The water-soluble fertilizers market size is projected to reach $25.1 billion by 2028 from $18.3 billion in 2023, growing at a CAGR of 6.5% from 2023 to 2028. The water-soluble fertilizer industry has experienced a shift in demand due to changing consumer preferences and an increasing need for convenience. Water soluble fertilizers offer an advantage over traditional fertilizers, such as their quick dissolving ability in water and a high level of nutrient availability. Companies are investing in R&D to meet the market’s needs.

Water-soluble Fertilizers Market Trends

The water-soluble fertilizers market was witnessing several notable trends:

• Increasing Demand for High-Efficiency Fertilizers: Water-soluble fertilizers are gaining popularity due to their efficiency in nutrient uptake by plants. They can be precisely dosed, leading to reduced nutrient waste and better crop yields.
• Growing Adoption of Precision Agriculture: With the advent of precision agriculture techniques, there’s a rising demand for fertilizers that can be easily incorporated into irrigation systems. Water-soluble fertilizers fit well into this trend, as they can be efficiently applied through drip irrigation and fertigation systems.
• Focus on Sustainable Agriculture: The emphasis on sustainable agricultural practices is driving the demand for fertilizers that minimize environmental impact. Water-soluble fertilizers, when used properly, can help reduce nutrient runoff and leaching, thus mitigating water pollution.
• Expansion of Greenhouse and Hydroponic Farming: Greenhouse and hydroponic farming methods are becoming increasingly popular due to their higher productivity and reduced land requirements. Water-soluble fertilizers are particularly well-suited for these controlled environment agriculture systems as they can be easily mixed into nutrient solutions.
• Technological Advancements: Ongoing research and development efforts are leading to the introduction of innovative water-soluble fertilizer formulations. These formulations often incorporate micronutrients, biostimulants, and other additives to enhance plant growth and improve nutrient uptake efficiency.
• Market Consolidation and Strategic Partnerships: The water-soluble fertilizers market is witnessing consolidation as major players acquire smaller companies or form strategic partnerships to expand their product portfolios and geographic presence.
• Regulatory Changes and Sustainability Standards: Increasing regulatory scrutiny on conventional fertilizers, coupled with the growing awareness of environmental sustainability, is influencing the adoption of water-soluble fertilizers. Companies are aligning their products with evolving regulatory standards and sustainability certifications to meet consumer demand.

Water-soluble Fertilizers Market Opportunities: Growing demand for water-soluble nutrients

Water-soluble fertilizers, such as NPK, ammonium sulfate, dipotassium phosphate, potassium nitrate, and monopotassium phosphate, are essential for meeting the growing demand for food crops, grains, vegetables, and fruits driven by the expanding population. The increasing adoption of micro-irrigation systems, which facilitate even fertilizer distribution and enhance growth efficiency, is poised to drive up the demand for these fertilizers. Moreover, initiatives like agricultural loans provided by the Indian Government and the implementation of the “Make in India” policy are expected to further bolster market growth.

The foliar mode of application is projected to grow at a significant rate during the forecast period.

The foliar mode of the application provides high resistance to diseases & pests, improved drought 7 soil salinity tolerance, rapid utilization of applied nutrients, and high resistance to physiological disorders. Soil nutrients are not always available due to leaching; foliar fertilization applies the nutrients directly on the leaf, where the plant mostly needs them. With foliar applications, all nutritional problems can be tackled because the leaf absorbs all the essential nutrients.

Europe holds the highest market share during the forecast period.

The agriculture industry in Europe is witnessing technological advancements and the farming community is adopting innovative technologies. A majority of the arable farmland in Europe is used for cereal production,as per the data published by the World Bank in 2021. In 2021, approximately 161.5 million hectares of land in the EU were under agricultural cultivation (Source: Eurostat). Agriculture is the main occupation in France and Italy. The land in these countries has mountainous and hilly regions, terrains, and coastal areas. Most of this land is utilized for agriculture. This region witnesses the production of diverse crops and is divided between small-sized farms regulated. The western region witnesses a high adoption of highly intensified farming systems. The extensive research & development activities in the region have helped in the introduction of customized and crop-specific products.

Water-soluble Fertilizers Companies:

Key players in this market include Nutrien (Canada), Israel Chemical Company (Israel), Sociedad Química y Minera De Chile (SQM) (Chile), K+S Aktiengesellschaft (Germany), Yara International (Norway), Haifa Chemicals Ltd (Israel), Coromandel International Ltd (India), The Mosaic Company (US), Hebei Monband Water Soluble Fertilizer Co., Ltd (China), EuroChem (Switzerland), Agafert (India), SPIC (India), Aries Agro Ltd (India), Azoty Group (Poland), Vaikic-Chim (Bulgaria), Gujarat State Fertilizers & Chemicals Ltd (India), Incitec (Australia), IFFCO (India), Mangalore Chemicals & Fertlizers Ltd (India), and DFPCL (India).