Water Soluble Fertilizer Market – The Integration of Micro-Irrigation Systems and Water-Soluble Fertilizers Creates a Powerful Combination for Sustainable and Efficient Agriculture

Water Soluble Fertilizer market was valued at USD 15.38  Bn in 2023 and is expected to reach USD 25.03 Bn by 2030, at a CAGR of 5.54% during the forecast period.

Definition:

Water soluble fertilizers are fertilizers that completely dissolve in water. They are a popular choice for gardeners and farmers because of their benefits over traditional fertilizers. Water soluble fertilizers offer a precise and efficient way to nourish plants. Nutrients delivered through water soluble fertilizers are more efficiently absorbed by the plant as compared to supplied through traditional fertilizers.
Water Soluble Fertilizer Market Overview:
The farmers are optimistic about the future economic outlook, and the majority plan to increase their agriculture expenditure in the year ahead. World population is expected to reach 9.7 billion by 2050 and agriculture plays a central role in feeding the burgeoning population. The population in India is expected to reach 1.69 billion by 2050. Producing sufficient food are expected to increase the need for utilization of modern agricultural materials like water soluble fertilizers. The fertilizer business is seasonal. The degree of seasonality of business can change significantly from year to year because of the weather conditions in the agricultural industry and other factors. Water soluble fertilizer market is intensely competitive. The competition is based primarily on delivered price, customer service and product quality. During the peak demand periods, product availability and delivery time are playing a key role in the buying decisions of farmers. High population densities, rapid urbanization, which created concentrated off-farm markets for food and fibre and growing need to restore soil nutrients to increase or maintain crop yields are boosting the demand for water soluble fertilizer.

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The strong demand for food consumption and improved margin opportunities have caught the attention of the companies, start up, and investors. It has also provided a ripe space for capital investment opportunities because of the consistent success for the risk of the fertilizer products. A various microeconomic and macroeconomic factors like Demand & supply, disposable income, and farmer preference are influencing positively for the production of water-soluble fertilizer market. Many key players are maintaining good relationships with its suppliers and considers for their present and anticipated future requirement. Prominent key players are monitoring worldwide supply and cost trends of these raw materials to take appropriate action to obtain the ingredients. The main exporting countries of water soluble fertilizes are Israel, Norway, Belgium, The Netherlands, and China. Indian importers import water soluble fertilizers from European countries for marketing in India. The water soluble fertilizers are produced at Vadodara, Gujarat, Kandla, Gujarat, Vizag/Kakinada, Andhra Pradesh, Jagdishpur, Uttar Pradesh, Bangalore, Karnataka, Pune, Maharashtra, Trombay, Maharashtra, Taloja, Tamil Nadu, Goa and Kerala in India.

Overview of Price Strategy in Water Soluble Fertilizer Market

The customers for fertilizer products make their purchasing decisions principally on the basis of delivered price, customer service and product quality. The selling prices of water- soluble fertilizer products fluctuate in response to global market conditions, changes in supply and demand and cost factors. Price fluctuations for fertilizers products result from changes in supply and demand. Significant price fluctuations could signal an oversupplied market in transition, where new production capacity is ramping up globally, while existing high-cost producers are forced to slow down or even shut down operations. Manufacturers constantly seek ways to improve production efficiency and reduce costs through innovative technologies and strategic sourcing of raw materials. Price competition in the water-soluble fertilizer market drives innovation and affordability and also create challenges for producers. Prices of raw materials like potash and natural gas can fluctuate, impacting production costs and ultimately, fertilizer prices. Companies are focusing to develop specialized water soluble fertilizer blends with unique nutrient ratios or controlled-release properties to justify premium pricing. increasing adoption of micro-irrigation systems in Asia is expected to create opportunity for water soluble fertilizer that leads to regional price variations as demand rises.
Water Soluble Fertilizer Market Regulatory Overview:
New entrance market key players have to take considerations regarding with various laws governing the environment like the storage, product composition and hazardous and toxic materials. Government bodies of various countries draft and implement national laws, regulations, policies, and standards related to fertilizers production. The fertilizers production and marketing industry has to follow a variety of federal, state and local laws and regulations that includes plant safety requirements related to the ingredients, manufacture, processing, packaging, and storage. The companies have to be followed stringent regulation including licensing, permitting and certification, necessitates a robust monitoring system to their geographic expansion. The companies are also implementing a regulatory risk mitigation system and other initiatives designed to ensure compliance with relevant regulatory requirements. New or proposed regulatory programs can present significant challenges in ascertaining future compliance obligations, implementing compliance plans, and estimating future costs until implementing regulations have been finalized and definitive regulatory interpretations have been adopted. The Food and Agriculture Organization provides a voluntary Code of Conduct on the Distribution and Use of Pesticides, which includes principles for fertilizer management. International Fertilizer Association (IFA) promotes best practices in the fertilizer industry, including quality control and environmental protection. In the United States, The Environmental Protection Agency (EPA) regulates fertilizers under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). In European Union, The EU regulates fertilizers under Regulation (EC) No 2003/2003 of the European Parliament and of the Council concerning fertilizers.
Water Soluble Fertilizer Market Dynamics
Government initiatives and promotions are expected to drive the crop productivity and demand for Water Soluble Fertilizer

