Controlled-Release Fertilizers Market Size | CAGR of 6.29%

Updated · Jan 9, 2025

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Table of Contents

Overview
Key Takeaways
Key Market Segments
Regional Analysis
Top Use Cases of Controlled Release Fertilizer Market
Emerging Trends
Recent Developments
Conclusion

Overview

New York, NY – January 9, 2025 – The global Controlled-Release Fertilizers Market is experiencing significant growth, driven by the increasing demand for sustainable agricultural practices and the need for efficient nutrient management. In 2023, the market was valued at approximately USD 2.65 billion and is projected to reach USD 4.06 billion by 2033, reflecting a CAGR of 6.29% during this period.

Several factors contribute to this upward trend. The growing global population necessitates enhanced food production, prompting farmers to adopt fertilizers that improve crop yields and reduce environmental impact. CRFs offer a controlled and predictable nutrient release, minimizing nutrient loss and environmental pollution. Technological advancements in coating materials have further enhanced the efficacy and cost-effectiveness of CRFs, making them more appealing to farmers. Additionally, government initiatives and subsidies favoring eco-friendly fertilizers are propelling market expansion.

Recent developments indicate a positive trajectory for the CRFs market. In September 2022, ICL introduced a revolutionary biodegradable coated fertilizer technology, aiming to optimize crop performance while minimizing environmental impact. This innovation reflects the industry’s commitment to sustainability and efficiency.

The controlled-release fertilizers market is poised for substantial growth, driven by the need for sustainable agriculture, technological advancements, and supportive government policies. Addressing challenges related to cost and awareness will be crucial for realizing the full potential of CRFs in modern farming practices.

Controlled Release Fertilizer Market Size

Key Takeaways

The Global Controlled Release Fertilizer Market is projected to grow from USD 3.1 billion in 2023 to USD 6.6 billion by 2033, at a CAGR of 7.9% during 2024-2033.
The Asia-Pacific region leads the market with a valuation of USD 1.2 billion, accounting for a 40.0% share.
Coated and encapsulated products dominate the segment with a 42.2% market share.
Granules are the most preferred form, making up 58.6% of product distribution.
Soil application holds the majority share at 62.1% in the market.
Fruits and vegetables represent the largest crop segment, with a 46.2% usage share.

Key Market Segments

In 2023, Coated & Encapsulated fertilizers held a dominant 45.3% share in the By Product Type segment of the Controlled Release Fertilizer Market. This significant share highlights the increasing preference among agricultural producers for products that ensure better nutrient efficiency and reduced environmental impact, maintaining a notable lead over other types such as Slow Release, N-Stabilizers, and Others.
Granual maintained its leading position in the By Form segment of the Controlled Release Fertilizer Market in 2023, capturing a 60.4% share. This success reflects the effectiveness of its advanced formulations and robust market penetration strategies, securing its position as a preferred choice among farmers.
Soil application captured a 64.2% share in the By Application segment of the Controlled Release Fertilizer Market in 2023. Its dominance is driven by its proven capability to deliver nutrients efficiently to plant roots over extended periods, making it the preferred application method among agricultural practitioners.
In the By Crop Type segment, Fruits & Vegetables held a 48.5% share in 2023, reflecting growing demand for controlled release fertilizers in high-intensity horticulture. These fertilizers are increasingly critical for achieving optimal yields and maintaining quality standards in fruit and vegetable cultivation.

Regional Analysis

North America exhibits a strong demand for controlled-release fertilizers, fueled by modernized agricultural practices and a growing emphasis on sustainable farming methods. The region’s steady growth trajectory is supported by the increasing adoption of precision agriculture techniques, which enable efficient nutrient management and reduced environmental impact.
Europe follows North America’s lead in sustainable agriculture, driven by stringent regulations promoting environmentally friendly fertilization practices. Countries such as Germany, France, and the Netherlands are at the forefront of this movement, contributing to a growing market for controlled-release fertilizers. Europe commands a significant share of the global market, reflecting its commitment to sustainable farming practices.
Asia Pacific stands out as the dominant player in the global controlled-release fertilizer market, holding a commanding 40% share and a market value of USD 1.2 billion. The region’s expansive agricultural landscape, diverse climates, and rising need for enhanced crop productivity drive demand for innovative fertilization solutions. China, India, and Southeast Asian nations are key contributors, with increasing adoption of these fertilizers among smallholder farmers playing a pivotal role.
The Middle East & Africa and Latin America, though currently holding smaller shares in the global market, present considerable potential for future growth. Growing awareness of the benefits of controlled-release fertilizers, coupled with a gradual shift toward sustainable agricultural practices, positions these regions for significant market expansion in the years ahead.

