NPK fertilizers Market Segmented By Liquid NPK Fertilizers, Powder NPK Fertilizers Form in Organic and Synthetic Nature with Phosphorus and Potassium (PK) Fertilizers, Sulphur-based (NK) Compound Fertilizers, Chlorine-based Compound Fertilizers Product
Industry: Food and Beverages
Published Date: June-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 369
Report ID: PMRREP31977
The global NPK fertilizers market currently enjoys a valuation of US$ 118 Bn and is predicted to expand at a CAGR of 3% to reach US$ 158.16 Bn by the end of 2032.
The sales value of NPK fertilizers accounts for around 55% to 75% share of the global fertilizers market.
| Attribute | Key Insights |
|---|---|
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NPK Fertilizers Market Size (2022E) |
US$ 118 Bn |
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Projected Sales of NPK Fertilizers (2032F) |
US$ 158.16 Bn |
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Global Market Growth Rate (2022-2032) |
3% CAGR |
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Value Share of Top 5 Countries (2021A) |
60% |
During the historical period (2017-2021), the global NPK fertilizers market registered a value CAGR of 1.9%.
Nitrogen, phosphorus, and potassium (NPK) are vital nutrients in commercial fertilizers. The major factor that drives the market for NPK fertilizers is the elimination of nutritional deficiency in crops and other plants that can be caused due to intensive cropping.
Nitrogen is considered an important nutrient as compared to others for crops and plants. It is essential in the formation of protein and the healthy growth of crops and plants. Phosphorus enhances the plant's ability to use and store energy, such as the process of photosynthesis. It also helps plants in their healthy growth.
Lastly, potassium helps in strengthening the abilities of plants to limit diseases and plays a vital role in increasing the yield of crops and their overall quality. It also protects crops during dry and cold weather by strengthening their root systems and preventing wilt diseases.
The global market for NPK fertilizers is expected to offer an incremental opportunity of US$ 40.17 Bn by 2032, expanding at a value CAGR of 3%.
“Increasing Production Coupled with Need for Higher Yield of Crops”
Increased consumption of vegetables and fruits, along with the rising productivity of crop-based products, is anticipated to drive NPK fertilizers’ growth in the global market. Adoption of the latest farming technologies in line with enriched crop productiveness and the widespread usage of NPK fertilizers are factors augmenting the global market stance.
NPK fertilizers are in high demand in the market as they improve soil nutrients, boost plant water content, and improve the overall health of plants. Water-soluble NPK fertilizers enjoy higher demand in the market due to their usage in drip irrigation and foliar applications. Thus, the balanced and adequate utilization of NPK fertilizers can increase crop yield and support the surge in production.
Furthermore, rising awareness regarding quality food products and disease outlook in livestock has amplified the demand for NPK fertilizer products in the international market.
“Growing Agricultural Sector in Developing Countries”
In developing countries, agriculture is regarded as one of the major sources of livelihood, employment, and income, especially for rural economies. The structure of agricultural production in developing regions such as India, Africa, China, and others has radically changed over the last few decades due to the increasing industrialization of agriculture, incorporation of new technologies, and various agricultural initiatives taken by governments.
Since agriculture development is regarded as one of the most crucial tools to end poverty in developing regions, governments are also taking initiatives to tackle the issue. Well-developed agriculture also provides export revenues and foreign exchange for governments.
Thus, developing regions will require high-quality fertilizers such as NPKs to facilitate agricultural growth, market development, poverty reduction, and others, thus providing growth opportunities to NPK fertilizer manufacturers.
“Increasing R&D Activities by NPK Fertilizer Manufacturers”
Fertilizer manufacturers collaborate continuously with their respective national/state agricultural universities and apex research institutes to accelerate their research processes. Growing health concerns and advancements in R&D activities have led to the growth of the fertilizer market. Fertilizer manufacturers are committed to research and development to offer new and innovative products with improved functional benefits.
The R&D teams of companies aid in finding solutions to different problems in the usage of fertilizers for various kinds of crops or plants, depending upon the nature of weather, soil, and climate conditions. These research activities also help researchers inform and educate farmers about the best quantity and combination of NPK fertilizers that can be used to achieve an increase in their agricultural outputs and subsequently minimize the over-application of these fertilizers to minimize costs.