Government initiatives and promotions are a powerful force in driving both crop productivity and the demand for water-soluble fertilizers. The Govt. policy influences every aspect of the industry including demand, supply, distribution, pricing, and supply of raw materials. The agriculture plays in the rural economy in developing countries. The governments have implemented supply and demand-side policies and programs to encourage sustainable water-soluble fertilizer use yielding mixed results. Periods of strong demand, high-capacity utilization and increasing operating margins tend to stimulate global investment in production capacity. The government drives the water soluble fertilizer market through its various schemes like reduced retail prices, lower import tax, funding for research, and maybe direct cash transfer to the farmers. Manufacturers, marketing companies, and State and Central Governments join hands to achieve the maximization of water-use-efficiency by using water-soluble fertilizers and irrigation practices. Growing government attempts to promote water soluble fertilizers, activities to educate farmers about the new fertilizer type and its benefits are expected to help Water Soluble Fertilizer market development.

Mexico's Fertilizer Support Program provides financial assistance to small-scale farmers for purchasing fertilizers, including water soluble fertilizer. The Indian Council of Agricultural Research sets up demonstration plots across the country showcasing the benefits of water soluble fertilizer. They also conduct training programs for farmers on the proper use and application techniques for water soluble fertilizer. Some Indian states are offering incentives to farmers who adopt water-saving irrigation practices alongside water soluble fertilizer. It is a strategic approach as water soluble fertilizer work best with efficient irrigation systems, and water conservation is a major concern in many regions. Government of India is encouraging to farmers to adopt micro-irrigation and has announced schemes and incentives for the farmers. The Government has proposed to bring 1.6 million hectares under micro-irrigation in co-ordination with National Bank for Agriculture and Rural Development (NABARD), which provide loans to farmers at 5%. The Fertilizer Association of Thailand has partnered with the Thai government to develop educational materials and training programs specifically focused on the benefits of water soluble fertilizer. The Chilean government has launched initiatives to promote the use of water soluble fertilizer for high-value crops like grapes and cherries.

The demand for environmentally-friendly fertilizers is a major driver propelling the water-soluble fertilizer Market.

Water soluble fertilizer deliver nutrients directly to the root zone compared to traditional broadcast fertilizers. It helps to minimizes the risk of nutrients leaching into the soil and contaminating groundwater. It is readily absorbed by plants, leading to less waste and reduced environmental impact compared to fertilizers. It integrates well with precision agriculture techniques like fertigation and micro-irrigation, which promote water conservation and resource efficiency. Consumers are becoming more conscious of the environmental impact of food production. An awareness creates a demand for agricultural practices that minimize environmental harm. Research into biofertilizers, enhanced nutrient utilization technologies, and slow-release are expected to enhance the environmental benefits of water soluble fertilizer products. It plays a role in organic agriculture, particularly for supplementing essential nutrients in organic fertilizer blends.

