Fertilizer Additives Market By Form (Granular, Prilled, Powdered), By Additive Type (Dust Control, Anti- Caking Agent, Antifoam Agent, Granulation Aids, Colorants, Corrosion Inhibitors, Hydrophobing Agents), By End-Use (Mono Ammonium Phosphate, Triple Super Phosphate, Urea, Diammonium Phosphate, Ammonium Nitrate, Potassium Magnesium Sulfate, Others) - Growth, Future Prospects & Competitive Analysis, 2017 – 2025

Fertilizer additives are compounds added to fertilizers to stimulate their quality and productivity. The demand for fertilizer additives is stimulated by the surging demand for improved agricultural yields, followed by the need for primary nutrients and high-quality fertilizers. Fertilizer additives enhance the stability and quality of fertilizers and soil by avoiding the loss of nutrients such as nitrogen, phosphorus, potassium, and sulfur. These additives are also used to prevent urea hydrolysis, nitrification, and ammonia loss from soil. Nitrogen fertilizer additives are chemicals added to liquid or water-soluble fertilizers so as to enhance the time of contact of nitrogen with the soil. This process is beneficial for efficient nutrient management practices and is increasingly practiced by farmers willing to spend more on agricultural productivity.

The market is poised to grow due to the rising demand for fertilizers worldwide. Other factors responsible for market growth are shrinking arable land and a growing population, which demand excessive use of fertilizers, which in turn catapults the market which demands excessive use of fertilizers, which in turn catapults market. Additives are developed to perform certain actions, such as anti-caking, corrosion inhibitors, anti-foaming, hydrophobicity, coloring, and others. A blend of additives is used during the storage and transportation of fertilizers to prevent the formation of lumps (caking) in fertilizers because of fluctuating storage temperatures. Furthermore, dust accumulation on fertilizer bags during storage reduces the quality of the fertilizer. To overcome this issue, industry players have launched certain anti-dusting additives in order to prevent the loss of essential nutrients. For instance, Clariant innovated additives such as Flotigam and Fertala, which offer high dust binding properties and are therefore highly used in the market. However, stringent government regulations and adverse agrochemical effects on human health hinder the market growth. Additionally, the rapid growth of organic fertilizers coupled with the environmental impact of chemical fertilizers is some of the other factors projected to restrain market development.

The fertilizer additives market is segmented on the basis of geography into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. In 2016, Asia Pacific accounted for more than half of the market share owing to the continuous growth of the agriculture sector in countries such as India and China. In countries such as India, around 70% of the population is reliant on agriculture and related activities as their source of income. Latin America is also projected to rise in the near future due to surging demand for agricultural commodities on account of decreasing arable land. However, regions such as North America and Europe are projected to witness sluggish growth owing to the emergence of certain regulations, such as the prohibition of the use of ammonium nitrate fertilizer in these regions.

Some of the key players profiled in the market include Clariant, KAO Corporation, Amit Trading Ltd., Novochem Group, Filtra Catalyst and Chemicals, Ltd., Tata Chemicals, Ltd., Coromandel International Limited, Arrmaz, Chemipol, Forbo Technology, and other notable players.

On the basis of its form, the global fertilizer additives market is categorized into the following segments:

  • Granular
  • Prilled
  • Powdered

Global population growth in recent decades has accelerated the adoption of agricultural activities, contributing to increased demand for fertilizers. In 2016, granular form accounted for the maximum share of the total market value and was also projected to remain dominant throughout the forecast period. Granular fertilizers are witnessing significant demand as they slowly release (broadcast) in the form of granules, which is beneficial for broad-land cultivation. In addition to it, slow-release fertilizers release sufficient quality nutrients during watering, which further aids in improving yield quality. Enhanced usage of granular fertilizers in order to optimize crop production and yield quality is a significant factor for market growth. Farmers tend to use blends of granular fertilizers obtained by mixing individual granular fertilizers in multiple ratios so as to fine-tune crop fertility and enhance crop production efficiency. Granular fertilizers are popular among farmers due to their low cost, higher mechanical strength when compared to other fertilizers, and ease and convenience of application.

The CAGR for pulled fertilizers is expected to be the highest during the forecast period. Prilled fertilizers, such as prilled urea, offer high resistance when blended with other fertilizers and therefore do not break easily. Furthermore, the rising use of blended pelleted fertilizers to avoid unevenness in the field is projected to be an ideal factor augmenting the market growth.