“Rising Demand for High-quality Plant-based Foods”
With an increase in demand for good quality plant-based food products, there has been a rise in the adoption of precision farming. This has led to increased demand for high-efficiency fertilizers. NPK fertilizers provide enhanced crop protection and aid in increasing crop productivity. They deliver nutrients to the plants slowly and are effective for long-term usage.
As such, the adequate and optimal usage of these fertilizers can allow the production of nutrient-rich plant-based foods. This is likely to influence the market growth of NPK fertilizers positively.
“Rising Cost of Fertilizer Raw Materials”
The prices of raw materials required in the fertilizer industry are increasing. These raw materials include ammonia, nitrogen, phosphate, potash, and others. Since agricultural production mainly depends on the cost and quality of fertilizers, the high prices associated with fertilizers and manure can consequently affect the prices of plant-based foods as well.
Due to the limited availability of raw materials, there is also a fluctuation in the prices of fertilizers. Farmers located in regions such as Northern Africa, the Indian subcontinent, Brazil, and some parts of China have lower income levels, due to which, they are unable to cope with the increasing prices of fertilizers.
Moreover, the ongoing conflict between Russia and Ukraine is also expected to hinder fertilizer market growth, including the sales of NPK fertilizers.
In recent years, the pace of trade liberalization has slowed down, and restrictive trade measures have increased. Some of the trade policy actions taken in 2020 have impacted the movement of several commodities, including fertilizers. These trade policy actions include a variety of initiatives such as trade defense measures, lifting of export tariffs, and administrative import barriers.
Which South Asia and Pacific Country is a Lucrative Market for NPK Fertilizer Suppliers?
The India NPK fertilizers market shows dominance in the South Asia and Pacific region and holds an approximate market value share of 49.6%.
Market growth is mainly due to the growing agricultural sector in the country along with the increasing globalization of food and agriculture. Agriculture is the third-largest sector in India, which contributes a significant amount to the GDP growth of the country, after the service and industry sectors.
Why is Poland Showing High Growth Potential for NPK Fertilizers?
In the European region, Poland is showing high growth potential for NPK fertilizer sales and is slated to register a value CAGR of 4.3% during the forecast period.
Most of the county's land is medium quality with low fertility, which leads to increased utilization of fertilizers for the proper growth of crops and plants.
Will Farmers Give Preference to Chlorine-based Compound Fertilizers?
Chlorine-based compound fertilizers hold approximately one-tenth of the NPK fertilizers value market share based on product type.
The reason behind the increasing utilization of chlorine-based compound fertilizers is to meet the nitrogen and potassium requirements of plants.
The chlorine-based products segment is projected to expand at a volume CAGR of 1.5% between 2022 and 2032.
Which Applications of NPK Fertilizers are Expected to Bring in High Revenue?
Based on application, sugar crops and fiber are expected to represent the highest growth potential and register value CAGRs of 4.4% and 4.2%, respectively, during the forecast period.
Manufacturers are utilizing fertilizers in these crops for proper growth and also to add nutritional content to the crops. The application of NPK fertilizers in sugar crops is projected to be valued at US$ 7.36 Bn by the end of 2032.
Key manufacturers of NPK fertilizers are focusing on boosting their production capacity. Market players are also establishing strong distribution networks to enhance market penetration globally and meet the ever-rising demand for fertilizers.
| Attribute | Details |
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Forecast period |
2022-2032 |
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Historical data available for |
2017-2021 |
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Market analysis |
USD Million for Value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
Available upon request |
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The global NPK fertilizers market is valued at US$ 118 Bn.
The global market for NPK fertilizers is predicted to expand at 3% CAGR through 2032.
Maize holds the largest market value share of approximately 16.3%.
Leading manufacturers of NPK fertilizers are Borealis AG, Yara International ASA, ICL Group Ltd., EuroChem Group, and IFFCO, holding 30-35% share of the global market
Worldwide NPK fertilizer usage is pegged at 249,418 KT in 2022.
Latin America, South Asia & Pacific, and North America will be lucrative markets going forward.
In the European region, France holds the largest volume share approximately 11.8%.
The China NPK fertilizers market is anticipated to reach US$ 34.4 Bn by 2032, while India is expected to reach US$ 25.3 Bn.
