Coated Fertilizers Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Sulfur-coated Fertilizers, Polymer-coated Fertilizers, Others), By Crop Type (Cereals and Grains, Oilseeds and Pulses, Fruits and Vegetables, Others), By Region and Competition, 2020-2030F

Market Overview

Global Coated Fertilizers Market was valued at USD 10.85 billion in 2024 and is expected to reach USD 14.61 billion in the forecast period with a CAGR of 5.04% through 2030. The growth of the global coated fertilizers market is largely driven by the increasing focus on sustainable agriculture practices. With growing concerns over environmental degradation caused by traditional fertilizers, coated fertilizers offer a more controlled nutrient release, minimizing leaching and volatilization losses. This eco-friendly attribute is increasingly gaining favor among farmers, agronomists, and policymakers, especially in regions facing water scarcity and soil degradation.

Moreover, the expansion of precision farming and protected cultivation techniques is further boosting the demand for coated fertilizers. These modern agricultural practices require highly efficient nutrient delivery systems, and coated fertilizers meet these demands by ensuring consistent nutrient supply over time. The demand is particularly strong in North America and Europe, where precision agriculture adoption is relatively higher, along with growing interest in organic and high-value crops.

Additionally, rising investments by key players in R&D and product innovation are creating lucrative growth opportunities. Companies are developing biodegradable and environmentally safe coating materials to meet regulatory standards and enhance product efficiency. Emerging economies in Asia-Pacific and Latin America are also witnessing increased adoption of coated fertilizers due to rapid urbanization, limited arable land, and the need to improve crop productivity in constrained agricultural environments.

Key Market Drivers

Rising Global Food Demand

The continuous rise in global population is putting immense pressure on agricultural systems to increase food production sustainably. According to the United Nations, the world population reached approximately 8.1 billion in 2024 and is expected to grow to around 8.5 billion by 2030. This growing population will require a proportional rise in food supply, which can only be met by improving agricultural productivity. Coated fertilizers play a crucial role by offering controlled nutrient release, enhancing nutrient uptake, and reducing the need for repeated fertilizer applications.

The increasing demand for cereals and grains, which form staple diets across the world, is a major factor influencing fertilizer consumption. As per FAO projections, global cereal consumption is expected to reach 3 billion tonnes by 2030, up from 2.8 billion tonnes in 2023. Such consumption trends call for greater fertilizer efficiency and crop yield optimization. Coated fertilizers enable farmers to meet this rising demand without increasing the environmental footprint, thus contributing to sustainable food security goals.

Urbanization and income growth are also reshaping dietary patterns, especially in developing economies. There is a noticeable shift towards more diverse and nutrient-rich foods such as fruits, vegetables, and protein sources. This change increases the need for high-value crops, which are more sensitive to nutrient levels and timing. Coated fertilizers are particularly effective for such crops, ensuring that nutrient availability aligns with critical growth stages, thereby improving both crop quality and yield.

In addition, climate change is threatening traditional farming practices and putting agricultural output at risk. More frequent droughts, erratic rainfall, and extreme temperatures reduce the effectiveness of conventional fertilizers. Coated fertilizers, with their ability to release nutrients in a controlled manner, help mitigate these challenges. They reduce nutrient losses during adverse weather and offer farmers a more reliable input solution. As food demand continues to climb, these fertilizers are increasingly vital in building resilient agricultural systems.

Environmental Concerns and Regulatory Push

Environmental concerns are increasingly influencing fertilizer use patterns across the globe. Excess nutrient runoff, especially nitrogen, is a major cause of water pollution and ecological damage. Recent data indicates that average nitrate concentrations in agricultural waterways hover around 34 mg/L—well above the safe drinking water limit of 10 mg/L NO₃-N. Moreover, it is estimated that up to 50% of applied nitrogen fertilizers are lost to leaching or volatilization. These inefficiencies not only harm the environment but also represent economic losses for farmers, prompting the need for more efficient solutions like coated fertilizers.

To address these issues, many countries are implementing stricter regulations. For example, the European Union’s Nitrates Directive requires a 20–50% reduction in nitrogen runoff by 2030. In response, countries like the Netherlands have significantly increased the adoption of coated fertilizers, with over 30% of Dutch farmland using these environmentally friendly alternatives. This figure stands in contrast to the global average of around 12%, highlighting the role of regulation in accelerating adoption and promoting sustainable farming practices.

