Accoring the latest report "Water-Soluble Fertilizers Market - Global Forecast to 2022"from market research company MarketsandMarkets,the global water-soluble fertilizers market is projected to grow at a CAGR of 5.69% to reach USD 17.06 Billion by 2022. The market growth is driven by the rise in need for food security for the growing population, advancement in farming practices and technologies, growth in demand for fruits & vegetables, and ease of application of water-soluble fertilizers.
On the basis of type, the water-soluble fertilizers market is led by the nitrogenous segment, followed by the phosphatic, potassic and micronutrients segments, respectively. The nitrogenous segment is projected to be the fastest-growing type in the water-soluble fertilizers market, due to the high crop loss by nutrient deficiency and high efficiency of nitrogenous water-soluble fertilizers to reduce this crop loss.
The market for horticultural crops is the highest and is also projected to be the fastest-growing. This is mainly due to a high demand for fruits & vegetables by the growing population across the world.
Fertigation is highly used for applying water-soluble fertilizers. To improve fertility and increase productivity of plants, fertigation is effectively used to control nutritional deficiency. The increasing acceptance of micro irrigation and precision irrigation techniques has proven to be a major driving factor for the fertigation application.
In 2015, Europe accounted for the largest market share in the water-soluble fertilizers market, followed by North America and Asia-Pacific. Russia and Spain constituted the largest country-level markets in the European region in 2015. Increase in awareness about the benefits of water-soluble fertilizers, among the cultivators and rise in population is leading to the growth of the market in this region. The water-soluble fertilizers market in the Asia-Pacific region is projected to grow with investments from several multinational manufacturers. The market is projected to grow because of the increase in agricultural technologies and agricultural exports of key products. Moreover, extensive R&D initiatives have been undertaken for exploring the new varieties of water-soluble fertilizers to be used on different nutrient deficiencies and soil fertility to increase the yield.
Factors such as growth of organic fertilizer industry and high cost of water-soluble fertilizer leading to rise in agricultural cost of production are restraining the growth of the market. Key players identified in the global water-soluble fertilizers market include K+S AKTIENGESELLSCHAFT (Germany), Yara International ASA (Norway), Agrium Inc. (Canada), Israel Chemical Limited (Israel), and Sociedad Quimica YMinera SA (SQM) (Chile). Most key participants have been exploring new regions through new product launches, collaborations, and acquisitions across the globe, to avail a competitive advantage through combined synergies. Since 2011, the water-soluble fertilizers market has witnessed an increase in demand, especially in countries such as the U.S. Canada, Spain, the U.K., India, and China.