United States Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

United States Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • April 2021 •
  • 112 pages •
  • Report ID: 6067780 •
  • Format: PDF
The US fertilizers market was valued at USD 18,602.0 million in 2020, and it is estimated to reach USD 20,520.5 million by 2026, registering a CAGR of 1.7%, during the forecast period (2021-2026).

COVID-19 has affected all the supply chains that connect farm production to final consumers in the United States. Farmers have faced a shortage of agricultural inputs, including fertilizers. As China is one of the major producers and exporters of nitrogenous fertilizers to the United States, when China imposed a lockdown, there was a huge fertilizer shortage in the country owing to problems with transportation. Prices hit an all-time low due to trade pressures and regulatory challenges.

The application of nitrogen fertilizer is proportional to the cereal yields. According to the US Department of Agriculture, the country has expanded the farmlands to plant 94 million acres of corn and 85 million acres of soybeans which will be resulting greater consumption of nitrogenous fertilizers in 2021 supporting the domestic crop production in the country. Thus, with the increasing demand for nitrogen fertilizers, the United States has increased its export potential, and it is anticipated to become a globally important exporter of nitrogen products in the coming years. Furthermore, the rising population and limited arable land in the United States have led to higher dependence on fertilizers to meet the growing demand in the country.

Key Market Trends
Growing Demand for the Fertilizers in the Country

The US population is increasing at a rapid rate with 330 million in 2020. This growing population is adding to the food demand. Hence, there is a need to increase agriculture productivity in order to supply food to the growing population. According to the World Bank, arable land (percentage of land area) in the United States is around 17.24% of the total land in 2018. Further, there is a little scope in arable land expansion in the coming years. These factors have stimulated the demand for the fertilizers in the country

According to the FAO, the demand for nitrogen fertilizers increased and was recorded as 14,594 thousand metric ton in 2019. The demand for phosphate and potash fertilizers grew at higher rate, by 1.07% and 1.41%, respectively, during the same period in the region. The higher demand for phosphate and potash fertilizers is attributed to the increased consumption of fruits and vegetables in the past decade in the country. The nitrogen fertilizers have the highest share in the US fertilizers market owing to the production of cereals, such as corn and wheat, in the country.Thus, the rising population and limited arable land in the United States have led to higher dependence on fertilizers to meet the growing demand in the country.

Grain and Cereals Dominate the Market

The application of fertilizers in the grains and cereals segment of the US fertilizers market was valued at USD 6,715.7 million in 2020, and it is estimated to reach a value of USD 7,526.9 million by 2026, registering a CAGR of 2.0% during the forecast period.

According to USDA, wheat, corn, rice received about 40% of the nitrogen, phosphate, and potash fertilizers in 2020. Corn and wheat were the two most important cereals among them, receiving an ample amount of NPK fertilizers. Fertilizers used on corn, wheat, and rice need to contain nitrogen sufficiently. According to the FAO’s statistics, the area harvested for corn in United States decreased from 35,106,050 ha in 2016 to 32,950,670 in 2019. The decrease in the area of crop harvested increased the usage of fertilizers for improving the yield from available area.

A similar trend in lower harvest area was observed in the case of wheat also. As one of the main crops for production and as a main grain for consumption, the lowered area of harvest must be compensated with increased yield, for meeting the domestic and global demand. The adequate use of fertilizer sharply increases the yield. Thus, the fertilizers market is anticipated to witness a significant growth (in the grains and cereals segment) during the forecast period.

Competitive Landscape
The fertilizer market is slightly consolidated, with major companies accounting for the majority of the market. Some of the players opearting in the market are NutrienLimited, Mosaic Company, Yara International ASA and SQM SA. These companies are focusing on R&D, product launches, along with new innovations and partnerships.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Loading...

We are very sorry, but an error occurred.
Please contact support@reportbuyer.com if the problem remains.