Beyond nutrient management, attention is shifting to the environmental impact of the coatings themselves. In 2023, the EU enforced a ban on microplastic-based fertilizers under REACH Regulation 2023/2055, driving the development of biodegradable alternatives. Fertilizer manufacturers are now investing in plant-based and water-soluble coatings to meet compliance standards. These innovations not only align with environmental regulations but also support retailers and food processors aiming to meet plastic-free or eco-label certification criteria, further promoting the use of coated fertilizers.

Incentive-based regulations are also changing the economic dynamics of fertilizer usage. In Canada, the national carbon tax—set to reach CAD 170 per tonne by 2030—has increased the cost of conventional urea by 18–22%, encouraging the shift to coated variants which have lower emission footprints. Meanwhile, India has mandated that 15% of all urea sold must be in coated form by 2025, leading to a 126% surge in sulfur-coated urea production since 2021. Such regulatory moves are instrumental in shaping market preferences and boosting the adoption of coated fertilizers worldwide..

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Key Market Challenges

High Production and Retail Costs

High production and retail costs represent a significant hurdle for the coated fertilizers market, especially in price-sensitive regions. The manufacturing of coated fertilizers involves complex processes, such as multi-layer coating with polymers, sulfur, or biodegradable materials, all of which demand specialized equipment and raw materials. These additional inputs raise production expenses considerably compared to conventional fertilizers. As a result, the final product is priced higher in the market, making it less accessible to small and marginal farmers who constitute a large share of the global agricultural community. In emerging economies where agricultural subsidies are limited or focused on traditional fertilizers, the higher cost deters adoption despite long-term benefits. Moreover, these cost barriers hinder widespread use in staple crop production, where cost-efficiency is prioritized over precision. This restricts market growth to high-value crop segments and developed regions where profitability justifies the investment.

The pricing challenge is further amplified by the lack of economies of scale in certain regions and the limited availability of local manufacturing facilities for coated fertilizers. In many countries, these fertilizers are either imported or produced in limited quantities, adding transportation and distribution costs that inflate retail prices even further. Additionally, farmers often require supporting tools like precision application equipment and training to use coated fertilizers effectively—costs that are not always factored into product pricing but affect total ownership. Government support for coated fertilizers is still evolving, and in markets where subsidies focus on traditional NPK formulations, coated fertilizers struggle to compete. Until production technologies become more cost-efficient or subsidy structures are revised to favor sustainable inputs, high production and retail costs will continue to limit market penetration.

Key Market Trends

Increasing Adoption of Organic and Regenerative Farming

The industry-wide movement toward biodegradable and eco-friendly coatings is transforming the coated fertilizers market, driven by environmental regulation and growing awareness of plastic pollution. Traditionally, many controlled‑release fertilizers utilized synthetic polymer coatings to regulate nutrient release. However, increasing concerns about microplastic residues in soil and water systems are pushing manufacturers and regulators to rethink this approach. In 2023, the European Union banned microplastic-coated fertilizers under REACH Regulation 2023/2055, significantly accelerating R&D into plant-based, water‑soluble, or biodegradable coating polymers. Meanwhile, public demand for sustainable agriculture products continues to rise, encouraging manufacturers to adopt eco-friendly alternatives that comply with both incoming regulations and eco-label requirements. This trend is reshaping product portfolios across the industry.

In response, developers are innovating new formulations derived from natural or biodegradable sources—such as cellulose derivatives, lignin, plant oils, or bio-based polyesters—that deliver controlled nutrient release while degrading safely in soil. These coatings release nitrogen, phosphorus, and potassium gradually, matching crop uptake cycles, and leave behind minimal residue. Companies, including leading global players, are launching trial versions of biodegradable slow-release fertilizers in key markets like Europe, North America, and Australia. Pilot results indicate comparable agronomic performance to polymer coatings, and in some cases, improved microbial soil activity. As these eco-coatings scale up, farmers and distributors increasingly prefer them—not only for regulatory compliance but also to meet consumer and retailer demands for cleaner, sustainable supply chains.