Top Use Cases of Controlled Release Fertilizer Market

Enhanced Nutrient Management: Controlled-release fertilizers are widely used to optimize nutrient delivery to crops over extended periods, reducing nutrient losses and improving efficiency.
Sustainable Agriculture: They support eco-friendly farming by minimizing nutrient leaching, reducing greenhouse gas emissions, and enhancing soil health.
Horticulture: Used extensively in the cultivation of fruits, vegetables, and ornamental plants, controlled-release fertilizers ensure precise nutrient availability for high-value crops.
Precision Agriculture: These fertilizers are a vital component of precision farming techniques, enabling site-specific nutrient application and improved crop yields.
Large-Scale Farming: In large-scale agricultural operations, controlled-release fertilizers reduce labor costs and simplify fertilization schedules by minimizing the need for frequent applications.
Greenhouse Farming: Controlled-release fertilizers are ideal for greenhouse operations where maintaining optimal nutrient levels is crucial for intensive crop production.
Forestry and Plantation Crops: They are used in forestry and long-duration plantation crops (e.g., oil palm, coffee, and tea) for sustained nutrient supply and improved growth.
Urban Landscaping: Controlled-release fertilizers are increasingly used in urban landscaping, including parks, lawns, and golf courses, to ensure consistent growth with minimal environmental impact.
Soil Rehabilitation: These fertilizers play a role in soil improvement projects, helping to restore degraded lands by providing controlled nutrient inputs.
Commercial Nurseries: Widely adopted in commercial nurseries, controlled-release fertilizers promote healthy seedling development and reduce waste.

Emerging Trends

Biodegradable Coatings: Increasing demand for eco-friendly solutions is driving the development of controlled-release fertilizers with biodegradable polymer coatings, reducing environmental impact.
Integration with Precision Agriculture: The adoption of precision farming technologies is fostering the use of controlled-release fertilizers for site-specific nutrient application and improved crop productivity.
Demand for Sustainable Farming Solutions: Growing awareness about sustainable agricultural practices is accelerating the shift toward controlled-release fertilizers to minimize nutrient leaching and environmental harm.
Increased Adoption in Developing Markets: Emerging economies in Asia, Africa, and Latin America are witnessing rapid adoption of controlled-release fertilizers due to rising awareness among farmers and government initiatives supporting modern agriculture.
R&D in Advanced Formulations: Companies are investing in the development of advanced formulations with longer nutrient release durations and enhanced performance across diverse climatic conditions.
Expansion in Horticulture and High-Value Crops: The use of controlled-release fertilizers is growing in high-value crops like fruits, vegetables, and ornamental plants due to their role in ensuring precise nutrient management.
Digital Agriculture Integration: Integration of digital tools, such as sensors and IoT-based systems, is enabling farmers to optimize the use of controlled-release fertilizers for higher efficiency and productivity.
Focus on Water-Soluble Variants: The market is witnessing an increased demand for water-soluble controlled-release fertilizers, particularly in areas with limited water resources or drip irrigation systems.
Government Policies and Subsidies: Supportive regulations and subsidies promoting sustainable agricultural inputs are encouraging the use of controlled-release fertilizers in various regions.
Penetration in Non-Traditional Applications: Controlled-release fertilizers are expanding into non-traditional applications such as forestry, urban landscaping, and soil rehabilitation projects.

Recent Developments

Nutrien’s extensive production and distribution network positions it well to capitalize on this growth, although specific sales figures for their controlled release fertilizer segment are not publicly disclosed. Overall, the company reported net earnings of $1.3 billion and adjusted EBITDA of $6.1 billion in 2023, reflecting its significant presence in the global fertilizer industry.
In 2023, ICL reported consolidated annual sales of $7.54 billion, a decrease from $10.02 billion in 2022, with net income at $647 million, down from $2.16 billion the previous year.
In the third quarter of 2024, Yara reported an EBITDA excluding special items of $585 million, marking a 47% increase from the same period in 2023.
SQM’s total revenues for the nine months ended September 30, 2024, were $3.46 billion, a decline from $6.16 billion in the same period the previous year, influenced by various market factors. Despite these challenges, SQM’s commitment to innovative fertilizer solutions positions it well to meet the evolving needs of modern agriculture.
Kingenta Ecological Engineering Group, a leading Chinese fertilizer company, specializes in controlled-release fertilizers (CRFs) that provide nutrients to plants over time, enhancing efficiency and supporting sustainable agriculture. In the first nine months of 2024, Kingenta reported sales of approximately ¥6.4 billion, slightly down from ¥6.75 billion during the same period in 2023. Notably, the company achieved a net income of ¥180 million in this period, a significant turnaround from a net loss of ¥465 million in the corresponding period of the previous year.

Conclusion

In conclusion, the controlled release fertilizer market is poised for substantial growth, with technological advancements and increasing environmental awareness playing pivotal roles in its expansion. Stakeholders in the agricultural sector should consider the long-term advantages of CRFs to enhance productivity and sustainability.