The global controlled-release fertilizers market is expected to grow from USD 2.2 billion in 2023 to USD 2.9 billion by 2028, with a compound annual growth rate (CAGR) of 5.9%. This market has seen notable expansion and has become a key player in the agriculture industry. According to the World Bank Report 2023, about 9.2% of the global population experienced hunger in 2022, up from 7.9% in 2019. The increasing levels of hunger and food insecurity underscore the urgent need to boost agricultural productivity to ensure food availability. Consequently, the demand for higher agricultural output while minimizing environmental impact is a major driving force behind this growth. Controlled-release fertilizers provide nutrients gradually, improving plant absorption and reducing leaching and runoff, which helps mitigate water pollution. Additionally, the push for sustainable agricultural practices, which align well with the benefits of controlled-release fertilizers, is further accelerating their adoption.

Controlled-release Fertilizers Market Drivers: Increasing Global Population and Food Demand necessitating higher agricultural productivity drives Growth in Controlled-release Fertilizers Market

The rising global population is significantly boosting the demand for food. As the world population grows, so does the need for a diverse array of food products. According to the FAO in 2021, the current population of 5.3 billion people is increasing by roughly 250,000 each day. Over the next decade, it is projected that one billion more people will be born. This population growth fuels the demand for a variety of food products that meet different dietary needs, preferences, and health considerations. The increased demand encompasses not only staple crops like grains but also fruits, vegetables, and other agricultural products. Consequently, agricultural systems must enhance their productivity, producing more crops on the same or even reduced land areas to keep pace with this growing need.

Enhancing agricultural productivity is crucial, but it must be achieved sustainably to prevent environmental harm. Traditional fertilization methods often result in nutrient runoff, water pollution, and soil degradation. Controlled-release fertilizers offer a solution by delivering nutrients gradually over an extended period. These fertilizers align more closely with the nutrient uptake patterns of crops, reducing nutrient waste and increasing nutrient use efficiency. This improved efficiency not only boosts crop yields but also mitigates the risk of nutrient runoff, thereby protecting water bodies and ecosystems.

Controlled-release Fertilizers Market Opportunities: Crop-specific nutrient management through precision farming practices

Precision farming, which uses technology to tailor agricultural practices to the specific needs of different crops, presents significant opportunities for the controlled-release fertilizers market. This synergy enhances efficiency, productivity, and sustainability in agricultural operations.

Precision farming fine-tunes nutrient requirements for different crops, and controlled-release fertilizers can be formulated to match these needs at specific growth stages. This ensures optimal nutrient availability precisely when needed. By applying nutrients only where and when necessary, precision farming minimizes over-fertilization. Controlled-release fertilizers complement this by delivering nutrients gradually, reducing wastage and minimizing runoff.

This combination of crop-specific nutrient management through precision farming and controlled-release fertilizers offers numerous advantages. These include optimized nutrient delivery, improved crop performance, resource efficiency, and environmental sustainability. As technology continues to advance, the controlled-release fertilizers market is well-positioned to capitalize on these opportunities, supporting modern, data-driven agriculture.

Nitrogen Stabilizers are One Of The Controlled-Release Fertilizer Types Which account for the second-highest market share in 2022

Nitrogen stabilizers are becoming increasingly popular in the agricultural sector due to their ability to enhance nitrogen use efficiency and minimize nitrogen losses to the environment. Nitrogen is essential for plant growth, but it is prone to being lost from the soil through leaching (where nutrients are carried away with water through the soil) and denitrification (the conversion of nitrate into gaseous forms). By incorporating nitrogen stabilizers with traditional fertilizers, the conversion of ammonium-based fertilizers into nitrates is slowed, thereby reducing nitrogen losses.

Farmers are becoming more aware of the consequences of nutrient losses and the benefits of controlled-release technologies, which is driving the demand for nitrogen stabilizers. Additionally, as sustainable farming practices gain traction, there is a growing focus on minimizing environmental impact. Nitrogen stabilizers support these sustainability goals by reducing nitrogen losses and promoting effective nutrient management.

Top Companies in the Controlled-release Fertilizers Market

The key players in this market include Yara (Norway), Nutrien Ltd. (Canada), Mosaic (US), ICL (Israel), Nufarm (Australia), Kingenta (China), ScottsMiracle-Gro (US), Koch Industries (US), Helena Chemicals (US), and SQM (Chile).