According to a recent study by the market research firm Graphical Research, the size of the global fertilizer market is expected to experience significant growth during the forecast period, due to the increase in global food demand. Take a look at the key trends likely to remain prevalent in the industry through 2028:
- The United States has an increase in sales of organic fertilizers
Size of the US organic fertilizer market it is estimated to grow at a CAGR of over 4% through 2028. As people become more aware of their lifestyle choices and associated health risks, they consume more fresh agricultural produce.
Especially since the recent coronavirus outbreak, there has been an increased interest in products that are infused with immunity-boosting features, including functional fruits and vegetables. To this end, major fertilizer companies have increased the production of organic products that have minimal negative impact on soil quality.
To meet the growing demand for healthy food, farmers are increasing the use of organic fertilizers in agriculture. The region is capitalizing on organic fertilizers as an effective alternative to combat climate change. The US government is also implementing various initiatives to promote the use of organic fertilizers as they do not pollute the environment.
- New investments in fertilizer production in North America
Due to ongoing tensions with Ukraine, Russia, a major fertilizer supplier, has suspended fertilizer exports starting in February 2022. As a major foreign fertilizer importer, the US has suffered from this decision. .
To address rising fertilizer costs and conflict-induced shortages, the United States Department of Agriculture (USDA) announced in March 2022 that it will support additional fertilizer production for American farmers. Through a new $ 250 million grant program, the USDA aims to support innovative, independent and sustainable American fertilizer production.
- The dry form of fertilizer gains wide acceptance in North America
The North American fertilizer market revenue from the dry form segment is projected to be worth over $ 24 billion by 2028, due to its slow release rate, which allows crops to be fed for a longer period of time. Dry fertilizer offers the advantage of a longer storage time than some liquid counterparts without the worry of settling over time.
They are usually cheaper in bulk and a better option for fertilizing fields when preparing for planting, as the nutrients remain present longer. These products can also be used to make various blends by combining different granular fertilizers in the right quantities to generate the necessary blend.
- The outlook for the Malaysian market appears to be optimistic until 2028
As agriculture and planting are two key sectors that generate significant profits in the country, Size of the inorganic fertilizer market in Malaysia it is expected to show substantial growth through 2028. Thanks to the presence of renowned organizations such as the Fertilizer Association of Malaysia (FIAM), regional market participants have been able to strengthen their position both internationally and locally.
The nation has attempted to reduce imports of commodities such as rice. To alleviate the rice shortage, Malaysia’s Minister of Agriculture and Food Industries said in September 2021 that the regional buffer stock of rice will be increased to around 290,000 tons by 2023.
- Horticulture activities are gaining ground across Asia Pacific
The market share of fertilizers in Europe from the horticulture segment is expected to grow at an appreciable rate until 2028. Regional governments have supported the horticulture sector by sanctioning incentives, subsidies and funds. In June 2022, to strengthen the horticulture sector in the Indian province of Haryana, the state government authorized approximately $ 328 million in funding from the Japanese International Cooperation Agency. With this agreement, the local market will meet the demands of consumers while ensuring a sufficient number of exports of fruit and vegetables.
- The burgeoning European agricultural sector fuels market growth
the Market share of fertilizers in Europe from agriculture will see a significant expansion through 2028. Farmers have been looking for ways to improve efficiency in all their fields to meet the growing demand for food.
The successful use of better technology, such as precision fertilization, has been one of the most effective means of improving agricultural production. The use of fertilizers on farms has not only added nutrients and energy to cultivation systems, but has also helped increase the annual yield of crops.
- Significant investments to drive the forecasts of the fertilizer market in Germany
The size of the German industry is expected to grow at a CAGR of 2% until 2028. To meet future food demand, Europe has established the Feeding Life 2030 initiative, which aims to improve fertilizer efficiency and increase awareness of fertilizers. Such programs will not only help Europe meet future food demand, but will also encourage the effective use of fertilizers across the region.