On the basis of its additive type, the global fertilizer additives market is categorized into the following segments:

  • Dust Control
  • anti-caking agent
  • Antifoam agent
  • Granulation Aids
  • Colorants
  • Corrosion Inhibitors
  • Hydrophobing Agents

In 2016, anti-caking additives accounted for the maximum market share and were poised to continue their dominance over the forecast period. This segment is also projected to grow at the highest CAGR during the forecast period owing to the high demand for granular or powdered fertilizers in order to avoid the formation of lumps. Caking has become a major concern in dry fertilizer production, transportation, and storage. Fertilizers are often stored in bins in large quantities, which at times leads to the formation of cakes. The occurrence of caking is common as a wide variety of fertilizers are present in the aforementioned forms. Anticaking additives find extensive usage in preventing lump formation during seasonal conditions while maintaining the quality of fertilizers.

Antifoam agents exhibit significant market growth potential during the forecast years. This growth is mainly attributed to the growing use of anti-foaming agents during the downstream process for ammonium phosphate. This leads to higher capacity utilization, which in turn delivers the optimal fertilizer output of ammonium phosphate.

On the basis of its end-use, the global fertilizer additives market is categorized into the following segments:

  • Monoammonium Phosphate
  • Triple Super Phosphate
  • Urea
  • Diammonium Phosphate
  • Ammonium Nitrate
  • Sulfate of Potassium and Magnesium
  • Others

In 2016, urea accounted for the largest share of the market and was also expected to witness the highest growth rate during the forecast period. Urea is the most widely used nitrogen fertilizer in agriculture but suffers high nitrogen loss when applied to soil due to the volatilization of ammonia (NH3). Additionally, ammonia loss from the soil surface is also due to other factors such as humidity, temperature, and the presence of crop residues, which stimulate urea activity in the soil. Therefore, anti-caking additives, owing to their dust-binding properties, are added at the initial phase of urea production in the form of granules, which inhibit ammonia volatilization and nitrate leaching. The growing use of these additives during the production stage of fertilizer as well as in the field is expected to be a major factor in market growth.

Ammonium nitrate is expected to witness major growth owing to its cost-effectiveness, which has also increased its popularity among farmers. However, ammonium nitrate rapidly absorbs moisture owing to its hygroscopic properties, which reduces its mechanical strength and increases the chances of dust formation. This phenomenon causes the fertilizer to cake, resulting in the formation of solid lumps and significant economic losses. Therefore, granulation and nodulation aids are added to ammonium nitrate and calcium ammonium nitrate fertilizers to improve the recycling of oversized particles into fine particles and further improve the yield. Therefore, the aforementioned factors are bound to spur the market in the coming years.

Based on geographical distribution, the global market for fertilizer additives is segmented into the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • Italy
    • U.K.
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • India
    • China
    • Japan
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East and Africa

In 2016, Asia-Pacific was the most dominant region in the fertilizer additives market, as the economies of countries such as China and India are dominated by agriculture and agro-based industries. In addition to it, rising populations in multiple countries in this region have created immense pressure on farmers and their respective governments to enhance crop production. Apart from this, the abundance of cheap labor and rising government initiatives such as incentives and subsidies, along with growing awareness regarding the benefits of fertilizer additives, has further paved the demand for the product in this region. The Asia-Pacific fertilizer additive market also offers lucrative opportunities for key investors to set up their facilities in this region due to the rising demand for food grains in this region.

North America and Europe's fertilizer additives market is projected to grow in the near future, as these regions are witnessing a resurgence in the agriculture sector. Moreover, growing nutrient management practices are expected to increase the demand for fertilizer additives. However, the market is expected to rise rapidly in Africa due to decreasing arable land, which in turn is poised to fuel the use of fertilizer additives in this region.

Frequently Asked Questions:

The market for Automotive Wiring Harness Market is expected to reach US$ XX Bn By 2025.

The Automotive Wiring Harness Market is expected to see significant CAGR growth over the coming years, at 2.5%.

The report is forecasted from 2017-2025.

The base year of this report is 2016.

Clariant, KAO Corporation, Amit Trading Ltd., Novochem Group, Filtra Catalyst and Chemicals, Ltd., Tata Chemicals, Ltd., Coromandel International Limited, Arrmaz, Chemipol, Forbo Technology are some of the major players in the global market.

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Published Date:  Jan 2018
Category:  Food & Beverage
Report ID:   58944
Report Format:   PDF
Pages:   120
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