Global Fertilizer Market Size and Forecast 2025–2033

The global agriculture industry is racing against time. With the global population rising, arable land shrinking, and climate uncertainties intensifying, fertilizers have become more essential than ever. According to Renub Research, the global fertilizer market is expected to reach US$ 279.52 billion by 2033, up from US$ 199.82 billion in 2024, expanding at a CAGR of 3.80% from 2025 to 2033.

This rising demand is propelled by population growth, increasing food consumption, government subsidies, improved farming techniques, and rapid advancements in agricultural technologies. Not surprisingly, the Asia Pacific region remains the largest market, driven by fast-growing agricultural economies such as India, China, Pakistan, and Vietnam.

Fertilizer Industry Overview

Fertilizers — whether organic or inorganic — deliver essential nutrients that plants require for healthy growth. These nutrients are predominantly nitrogen (N), phosphorus (P), and potassium (K), popularly known as NPK. While nitrogen enables photosynthesis and plant growth, phosphorus strengthens roots and boosts energy transfer, and potassium enhances water absorption and resistance to stress.

Organic fertilizers, derived from animal waste, agricultural residues, or compost, improve soil structure, increase water-holding capacity, and promote microbial activity.

Inorganic fertilizers, typically synthetic, offer rapid nutrient absorption and targeted application for high-yield crops.

Demand for fertilizers is accelerating as farmers worldwide seek to maximize crop productivity, maintain soil quality, and meet the rising food requirements of expanding populations. Innovations such as controlled-release fertilizers, precision application tools, and specialty blends are further pushing this sector into a new era of efficiency.

One major example of expansion is the Haifa Group, which in 2019 boosted the production capacity of its Controlled Release Fertilizer (CRF) unit in France to 8,000 MTPA, with the potential to scale up to 24,000 MTPA. Similarly, Yara International ASA’s acquisition of Vale Cubatao Fertilizantes Complex in 2018 strengthened its nitrogen production capabilities in Brazil.

Still, the industry faces hurdles — particularly the lack of awareness about optimal fertilizer usage, which often leads to overapplication, soil degradation, or nutrient loss.

Key Growth Drivers of the Global Fertilizer Market

1. Economic Growth and Rising Incomes

As emerging economies expand, rising incomes trigger dietary shifts — especially toward protein-rich diets. Higher consumption of meat and dairy increases demand for livestock feed crops such as maize, soybeans, and wheat, consequently boosting fertilizer usage.

Higher income levels also enable farmers to adopt modern agricultural practices, invest in high-quality fertilizers, and integrate smart farming technologies. Overall, economic development directly contributes to improved purchasing power and greater adoption of fertilizers globally.

2. Government Policies and Subsidies

Fertilizer markets are highly sensitive to government policies. Many countries implement subsidy programs that significantly reduce fertilizer prices for farmers. India, China, the United States, and several European countries rely heavily on such schemes.

Subsidies not only improve accessibility but also encourage higher crop productivity. However, when governments adjust these policies — such as reducing subsidies or imposing environmental regulations — market demand and profitability can shift dramatically.

Government-led initiatives to promote sustainable fertilizer use, organic farming, and precision agriculture are shaping the next phase of the fertilizer industry.

3. Rising Population and Growing Food Demand

The global population is projected to reach nearly 9.7 billion by 2050, dramatically increasing food requirements. With limited availability of fresh arable land, improving crop yield per hectare is the only viable path forward.

Fertilizers are fundamental to this mission. They replenish soil nutrients, boost productivity, and ensure that agricultural systems can produce more with less land. As nations struggle to maintain food security, fertilizer usage is poised for sustained long-term growth.

Major Challenges Facing the Fertilizer Market

1. Volatile Raw Material Prices

Raw materials such as natural gas (for nitrogen fertilizers), phosphate rock, and potash are essential to fertilizer production. Their prices are often influenced by geopolitical tensions, supply chain disruptions, or trade restrictions.

Higher production costs typically translate into more expensive fertilizers for end users, disproportionately affecting small and marginal farmers. Environmental regulations mandating cleaner processes may also increase production expenses.

2. Environmental Concerns

Overuse of fertilizers — especially nitrogen-based varieties — leads to severe ecological consequences:

Water eutrophication

Soil acidification

Greenhouse gas emissions

Loss of biodiversity

Nitrous oxide, emitted from nitrogen fertilizers, is a potent greenhouse gas contributing significantly to global warming.

