PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1587085
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1587085
Global liquid fertilizers market is projected to witness a CAGR of 3.98% during the forecast period 2024-2031, growing from USD 3.01 billion in 2023 to USD 4.11 billion in 2031. The market has experienced a consistent growth trend owing to the increasing demand for highly efficient nutrients in modern agriculture. Liquid fertilizers are regarded as a means through which essential nutrients may be effectively delivered directly to crops for ready uptake and, thus, enhanced growth. Precision agriculture methods, including fertigation and foliar application, strengthen the demand for liquid fertilizers.
Moreover, liquid fertilizers ensure targeted application with lower wastage and improved utilization of resources. These fertilizers are gaining popularity due to their tailor-made varieties for different crops, soils, and climates, opening the choice to farmers of varying regions.
Changes in the market are driven by sustainability trends with the rising popularity of organic and environmentally friendly fertilizers. The transition towards bio-based fertilizers is a manifestation of a growing realization of the reality of sustainable farming practices oriented towards restoring soil health while minimizing conventional fertilizers' environmental footprint. Governments support such initiatives by promoting eco-friendly agricultural inputs and providing favorable policies and subsidies.
Also, new advances in technology for the formulation of liquid fertilizers intensify their efficacies through more defined nutritional compositions and performance across different farming systems. Consequently, the liquid fertilizers market is expected to maintain a growth path based on the ongoing demands for agricultural development, resource optimization, and sustainable food production practices.
In July 2024, EnviroKure, Inc. introduced its latest liquid biofertilizer, PhylloZone, for foliar application. PhylloZone builds on the proven success of the company's popular liquid biofertilizer, BioStim, by boosting microbial consortia and reducing treatment rates to one gallon per acre.
Technological Innovations to Catalyze Market Expansion
Technological innovations are increasingly important in driving the development of the global liquid fertilizers market. Advanced formulations offer the perfect nutrient composition matching the needs of specific crops, increasing nutrient uptake efficiency and lowering wastage. For instance, controlled-release liquid fertilizers provide sustained release of nutrients over time to improve the health and yield of crops. Such technologies, along with better fertigation and foliar techniques, placed in the context of modern precision agriculture technologies, such as sensors and GPS, are helping farmers to apply liquid fertilizers precisely. It optimizes resource use and minimizes their impact on the environment.
These innovations aid in bio-fertilizers and eco-friendly liquid fertilizers, which conform to the increasing demand for sustainable farming methods. The continued evolution of agricultural technologies is expected to enhance liquid fertilizers' efficiency, effectiveness, and sustainability, fostering their adoption and ensuring sustained growth for the market.
In February 2023, a maker and distributor of liquid fertilizers, Vantage Ag, introduced its first product utilizing its in-house developed nanotechnology platform. It is an effective nanoparticle composition intended to coat and enter plant tissues. The newly developed liquid sulfur product has sulfur particles smaller than one nanometer so that nutrients can be fully bioavailable and swiftly taken and digested by the plant.
More Precise Application Methods to Influence Market Growth
The main reason liquid fertilizers have captured the attention of modern agriculture is efficiency and accuracy. Unlike their solid counterparts, liquid fertilizers feed nutrients to plants in a readily available form that can be absorbed more quickly and effectively than solid ones, increasing growth rates for better yields. Some of the most effective fertilizer applications involve precision techniques, such as fertigation and foliar spraying, providing crop-specific applications that guarantee nutrients according to the need.
This targeted technique helps reduce nutrient waste, optimize fertilizer use, and minimize environmental impacts. It allows farmers to manage the level of nutrient application according to the real-time demands of crops, thus ensuring more efficient resource use. With precision agriculture technologies, such as GPS and sensors, liquid fertilizers are applied more precisely, improving overall crop management. The higher efficiency of liquid fertilizers makes them integral to sustainable and high-output farming systems.
In April 2023, IFFCO launched its latest liquid fertilizer, Nano Di-Ammonia Phosphate (DAP) Liquid Fertilizer. The launch of liquid DAP is intended to replace granular DAP by approximately 90 lakh metric tons. Eighteen crore bottles of liquid DAP are expected to be manufactured by FY2025-FY2026 through the company's three Nano DAP plants.
