CONTROLLED RELEASE FERTILIZERS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Controlled Release Fertilizers Market Size and Trends

Global controlled release fertilizers market is estimated to be valued at USD 2.45 Bn in 2024 and is expected to reach USD 3.46 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5% from 2024 to 2031.

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There has been huge demand for controlled release fertilizers due to their various advantages over conventional fertilizers such as sustained nutrient release pattern, higher fertilizer use efficiency and need for fewer applications. Growing awareness among farmers regarding benefits of controlled release fertilizers can also drive the market growth. These help in improving crop quality and yield, which has encouraged their adoption rates across different regions. Stringent government regulations, such as Nutrient Management Guidelines, regarding fertilizer efficiency and environmental protection can also boost demand for controlled release fertilizers.

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Insights By Type - Increased Nutrient Efficiency and Extended Nutrient Release Boosts Polymer-Coated Fertilizers’ Adoption

In terms of type, polymer-coated fertilizers segment is estimated to contribute the highest market share of 45.1% in 2024, owing to its ability to increase nutrient efficiency for crops and extend the nutrient release period. Polymer coatings allow for a gradual and prolonged release of nutrients into the soil over weeks or months, matching the fertilizer release to the crop's nutrient requirements.

Insights By Crop Type - Higher Crop Yields and Quality Boosts Demand from Cereals & Grains Producers

In terms of crop type, cereals & grains segment is estimated to contribute the highest market share of 40.25% in 2024, as controlled release fertilizers significantly increase the yields and quality of cereal and grain crops. The even and sustained release of nutrients matched to the crop growth stages results in vigorous plant growth and maximized grain filling. Farmers are able to attain higher yields with fewer applications compared to conventional fertilizers.

Insights By Mode of Application - Foliar Application Emerges as a Preferred Mode for Delivering Time-Released Nutrients

In terms of mode of application, foliar segment is estimated to contribute the highest market share of 36.5% in 2024, due to its merits over other modes. As foliage can absorb nutrient solutions much faster than soil, foliar application of controlled release fertilizers allows for quicker greening and more even plant growth especially during early stages. This ensures crops get immediate and adequate nutrition from the start.

Regional Insights

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Dominating Region- Asia Pacific

Asia Pacific is expected to dominate this market in 2024, with an estimated market share of 68.5%. Asia Pacific dominates due to favorable government policies such as Awareness Programs in China promoting sustainable agriculture practices and presence of several agrochemical leaders. Large scale commercial agriculture and stringent nutrient-use efficiency norms have boosted demand for controlled releases fertilizers.

Fastest-Growing Region- North America

North America region exhibits the fastest growth due to rapidly developing agriculture industry across major economies. Government initiatives such as Fertilizer Production Expansion Program to increase crop yields using advanced technologies are encouraging adoption. In March 2023, the U.S. Department of Agriculture (USDA) announced $29 million in grants to increase domestic fertilizer production, including CRFs, aiming to provide farmers with more choices and fairer prices.

Controlled Release Fertilizers Market Outlook for Key Countries

Innovations and Investments in the U.S.

The U.S. controlled release fertilizers market is led by major brands innovating fertilizer solutions tailored for the country's wide-ranging soil types and crops. The presence of major market players and technological advancements in farming contribute to market growth. Government support, including tax credits and incentives, further propels market growth. For instance, the U.S. Department of Agriculture (USDA) announced a US$29 million investment to boost domestic fertilizer production, with US$4.9 million allocated to Pursell Agri-Tech LLC, a CRF manufacturer, to increase inventory by 40,000 tons per year.

Population Growth, Sustainability, and Technological Advancements in China

China's market expansion is supported by growing population requiring high volume food production and export. China's controlled release fertilizers market is expanding due to the country's focus on enhancing agricultural productivity and sustainability. The government's initiatives to promote efficient fertilizer use and reduce environmental impact encourages the adoption of controlled release fertilizers. Technological advancements in agriculture and the need to support a large population's food requirements further drives the market growth.

Growth Driven by Government Support and Land Constraints in India

India's controlled release fertilizers market can witness growth due to rising government initiatives such as Neem-Coated Urea Policy and growing awareness about yield-enhancing fertilizers. Shrinking agricultural land per hectare, driven by increasing urbanization, further boosts demand for efficient fertilizer solutions.

Efficiency, Technology, and Rice Crop Success in Japan

Japan is a leading consumer of controlled release fertilizers, with a high level of technological advancement in agriculture. Japanese farmers prefer practices that reduce both the amount of fertilizer and their labor, owing to smaller farms and their involvement in other occupations. This preference is expected to augment controlled release fertilizers demand in the region. Excellent results on rice crops achieved by controlled release fertilizers are anticipated to drive the market growth.

Growth Fueled by Technology and Sustainability in Canada

Canada's controlled release fertilizers market is expanding due to advancements in agricultural technology, focus on sustainable practices, and rising demand in turf and ornamental grass sectors, supported by key industry players. Innovations in coating materials for CRFs, such as biodegradable polymers, align with the country's commitment to sustainable farming practices. Canada's extensive golf course industry and public parks require turf management solutions that ensure consistent growth and minimal maintenance. CRFs provide steady nutrient supply, making them ideal for these applications.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Controlled Release Fertilizers Market Players

• Established Players- Leading companies in this market heavily invest in research and development to introduce innovative products. For example, Kingenta Ecological Engineering Group Co. Ltd., a top China-based manufacturer, allocates over 5% of annual revenue to R&D. This focus has allowed Kingenta to successfully launch products like polymer-coated and sulphur-coated urea fertilizers.
• Mid-Level Players- Mid-sized companies carve out market share by offering affordable controlled release fertilizers. For example, Pursell Agritech focuses on delivering quality sulfur-coated urea at competitive prices for domestic U.S. farmers.
• Small-scale firms focus on niche innovations, such as fertilizers tailored for specific crops or regional needs. By leveraging agility, these can quickly respond to local market demands. Smaller companies such as Morral Companies LLC collaborate with local distributors or agricultural cooperatives to improve market access and build trust with farmers. Smaller firms focus on strengthening their presence in domestic markets or nearby regions where these can leverage localized knowledge and relationships.