Governments and organizations are increasingly emphasizing sustainable fertilization techniques, including organic fertilizers, biofertilizers, and slow-release formulas. Innovation in the fertilizer sector is now geared toward minimizing environmental impact while maximizing efficiency.

Market Insights by Segment

Nitrogen Leads the Market

Nitrogen fertilizers dominate the global market due to their crucial role in the development of amino acids, proteins, and chlorophyll. Products like urea and ammonium nitrate are cost-efficient, fast-acting, and widely adopted, especially in high-yield cereal farming.

Dry Form Fertilizers Hold the Largest Share

Dry fertilizers — granules, powders, and prills — are preferred due to:

Longer shelf life

Minimal caking or clumping

Ease of transportation and storage

Cost-effective bulk handling

Farmers favor dry fertilizers for large-scale agricultural operations, reinforcing their dominant market position.

Agriculture Remains the Core Application

With global food consumption accelerating, fertilizers are essential in overcoming nutrient deficiencies, improving soil structure, and driving agricultural productivity. They are particularly indispensable in the cultivation of:

Cereals

Pulses

Fruits and vegetables

Oilseeds

This synergy between agriculture and fertilizers ensures the segment’s leading role in the global market.

Vegetable Crops See Rising Fertilizer Demand

Health-conscious consumers worldwide are shifting toward diets rich in fresh vegetables. This trend is pushing farmers to intensify cultivation, enhance yields, and maintain year-round quality, all of which depend on efficient fertilization.

Vegetable crops often require more targeted nutrient management, making fertilizers crucial to sustaining demand.

Regional Market Insights

United States Fertilizer Market

The U.S. fertilizer market is one of the largest globally. Nitrogen fertilizers dominate due to extensive corn cultivation. Precision farming, sustainability initiatives, and bio-based fertilizers are influencing purchasing patterns.

Key statistics include:

U.S. population increased from 335.9 million (2020) to 338.2 million (2022)

Total agricultural land declined from 943 million acres (2000) to 893.4 million acres (2022)

Four crops — corn, cotton, soybeans, and wheat — account for nearly 65.7% of principal crop acreage

This shrinking agricultural land combined with rising food demand underscores the importance of fertilizer-driven productivity.

Germany Fertilizer Market

Germany’s fertilizer market relies heavily on nitrogen, phosphate, and potash to support its advanced agricultural sector. Sustainable farming and environmental regulations drive adoption of greener fertilizers.

India Fertilizer Market

India is among the largest consumers of fertilizers globally due to its massive agricultural industry. Key points:

Heavy government subsidies boost accessibility

Nitrogen-based fertilizers dominate (urea, ammonium sulfate)

Overuse of chemical fertilizers has led to soil degradation

Demand for organic, bio-based, and controlled-release fertilizers is rising

Precision farming adoption is accelerating

In 2023, ICL partnered with General Mills for long-term supply of specialty phosphate solutions, marking a strategic expansion.

United Arab Emirates Fertilizer Market

The UAE’s fertilizer market is small but rapidly growing due to:

Scarcity of arable land

Adoption of hydroponics and controlled-environment agriculture

Rising food security programs

Shift toward organic and eco-friendly fertilizers

Advanced technologies and government-led sustainability efforts continue to expand the market’s potential.

Market Segmentation Summary

By Type

Nitrogen (Nitrates, Urea, UAN, Compound Fertilizer, Others)

Phosphorus

Potassium

By Category

Organic

Inorganic

By Form

Dry

Liquid

By Application

Agriculture

Horticulture

Gardening

Others

By Crops (14 Categories)

Including vegetables, cereals, maize, rice, wheat, soybeans, fruits, sugar crops, and more.

By Countries (19 Markets)

Covering North America, Europe, Asia Pacific, Latin America, and Rest of World.

Company Analysis (Overview, Developments & Revenue)

Yara International ASA

K+S AG

CF Industries Holdings

Grupa Azoty S.A.

ICL Group

OCI NV

SQM (Sociedad Química y Minera de Chile)

BASF SE

PhosAgro

Final Thoughts: Fertilizers Will Shape the Future of Global Food Security

As the world navigates climate pressures, rising populations, and increasing food scarcity challenges, the fertilizer industry stands at a pivotal juncture. Innovation, sustainability, and efficiency will define the next decade of growth. With the global market poised to reach US$ 279.52 billion by 2033, fertilizers will remain the backbone of agricultural productivity and global food security.