In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Fertilizer additives are the chemicals or natural substances added to the soil in addition to fertilizers to improve the soil quality and supply essential nutrients required for the growth of the plants. A fertilizer mainly comprises of macronutrients such as, nitrogen (N), phosphorus (P) and potassium (K) along with numerous other micronutrients, a fertilizer additive enhances the retention of these macro and micronutrients in the soil, thereby making the soil nutrient rich and preventing it from natural erosion. These additives also provide stability and prevents corrosion of the containers in which fertilizers are stored by absorbing the excess moisture which in turn increase the crop yield. Fertilizer additives have a wide variety of application in crop production, one particular application includes urease inhibition, which interferes with the urease enzyme and delays the hydrolysis of urea for 10-14 days, thereby decreasing the volatilization loss of nitrogen.
The market is observing a noteworthy growth on account of increased utilization of agricultural waste since it can be used as natural fertilizer additives. Utilization of leftover straws from agricultural produce after harvest and additives made using fungus along with aggregation of bacteria are also expected to gain prevalence in the upcoming years as it would maintain the high organic content of the soil along with improving its quality.
Rapidly growing population led to the increase in demand for food grains that increases the pressure on farmers to produce more grains. This is estimated to foster the growth of the market. Furthermore, these additives increase the shelf life of the fertilizers which is also projected to positively impact the growth of the market.
The global fertilizers additive market is anticipated to grow at a CAGR of around 3% over the forecast period i.e. 2019-2027. The market is segmented by type into urea, ammonium nitrate, ammonium phosphate, ammonium sulfate, and others out of which, the urea segment is anticipated to dominate the global fertilizers additive market on account of its high nitrogen content and ease of availability. Moreover, urea manufacturing units release less air pollutants in the environment.
Based on function, the market is segmented into anti-dusting agents, anti-caking agents, hydrophobic agents, corrosion inhibitors, and others, out of which, anti-caking segment is expected to drive the growth of the market owing to the benefit of long-term storage of manufactured fertilizers.
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Retention of Essential Nutrients
Nitrogen is one of the most important limiting nutrients used in production of high crop yield. Therefore, nitrogen fertilizers are most commonly used in order to improve the agricultural crop production. However, more than 50% of nitrogen is usually lost by the process of leaching, denitrification, and volatilization and thus resulting in poor efficiency of fertilizer. This loss of nitrogen not only affects the crop yield but also leads to environmental pollution. Utilization of fertilizer additives improves the retention of essential nutrients such as, nitrogen, phosphorus and potassium in the soil, thereby enhancing the agricultural crop production.
Growing Demand for Food on Account of Increasing Population
Increasing population base has resulted in the growing demand for food grains that has increased the requirement for fertilizers in the market. This in turn has propelled the growth of the fertilizers additives as they increase the life span of soil, thereby resulting in better crop yield. Moreover, depletion of soil quality that lead to loss of soil fertility is also anticipated to drive the growth of the market.
Harmful Environmental Effects
Most of the fertilizer additives used in improving the crop yield are chemical in nature lead to environmental pollution, soil acidification, mineral depletion and other adverse effects. Such environmental impacts are anticipated to hamper the growth of the market during the forecast period.
Our-in depth analysis of the global fertilizer additives market includes the following segments:
On the basis of regional analysis, the global fertilizer additives market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in Asia Pacific is estimated to show a significant growth over the forecast period on the back of massive agriculture sector in this region. Rise in population, growing economy along with government regulations in support of the domestic agricultural industry are among the major drivers to propel the market growth.
India is primarily an agriculture-based country which has resulted in higher production and sales of fertilizers, which in turn has fostered the growth of fertilizer additives in this regional market. China is also expected to witness a higher demand over the forecast period owing to the increased production of fertilizer additives.
The global fertilizer additives market is further classified on the basis of region as follows: