Water Soluble Fertilizer Market Size, Share, and Trends 2024 to 2034

Water Soluble Fertilizer Market Size and Growth 2024 to 2034

The global water soluble fertilizer market size accounted for USD 16.07 billion in 2024 and is expected to be worth around USD 26.28 billion by 2034, at a CAGR of 5% from 2024 to 2034. Growers are widely accepting water-soluble fertilizers due to their ease of application, increasing environmental change concerns, and high effectiveness of water-soluble fertilizers. These major factors are driving the water soluble fertilizer market on a global scale.

Water Soluble Fertilizer Market Key Takeaways

• Asia Pacific led the market with the largest market share of 46% in 2023.
• Europe is observed to be the fastest growing marketplace during the forecast period.
• By form, the dry powder segment has accounted more than 84% of market share in 2023.
• By type, the nitrogenous fertilizer segment remains high throughout the years.
• By application, the fertigation segment dominated the market with the largest share of f69% in 2023.
• By type of crop, the horticulture crops segment dominated the market in 2023.

Asia Pacific Water Soluble Fertilizer Market Size and Growth 2024 to 2034

The Asia Pacific water soluble fertilizer market size was estimated at USD 7.04 billion in 2023 and is predicted to be worth around USD 12.09 billion by 2034, at a CAGR of 5.2% from 2024 to 2034.

Asia Pacific held the dominating share of the market in 2023. Limited resources for farming purposes, including water resources, have escalated the demand for water-soluble fertilizers. Production of high-value crops in Asia and Southeast Asia has been increasing owing to urbanization and the evolving economy, which is expected to fuel market growth. Subsidizing water-soluble fertilizers is anticipated to increase their usage in the farming sector at a higher pace.

For instance, the government of India is promoting fertilizer companies by providing various facilities and funding to increase their production of specialized fertilizers in terms of gaining higher profit margins in the agriculture field for the overall country, as farming is a principal occupation of people in the India and primary income source for the majority of villagers in the country.

Moreover, in the Asia Pacific region, multinational companies like Nutrien and ICL have invested in larger shares, as this region has proliferating opportunities, which makes it an emerging profitable market for the specialized fertilizer market.

Europe is observed to witness significant growth due to the high adoption of specialized fertilizers in countries such as France, Russia, and Spain. This growth is further bolstered by the expansion of many businesses in the fertilizer production sector over the past few years. A prime example of this expansion is the inauguration of a water-soluble fertilizer production plant in Lithuania in 2018 by EuroChem Group, a leading global business group in fertilizer production. With an investment of up to USD 16 million, this move has further solidified Europe's global water soluble fertilizer market growth.

Market Overview

The global water soluble fertilizer market has seen rapid growth over a short period of time, and it is anticipated to grow further due to the higher crop production in the global market. Water soluble fertilizers are easily blended into the water, making them convenient for use, and they can be removed from the soil very quickly. Using water-soluble fertilizer makes it easy to control the precise number of nutritional values that crops need to get the best out of it. These water-soluble fertilizers consist of NPK numbers, which mention the grades of nutrients available in them and not about concentration. Here, N is nitrogen, P is for phosphorus, and K is for potassium. Nitrogen is the most vital component as it contributes to making protoplasm in the cells, which makes proteins in the plant.

Nitrogen is required for the growth of the plants as it supports new plant leaf growth by using the production of chlorophyll. Meanwhile, phosphorus is essential for photosynthesis, which supports plants' energy transfer mechanism. Potassium provides movement of starches and sugars required for growth. Additionally, fertilizer also has micronutrients in it for the complete development of plants. Due to such benefits, farmers or growers increasingly use this fertilizer as their routine owing to the awareness about precise farming that requires acute care and a specific number of fertilizers. Cereals need more water-soluble fertilizer than any other crops. Using water-soluble fertilizer in cereal crops can help greatly achieve the health and quality of cereal crops. As water-soluble fertilizers can easily provide life-essential nutrients for the optimal growth of plants, they are now widely used by several growers.

