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Global Fertilizer Market Size and Forecast 2025–2033

Rising Food Demand, Agricultural Modernization, and Sustainable Farming Push the Fertilizer Market Toward US$ 279.52 Billion by 2033

By Janine Root Published about a month ago 6 min read

The global fertilizer market is entering a period of steady expansion as the world navigates rising food demand, limited arable land, and rapid advancements in agricultural technology. According to Renub Research, the fertilizer market is projected to reach US$ 279.52 billion by 2033, up from US$ 199.82 billion in 2024, exhibiting a CAGR of 3.80% from 2025 to 2033.

Several critical forces—population growth, income expansion in emerging markets, supportive government policies, and intensified R&D—are shaping the future of the sector. Asia-Pacific continues to hold the leading market share due to its vast agricultural base and rising crop production needs.

This article unpacks the key drivers, challenges, segmentation, and regional market dynamics that will define the fertilizer sector through 2033.

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Fertilizer Industry Overview: A Backbone of Modern Agriculture

Fertilizers—whether organic or inorganic—are essential inputs designed to supply plants with nutrients needed for healthy growth. Fertilizers containing key elements such as nitrogen, phosphorus, and potassium improve soil fertility and enhance plant metabolism, ultimately boosting crop yields.

Nitrogen-based fertilizers promote chlorophyll production and photosynthesis.

Phosphate fertilizers stimulate root development and cell growth.

Organic fertilizers, derived from manure, municipal sludge, or agricultural waste, enrich soil structure and support microbial activity.

As the global agricultural sector embraces sustainability, organic fertilizers and controlled-release technologies are gaining traction. These innovations help reduce chemical exposure, limit nutrient losses, and promote efficient nutrient uptake.

Industry players continue to expand production capacities and strengthen regional footprints. For instance:

Haifa Group expanded its Controlled Release Fertilizer (CRF) capacity in France in 2019, increasing total output to 24,000 MTPA.

Yara International ASA acquired Brazil’s Vale Cubatão Fertilizantes facility for USD 255 million, reinforcing its position in nitrogen production.

Yet, despite growth momentum, the industry still grapples with knowledge gaps around optimal fertilizer usage, especially in developing regions. Improper application leads not only to crop inefficiency but also to environmental degradation.

Key Growth Drivers for the Global Fertilizer Market

1. Economic Growth and Rising Incomes Boost Fertilizer Adoption

Emerging economies are witnessing sharp increases in disposable incomes, which in turn are reshaping dietary habits. As consumers shift toward higher-protein diets, demand for animal feed crops rises, requiring intensive fertilizer application.

Farmers with increased income also invest more in quality inputs—fertilizers, high-yield seeds, and modern machinery—to enhance productivity. This economic expansion directly strengthens fertilizer consumption patterns across Asia, Africa, and Latin America.

2. Government Policies and Subsidies Accelerate Fertilizer Use

Subsidies remain a crucial mechanism for enhancing fertilizer accessibility, especially in developing regions. Countries such as India, China, and Indonesia rely heavily on subsidy mechanisms to ensure farmers can afford nitrogen-, phosphate-, and potash-based fertilizers.

However, adjustments in subsidy frameworks—such as reductions, import restrictions, or policy reforms—can reshape demand significantly. Governments also encourage the adoption of environment-friendly products such as bio-fertilizers and controlled-release variants.

3. Population Growth Intensifies Food Production Requirements

With the global population rising, food demand continues to soar. Yet, arable land availability remains stagnant or even shrinking. This imbalance compels farmers to rely more heavily on fertilizers to extract maximum yield from limited land.

Fertilizers, therefore, remain indispensable in ensuring global food security—particularly for major staples such as wheat, rice, maize, and soybeans.

Key Challenges Facing the Fertilizer Market

1. Escalating Raw Material Prices

Fertilizer manufacturers depend on natural gas, potash, and phosphate rock. Any volatility in supply chains—whether due to geopolitical tensions, trade restrictions, or environmental mandates—drives costs upward.

Growing calls for cleaner production and reduced emissions further increase operational costs for producers, potentially making fertilizers less affordable for farmers.

2. Environmental Impact and Sustainability Concerns

Overuse of nitrogen-based fertilizers leads to:

Nitrate runoff → water pollution and algal blooms

Nitrous oxide emissions → accelerated climate change

Soil degradation → long-term fertility loss

These concerns have catalyzed a shift toward precision farming, slow-release fertilizers, and organic alternatives. Nations worldwide are increasingly enforcing stricter regulations and promoting sustainable practices.

Market Dynamics by Type and Segment

Nitrogen Dominates Due to Its Critical Role in Crop Growth

Nitrogen remains the largest segment due to its foundational biological role in amino acids, chlorophyll, and enzymes. Its immediate impact on plant structure and function ensures nitrogen fertilizers—such as urea, ammonia, and ammonium nitrate—remain indispensable for grain and cereal production.

Dry Fertilizers Lead Thanks to Logistical and Storage Advantages

Dry fertilizers hold the majority market share because:

They have longer shelf life

Are easy to store, transport, and apply

Experience minimal nutrient loss

Granules and prills also integrate seamlessly with modern spreader technologies, making them a preferred choice worldwide.

Agriculture Remains the Primary Application Segment

As global food demand grows, fertilizers remain central to agricultural output. They are essential for grains, oilseeds, fruits, vegetables, and cash crops. The close relationship between rising population, food consumption, and fertilizer usage keeps agriculture at the forefront of market demand.

Vegetables Show Strong Segmental Growth

With global consumers increasingly adopting healthy diets, vegetable farming has expanded significantly. Fertilizers play a vital role in ensuring nutritional quality, yields, and soil health, making vegetables a fast-growing crop segment in the fertilizer market.

Regional Market Analysis

United States Fertilizer Market

The U.S. ranks among the largest fertilizer consumers globally due to its massive cultivation of corn, soybeans, wheat, and cotton. In 2022, these four crops accounted for 65.7% of major agricultural acreage.

Key characteristics include:

Heavy use of nitrogen fertilizers, especially in corn production

Rising adoption of organic and bio-based fertilizers

Increasing environmental scrutiny due to runoff and emissions

Limited cropland—down by nearly 50 million acres since 2000—driving reliance on fertilizers to maximize yield

Precision farming tools and controlled-release products are gaining traction as farmers focus on sustainability and efficiency.

Germany Fertilizer Market

Germany’s fertilizer market mirrors broader European trends:

Strong focus on sustainability

Emphasis on reducing nitrogen-based pollution

Rising demand for organic and specialty fertilizers

Germany remains a significant importer of fertilizers and maintains strict regulations that influence product formulations and usage patterns.

India Fertilizer Market

India remains one of the world’s largest fertilizer markets, dominated by nitrogen-based products that support mass cultivation of wheat, rice, and maize.

Key insights:

Heavy government subsidies ensure affordability

Overuse has led to soil degradation, compelling a shift toward balanced fertilization

Strong momentum in organic fertilizers, bio-fertilizers, and slow-release nutrients

Government initiatives such as soil health cards and precision farming incentives are reshaping the market

Recent corporate developments include ICL’s strategic partnership with General Mills in 2023 to supply specialty phosphate solutions, signalling increasing alignment between agriculture and food processing industries.

United Arab Emirates Fertilizer Market

Though smaller in scale, the UAE fertilizer market is expanding rapidly due to:

National food security initiatives

Adoption of hydroponics and controlled-environment agriculture

Rising demand for specialty fertilizers

Growing preference for organic and eco-friendly products

The UAE’s harsh climate and limited arable land make fertilizer efficiency critical for sustainable domestic food production.

Market Segmentation Overview

Type (3 Viewpoints)

Nitrogen

 • Nitrates

 • Urea

 • UAN

 • Compound Fertilizer

 • Others

Phosphorus

Potassium

Category (2 Viewpoints)

Organic

Inorganic

Forms (2 Viewpoints)

Dry

Liquid

Application (4 Viewpoints)

Agriculture

Horticulture

Gardening

Others

Crops (14 Viewpoints)

Grassland, Vegetables, Fruits/Treenuts, Roots/Tubers, Sugar Crops, Fibre Crops, Oil Crops, Oil Palm, Soybeans, Cereals, Maize, Rice, Wheat, Others

Countries Covered (19 Total)

United States, Canada, Russia, Ukraine, Germany, Italy, United Kingdom, Turkey, China, India, Pakistan, Bangladesh, Indonesia, Vietnam, Australia, Brazil, Argentina, Mexico, Rest of World

Leading Companies in the Fertilizer Market

Yara International ASA

K+S AG

CF Industries Holdings

Grupa Azoty S.A

ICL Group

OCI NV

Sociedad Química y Minera de Chile (SQM)

BASF SE

PhosAgro

Each of these companies continues to expand production efficiency, invest in sustainable fertilizer technologies, and strengthen regional supply chains to meet evolving market demands.

Final Thoughts

The global fertilizer market is on a steady upward trajectory as nations strive for food security, technological modernization, and sustainable agricultural practices. While raw material volatility and environmental concerns present challenges, innovation—especially in organic fertilizers, controlled-release products, and precision farming—will shape the future of the industry.

By 2033, the market’s expected value of US$ 279.52 billion reflects not only strong agricultural demand but also the sector’s pivotal role in feeding a growing global population. As countries modernize their farming ecosystems, fertilizers will remain indispensable in enabling higher yields, healthier soils, and more resilient food supply chains.

Science

About the Creator

Janine Root

Janine Root is a skilled content writer with a passion for creating engaging, informative, and SEO-optimized content. She excels in crafting compelling narratives that resonate with audiences and drive results.

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