Fertilizer & Agricultural Chemical Market

Fertilizer & Agricultural Chemical Market Outlook (2024 to 2034)

Revenue from the global fertilizer & agricultural chemical market is estimated to be valued at US$ 452.66 billion in 2024. The market is projected to rise at a 5.7% CAGR and reach a valuation of US$ 785.26 billion by the end of 2034.

In several countries, governments offer subsidies for fertilizers and pesticides to help farmers and guarantee food security. These policies are positively influencing the fertilizer & agricultural chemical market size expansion, as they primarily promote the use of farming inputs. Programs that support sustainable practices are driving consumer demand for environment-friendly goods, as per industry analysis.

Moreover, the need for high-end fertilizers and crop protection chemicals is increasing due to the growing demand for high-value commodities, such as fruits, vegetables, specialty plants, etc. These crops often require specialized protection and fertilizer management, which is increasing the adoption of advanced agricultural methods, such as precision farming.

Innovations, such as water-soluble fertilizers, slow-release fertilizers, and nano-fertilizers are changing the market dynamics by increasing nutrient efficiency and lowering environmental impact. These advanced formulations address the dual objectives of sustainability and production by offering improved control over nutrient delivery.

Key Market Growth Drivers

• According to the UN (United Nations), the world’s population is projected to reach 9.7 billion by 2050. Due to the growing population, the need for fertilizers & agricultural chemicals is rising along with food demand.
• Fertilizers & agricultural chemicals are crucial for farmers to increase crop yields as well as productivity, and guarantee a sufficient food supply to fulfill demand.
• The utilization of fertilizers based on nitrogen, phosphate, and potassium is increasing because of the rising consumption of staple crops, such as rice, wheat, corn, and others.
• The fertilizer & agricultural chemical market growth is driven by precision farming technologies, including GPS-guided equipment, soil health monitoring, and others. By reducing waste, increasing productivity, and optimizing input use, these techniques are pushing the development of specialized and specially designed products.
• Utilization of bio-based solutions is increasing at a noticeable growth rate. Biopesticides and biofertilizers, made from natural creatures and processes, are becoming more popular as they are environmentally beneficial and leave no residue behind, creating a conducive environment for market players.

Report Attribute	Detail
Fertilizer & Agricultural Chemical Market Size (2024E)	US$ 452.66 Billion
Forecasted Market Value (2034F)	US$ 785.26 Billion
Global Market Growth Rate (2024 to 2034)	5.7% CAGR
North America Market Value (2024E)	US$ 95.78 Billion
East Asia Market Growth Rate (2024 to 2034)	7% CAGR
Fertilizers Segment Value (2034F)	US$ 436.35 Billion
Wheat Growers Segment Value (2034F)	US$ 138.04 Billion
Key Companies Profiled	Coromandel International Limited; K+S Aktiengesellschaft; OCI N.V.; Shandong Hualu Hengsheng Group Co., Ltd.; Acron Group; ICL Group Ltd.; Yara International ASA; Nutrien Ltd.; PhosAgro PJSC; CF Industries Holdings, Inc.; Dhanuka Agritech; Indian Farmers Fertiliser Cooperative Limited (IFFCO)

Which Trends are Providing New Market Opportunities to Manufacturers?

“Increasing Adoption of Advanced Agricultural Techniques Driving Market Growth”

Precision farming technologies are allowing the use of GPS-guided machinery or soil health monitoring seeders, making it possible to apply fertilizers and agricultural chemicals more accurately and efficiently. Such techniques reduce their waste and costs by optimizing input to meet crops' soil conditions and needs. This is driving the demand for specialized and custom-formulated products in sync with modern farming practices, aiding fertilizer & agricultural chemical market growth.

Other than this, changing climatic conditions, unpredictable weather patterns, and rising pest outbreaks compel farmers to use agricultural chemicals to protect crops and yield. Drought-resistant fertilizers with pest-specific chemicals are increasing in demand as farmers adapt to these challenges, as mentioned in the fertilizer & agricultural chemical industry outlook.

What is Limiting the Use of Fertilizers and Agricultural Chemicals?

“Excessive Utilization Sometimes Negatively Impacts Environment and Market”

Concerns regarding long-term sustainability are sometimes raised by the overuse of chemicals and fertilizers as it possibly leads to soil erosion, water pollution, and adverse ecological repercussions. To safeguard the environment and public health, governments are responding by imposing more stringent laws to regulate the utilization and manufacture of these products.

Such regulations usually lead to higher compliance costs among manufacturers and restrict the availability of certain chemicals, which slow down market growth.

When the same chemical formulations, such as pesticides and herbicides, are used repeatedly, weeds and pests sometimes become resistant, decreasing the treatments' effectiveness over time. Farmers, thus have to deal with the problem of less crop protection, necessitating the use of substitutes.

Because of this, there is a constant need for innovation and the creation of new formulations, which drives up research and development expenses for businesses. As per Fact.MR published fertilizer & agricultural chemical industry analysis, this aspect is somehow limiting the demand growth.

Country-wise Insights

East Asia is forecasted to hold a sizable portion of the fertilizer & agricultural chemical market share over the next ten years. The well-established agriculture sector in the region, coupled with the rising food demand owing to the growing population, is driving the market. Local farmers are adopting fertilizers and crop protection chemicals to improve productivity and food security.