Organic Liquid Fertilizers to be The Fastest Growing Segment
Organic liquid fertilizers are the fastest-growing segment of the liquid fertilizers industry. These have gained popularity due to more users looking for sustainable, eco-friendly farming practices. Organic materials such as plant extracts, animal waste, compost, etc., help control soil health, prevent the destruction of biodiversity, and limit the risk of chemical contamination of crops and water.
Growing demand from consumers for organic food coupled with awareness of environmental conservation are making farmers shift towards organic liquid fertilizers, which helps them manage the demand in the market and for regulatory purposes. According to a USDA study released in November 2023, the overall land in the United States with an organic certification increased to 4.89 million acres in 2021. Furthermore, during the past 20 years, more government investments have been approved to assist USDA projects that promote organic research. The Organic Agriculture Research and Extension Initiative's required spending authorization has increased from USD 3 million in 2002 to USD 50 million in 2023. This trend is expected to continue and add to the high growth rate in the organic liquid fertilizers market in the future as well.
North America to Dominate the Market Share
North America holds the highest share of the global liquid fertilizers market due to advanced agricultural practices coupled with high precision farming adoption. The region boasts a developed farm infrastructure; at the same time, a growing need for above-average crop yields is geared towards the meeting of both domestic and global food consumption needs. In general, the widespread application of liquid fertilizers by farmers in the United States and Canada is based on the heightened recognition of new technologies that emphasize nutrient efficiency and low environmental impact, such as fertigation and foliar application.
Apart from this, government support for sustainable agriculture and a gradual shift toward organic farming will gain momentum for the liquid fertilizer market. North America dominates liquid fertilizer usage across the globe due to its technological superiority and emphasis on maximizing agricultural productivity.
Several companies are working on introducing new products in the region to capitalize on its dominance. For instance, in June 2023, under their Nova brand of water-soluble fertilizers, ICL Group, owned by Everris International B.V., introduced a new range of sophisticated foliar and fertigation solutions in North America. Nova FINISH, Nova PULSE, Nova ELEVATE, and Nova FLOW are some of the flagship products. These solutions are developed to efficiently meet crop nutrient requirements to maximize solubility and offer a high degree of compatibility with most herbicides and crop protectants. They focus on offering high-purity, water-soluble N-P-Ks, and micronutrients.
Future Market Scenario (2024 - 2031F)
Consumers and government entities will continue to focus on sustainable agriculture, emphasizing ecologically friendly and bio-based liquid fertilizers.
The scope to enhance controlled-release and custom nutrient blends will be further developed to intensify efficiency and crop-specific solutions, reducing the negative environmental impacts.
The impact of climate change will be significant in the agricultural sector, focusing on the increased applications of liquid fertilizers.
Key Players Landscape and Outlook
The liquid fertilizers market is characterized by a diverse landscape of key players significantly influencing product innovation and market dynamics. Major companies focus on developing high-quality, nutrient-rich formulations tailored to the specific requirements of various crops and growing conditions. They invest in research and development to create advanced products that enhance plant growth, improve yield, and minimize environmental impact.
Furthermore, these players increasingly adopt sustainable practices and promote eco-friendly formulations to address growing environmental concerns. Precision agriculture techniques are on the rise, allowing for more efficient application of liquid fertilizers, ultimately leading to better resource management and cost savings for farmers.
The competitive landscape is expected to evolve as companies expand their geographical reach and form strategic partnerships to strengthen their market presence. With the increasing demand for food production due to global population growth, the outlook for the liquid fertilizers market remains positive, presenting opportunities for innovation, collaboration, and sustainable practices that align with the evolving needs of the agricultural sector. In May 2023, Biota Nutri BV and Fernland Agencies Pty Ltd announced a distribution arrangement under which Fernland was chosen by Biota, an Australian manufacturer of organic fertilizers, to serve as its distributor. As a result of this collaboration, Fernland is the sole distributor of Biota's plant-based Nutri products in Australia, bringing the country's first organic and vegan-friendly liquid fertilizers.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.