Fertilizers aid in the improvement of overall plant growth and yield. They compose of a wide array of macro and micro-nutrients, which significantly improves the quality and quantity of the crops. The global enhanced efficiency fertilizer (EEF) market is thriving on the back of the increasing applications of fertilizers in the agricultural field, backed by the growing demand to produce food in sufficient quantity. Additionally, increasing government initiatives to boost the agriculture sector, launch of new, advanced and cost-effective fertilizer products, and the increase in research and development activities in the agrochemicals industry are some of the factors anticipated to promote towards the growth of the global enhanced efficiency fertilizer (EEF) market in the coming years.
The global enhanced efficiency fertilizer (EEF) market reached a value of USD 2345.60 million in the year 2019 and is expected to garner a value of USD 3802.05 million by the end of 2028by registering a CAGR of 6.11% across the globe over the forecast period 2020-2028. Additionally, the worldwide market ofenhanced efficiency fertilizer (EEF) is also anticipated to gain an incremental $ opportunity of USD 72.95 million in the year 2020 as compared to the previous year. The market is also expected to grow by 1.6x and achieve an absolute $ opportunity of USD 1383.5 million during the forecast period.
Growth Highlights based on Region during 2019-2028
The global enhanced efficiency fertilizer (EEF) market is segmented by regions into North America, Latin America, Europe, Asia Pacific,Turkey &Middle East and Africa. Among these regions, the market inAsia Pacific held the largest market share of 47.12% in the year 2019 and is expected to grow with the largest CAGR of 6.70% during the forecast period. The market in the region is further expected to garner an incremental $ opportunity of USD 40.9 million in the year 2020 as compared to the previous year. Additionally, the Asia Pacific enhanced efficiency fertilizer (EEF) market is also anticipated to gain an absolute $ opportunity of USD 737.77 million during the forecast period. The market in the region is contributed majorly by the regions such as China, India, Japan, Australia and Southeast Asian Countries owing to the growing agricultural sector and the increasing demand for food.According to the statistics by the World Bank, fertilizer consumption in China increased from 135.76 kg/hectare of arable land in the year 2011 to 140.55 kg/hectare of arable land in the year 2016. CLICK TO DOWNLOAD SAMPLE REPORT
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
The global enhanced efficiency fertilizer (EEF) market has been segmented by product into controlled release fertilizers, slow release fertilizers and stabilized nitrogen fertilizers. Among these segments, the controlled release fertilizers segment held the largest market share. Controlled release fertilizer is an encapsulated fertilizer wherein the mode of nutrient release is relatively different from the conventional type of fertilizers. In addition, the uptake of the nutrients from the fertilizer is also delayed providing the nutrients to the plant for a longer period. In the last decade, control release fertilizers have become increasingly popular owing to their potential to mitigate N₂O emissions generated from the agricultural lands during the nitrification and denitrification processes. The segment reached a value of USD 286.25 million in the year 2019 in theNorth America enhanced efficiency fertilizer (EEF) market. On the other hand, the segment in the North America enhanced efficiency fertilizer (EEF) market, also held the largest market share of 48.39% in the year 2019.
Market Drivers and Challenges
Growing Agriculture Industry and Increasing Government Initiatives
Rising global demand for food has led the farmers across the globe to adopt numerous agricultural fertilizers such as controlled release fertilizers, slow release fertilizers and other to increase the productivity of the farmland. Farmers are increasingly adopting advanced farming methods and technologies to enhance their crop productivity which significantly increases the demand for enhanced efficiency fertilizers, which in turn is anticipated to influence the growth of the market. Additionally, government of developing and developed countries across the globe are taking numerous initiatives to implement several programs to boost the agricultural sector. Increasing agricultural investments, provision of subsidies to farmers and the increasing food security concerns in the underdeveloped countries are some of the additional factors anticipated to drive the growth of the global enhanced efficiency fertilizer (EEF) market.
Increasing Demand for High Value Fertilizers
According to the statistics by the Food and Agricultural Organization (FAO), the global demand for the use of fertilizer nutrient including nitrogen, phosphate and potash, increased from 190850 thousand tonnes in the year 2017 to 198107 thousand tonnes in the year 2019.
The demand for enhanced efficiency fertilizers is increasing significantly on account of the increasing agricultural production while using these fertilizers. Enhanced efficiency fertilizer can reduce nutrient loss to the environment while increasing the availability of nutrient for the crop near the roots. Enhanced efficiency fertilizer is highly effective in seasons where nutrient loss from the soil is high owing to factors such as high rainfall, light soil texture and low soil organic matter. Enhanced efficiency fertilizer also is known to benefit the environment by reducing greenhouse gas emissions and water contamination even when yields are not significantly improved.
High Costs of Enhanced Efficiency Fertilizers
Enhanced efficiency fertilizers are known to provide additional value to farmers, but the availability of low-priced alternatives is anticipated to restrict the farmer to adopt these fertilizers. The price of these fertilizers is high primarily due to the type of technology used in the manufacturing process. Moreover, increasing farming tax and interest rates, which severely hampers the purchasing capability of the farmers for advanced agrochemicals, such as enhanced efficiency fertilizers, is also anticipated to restrict towards the growth of the global enhanced efficiency fertilizer (EEF) market during the forecast period.
Some of the affluent industry leaders in the global enhanced efficiency fertilizer (EEF) market are Koch Agronomic Services, LLC, Haifa Group, Ekompany International B.V., Israel Chemicals Ltd. (ICL), Saviolife S.r.l., Yara International ASA, Nutrien Ltd., Helena Agri-Enterprises LLC, AgroLiquid and DeltaChem GmbH.
Increasing agricultural investments and increasing subsidies to the farmersare some of the major factors that are driving the growth of the market.
The market is anticipated to attain a CAGR of 6.11% over the forecast period, i.e. 2020-2028.
Asia Pacific is anticipated to hold the dominating share in the market.
The market in North America is anticipated to display significant business opportunities in the future.
The major players in the market are Koch Agronomic Services, LLC, Haifa Group, Ekompany International B.V., Israel Chemicals Ltd. (ICL), SaviolifeS.r.l., Yara International ASA, Nutrien Ltd., Helena Agri-Enterprises LLC, AgroLiquid and DeltaChem GmbH.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is majorly segmented by solubility, coating, product, form, application and by region.
The controlled release fertilizers segment, which is a sub-segment of the product segment, held the largest market share in the year 2019 and is anticipated to display significant growth opportunity.
High cost of enhanced efficiency fertilizersis one of the major factors anticipated to act as a barrier towards the growth of the global enhanced efficiency fertilizer (EEF) market.
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