The global market for water-soluble fertilizers was valued at $11.05 billion in 2014 and is projected to reach $15.30 billion by 2020, at a compound annual growth rate (CAGR) of 5.6% from 2015 to 2020, according to a new report from MarketsandMarkets.
The Water-Soluble Fertilizers Market is considered to be one of the most important segments of agri-inputs, due to the expanding commercial cultivation of high value crops to meet the rising demand for food. Water-soluble fertilizers improve the returns on investment and also aid in meeting farmers' as well as consumers' demands, from the economical and health perspective, with increasing per hectare production of quality agricultural products.
The adoption of new technologies that increases crop production through the optimal use of scarce resources such as land, water, and fertilizers is increasing in the field of agriculture. A water-soluble fertilizer is specifically designed to be used in fertigation systems, which include sprinkler and drip irrigation systems. The high growth potential in emerging markets and untapped regions provides new growth opportunities for market players. The growth of this market is driven by the increasing demand for superior quality fertilizers which are balanced and nutritive.
The global market for water-soluble fertilizers was valued at $11.05 billion in 2014 and is projected to reach $15.30 billion by 2020, at a CAGR of 5.6% from 2015 to 2020. Europe dominated the market with a share of around 41%. The Asia-Pacific region is expected to be the fastest-growing market in the near future, due to the growing concentration of farmers towards technology-driven agriculture practices, such as the use of irrigation systems.
In 2014, fertigation accounted for the largest market share in the application segment by which nutrients are made available to the plants by application at rhizosphere level. The market for water-soluble fertilizers is being driven by increasing awareness among the farmers across developing nations with technology driven farm practices.
High value crops such as fruits and vegetables and protected cultivation of crops are driving the demand for the Water-Soluble Fertilizers Market. Increase in protected cultivation of crops has been attracting growers across the globe as it offers handful returns on investment. A number of growers have ventured into the greenhouse system of agriculture production industry for higher rates of return for their products. The use of fertilizers is highly seasonal and improved, protected crop production is driving the demand for fertilizer products, especially water-soluble fertilizers.
Major players such as Agrium Inc. (Canada), Israel Chemical Ltd. (Israel), The Mosaic Company (U.S.), Coromandel International Ltd. (India), Haifa Chemicals Ltd. (Israel), and Yara International ASA (Norway) accounted for more than 70% of the global Water-Soluble Fertilizers Market (by developments). Agreements, partnerships, and joint ventures & collaborations were the most preferred growth strategies in the Water-Soluble Fertilizers Market.