Emerging Startups in the Global Controlled Release Fertilizers Market

Innovative Technologies- Several startups are actively engaged in creating advanced technologies to improve nutrient use efficiency and environmental sustainability. For instance, Terragrow develops smart nanocoating technologies using graphene and nanoclay for precisely triggering nutrient release. Its sensors and AI platform also help farmers make optimal fertilization decisions. AgroChemical focuses on precision release plastic coatings made from recycled plastics and biopolymers. This significantly reduces pollution from conventional polymer synthesis.

Such innovations have potential to substantially transform the market. Smart sensors and data platforms may facilitate optimizing fertilizer type and quantity according to soil-plant conditions, minimizing losses. Biodegradable coatings can decrease environmental footprint.

Controlled Release Fertilizers Industry News

• In January 2024, Yara partnered with Pursell Agritech to combine Pursell's cutting-edge coating technology with Yara's enhanced product range. This partnership aims to deliver competitively priced products and has resulted in the launch of PurMidas, a controlled-release fertilizer specifically designed for turf applications, offering an efficient 7:1 nitrogen-to-sulfur ratio.
• In May 2022, ICL introduced three new NPK formulations under the Solinure brand, featuring enhanced trace elements to boost crop yields
• In May 2022, ICL signed deals with customers in India and China to supply 600,000 metric tons and 700,000 metric tons of potash, respectively, at a price of US$ 590 per ton for 2022
• In March 2022, The Haifa Group entered into a purchase agreement to acquire Horticoop Andina, a distributor of agricultural nutrition products, from HORTICOOP BV. This acquisition aims to strengthen Haifa’s presence in the Latin American market and reinforce its position as a leading global brand in advanced plant nutrition.

Key Takeaways from Analyst

• Growing emphasis on improving fertilizer use efficiency and crop productivity can drive the market growth. Controlled release fertilizers help to deliver nutrients to plants in a gradual and sustained manner which increases nutrient uptake and reduces losses. This helps improve yield as well as reduce farmers' input costs. Asia Pacific region, led by India and China, will continue to dominate the global controlled release fertilizers market due to strong growth in agricultural production and emphasis on new technologies in these countries.
• North America will be another major market propelled by rising adoption of controlled releases fertilizers in the U.S. turf and landscape segment. Rising farmer awareness about benefits of controlled release fertilizers through educational programs can drive the market growth. High crop prices remain an incentive for farmers to optimize fertilizer usage. However, higher costs compared to regular fertilizers could limit widespread adoption. Other challenges include greater technical know-how needed to handle these fertilizers and reliance on weather conditions. Coating technology innovations extending nutrient release period could help address some of these challenges.

Market Report Scope

Market Dynamics

Market Driver- Increasing demand for sustainable agriculture practices and higher crop yields

The global controlled release fertilizers market growth is driven by the urgent need for sustainable agriculture and higher crop yields, as food production must scale to meet the demands of a population exceeding 9 billion by 2050. CRFs offer eco-friendly solutions, reducing environmental harm while enhancing efficiency. For instance, in India, the government’s promotion of neem-coated urea, a CRF, has effectively mitigated nitrogen losses from traditional fertilizers, improving productivity and sustainability.

Market Challenge- High production costs associated with controlled release fertilizers

One of the key challenges faced by the market includes high production costs associated with controlled release fertilizers as compared to regular fertilizers. Controlled release fertilizers require advanced formulation and coating technologies to slowly release nutrients over a period of time as per the crop needs. These technologies involve multiple processing steps such as grinding, extruding, coating and sealing which make the production process complex and capital intensive. The specialty materials and chemicals used for coatings and sealants further increase the raw material costs.

Market Opportunity- Technological advancements in fertilizer formulation and coating technologies

The global controlled release fertilizers market offers substantial opportunities for technology providers to advance fertilizer formulations and coating technologies. There is significant potential for developing new coating materials that deliver efficient nutrient release solutions at a lower cost compared to current options. Innovations in polymer chemistry could pave the way for materials with adjustable coating thickness, porosity, and tailored nutrient release patterns. Additionally, emerging technologies like thin-film nanocoating using nanomaterials hold promise for creating ultra-thin, multi-nutrient coatings, opening up new possibilities in the industry.

Market Segmentation

•  Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Polymer-Coated Fertilizers
  • Sulfur-Coated Fertilizers
  • Organic Coated Fertilizers
  • Others
•  Crop Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Cereals & Grains
  • Fruits & Vegetables
  • Turf & Ornamentals
  • Others
•  Mode of Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Foliar
  • Fertigation
  • Soil
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Nutrien Ltd.
  • The Scotts Miracle-Gro Company
  • Yara International ASA
  • ICL Group Ltd.
  • Haifa Group
  • Agrium Inc.
  • Osmocote (Everris)
  • Koch Industries, Inc.
  • Sinochem International Corporation
  • Arysta LifeScience Corporation
  • Compo Expert GmbH
  • UPL Limited
  • Aglukon Spezialdünger GmbH & Co. KG
  • Greenfeed Agro Co., Ltd.
  • SQM (Sociedad Química y Minera de Chile)