According to a recent study from market research firm Graphical Research, the global fertilizer market size is set to register a significant growth during the forecast period, owing to rising global food demand. Have a look at the key trends that are likely to stay prevalent in the industry through 2028:
- U.S. records soaring organic fertilizer sales
U.S. organic fertilizer market size is estimated to grow with a CAGR of over 4% through 2028. As people become more aware of their lifestyle choices and their associated health risks, they are consuming more fresh farm goods.
Especially after the recent coronavirus outbreak, there has been a higher interest in products that are infused with immunity boosting characteristics, including functional fruits and vegetables. To that end, leading fertilizer companies have been increasing the production of organic products that have minimal negative impact on soil quality.
To satisfy growing healthy food demand, 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 U.S. government is also implementing various initiatives to promote the use of organic fertilizers as they do not pollute the environment.
- Fresh investment in fertilizer production in North America
Due to ongoing tensions with Ukraine, Russia, one of the top fertilizer suppliers, has suspended fertilizer exports beginning in February 2022. As a significant importer of foreign fertilizer, the United States suffered as a result of this decision.
To address rising fertilizer costs and shortages caused by the conflicts, in March 2022, the U.S. Department of Agriculture (USDA) announced that it will support additional fertilizer production for American farmers. Through a new grant program of $250 million, the USDA aims to support innovative, independent, and sustainable American fertilizer production.
- Dry form of fertilizer garners wide acceptance in North America
North America fertilizer market revenue from the dry form segment is expected to be worth over $24 billion by 2028, owing to its slow-release rate, which allows crops to be fed for a longer period of time. Dry fertilizer offers the benefit of more storage time than some liquid counterparts without the concern of settling out over time.
They are usually cheaper in bulk, and a better option for fertilizing fields when preparing for planting, as the nutrients stay present for longer. These products may also be used to make various blends by combining different granular fertilizers in the right quantities to generate the needed mix.
- Malaysia market outlook appears to be optimistic through 2028
With agriculture and plantation being two key sectors generating significant profits in the country, Malaysia inorganic fertilizer market size is expected to showcase remarkable growth up to 2028. Thanks to the presence of reputed 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 been attempting to reduce commodity imports such as rice. To alleviate rice shortages, Malaysia’s Minister of Agriculture and Food Industries said in September 2021 that the regional rice buffer stock will be raised to around 290,000 metric tons by 2023.
- Horticulture activities gain traction across Asia Pacific
The Europe fertilizer market share from horticulture segment is expected to grow with an appreciable pace through 2028. Regional governments have been supporting 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 Japan International Cooperation Agency’s funding of about $328 million. With this agreement, the local market will meet consumer demands while also assuring enough fruit and vegetable exports.
- Europe’s thriving agriculture sector powers market growth
The Europe fertilizer market share from agriculture will see considerable expansion until 2028. Farmers have been looking for ways to enhance efficiency throughout their fields to satisfy rising food demand.
Successful use of better technology, such as precision fertilization, has been one of the most effective means of enhancing agricultural output. Fertilizer use on farms has not only added nutrients and energy to cropping systems, but it has also contributed to an increase in annual crop yield.
- Significant investments to drive Germany fertilizer market forecast
Germany industry size is expected to grow with a 2% CAGR through 2028. In order to fulfill future food demands, Europe has established the Feeding Life 2030 initiative, which aims to enhance fertilizer efficiency and raise fertilizer awareness. Such programs will not only assist Europe in meeting future food demands but will also encourage effective fertilizer usage throughout the region.
Credit: Source link