Market Trends of fertilizers Industry
The rising pressure on the agriculture industry to meet the growing demand for food is expected to increase the area under field crop cultivation
- The global agricultural sector is facing many challenges. According to the UN, the world population may exceed 9 billion by 2050. This population growth may overburden the agricultural industry, which is already experiencing an output loss due to a lack of laborers and the shrinkage of agricultural fields caused by rising urbanization. According to the Food and Agriculture Organization, 70% of the global population is expected to live in cities by 2050. Due to the global loss of arable land, farmers now need to utilize more fertilizers to increase crop yields.
- Asia-Pacific is the world's largest producer of agricultural products. Agriculture is critical to the region's economy, as it employs about 20% of the total available workforce. Field crop cultivation dominates the region, accounting for about more than 95% of the total crop area in the region. Rice, wheat, and corn are the major field crops produced in the region, together accounting for about 24.3% of the total crop area in 2022.
- North America ranks as the second-largest arable region globally. Its farms cultivate a diverse range of crops, with a focus on field crops. Notably, corn, cotton, rice, soybean, and wheat are the prominent field crops, as highlighted by the USDA. In 2022, the United States commanded 46.2% of North America's crop cultivation area. However, the country witnessed a significant drop in crop acreage between 2017 and 2019, primarily due to adverse environmental conditions, leading to severe flooding in regions like Texas and Houston.
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The global average application rate of primary nutrient nitrogen, potassium, and phosphorus in field crops is 164.31 kg/ha
- Corn, rapeseed, cotton, sorghum, rice, wheat, and soybean are among the primary nutrient-intensive crops globally. In 2022, the average application rates for these crops were as follows: corn - 230.57 kg/ha, rapeseed - 255.75 kg/ha, cotton - 172.70 kg/ha, sorghum - 158.46 kg/ha, rice - 154.49 kg/ha, wheat - 135.35 kg/ha, and soybean - 120.97 kg/ha. Primary nutrients are vital for crops as they support essential plant metabolic processes and contribute to the formation of key tissues like cells, cell membranes, and chlorophyll. Notably, phosphorus is crucial for cultivating high-quality crops, while potassium plays a pivotal role in activating enzymes necessary for plant growth.
- On a global scale, field crops have an average application rate of 164.31 kg/ha for nitrogen, potassium, and phosphorus. Nitrogen stands out as the most widely used primary nutrient fertilizer, with an application rate of 224.6 kg/ha in 2022. Potassic fertilizers follow, with an application rate of 150.3 kg/ha, and phosphorus ranks third, with an application rate of 117.9 kg/ha.
- In 2022, rapeseed had the highest nitrogen application rate at 347.4 kg/ha, while corn led in phosphorus application at 156.3 kg/ha. Canola took the lead in potassium application, with a rate of 248.6 kg/ha.
- Field crop cultivation is on the rise globally, particularly in South America and Asia-Pacific. These regions are emerging as key markets for fertilizers. Developed regions like Europe and North America, along with areas grappling with nutrient deficiencies, are increasingly adopting specialty fertilizers for their efficacy. These trends are poised to propel the primary nutrient fertilizers market during 2023-2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The growing demand for fruits and vegetables drives the expansion of horticulture crop cultivation
- Micronutrient deficiency in vegetable crops can have several detrimental effects
- A steady supply of sulfur is required from early growth stages until harvest as it is immobile in plants, and any shortage in its supply can limit the yield
- Technical advancements in irrigation equipment and well water management practices may increase area under irrigation
- Asia-Pacific accounted for the highest average micronutrient application rate of 5.20 kg/hectare
- Tomatoes stand out among vegetable crops, with an average application rate of 386.36 kg/ha for primary nutrients
- Magnesium accounted for the highest average application rate in vegetable crops among the secondary nutrients with 48.67 kg/ha