Water Soluble Fertilizer Market Growth Factors

• The global water-soluble fertilizer industry is predicted to expand due to a lack of arable land.
• Water-soluble fertilizer is a power-packed mix of micronutrients for crop production that can be dissolved easily in the water and, therefore, is easily absorbed by the crops through the water.
• Water soluble fertilizer has a high absorption with a high utilization rate compared to conventional fertilizers, which are mostly chemically loaded.
• The irrigation system makes fertilizer application easy as it integrates water and fertilizer. Hence, micro-irrigation systems are primarily used by many farmers.
• The globally rising population requires more food and vegetables, which increases demand for the agriculture sector and, therefore, drives the water soluble fertilizer market.
• The availability of agriculture loans and funding by many government bodies further fuels the demand for specialized fertilizers.
• The presence of advanced agriculture methods and the adoption of precision farming have increased in recent years.
• The positive approach of growers towards the horticulture sector driving the water soluble fertilizer market.
• Fertigation is a majorly adopted practice by growers; it can save resources and produce maximum results.
• Increasing urbanization and population across the globe have led to a rise in the demand for quality food, and thus, the agriculture sector is flourishing, which in turn drives the water soluble fertilizer market.
• Major key players in the market are investing in the research and development of water-soluble fertilizers to develop more innovative products of higher quality and productivity.

Market Scope

Market Dynamics

Driver

Increasing demand for high value crops

The demand for water-soluble fertilizer is expected to witness a rapid surge in the market during the foreseen years owing to the higher requirement of specialized fertilizers for different types of crops, which in turn enhances the farming production of high-value crops as people become more aware of the fertilizers and its side effects on plants they tend to be more cautious while food consumption and production solution. Moreover, the rising world population in developing countries has already raised concerns about the quality of food production and its security.to overcome such a problem, government authorities of many countries, including the agriculture sector, have initiated several programs to spread awareness about specialized fertilizers for better plant quality and make farmers educated about the type of fertilizers and their quantity use, which aids the water soluble fertilizer market growth.

Restraint

Overpricing of water-soluble fertilizer

The high price of fertilizers for high-value crops, such as water-soluble fertilizers, can act as a major barrier to market growth. As specialized fertilizers are overpriced due to the production cost, it is not reasonable for farmers in developing and underdeveloped countries where such a high-value fertilizer is needed most in terms of increasing the growth index for the farming sector. To overcome this budget issue, stakeholders of the fertilizer industry are investing in research and development activities to produce more efficient and cost-friendly products of high-value fertilizer, and they also focus on the technologies that could be merged into fertilizer production to evaluate and increase the efficacy of the fertilizer production. Such continued efforts may reduce the overpricing of high-value fertilizers and make them available even for low-margin farmers and in countries with low per capita income.

Opportunity

Rising importance of water-soluble fertilizer

The growing population requires more food grains, vegetables, fruits, etc., increasing demand to adopt farming more significantly globally—such an increasing demand in the farming sector fuels water soluble fertilizer market growth. Healthy crops need specialized fertilizers with micro-irrigation. Water-soluble fertilizers can be easily sprinkled using a water irrigation system, which enhances the productivity of crops overall. Additionally, many government bodies support the farming sector with several initiatives and funding, which help fuel market growth further and create tremendous career opportunities in this field.

• For instance, the Indian government has a ' Make in India' policy in which agriculture loans and several facilities are approved by authorities, which further fuels market growth on a broader scale.

Form Insights

The dry powder segment of fertilizer dominated the market and is expected to acquire higher growth among the water-soluble fertilizer types. These are available in a granular form or a fine powder form so that they blend easily with the base compound, which is usually water. As fertilizer in granular or powder form dissolves quickly in the water, it is applied to the plants and absorbed by the crops effectively.

