Fertilizer Market: Top Trends Boosting Industry Revenue to 2028
According to a recent study by market research firm Graphical Research, the global fertilizer market size is set to register significant growth during the forecast period, due to the rising global demand for food. Take a look at the key trends that are likely to remain dominant in the industry until 2028:
- The United States records a rise in sales of organic fertilizers
US organic fertilizer market size It is estimated to grow at a compound annual growth rate of more than 4% through 2028. As people become more aware of their lifestyle choices and the health risks associated with them, they are consuming more fresh agricultural commodities.
Especially after the recent outbreak of the Corona virus, there has been more interest in products saturated with immune-boosting properties, including functional fruits and vegetables. To this end, leading fertilizer companies are working to increase the production of organic products that have little 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 benefits from organic fertilizers as an effective alternative to combating climate change. The US government is also implementing various initiatives to promote the use of organic fertilizers because they do not pollute the environment.
- New investment in fertilizer production in North America
Due to the ongoing tensions with Ukraine, Russia, one of the largest fertilizer suppliers, halted fertilizer exports starting from February 2022. As a significant importer of foreign fertilizers, the United States has suffered as a result of this decision.
To counter rising fertilizer costs and shortages caused by conflict, the United States Department of Agriculture (USDA) announced in March 2022 that it would support additional fertilizer production for American farmers. With a new $250 million grant program, the USDA aims to support the production of innovative, independent, and sustainable US fertilizers.
- The dry form of fertilizer is widely accepted in North America
The North American fertilizer market revenue from the dry form segment is expected to be more than $24 billion by 2028, owing to the slow release rate, which allows the crops to be fed for a longer period of time. Dry compost offers the benefit of a longer storage time than some of its 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 there for a longer time. These products can also be used to make different mixtures by combining different granular fertilizers in the right amounts to generate the required mixture.
- The outlook for the Malaysian market appears optimistic until 2028
With agriculture and farms being two major sectors generating huge profits in the country, Inorganic fertilizer market size in Malaysia It is expected to show remarkable growth until 2028. With the presence of reputable organizations such as the Malaysian Fertilizer Association (FIAM), the regional market participants have been able to consolidate their position both internationally and locally.
The nation was trying 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 rice stock will be raised to around 290,000 metric tons by 2023.
- Horticultural activities are gaining momentum across the Asia Pacific region
The European fertilizer market share of the horticultural sector is expected to grow at a remarkable pace until 2028. Regional governments support the horticultural sector by imposing sanctions on incentives, subsidies and funds. In June 2022, to boost the horticultural sector in the Indian province of Haryana, the state government authorized JICA funding of about $328 million. With this agreement, the local market will meet consumer demands while ensuring adequate exports of fruits and vegetables.
- Europe’s booming agricultural sector fuels market growth
The Fertilizer market share in Europe From agriculture it will experience a significant expansion through 2028. Farmers have been looking for ways to boost efficiency across their fields to meet the growing demand for food.
Successful use of better technologies, such as precision fertilization, is one of the most effective means of enhancing agricultural production. The use of fertilizers on farms has not only added nutrients and energy to farming systems, but has also contributed to increasing the yield of annual crops.
- Major investment to drive fertilizer market outlook in Germany
The German industry is expected to grow at a compound annual growth rate of 2% until 2028. In order to meet future food demand, Europe has established the Feeding Life 2030 initiative which aims to enhance fertilizer efficiency and increase fertilizer awareness. Such programs will not only help Europe meet future food demands, but will also encourage the efficient use of fertilizers across the region.