Global Fertilizer Market Report: A Sustainable Development Perspective

Market Overview and Projections

The global fertilizer market was valued at USD 207.2 billion in 2024. Projections indicate a compound annual growth rate (CAGR) of 2.6% from 2025 to 2034, with the market expected to reach a value of USD 268.2 billion by 2034. This growth is intrinsically linked to the global imperative to achieve Sustainable Development Goal 2 (SDG 2: Zero Hunger), as fertilizers are critical for enhancing crop yields to feed a growing population with limited arable land.

Alignment with Sustainable Development Goals (SDGs)

The fertilizer industry is undergoing a significant transformation, driven by the need to align with multiple SDGs. Key industry trends, innovations, and policies reflect a growing commitment to sustainable agriculture.

• SDG 2 (Zero Hunger): The primary driver for the market is the need to ensure food security by increasing agricultural productivity. Innovations in fertilizer efficiency directly contribute to higher yields and more resilient food systems.
• SDG 12 (Responsible Consumption and Production): The industry is shifting towards precision agriculture, bio-based fertilizers, and circular economy models to minimize waste, reduce chemical inputs, and promote sustainable resource management.
• SDG 13 (Climate Action): Development of low-carbon and green ammonia, coupled with enhanced-efficiency fertilizers that reduce nitrous oxide emissions, are key strategies for mitigating the industry’s climate impact.
• SDG 15 (Life on Land): Advanced fertilizer technologies aim to improve soil health and reduce nutrient runoff, thereby protecting terrestrial ecosystems from degradation.
• SDG 6 (Clean Water and Sanitation): Controlled-release and water-soluble fertilizers minimize nutrient leaching into water bodies, protecting water quality.

Market Drivers and Opportunities

Key Drivers

1. Rising Global Food Demand: The increasing global population necessitates higher agricultural output, driving the demand for fertilizers to boost crop yields and support the objectives of SDG 2.
2. Growth in Sustainable Agriculture: A rising preference for organic and bio-based fertilizers encourages innovation in eco-friendly products, aligning with SDG 12 by promoting sustainable farming practices.
3. Adoption of Precision Farming: Technologies such as smart farming and precision agriculture enhance the targeted application of fertilizers, reducing waste and improving efficiency, which supports both food security (SDG 2) and environmental protection (SDG 12, SDG 15).

Growth Opportunities

• Bio-based and Organic Fertilizers: The increasing demand for organic food opens new market segments focused on sustainable agriculture, directly contributing to SDG 12.
• Advanced Nutrient Delivery Systems: Controlled-release and water-soluble fertilizers offer significant opportunities to improve nutrient use efficiency, reduce environmental impact, and enhance crop productivity.

Challenges and Pitfalls

• Environmental Regulations: Increasing policy focus on environmental protection, such as regulations on nutrient runoff and greenhouse gas emissions, pressures manufacturers to innovate and adopt cleaner production models in line with SDG 13 and SDG 15.
• Lack of Awareness: Inefficient application due to a lack of awareness about optimal fertilizer usage can lead to reduced productivity and environmental degradation, undermining progress towards multiple SDGs.

Key Market Trends and Innovations

Technological Advancements for Sustainability

• Digital Agriculture: The integration of GPS, IoT-based soil monitors, and AI-driven crop management systems facilitates precision fertilizer application. This trend minimizes waste and nutrient runoff, aligning with SDG 12 and SDG 6.
• Customized Nutrient Blends: A shift from generic NPK mixtures to field-specific blends tailored to soil profiles and crop needs enhances nutrient uptake efficiency, supporting the goals of SDG 2.
• Circular Economy Practices: The industry is exploring waste streams for raw materials, such as recovering phosphorus from wastewater and producing nitrogen fertilizers from captured industrial emissions. This approach directly supports SDG 12.
• Enhanced-Efficiency Fertilizers (EEFs): Controlled-release fertilizers (CRFs) that release nutrients slowly to match crop uptake rates are gaining popularity. This technology minimizes environmental losses, contributing to SDG 13 and SDG 15.

Market Segmentation Analysis

By Product: Inorganic vs. Organic

The inorganic segment, valued at USD 202.8 billion in 2024, dominates the market due to its cost-effectiveness and wide availability. However, its environmental impact presents challenges to sustainability goals. The organic segment, while smaller, is growing rapidly, driven by consumer demand for sustainable products and its alignment with SDG 12. Innovations like nano-fertilizers and biofertilizers in India and China are advancing the sustainability profile of the market.

By Application: Horticulture Dominance

The horticulture segment, valued at USD 99.1 billion in 2024, is the largest application segment. It relies on high-quality, specialized formulations like water-soluble and controlled-release fertilizers to maximize yield and quality. The precision required in this sector drives the adoption of efficient nutrient management systems, contributing to both productivity (SDG 2) and responsible resource use (SDG 12).

Regional Market Analysis

Asia-Pacific

The Asia-Pacific region, led by China, holds over 50% of the global market share. Intensive farming to meet the food security needs (SDG 2) of large populations in China and India drives high demand. Government initiatives, such as India’s PM-PRANAM program, are promoting balanced and sustainable fertilizer use, encouraging a shift towards organic and bio-fertilizers to support SDG 12.

Europe

Europe’s market is heavily influenced by robust regulations like the European Green Deal, which promotes sustainable agriculture. This policy framework drives demand for low-emission, precision-applied, and organic fertilizers, directly aligning the market with SDG 12 and SDG 13. Germany is a key consumer, with a focus on high-efficiency products and precision farming.

North America

The U.S. leads the North American market, driven by large-scale, high-yield agriculture. Investments by the U.S. Department of Agriculture in sustainable farming and soil health are promoting the adoption of precision application technologies and enhanced-efficiency fertilizers, supporting both SDG 2 and SDG 12.

Latin America

Brazil is the dominant market in Latin America, with its large-scale agribusiness sector heavily reliant on fertilizers to supply global food chains (SDG 2). The region’s dependence on fertilizer imports is driving investments in infrastructure and stimulating the adoption of precision agriculture to enhance efficiency and sustainability.

Middle East & Africa

This region’s market growth is driven by the need to enhance crop yields in arid conditions to improve food security (SDG 2). The adoption of water-soluble fertilizers in controlled environment agriculture, particularly in Gulf countries, reflects a move towards resource efficiency in line with SDG 6 and SDG 12.

Competitive Landscape and Market Share

The market is led by key players who are increasingly integrating sustainability into their core strategies. The top five companies—Wesfarmers, Yara International, IFFCO, Nutrien, and CF Industries Holdings—accounted for approximately 57% of the market share in 2024.

• Yara International: Focuses on low-carbon production through renewable ammonia initiatives and precision agriculture tools, directly contributing to SDG 13 and SDG 12.
• Nutrien: Leverages its global retail network to promote sustainable farming solutions, including digital agronomy tools and enhanced-efficiency fertilizers.
• CF Industries: Invests heavily in low-carbon ammonia production using carbon capture technology, aligning its strategy with global decarbonization goals (SDG 13).
• IFFCO: Innovates in bio-fertilizers and nano-fertilizers (e.g., nano-urea) to enhance nutrient efficiency and reduce the environmental footprint of agriculture in India, supporting SDG 12.
• Wesfarmers: Through its CSBP brand, the company provides data-driven nutrient management and precision application services, promoting efficient resource use.

Recent Industry Developments

• September 2023: SABIC Agri-Nutrients Company partnered with BiOWiSH Technologies and ADM to promote a biologically enhanced urea fertilizer. This ‘green fertilizer’ is designed to reduce greenhouse gas emissions and increase soil carbon sequestration, contributing to SDG 13.
• 2024: ICL initiated partnerships to develop next-generation sustainable fertilizer technologies, including plant biostimulants and biodegradable coatings for controlled-release fertilizers, advancing the goals of SDG 12.
• July 2024: Brazilian manufacturer Terraplant launched MinerOxi+, a 3-in-1 organomineral fertilizer designed to address environmental challenges and meet the demand for more sustainable agricultural inputs.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 2: Zero Hunger
   • The article directly connects the growth of the fertilizer market to the fundamental need to ensure global food security. It states that “Growth in agricultural demand, population, and the need to increase crop yields with limited usable arable land” are key drivers. This highlights the role of fertilizers in achieving food production targets to feed a growing population.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The article is replete with examples of innovation in the fertilizer industry. It discusses “rising technological capabilities,” “precision agriculture,” “IoT-based soil monitoring systems,” “nano fertilizers,” and “polymer coated and controlled release fertilizers.” These advancements represent a move towards more sustainable and efficient industrial and agricultural practices.
3. SDG 12: Responsible Consumption and Production
   • The text emphasizes a shift towards sustainable practices. It mentions government support for “sustainable farming practices” and “environmentally friendly use of fertilizers.” The growing demand for “organic and bio-based fertilizers,” and innovations like “phosphorus recovery in wastewater” and recycling nutrients from manure, directly address the goal of sustainable management and efficient use of natural resources.
4. SDG 13: Climate Action
   • The article touches upon the industry’s role in climate change mitigation. It mentions efforts to avoid “producing greenhouse gases” through controlled-release fertilizers. Furthermore, it highlights companies like Yara International using “N2O removal technologies” and CF Industries investing in “low carbon ammonia production through carbon capture and sequestration projects,” which are direct actions to combat climate change.
5. SDG 15: Life on Land
   • The environmental impact of fertilizer use on land is a key theme. The article discusses the negative effects of inefficient application, such as “nutrient runoff,” “leaching,” and “environmental degradation.” Conversely, it highlights solutions like precision farming and biofertilizers that aim to “enhance the health of soils” and reduce the chemical load on farmlands, thus protecting terrestrial ecosystems.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 2 (Zero Hunger)
   • Target 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change… and that progressively improve land and soil quality. The article’s focus on “sustainable farming practices,” “bio-based fertilizers,” and technologies that “enhance the health of soils” and “increase crop yields” directly aligns with this target.
2. Under SDG 9 (Industry, Innovation, and Infrastructure)
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The development of “controlled-release fertilizers,” “low-carbon production with renewable ammonia initiatives,” and “nano fertilizers” are examples of retrofitting the fertilizer industry to be more sustainable and efficient.
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries… encouraging innovation. The article highlights significant R&D, such as ICL’s 2024 partnership to develop “next generation fertilizers” and the creation of “biologically enhanced urea fertilizer” by SABIC AN and its partners.
3. Under SDG 12 (Responsible Consumption and Production)
   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The article describes precision agriculture technologies that facilitate “precision use thus eliminating wastage and enhancing nutrient uptake efficiency.” The Dutch project “ReNu2 Farm,” which involves “recycling of nutrients contained in animal manure and food waste,” is a direct example of this target in action.
   • Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle… and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment. The promotion of organic fertilizers, reducing “chemical fertilizer” use through Indian government subsidies, and developing fertilizers that avoid “leaching and producing greenhouse gases” all contribute to this target.
4. Under SDG 13 (Climate Action)
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article mentions the “European Green Deal and Farm to Fork Strategy” influencing the European market towards “low-emission” fertilizers. This shows the integration of climate goals into regional policy, which in turn drives market trends.
5. Under SDG 15 (Life on Land)
   • Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world. The article’s discussion of “soil health” and the development of biofertilizers using “microbial consortia in enhancing the health of soils” are relevant to restoring soil quality and preventing degradation caused by inefficient farming.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 2 (Zero Hunger)
   • Implied Indicator: Agricultural productivity/crop yields. The entire premise of the article is that fertilizers are used to “boost crop yields.” Measuring the change in yields, especially in relation to the adoption of sustainable practices, would be a key indicator.
2. For SDG 9 (Industry, Innovation, and Infrastructure)
   • Implied Indicator: Adoption rate of new technologies. The article mentions the rising adoption of “precision agriculture and smart farming technologies,” “GPS spreaders, IoT-based soil nutrients monitors, and AI crop control systems.” Tracking the percentage of farmland managed with these technologies would serve as an indicator.
   • Implied Indicator: Investment in R&D. The mention of specific company investments, such as Bunge Limited’s USD 550 million facility and partnerships formed by ICL and SABIC AN, implies that R&D expenditure on sustainable fertilizer technology is a measurable indicator of progress.
3. For SDG 12 (Responsible Consumption and Production)
   • Mentioned Indicator: Reduction in chemical fertilizer use. The Indian PM-PRANAM scheme provides a “50 per cent subsidy reimbursement of chemical fertilizer reduced.” This directly creates a measurable data point for progress.
   • Implied Indicator: Market share of sustainable products. The article notes the “growing demand for organic and bio-based fertilizers.” Tracking the market share of these products versus conventional inorganic fertilizers would indicate a shift in production and consumption patterns.
4. For SDG 13 (Climate Action)
   • Mentioned Indicator: Reduction in greenhouse gas emissions. The article explicitly mentions SABIC AN’s product leading to a “reduction in greenhouse gases emissions” and Yara’s “N2O removal technologies.” The volume of emissions reduced (e.g., tonnes of CO2 equivalent) is a direct indicator.
5. For SDG 15 (Life on Land)
   • Implied Indicator: Improvement in soil health. The development of biofertilizers and other products aimed at “enhancing the health of soils” implies that metrics like soil organic matter content, microbial activity, or reduction in soil degradation could be used as indicators.
   • Implied Indicator: Reduction in nutrient runoff. The article states that precision use helps adhere to “nutrient runoff levels.” Measuring the concentration of nitrates and phosphates in nearby water bodies would be a key environmental indicator.

4. Summary Table of SDGs, Targets, and Indicators

Source: gminsights.com