The global controlled release fertiliser market is expected to grow at a CAGR of 6.5% during the forecast period of 2023 to 2030. A number of reasons are predicted to boost the controlled release fertiliser industry in the coming years. These main reasons include the expansion in global population, application rates in developing nations, and demand for high-value crops. According to the International Fertilizer Association, poor farm economics and logistical difficulties caused by COVID-19 and related lockdowns led to a 3 percent drop in demand from July 2020 to June 2021.
Growing demand for high-efficiency fertiliser that not only meets a crop's nutrient demands but also helps it produce more is driving expansion in the controlled-release fertiliser market. The controlled-release fertiliser industry is expected to be driven by the world's rising population and the increased adoption of novel farming goods and practises by farmers. Optimization of nitrogen is crucial in turfgrass production since a nitrate shortfall can cause the grass to become yellow and lose vigour, increasing maintenance and replacement costs. The demand for polymer-coated urea and NPK fertilisers for turfgrass is expected to fuel market expansion over the forecast period. Alternative slow-release fertilisers NPK and urea fertilisers will be researched and developed, leading to technological breakthroughs in the market. Future technologies, like inverse suspension polymerization, are largely in the research stage but will soon be used commercially.The introduction of such fertilizers into water causes eutrophication, which destroys the aquatic ecology. In recent years, concern has grown over soil fertilisers and nutrients. As a result, fertilisers industries and groups around the world promote Best Management Practices. These practises are the basis for improved efficiency fertilisers (EEF), which farmers are urged to use. These approaches involve applying fertilisers in the right quantity, timing, and placement. In turn, they drive the controlled release fertiliser business.
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An increase in mineral fertiliser use generated a buildup in the soil. A UNCCD conference in Ordos indicated that rich soil is being lost at a pace of 24 billion metric tonnes per year. This was found in an Ordos research. The National Academy of Agricultural Sciences (NAAS), based in New Delhi, estimates that India loses 5.37–8.4 million tonnes of nutrients due to soil loss per year. Reduced crop quality is another direct result of soil erosion. Biodegradable polymer coatings are excellent for regulating nutrient release into the soil, reducing nutrient losses (such as ammonia volatilization), and preserving soil fertility.The Grantham Centre for Sustainable Futures at the University of Sheffield determined that soil degradation is so rapid that erosion is 100 times greater than soil production. This is due to extensive cultivation and extra non-biodegradable fertilisers. In contrast, the study discovered that it takes 500 years to construct 2.5 centimetres of topsoil when biological processes are unimpeded, despite the fact that 95% of food production occurs in the soil's uppermost layer.
Coated and encapsulated controlled release fertiliser had the highest revenue share in 2021. This is due to rising awareness of coated fertilisers' benefits and government subsidies and regulatory changes. These precisely defined government rules and regulations drive the growth of this market globally.Because of their ubiquitous use and accessibility, coated and encapsulated fertilisers are the most effective controlled-release fertiliser globally. This is because coated and encapsulated fertilisers are employed in developed and developing economies. Due to their highly regulated nutrient release qualities, controlled release fertilisers with polyolefin resin coating are becoming popular in agri-dominant economies around the world. Using organic and synthetic polymer coatings to encapsulate fertilisers increases nutrient uptake in plants and promotes healthy growth. Several studies over the past few years led to this conclusion.
The fertigation segment is expected to have the highest CAGR from 2023 to 2030. This is due to increasing productivity and better yields. Because of its reliability and effectiveness, this technique of administration is growing. The improved efficiency of fertigation reduces costs by 30% to 80% of the whole application. Fertilizer added to irrigation water and applied through various technologies is called "fertigation" and is used in many developed nations. This strategy is more useful than broadcasting or burying items.
In 2021, the non-agriculture-controlled release fertiliser market category had the most revenue. Non-agricultural industries are demanding more CRFs as purchasing power and environmental concerns develop. Despite this, the usage of controlled-release fertilisers on agricultural crops has expanded in industrialised and emerging nations due to rules governing them. The market is being driven by controlled-release fertilisers for turf and decorative grass. CRF has been used to maintain turf and ornamental grass in the US for over a decade, but its demand in poorer countries has recently grown. The convenience of using controlled-release fertilisers on ornamental plants is a significant demand driver. During the forecast period, controlled-release fertilisers will be used to produce high-value fruit, vegetables, and grains. This is projected due to increased food security concerns and demand for effective, smart fertilisers.
In 2021, Asia Pacific had the largest controlled release fertiliser market. Due to increased production of high-value crops and farmer awareness of controlled-release fertilisers, the market may have opportunity to grow. The government regulations and fertiliser subsidies in Asia Pacific are driving the growth of this market. In marginal locations, these subsidies can approach 100%. The APAC area is predicted to expand 7.1% from 2023 to 2030. This can be attributed to the growing populations of Asian nations like China and India, which increases food demand. It raises food prices. Because of their wide use in ornamental plant culture and high-value crop production, such as strawberries, lilies, and other plants, controlled-release fertilisers are expanding in western markets. Both controlled-release fertiliser production and consumption are high in Asia Pacific, with China and Japan being the main markets. China is predicted to grow at a CAGR of 7.3% from 2023 to 2030 and now has 25% of the market. Product growth in China can be attributed to Kingenta International and Hangfeng Evergreen, among others. Increasing research and innovation of agricultural products is also a component in China's prosperity. The above-mentioned countries also have policies supporting the use of intelligent fertilisers, which contributes to their expansion.
Many governments and states in North America and Europe have their own agriculture policy, which may include fertilisers. In certain industrialised economies, controlled-release fertiliser rules are still pending. The EU Fertilizing Products Regulation includes controlled-release fertiliser regulations. In addition, the authority has set strict guidelines for the future use of controlled-release fertilisers across the EU. Starting in 2026, it will be obligatory to wrap or coat fertilisers in biodegradable polymers, and chemically synthesised polymers will likely be outlawed.
The controlled-release fertiliser industry is now consolidated. The ICL Group, Haifa Group, Ekompany International BV, Nutrien Limited, and Florikan ESA LLC lead the global market. Their larger market share is due to their worldwide presence and production capabilities in developed and developing countries, including the Netherlands, Japan, China, and Malaysia, as well as their numerous goods in turf, horticulture, agriculture, and nurseries. These companies have more items in each subsector. Product innovation and collaboration are the main techniques organisations use to increase market share and manufacturing capacity using innovative technology. Yara International ASA of Norway, Nutrien Ltd. of Canada, The Mosaic Company of the US, ICL Group of Israel, Nufarm Ltd. of Australia, Kingenta of China, ScottsMiracle-Gro of the US, Koch Industries of the US, Helena Chemical of the US, and SQM are important participants in this industry (Chile). Through agreements and alliances, these firms are expanding their reach. These companies are big in North America, Asia-Pacific, and Europe. Also, they have manufacturing facilities and distribution networks in these regions.
Private label and regionally dominant players like SQM, ICL, and Pursell have set new standards for cost-effective fertilisers. These companies set these criteria. Agriculture giants are encouraged by this trend to speed up the introduction of their products and expand their product lines.Due to the product's potential growth, fertiliser heavyweights in the US, China, and Japan are eager to enter the market. Several of the leading businesses in the specialised fertiliser industry, like Kingenta, Haifa Chemicals, and Agrium, have grown their product ranges through mergers and acquisitions in recent years.Due to few local manufacturers, the controlled and slow-release fertilisers market is highly competitive and consolidated. Despite this, prominent players in the controlled and slow-release fertilisers industry have about a quarter of the global market share.
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