Chemical Fertilizer Market Segmentation: Targeting Promising Segments

February 23, 2018

The chemical fertilizers space is witnessing substantial growth, owing to the growing demand for food production. With the exponential rise in global population, organizations are augmenting the use of effective and low-cost fertilizers for agricultural production. Moreover, the growing emphasis towards plant-based foods as a dietary supplement is compelling organizations to re-align their product offerings and meet the needs of the target audiences. The demand for crops used for biomass is another factor influencing the growth of the chemical fertilizers space.

Here are some of the factors curtailing the growth of the chemical fertilizers space:

  • Rising concerns for health: The abundant use of chemical fertilizers, which contain substances such as nitrogen, phosphorous, and potassium, is harmful to the human body. Consequently, consumers have become more informed and are shifting towards the use of more organic substances. These factors are compelling businesses to streamline their product offerings and reduce the production of fertilizers that affect the consumer’s safety.
  • Sophistication in government regulations: The fatal environment impact caused by the use of chemical fertilizers is influencing governments to limit their production. These regulations are further spurring the need for the inclusion of organic crop harvesting processes with fewer chemicals. The rising shift toward more natural fertilizers is affecting the overall growth of the chemical fertilizers space.

To address such challenges and identify the most profitable segments, organizations are leveraging market segmentation strategies. A market segmentation solution helps businesses understand their target audience and efficiently sell their product offerings to meet the target demands. The solution also helps companies to adequately allocate their resources to meet the business requirements.

The Business Challenge

  • The client- a prominent chemical fertilizers supplier

The client, a prominent chemical fertilizers supplier, wanted to better understand the needs, priorities, and common interests of the customers and adequately position their products to meet the customers’ demands. With the help of Infiniti’s market segmentation engagement, the client wanted to understand the usage and purchasing decisions of the customers and identify segments based on the customer interests. Moreover, the client wanted to tailor their offerings to bridge the demand-supply gap and gain better ROI.

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Our Journey

The market segmentation experts at Infiniti carried out extensive research comprising interviews and discussions with prominent stakeholders in the chemical fertilizers space. To maximize profitability by focusing on company’s resources, the experts further compiled information from secondary sources such as trade shows, paid industry databases, and industry forums.

The Solution Benefits and the Business Impact

The market segmentation solution offered by Infiniti helped the client classify the market based on needs, demographics, and user’s preferences. The client was able to devise a suitable marketing strategy to position their products effectively and satisfy the requirements of the specific target market. The market segmentation solution also helped the chemical fertilizer send targeted marketing campaigns to achieve higher acquisition rates.

The Future

The chemical industry will witness a stipulated demand for products among the end-user segments such as automotive, healthcare, and energy. To deal with this rising demand, chemical companies can leverage their technological capabilities to build a competitive edge over the competitors.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the chemical fertilizers space.


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