Fertilizers Market Growth Drivers: Food Security, Crop Yields, and Agricultural Expansion

Author : Sameer Straits2 | Published On : 02 Nov 2026

The fertilizers market plays a critical role in global agriculture by supporting soil fertility, crop development, and food production. Growing food requirements, changing agricultural practices, and the need to improve crop yields are encouraging farmers to use nitrogenous, phosphatic, potassic, and micronutrient fertilizers. Advances in nutrient management and precision agriculture are also influencing fertilizer consumption across major farming regions.

According to Straits Research, the global fertilizers market was valued at USD 408.52 billion in 2025 and is projected to increase from USD 433.89 billion in 2026 to USD 702.59 billion by 2034, registering a CAGR of 6.21% during the forecast period 2026–2034. Asia Pacific dominated the market with a 42% share in 2025, supported by extensive agricultural production and fertilizer consumption.

Growing Food Requirements Support Fertilizer Demand

Rising food consumption is increasing pressure on agricultural systems to improve productivity from available farmland. Fertilizers provide essential nutrients that support plant growth, root development, and crop yields. Their application is particularly important in large-scale cultivation of staple crops such as wheat, rice, and maize.

According to Straits Research, grains and cereals accounted for 42% of the fertilizers market in 2025, making them the leading application segment. Continued demand for staple food production is supporting fertilizer consumption, while balanced nutrient application is becoming increasingly important for maintaining soil quality and agricultural productivity.

Nitrogenous Fertilizers Lead the Market

Nitrogenous fertilizers accounted for 55% of the market in 2025, reflecting their importance in promoting vegetative growth and supporting large-scale crop cultivation. Products such as urea and ammonium-based fertilizers are widely used across agricultural systems because nitrogen is essential for plant development.

Micronutrient fertilizers are also gaining attention as farmers increasingly recognize the impact of nutrient deficiencies on crop quality and yields. This segment is projected to register a CAGR of 5.2% during 2026–2034. Targeted nutrient management and soil testing are encouraging the use of specialized formulations alongside conventional fertilizers.

Precision Agriculture and Sustainable Fertilizer Production Create Opportunities

Precision agriculture is changing how fertilizers are applied across farming operations. Soil testing, satellite monitoring, digital farm management, and variable-rate application technologies help farmers identify nutrient requirements and improve fertilizer utilization.

At the same time, fertilizer manufacturers are exploring lower-carbon production methods. Green ammonia, produced using renewable hydrogen, offers an alternative pathway for reducing emissions associated with conventional ammonia production. Investment in cleaner manufacturing technologies and efficient nutrient formulations could create opportunities for fertilizer companies as environmental requirements evolve.

Asia Pacific Leads the Global Fertilizers Market

Asia Pacific held 42% of the fertilizers market in 2025, making it the largest regional market. Extensive agricultural activity, large farming populations, and demand for staple food production support fertilizer consumption across China, India, and Southeast Asia.

North America is projected to be the fastest-growing region, registering a CAGR of 4.5% during 2026–2034. Commercial farming, advanced agricultural technologies, and demand for specialized crop nutrition products are supporting regional market development.

Green Ammonia Investments Reshape Fertilizer Manufacturing

The fertilizer industry is witnessing investments aimed at improving production capacity and reducing dependence on conventional feedstocks. In March 2026, the Government of India announced green ammonia supply agreements involving 7.24 lakh tonnes per annum of allocated capacity for fertilizer units under the National Green Hydrogen Mission. The agreements are intended to support the integration of renewable hydrogen-based ammonia into fertilizer production.

Another significant development occurred in September 2026, when SABIC Agri-Nutrients Company approved a new ammonia and urea production complex in Saudi Arabia. The project includes an ammonia plant with an annual capacity of 1.2 million tonnes and two urea plants with combined capacity of 2.6 million tonnes. It also incorporates carbon capture technology and is expected to increase the company's urea production capacity from 4.8 million to 7.4 million tonnes annually.

These investments highlight the industry's focus on supply security, production expansion, and lower-carbon fertilizer manufacturing.

Competitive Landscape and Industry Priorities

The fertilizers market includes major companies such as Nutrien Ltd., Yara International ASA, Uralchem JSC, The Mosaic Company, and CF Industries Holdings, Inc. Other important participants include Indian Farmers Fertiliser Cooperative Limited, Haifa Group, and Sumitomo Chemical.

Competition is influenced by production capacity, raw material availability, distribution networks, product pricing, and nutrient formulation capabilities. Manufacturers are increasingly focusing on specialty fertilizers, precision nutrient management, and sustainable production technologies to address changing agricultural requirements.

Conclusion

The fertilizers market is expected to expand through 2034 as food production requirements and agricultural modernization support demand for crop nutrients. Nitrogenous fertilizers continue to dominate consumption, while micronutrients and lower-carbon production technologies are creating additional opportunities. With the market projected to reach USD 702.59 billion by 2034, manufacturing investment, precision agriculture, and sustainable fertilizer solutions will remain important industry growth factors.

Read the full report: https://straitsresearch.com/report/fertilizers-market

About Straits Research

Straits Research is a market intelligence and consulting firm that provides industry analysis, market forecasts, and strategic insights to help businesses understand market developments and identify growth opportunities.