Also, they are easy to store and transport and do not have any deformation from climatic changes. Dry water-soluble fertilizer can be applied directly by using a micro irrigation system. These fertilizers comprise various essential nutrients that help crops grow at their highest possibility and quality.

Type Insights

The demand for nitrogenous fertilizer segment remains dominant throughout the years which also held the largest share in 2023. It is anticipated to witness robust growth on a global scale over the forecast period owing to its higher production rate. Rising concerns such as loss of crops due to the uncertain weather conditions because of global warming effect may decrease plant production. To conquer such matters related to farming methods, the demand for phosphatic fertilizers is anticipated to see higher growth in the forecast period.

Application Insights

The fertigation segment held the largest share of the water soluble fertilizer market. Fertigation is a fertilizer application to the crops. Using this method, nutritional deficiency in crops can be controlled significantly. The application method is mostly preferable due to its effectiveness, and it saves up to 25% of fertilizer usage.

The fertigation method is the proper method to apply fertilizer and produces the utmost production through it as water-soluble fertilizers are costly; it is essential not to waste it and use it properly with the predefined method. Due to these conditions, fertigation is the most preferable application method used on a global level.

Crop Type Insights

The horticulture segment is dominating the global market, and it is anticipated to witness massive growth over the forecast period. it is the fastest-growing segment due to the increasing demand for nutritional-rich and organic food diets worldwide. To achieve this, high-value crops need to be planted and flourish more widely. Many horticulture crops require various nutrients and favourable weather conditions for proper growth. These specialized fertilizers can provide nutritional value for the crops.

Water Soluble Fertilizer Market Companies

• SQM, Chile
• ICL, Israel
• COMPO EXPERT, Germany
• Nutrien Ltd. Canada
• Yara International, Norway
• Haifa Chemicals Limited, Israel
• The Mosaic Company, US Florida
• EuroChem, Switzerland
• Coromandel International Limited, India
• Qatar Fertilizer Company, Qatar
• Kawneer company, Inc
• Everiss
• VAKI-CHIM Ltd.
• Sinochem Hong Kong
• DCM Shriram Farm Solutions
• Nagarjuna Fertilizers & chemicals Ltd.
• Captain Polyplast Ltd.
• Indian Farmers Fertiliser Cooperative Ltd.
• Gujarat state Fertilizers & chemicals Ltd.

Recent Developments

• In June 2022, Israel Chemical Ltd. Made a contract to supply polysulfate with renewable methods to India Potash Limited. This collaboration is expected to boost India's organic agriculture program. It will also help ICL connect with Indian farmers in different regions and make their presence more robust in the Asian water soluble fertilizer market. 
• In February 2022, YARA acquired around 14% stake in the online platform Orbia from Brazil, which is primarily owned by Bayer AG from Germany. YARA expected to gain up to 25% of its sales from online platforms by 2025.
• In July 2022, Casa do Abudo, a Brazilian company, entered an agreement with Nutrien. The deal includes 39 retail locations and ten distribution channels under the Casa do Abudo brand. This agreement is for nearly USD 400 million. Such a step will strengthen the company's hold in the South American market and help it grow further with the highest shares in the water-soluble fertilizers market. 
• In January 2020, Gujarat Agro Industries Corporation, GAIC, launched a new generation fertilizer product with the brand name AGRO. Which, in turn, promotes agriculture industries and the importation of water-soluble fertilizer products into the Asian market.
• In December 2019, van Iperen International established itself by offering a broad range of specialized fertilizers and providing subsidiary benefits to the consumers, strengthening its presence in the US market as they collaborated with Milliken company.

Segments Covered in the Report

By Form

• Dry powder
• Liquid

By Type

• Nitrogenous
• Phosphatic
• Potassic
• Others

By Application

• Foliar
• Fertigation

By Crop Type

• Horticulture
• Field Crop
• Turf and Ornamentals
• Others

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa