Complex Fertilizers Market is Estimated to Witness High Growth Owing to Increasing Demand for High Nutrient Fertilizers and Growing Organic Farming
The complex fertilizers market is estimated to be valued at USD 38.83 billion in 2024, exhibiting a CAGR of 5.8% over the forecast period (2024-2031). Complex fertilizers find wide applications in organic farming as they slowly release nutrients and help improve soil health. Furthermore, the growing demand for high nutrient fertilizers from farmers to boost crop yields is also driving the complex fertilizers market.
The growth of the complex fertilizers market is driven by the increasing demand for high nutrient fertilizers and rapid adoption of organic farming practices. Complex fertilizers contain three or more essential plant nutrients in suitable proportions required for plant growth. They slowly release nutrients and are highly beneficial for organic farming as they improve soil fertility without harming the environment. Furthermore, population growth and rising food demand have increased the focus on enhancing crop productivity through efficient fertilizer solutions. Complex fertilizers help bridge the gap between demand and the availability of nutrients and support sustainable agriculture. While stringent regulations around fertilizer usage present a challenge, new product launches with controlled release formulations are expected to present lucrative opportunities for market players over the forecast period.
Increasing Demand for High Nutrient Crops
Complex fertilizers provide multiple nutrients like nitrogen, phosphorus, and potassium in a single application which helps farmers meet the nutritional requirements of high yielding crop varieties. The demand for food grains and other agricultural commodities is rising significantly due to the growing population. Farmers are cultivating high nutrient demanding crops to maximize yields in order to meet this growing demand. The use of complex fertilizers optimizes the uptake of nutrients by crops and boosts agricultural productivity.
Focus on Maximizing Resource Utilization
Farmers are under growing pressure to increase crop yields while minimizing the environmental impact of agriculture. Complex fertilizers allow for balanced and efficient utilization of soil nutrients which prevents the wastage and run-off of individual nutrients applied through single nutrient fertilizers. This balanced application improves resource-use efficiency and encourages sustainable intensification of agricultural production. Many governments and international organizations are promoting the use of complex fertilizers to optimize resource utilization in agricultural systems.
Higher Cost than Individual Nutrient Fertilizers
The manufacturing process of complex fertilizers that ensures proper blending and coating of multiple nutrients makes them more expensive than single nutrient fertilizers per unit of nutrient. The initial capital required for farmers to shift to complex fertilizers from the conventional practice of applying individual nutrient fertilizers separately is also high. This price difference acts as a major restraint in the widespread adoption of complex fertilizers especially in developing regions where smallholder farmers have limited financial means.
Lack of Awareness about Benefits
There exists a gap in awareness among many smallholder farmers about the benefits of applying balanced and complete nutrition to crops through complex fertilizers. Traditional farming practices tend to focus more on maximizing the usage of the most widely available individual nutrient fertilizers like urea or DAP. Educating farmers about the yield-enhancement and resource optimization potential of complex fertilizers is important to drive their adoption. Lack of awareness continues to hinder the growth of the complex fertilizers market to some extent.
Growth in Organized Retailing
The expansion of organized retailing channels for agricultural inputs like fertilizers, seeds, pesticides, etc. in developing countries provides an important opportunity. E-commerce platforms and retail chains promote complex fertilizers more effectively than the unorganized small kirana shops traditionally used by farmers. This exposes more farmers to complex fertilizer products and educates them about their benefits, driving higher demand.
Policy Support for Resource Efficiency
Many national and international policies and regulations now promote resource-efficient and sustainable practices in agriculture. Subsidies and other encouragements offered by governments for the use of complex fertilizers fit well within this policy emphasis on optimized resource-use. Leveraging the tailwinds of such supportive policy ecosystem can help companies tap new growth opportunities in the complex fertilizers market.
Link: https://www.coherentmarketinsights.com/market-insight/complex-fertilizers-market-1995
Key Developments
- In June 2024, Coromandel International introduced a new magnesium-fortified complex grade fertilizer named 'Paramfos Plus' in Bengaluru.
- In March 2024, EuroChem unveiled a state-of-the-art phosphate fertilizer complex in Brazil.
- In 2023, Krishana Phoschem launches newly formulated complex fertilizers, Bharat DAP & Bharath NPK in Hyderabad.
Key Players
Yara International ASA, Potash Corporation of Saskatchewan Inc., CF Industries Holdings Inc., The Mosaic Company, Israel Chemicals Limited, Eurochem Group AG, Haifa Chemicals Ltd., PJSC PhosAgro, Adventz Group, Sociedad Química y Minera de, Zuari Agro Chemicals Ltd, PhosAgro, Agrium Inc., Israel Chemicals Limited, Yara International ASA, The Mosaic Company, Helena Chemical Company , Chambal Fertilisers, Rashtriya Chemicals & Fertilizers, and Madras Fertilizers Ltd.
