Global Nitrogen, Phosphorus and Potassium (NPK) Fertilizers Market 2024-2031

Global Nitrogen, Phosphorus and Potassium (NPK) Fertilizers Market 2024-2031

Nitrogen, Phosphorus and Potassium (NPK) Fertilizers Market Size, Share & Trends Analysis Report by Type (Phosphorus-Based Fertilizers, Potassium-Based Fertilizers, Nitrogen-Based Fertilizers, and Others), by Form (Powder, Liquid, and Others), and by Application (Dairy Products, Meat & Meat Products, Bakery Products, and Beverages) Forecast Period (2024-2031)

Nitrogen, phosphorus, and potassium (NPK) fertilizers market is anticipated to grow at a CAGR of 4.3% during the forecast period (2024-2031). The growing population globally has increased the demand for food and agricultural productivity. This increased demand for food productivity has been driving the global NPK fertilizer market. Government subsidies and support to promote NPK fertilizer use and economic factors and trade liberalization that facilitate international trade are also making significant contributions to global market growth.

Market Dynamics

Increasing global population

The global population's continuous growth drives demand for food production, requiring higher agricultural productivity and increased demand for NPK fertilizers. According to the US Census Bureau, in November 2023, based on current trends, the rate of global population growth is expected to gradually decline. It took 12.5 years for the globe’s population to increase from 7.0 billion to 8.0 billion, and it is projected to take approximately 14.1 years to reach 9.0 billion, and another 16.4 years to reach 10.0 billion. By 2060, the globe’s population is estimated to be around 10.2 billion.

Market Segmentation

Based on type, the market is segmented into phosphorus-based fertilizers, potassium-based fertilizers, nitrogen-based fertilizers, and others (micronutrient fertilizers, and organic fertilizers).

Based on form, the market is segmented into powder, liquid, and others (crystals, prills, and pellets).

Based on application, the market is segmented into dairy products, meat & meat products, bakery products, and beverages.

Phosphorus-based fertilizers is Projected to Emerge as the Largest Segment

Phosphorus is a vital nutrient for plant growth and health. Phosphorus-based fertilizers can help plants in many ways including root growth, nitrogen fixation, and DNA & RNA composition. The high demand for phosphorus-based fertilizer owing to its offered benefits is a key factor driving the growth of this market segment. To meet the growing demand for phosphate fertilizer, in December 2023, EuroChem launched its new Phosphate R&D Center, aiming to provide prompt responses to site queries and client requests while implementing new process technologies. The center will explore optimizations for raw phosphate rock processing, research plant capacity increases, reduce operational expenses, improve fertilizer product grades, and conduct pilot testing to prove the efficiency of future investment projects. The center's state-of-the-art facilities simulate the entire operation and production process.

Regional Outlook

The nitrogen, phosphorus, and potassium (NPK) fertilizers market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Rising Demand For Food In North America Region

The increasing global population necessitates higher agricultural productivity, driving the demand for NPK fertilizers to improve crop yields and meet the growing food demand. According to the US Department of Agriculture, in March 2022, the US Department of Agriculture plans to allocate $250.0 million for a grant program to boost domestic fertilizer production, address rising costs promote competition in the industry, and conduct a public inquiry.

Asia-Pacific Holds Major Market Share

Government policies and subsidies significantly influence fertilizer markets, promoting agricultural sustainability and supporting farmers through targeted programs, as demonstrated by the Fertilizer Program. For instance, in June 2023, Fertilisers and Chemicals Travancore (FACT) launched the 'Bharat' brand NPK, a new fertilizer under the One Nation One Fertiliser programme, launched by the Union government to ensure the quality and affordability of fertilizers under the unified brand name 'Bharat'.

Market Players Outlook

The major companies serving the NPK fertilizers market include Akzo Nobel N.V., CF Industries Holdings, Inc., EuroChem Group, Nutrien Ltd., and Yara International ASA. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in February 2024, Indian fertilizer producers Mangalore Chemicals & Fertilizers (MCFL) and Paradeep Phosphates (PPL) merged to consolidate operations and increase their fertilizer production capacity.