Technological development is one of the key drivers in the Water Soluble Fertilizer Market

Technology has a profound effect on the development of fertilizers, from improved production techniques to innovative applications, which helps to monitor and manage water soluble fertilizer application. Key players are continuously seeking to understand and develop products that address their desire output. New technologies like controlled-release water soluble fertilizer and enhanced nutrient formulations allow for targeted delivery of nutrients, minimizing waste and environmental impact. Advancements in precision agriculture allow for data-driven application of water soluble fertilizer and optimizing nutrient use and reducing water waste. It helps to cost saving and improve resource management for farmers. Key players are continuously seeking to understand their consumers and develop products that address their desire for organic and alternatives to conventional fertilizing methods. Sensor-based systems and data-driven irrigation management provide farmers with real-time insights and allows them to make informed decisions about water soluble fertilizer application and optimize resource use.

The demand for improved plant growth is driving innovation in water-soluble fertilizers. Farmers are increasingly seeking targeted solutions, and fertilizer companies are responding with expertise in formulation. Leading players are expanding their product lines and investing heavily in research and development (R&D). The fertilizer producers need deep knowledge, planning expertise, and process development capabilities to meet the growing demand in developing countries. Additionally, advanced technologies are crucial to ensure production meets international standards and maximizes capacity utilization. The technological development is expected to be directed towards creating environmentally friendly processes that boost fertilizer efficiency.

Water Soluble Fertilizer Market Growth Limiting Factors:

The supply reductions arising from technical outages, country-level imposed export restrictions and unprecedented high production costs are some of the factors, which are expected to limit the growth in the fertilizers market. The high price of specialty fertilizers such as water-soluble fertilizer act as a major restraint on the market growth during the forecast period. The low-cost effectiveness of these fertilizer varieties can restrict their use in some countries. The key players are also focusing on manufacturing technologies to increase production efficiency and to make products more affordable to crop producers including low-margin farmers. The effectiveness of water soluble fertilizer is expected to vary depending on the season and weather conditions. Factors like heavy rainfall can lead to nutrient leaching, and reducing the fertilizer's benefit. Farmers need to be aware of natural variations to optimize their use. Environmental influences such as diseases in certain crops or the occurrence of animal diseases could also lead to a decline in demand with a simultaneous drop in prices. Also, the volatility and disruption in the capital and credit markets, depressed farmer confidence about the nutrition value, lack of government economic policies, and negative economic conditions spending are some of the factors, which are expected to impact negatively on the growth water-soluble fertilizer market. A rising number of players with similar product formulations is also expected to challenge the growth of water soluble fertiliser market during the forecast period.
Water Soluble Fertilizer Market Segment Analysis
Modern agriculture is embracing a new era of efficiency and sustainability, driven by advancements in water and nutrient management. Techniques like fertigation and foliar application are revolutionizing the way crops receive their nourishment. An advanced methods deliver essential nutrients directly to the root zone (fertigation) or plant leaves (foliar application) at the precise time and in the exact quantities required by the growing crop. The targeted approach eliminates waste and environmental runoff often associated with traditional broadcasting of fertilizers. fertigation and foliar application techniques have the potential to significantly improve agricultural productivity while minimizing environmental impact by aligning nutrient delivery with crop demand.

By Type, water soluble fertilizer is segmented into Nitrogenous, Phosphatic, Potassic and Others. Nitrogenous segment held the dominant position in 2023 with a share of 60.2% and is projected to continue its dominance during the forecast period. Nitrogen is a crucial element for plant growth, influencing various physiological processes. It promotes healthy leaf development, stem strength, and overall plant vigor. Nitrogenous WSFs are suitable for a broad range of crops, including cereals (rice, wheat, maize), oilseeds (soybean, canola), and vegetables that versatility is expected to contribute to their widespread adoption.



By mode of application, water soluble fertilizer is segmented into foliar and fertigation. the fertigation segment is the most preferred application method for water-soluble fertilizer because through this method pre-existing nutritional deficiency in the crop can be controlled effectively. The fertigation method is effective in saving fertilizer usage by up to 28% and as Water Soluble Fertilizer is costly crop nutrition commodities, applying them smartly through fertigation can effectively reduce the production cost of several crops. Fertigation delivers nutrients directly to the root zone, minimizing waste and maximizing nutrient uptake by plants. It works well with water soluble fertilizer because of their water solubility. Fertigation allows for precise control over the amount and timing of nutrient delivery, which is catering to specific crop needs. Foliar application provides a quick way to address nutrient deficiencies in plants, particularly micronutrients. Foliar application allows for targeted delivery of nutrients to specific plant parts, like leaves, for addressing specific issues.

By Crop Type, water soluble fertilizer is segmented into field crop, horticulture, turf & ornamentals and others. Horticultural crops like fruits, vegetables, and flowers have higher market value compared to field crops. Farmers are expected to invest in water soluble fertilizer because of high potential for increased yields and improved quality, leading to higher profits. Horticultural crops have specific nutrient requirements at different stages of growth. The water soluble fertilizer with their targeted delivery and diverse formulations are expected to increase crop production efficiency. Increasing demand for a nutrition-rich diet is expected to drive the high-value crop demand, which is expected to boost the segment’s growth. A number of horticulture crop varieties require specialized nutrients, favorable climatic conditions, and proper conditioning for plant growth that is expected to drive the need for water soluble fertilizer to fulfill that requirement efficiently.


Water Soluble Fertilizer Market Regional Insight
Europe reign held the dominant position with a Share of 40.4% In 2023.

The increasing demand for efficient fertilizers and adoption of precision farming techniques are key drivers behind the Europe water soluble fertilizer market growth. France is a largest consumer in Europe because of aging farmers, land conversion, and need for productivity boost. Germany, Spain, Russia have presence of specialty fertilizer companies. Germany has a well-developed chemical industry, which is expected to translate well to water-soluble fertilizer production and export. Netherland is a Known for its strong agricultural sector and well-developed logistics network. It is farmers and growers who use fertilizers in practice to produce food. The Vision predicts that professional farmers and growers are expected to become even more knowledgeable and demanding of nutrient input by 2030. In the same year, the Europe is expected to drive to decarbonise the economy is expected to be well advanced. European Commission sets an objective of net zero emissions economy, across all sectors, in 2050, it is expected be a huge challenge for the mineral fertilizer industry, given the natural gas-based and energy-intensive nature of nitrogen fertilizer production. The EU’s farming sector is constantly changing and increasing the need for water soluble fertilizer.



The Asia Pacific region is projected to grow at a 5.38% rate of CAGR during the forecast period.

An increase in popularity of complex water soluble fertilizers and micronutrients in horticulture and ornamental crops are expected to drive the demand for water soluble fertilizer in Asia Pacific. The widespread adoption of micro irrigation systems in the Asia Pacific region presents a significant opportunity for the water-soluble fertilizer market. The systems deliver water directly to plant roots, minimizing waste and maximizing water efficiency. Water soluble fertilizers (WSFs) have become increasingly popular in Indian agriculture. China is a major player in the global fertilizer market, and water-soluble fertilizers (WSFs) are a segment experiencing significant growth. In 2023, Yara has opened its first water-soluble fertilizer plant in China. The plant aims to provide high-quality water-soluble fertilizers, particularly to smallholder farmers, which offer several advantages, including ease of application, efficient nutrient uptake by crops, and potentially improved crop health and yields.

Water Soluble Fertilizer Market Industry Recommendation:

Financial Incentives and Subsidies:

The first aspect of the water-soluble fertilizer industry that an investor should know about is regulations and subsidies. There is no existence of fertilizer industry without govt. support and control. Governmental policies, including farm subsidies, commodity support programs and tariffs, and the prices of fertilizer products may directly or indirectly influence the number of acres planted, the mix of crops planted and the use of water-soluble fertilizers for particular agricultural applications

Trade in Water Soluble Fertilizers:

The geopolitical factors like temporary disruptions in fertilizer trade related to government intervention or changes in the buying/selling patterns of key exporting/consuming countries such as China, India, Russia and Brazil are playing a major role in shaping near-term water-soluble fertilizers market fundamentals. Supply of fertilizers is generally driven by available capacity and operating rates, raw material costs and availability, government policies and global trade. The profitability within a particular geographic region is determined by the supply/demand balance. Regional supply and demand are influenced significantly by factors affecting trade and the relative cost to produce and deliver product, relative currency values, the availability of credit and governmental trade policies, including the imposition of duties, tariffs.

