in the global controlled release fertilizers market are Shandong Shikefeng Chemical Industry Co. Ltd., Chisso Corporation, ICL, Kingenta Ecological Engineering Group Co., Ltd., Ekompany, Agrium, AgroBridge, ATS Group, Compo GMBH & Co. KG, Greenfeed Agro Sdn. Bhd, and Haifa Chemicals ltd.
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