What is the Market Scenario for Fertilizers & Agricultural Chemicals in the United States?

“Application of Fertilizers and Agricultural Chemicals Increasing to Enhance Crop Productivity”

Attribute	United States
Market Value (2024E)	US$ 85.8 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 150.84 Billion

The United States is one of the important producers of agricultural products, cultivating crops, such as corn, soybeans, wheat, fruits, and others. These crops need high fertilizer levels to preserve soil fertility and maximize harvests, due to this the demand for fertilizers and agricultural chemicals is continuously increasing in the country.

Fertilizers are widely used by farmers to increase crop yield to meet the rising demand for food both domestically and internationally. The demand for fertilizers is driven by the requirement for higher productivity and efficiency in both domestic and export markets, which keeps American agriculture competitive and able to meet the world's food needs.

Why is South Korea a Profitable Market for Fertilizer and Agricultural Chemical Producers?

“Financial Assistance and Subsidies for Farmers Driving Up Demand”

Attribute	South Korea
Market Value (2024E)	US$ 28.57 Billion
Growth Rate (2024 to 2034)	6.5% CAGR
Projected Value (2034F)	US$ 54.2 Billion

The government of South Korea is playing a crucial role in increasing farming output by providing subsidies and support initiatives that are driving up demand for fertilizers and agricultural chemicals. Due to government support, farmers obtain necessary inputs without encountering financial obstacles. Particularly for smaller farmers, who find it difficult to buy the agricultural chemicals required to maintain or increase crop production, these subsidies are crucial.

One of the key ongoing fertilizer & agricultural chemical market trends in South Korea is increasing focus on driving up the utilization rate of sustainable practices. This trend is further driving up demand for eco-friendly fertilizers and agricultural chemicals.

Category-wise Insights

Based on product and service, the pesticides segment is projected to rise at 5.8% CAGR over the assessment period (2024 to 2034). The demand for pesticides is increasing at a faster pace than other segments due to their essential role in enhancing crop yields and ensuring sufficient food production to meet the growing demand.

Why is Demand for Fertilizers High in Comparison with Other Products?

“Dependability on Fertilizers Rising Due to Growing Urbanization on Arable Land and Environmental Deterioration”

Attribute	Fertilizers
Segment Value (2024E)	US$ 253.23 Billion
Growth Rate (2024 to 2034)	5.6% CAGR
Projected Value (2034F)	US$ 436.35 Billion

Demand for fertilizers is high in comparison with pesticides and other agricultural chemicals due to their crucial role in enhancing crop yields and productivity. Because of the increasing worldwide population, the need for more agricultural production is also rising to meet food demand, which in turn is driving up demand for fertilizers. The dependability of farmers is increasing on fertilizers in several countries to preserve soil fertility and increase agricultural yields as arable land becomes scarcer because of urbanization and environmental deterioration.

Why is Utilization of Fertilizers and Agricultural Chemicals Rising Among Wheat Growers?

“Significant Adoption of Agricultural Chemicals Among Wheat Growers Due to Rising Consumption”

Attribute	Wheat Growers
Segment Value (2024E)	US$ 72.25 Billion
Growth Rate (2024 to 2034)	6.7% CAGR
Projected Value (2034F)	US$ 138.04 Billion

Wheat growers are widely using fertilizers and agricultural chemicals to increase crop yields and enhance productivity. Farmers are using modern agricultural inputs to meet the growing demand for staple crops, such as wheat. Agricultural pesticides help shield crops from pests and diseases, while fertilizers improve soil fertility and supply vital nutrients.

Precision farming technology advancements are also making it possible to use these inputs more effectively, increasing their efficacy, and decreasing waste. Wheat farmers are forced to rely more on fertilizers and agricultural chemicals to guarantee a steady supply and improve the quality of their harvests.

Competitive Landscape

Key players in the fertilizer & agricultural chemical industry are making significant investments in research and development activities to produce new and effective products, such as precision farming tools, bio-based herbicides, slow-release fertilizers, and others. By providing advanced products that enhance sustainability and crop yields, they meet changing consumer demands and obtain a competitive advantage.

• In July 2024, the Nano Fertiliser Usage Promotion Mahaabhiyan was created by the Indian Farmers Fertiliser Cooperative Limited (IFFCO) to encourage the usage of nano-fertilizers.
• In April 2024, Dhanuka Agritech, India's prominent agrochemical business, launched two new products: an insecticide called 'LaNevo' and a bio-fertilizer called 'MYCORe Super', both meant to protect crops and increase yields in agriculture.

Fact.MR provides detailed information about the price points of prominent manufacturers of fertilizers & agricultural chemicals positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Fertilizer & Agricultural Chemical Market Research

• By Product & Service :

  • Fertilizers
  • Pesticides
  • Other Agricultural Chemicals

• By Major Market:

  • Wheat Growers
  • Fruit & Vegetable Growers
  • Corn Growers
  • Rice Growers
  • Non-Agricultural Users
  • Cotton Growers
  • Soybean Growers
  • Other Cereals Producers

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa