Company Acquisition and Strategic Partnerships by Market Players such as Syngenta AG and ICL Group to Foster the Growth of the Global Fertilizer Market

Fertilizers are applied to the plant tissue or soil to increase the crop productivity, by supplying nutrients essential for the growth of the plant. The chemical nitrogen fertilizers, for example, consist of nitrogen which is integral to chlorophyll that enables photosynthesis process in plants. Phosphorous fertilizers are beneficial for the roots of plants as phosphorous is present in protoplasm of cell that promotes cell growth and proliferation.

The rising world population is increasing the demand for food. Fertilizers play an essential role in the improvement of the crop production and get better yield by providing necessary nutrients to the soil. This is one of the major factors expected to enhance the growth of the fertilizer market in the upcoming years. Moreover, government initiatives such as awareness campaigns for the farmers regarding benefits of different types of fertilizers are also helping in keeping the stake of the industry high.

Impact Analysis of Covid-19 on the Industry

The global fertilizer market has experienced a drastic decline during the coronavirus pandemic. Restrictions on export-import and supply chain are the main factors behind this market decline. Lockdowns across borders have risen many challenges for the agriculture and food supply chains. Moreover, because of the lockdown the industry saw a shortage of labors and stoppage of manufacturing processes. As the agriculture industry also stopped for a few months, the demand of fertilizers also decreased rapidly. However, many new government initiatives and subsidies to support the seamless availability of raw materials are helping the industry to recover from the catastrophic state. Furthermore, the leading players of the fertilizer market are also working diligently to diminish the challenges of the industry.

Fertilizer Market Trends and Developments

The companies operating in the global industry are adopting several growth strategies and business tactics such as partnerships, collaboration, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global fertilizer market growth in the upcoming years.

Some of the recent developments of the market are as follows:

• In October 2020, Syngenta Group, a leading global provider of agricultural science and technology, completed the acquisition of Valagro, a foremost Biologicals company. The acquisition is performed by the business entity Syngenta Crop Protection. The acquisition is expected to enhance the portfolio of Syngenta Crop Protection as one of the key global companies poised to shape the rapidly growing Biologicals market. Valagro continues its operations as an independent brand in the market within the Syngenta Crop Protection business.
   
• In December 2020, Haifa Group, a global leading supplier of specialty plant nutrients and potassium nitrate for agriculture and industry and Saipem, an Italian multinational oilfield services company, signed a contract worth over 200 million USD for the construction of a long-awaited ammonia plant at Mishor Rotem site.
   
• In January 2021, ICL, a leading global specialty minerals and specialty chemicals company, completed the acquisition of Fertiláqua, one of Brazil's prominent specialty plant nutrition companies, for $122 million. This acquisition aims at leveraging the strong market presence of Fertiláqua along with its dispersal competences to increase the trades of its organic fertilizers, controlled-released fertilizers, and other specialty plant nutrition products to the Brazilian market, one of the world's fastest growing agriculture markets.

Forecast Analysis of Global Market

The global fertilizer market is projected to witness an exponential growth over the forecast period, owing to the growing popularity and increasing adoption of organic fertilizers as it improves soil nutrients, soil structure, and water retention capability. Conversely, the lack of awareness related to optimum use of fertilizers is expected to hamper the market growth in the projected timeframe.

The increasing population especially in developing countries like India and the growing demand for food grain production across the globe are the significant factors and fertilizer market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global fertilizer market is expected to garner $251.57 billion during the forecast period (2022-2030). Geographically, the Asia-Pacific region of the fertilizer market is estimated to be most dominant by 2030, owing to the presence of largest fertilizer consumers in this region. For instance, China is the largest consumer of urea accounting for one-third of total urea consumption across the globe.

The key players functioning in the global market include Yara International, The Mosaic Company, Nutrien Ltd., Haifa Group, ICL Group Ltd., Syngenta AG, EuroChem Group, K+S Aktiengesellschaft, OCP Group S.A., and Uralkali. These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market.