Segmental Insights

Type Insights

Based on type, Sulfur-coated fertilizers emerged as the dominant segment in the Global Coated Fertilizers Market in 2024 due to their cost-effectiveness, ease of production, and proven efficiency in enhancing nutrient use. These fertilizers offer a controlled nutrient release mechanism that improves nitrogen availability while minimizing losses through leaching and volatilization. Additionally, sulfur, an essential secondary nutrient, supports protein synthesis and enzyme function in crops, adding further agronomic value. Their compatibility with a wide range of crops, particularly cereals and oilseeds, along with strong adoption in regions like North America and Asia-Pacific, further reinforced their dominance. Regulatory support for reduced environmental impact also favored their usage.

Crop Type Insights

Based on the crop type, Cereals & Grains emerged as the dominant segment in the Global Coated Fertilizers Market in 2024 due to their vast cultivation area and critical role in global food security. Crops like wheat, rice, and maize require substantial nutrient input, making them highly responsive to coated fertilizers that enhance nutrient efficiency and reduce application frequency. With the rising global population, the demand for staple foods continues to grow, driving the need for high-yield farming practices. Coated fertilizers offer improved nutrient uptake and minimize losses, making them ideal for intensive cereal and grain cultivation, particularly in high-demand regions such as Asia-Pacific and North America.

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Regional Insights

Asia Pacific emerged as the dominant region in the Global Coated Fertilizers Market in 2024, driven by its extensive agricultural landscape, large population base, and rising demand for high-yield crops. Countries such as China and India continue to cultivate vast areas of cereals, grains, and cash crops, requiring efficient and sustainable fertilization solutions. Coated fertilizers, with their ability to reduce nutrient losses and enhance crop productivity, have gained widespread acceptance among farmers aiming to improve output without degrading soil health. The increasing awareness of precision farming and sustainable agriculture has further fueled their adoption in the region.

Government support through subsidies, public-private partnerships, and policy reforms has significantly promoted the use of coated fertilizers across Asia Pacific. Programs aimed at improving nutrient use efficiency and reducing environmental impact have accelerated market penetration, particularly in developing nations. Additionally, rapid urbanization and shrinking arable land have increased the pressure to produce more from less, making coated fertilizers a strategic choice for long-term agricultural sustainability.

Recent Developments

• In November 2024, Yara North America launched the YaraAmplix biostimulant portfolio to enhance sustainable food production by improving crop resilience, nutrient efficiency, and soil health. Developed through extensive R&D, the portfolio includes solutions that support plants in coping with environmental stress. It features innovative coating technologies for dry fertilizers, promoting early plant vigor and offering farmers tools to boost productivity sustainably.
• In February 2025, Fauji Fertilizer Company (FFC) has introduced Sona Urea Zinc Coated, an enhanced-efficiency fertilizer containing 42% nitrogen and 1% zinc. This formulation ensures uniform zinc distribution in every granule, improving both zinc and nitrogen availability. Field trials report significant yield improvements over standard urea. Produced with a capacity of 100,000 tonnes per year, it is now available nationwide through FFC’s distribution network.

Key Market Players

• COMPO EXPERT
• Nufarm Ltd.
• The Mosaic Company
• Yara International ASA
• Israel Chemicals Ltd.
• Scottsmiracle-Gro
• Nutrien Ltd.
• Koch Industries
• Helena Chemical
• Haifa Chemicals

Report Scope:

In this report, Global Coated Fertilizers Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• Coated Fertilizers Market, By Type:

o      Sulfur-coated Fertilizers

o      Polymer-coated Fertilizers

o      Others

• Coated Fertilizers Market, By Crop Type:

o      Cereals and Grains

o      Oilseeds and Pulses

o      Fruits and Vegetables

o      Others

• Coated Fertilizers Market, By Region:

o      North America

o   United States

o   Canada

o   Mexico

o      Europe

o   United Kingdom

o   Germany

o   France

o   Italy

o   Spain

o      Asia Pacific

o   China

o   India

o   Japan

o   South Korea

o   Australia

o      South America

o   Brazil

o   Argentina

o   Colombia

o      Middle East & Africa

o   South Africa

o   Saudi Arabia

o   UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Global Coated Fertilizers Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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