Key Growth Opportunities in the Global Controlled-Release Fertilizers Market

Northbrook, IL, USA, 2019-Nov-15 — /EPR Network/ — The report Controlled-Release Fertilizers Market by Type (Slow-release, Coated & Encapsulated, N-Stabilizers), Crop Type (Cereal & Grain, Oilseed & Pulse, Fruit & Vegetable, Plantation, Turf & Ornamental), Application Method, and Region – Global Forecast to 2022″, The controlled-release fertilizers market is projected to grow at a CAGR of 6.29% from USD 1.56 Billion in 2017, to reach USD 2.12 Billion by 2022. Due to the increasing demand for high efficiency fertilizers to minimize nutrient losses, controlled-release fertilizers have been gaining preference for their beneficial characteristics such as patterned nutrient release and their effect on the agricultural yield.

Controlled-Release Fertilizers Market

Favorable government policies and regulations

Government policies and regulations have always been one of the key factors at propelling and promoting the production of a particular commodity or system.

Labeling and manufacturing guidelines for controlled-release fertilizers, which serve as a mark of a superior standard or trust, have been mandatorily adopted and regulated in many nations, especially the US and also the European countries. These products are promoted by domestic fertilizer regulatory agencies in accordance with the view of the government policy frameworks to minimize the environmental hazards caused by leaching and nutrient loss. For instance, China’s guiding catalog of Industrial Infrastructure Adjustment (2011 edition) classified CRF as one of the encouraged items, indicating the development of CRF to speed up during China’s 11th five-year plan, from 2011-2015. After the proposal of China’s 11th five-year plan, the growth of CRF in the country spiked up by 30% during the last 15 years. Such government policies and well-defined regulations act as a boosting factor for the growth of this market at the global level.

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Improper management of controlled-release fertilizers

The application costs of controlled-release fertilizers are comparatively low due to the less labor requirements and reduced application cycles. However, training and management of controlled-release fertilizers are a pre-requisite for the adoption of the technology. Improper application methods and storage techniques can deteriorate the results expected from these fertilizers. Furthermore, there is unawareness about the brands in the market as the market is highly fragmented at the regional level. Despite the considerable efforts by agronomists across the globe in recent years, a majority of farmers do not prefer controlled-release fertilizers.

The mixing rate of fertilizers for fertigation or broadcasting application is of prime importance to ensure proper diffusion of the nutrients into the soil and avoid nutrient leaching. On the contrary, management of conventional fertilizers requires minimal conditions and hence, farmers show high preference in using conventional fertilizers. Appropriate training/knowledge to the farmers on controlled-release technology and management of these fertilizers have to be provided so that they can fully utilize their benefits to increase crop productivity. Regulated labeling of controlled-release fertilizers such as in the US, emphasizing on the directions of use, and hazards associated with improper management have to be encouraged across the globe. Also, awareness campaigns by governments in developing countries along with training programs on the management of controlled-release fertilizers from manufacturers would subsequently encourage more farmers to adopt this technology.

Product innovations in controlled-release technology

Nitrogen is the major fertilizer nutrient manufactured using controlled-release technology in the market owing to its ample availability, cheaper price, and of higher importance to the crops. Condensed urea products, sulfur coatings, and nitrification inhibitors are the major technologies adopted for the production of nitrogen fertilizers. However, the demand for potassium and phosphorus nutrients cannot be ignored as the conventional forms pose significant environmental concerns. This opens immense opportunities for the growth of controlled-release technology in the coming years.

There is a growing demand for biofertilizers owing to the increase in organic farming practices across the globe. Agricultural biological products have seen exponential growth in recent years, especially in European and Asia Pacific markets. However, biological products combining controlled-release technology have still been under the research phase. Though there are organic slow-release fertilizers available in the market, where the fertilizers are coated or impregnated in manure and released on the soil whilst microbial activity on the coating enables diffusion of fertilizers to the crop, the market for these products is very niche. The development of such biological products featuring controlled-release technology is expected to boost the demand for smart fertilizers to a larger extent.

Even though controlled release technology was introduced in the market during the 1970s, the complex production process has still remained the major reason for the high prices of these fertilizers. Coated fertilizers are the major type preferred by farmers among different enhanced efficiency fertilizers and there is wide scope for development of cheaper and affordable production processes to manufacture these fertilizers, which can ultimately reduce the product costs.

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Limited adoption of controlled-release technology

Controlled-release fertilizers have been in use since a long time in countries such as the US and in Western European countries. However, the technology has been relatively nascent for developing countries. Limited awareness on the advantages of CRF with respect to application cost and environmental concerns has been hampering the growth of this market to a large extent. The main reason for the low rate of adoption of this technology is the established conventional fertilizers market, since the demand for conventional fertilizers among farmers has been strongly fueled by their belief in high crop returns.

Though there is a high impact on the long-term cost associated with the application of fertilizers, the initial cost to be invested by the farmers is quite high which restrains the farmers to adopt this technology. Also, beliefs among the farmers from developing countries on the advantages of using large amounts of fertilizers multiple times would increase crop yield and quality, is not the same with controlled-release fertilizers, which further leads to the rising unwillingness in adopting the technology. Moreover, in developing countries, large amounts of subsidies are provided by the government over conventional fertilizers. For instance, in India, there are a number of subsidies extended to the farmers for NPK fertilizers such as Nutrient-Based Subsidy (NBS), Essential Commodities Act 1955 (ECA), and Concession Scheme for P&K Fertilizers; however, not much subsidy is granted for smart fertilizers, which further impacts the adoption of this technology among farmers.

On the other hand, in countries such as India and China, where agriculture is the major source of income for more than half of the country’s population, farmers are not willing to take risks against their crop production. According to the Institute of Management Development and Research (IMDR), India, small retailers and shopkeepers are unwilling to stock and sell smart fertilizers in the country as they feel their quality is unreliable.

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