Establish A Secure Supply of Water Soluble Fertilizer Raw Materials

High levels of concentration in fertilizer production result both from high requirements for raw materials. The difficulties in securing the supply and delivery of raw materials, increases in their costs or delays or interruptions in the delivery of fertilizer products. The manufacturing processes of water soluble fertilizers require access to natural resources. Many key players are maintaining good relationships with its suppliers and considers for their present and anticipated future requirement. Prominent key players are monitoring worldwide supply and cost trends of these raw materials to take appropriate action to obtain the ingredients. The countries have to be strategically invested in the water-soluble fertilizer value chain and become world leader in the Circular Economy of agriculture products.

Partnerships and Collaborations:

Partner with universities, research institutions, and irrigation system providers to develop and promote integrated solutions for efficient water soluble fertilizer delivery. Collaboration with agricultural extension services to provide farmer education and training programs are expected to boost the product efficiency. WSF producers, policymakers, and farmers are expected to unlock the full potential of water-soluble fertilizers.
Water Soluble Fertilizer Market Scope: Inquiry Before Buying



Water Soluble Fertilizer Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 15.38 Bn.


Forecast Period 2024 to 2030 CAGR:
7.2%
Market Size in 2030:
US $ 25.03 Bn.


 Segments Covered:
by Type
Nitrogenous
Phosphatic
Potassic
Others


by Mode of Application
Foliar
Fertigation


by Crop Type
Field Crop
Horticulture
Turf & Ornamentals
Others



Water Soluble Fertilizer Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Leading Water-Soluble Fertilizer Key Players include:
1. Yara International (Norway)
2. ICL Group (Israel)
3. Nutrien Ltd. (Canada)
4. Haifa Group (Israel)
5. SQM (Sociedad Química y Minera de Chile) (Chile)
6. K+S Group (Germany)
7. The Mosaic Company (USA)
8. Coromandel International Ltd. (India)
9. ICL Specialty Fertilizers (Israel)
10. Compo Expert GmbH (Germany)
11. Everris (a division of ICL) (Israel)
12. Tata Chemicals (India)
13. EuroChem Group (Switzerland)
14. Sinochem Group (China)
15. AgroLiquid (USA)
16. Hebei Monband Water Soluble Fertilizer Co., Ltd. (China)
17. SQM Vitas (USA)
18. Plant Marvel Laboratories, Inc. (USA)
19. Valagro (Italy)
20. Van Iperen International (Netherlands)
21. J.R. Simplot Company (USA)
22. ICL Fertilizers (Israel)
23. ADOB (Agricultural and Food Biotechnology) (Poland)
24. Artal Agronutrientes (Spain)
25. Astra Chemicals (Saudi Arabia)

Frequently asked Questions:
1. What is Water Soluble Fertilizer?
Ans: Water soluble fertilizer is a type of fertilizer that dissolves easily in water.

2. What segments are covered in the Water Soluble Fertilizer Market report?
Ans. The segments covered in the Water Soluble Fertilizer Market report are Type, Mode of Application and Crop Type.

3. Which regions is leading in the consumption of Water Soluble Fertilizer?
Ans: The Europe held the dominant position in the Water Soluble Fertilizer market and Asia Pacific is projected to continue its dominant position during the forecast period.

4. What Factors are shaping the future of the Water Soluble Fertilizer Market Growth?
Ans. Rising Demand for Food, Shifting Agricultural Practices , Focus on High-Value Crops are some of the prominent factors behind the market growth.

5. What is the projected growth rate for Water Soluble Fertilizer Market during the forecast period?
Ans: The Water Soluble Fertilizer Market growth is expected to grow at a 7.2% rate of CAGR during the forecast period.