Market Trends of water soluble fertilizer Industry
The rising pressure on the agriculture industry to meet the growing food demand is expected to increase the area under field crop cultivation
- The global agricultural sector is currently facing many challenges. According to the United Nations, the world population may exceed 9 billion by 2050. This population growth could 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 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 accounted for 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. The average application rates for primary nutrients in these crops were 230.57 kg/ha, 255.75 kg/ha, 172.70 kg/ha, 158.46 kg/ha, 154.49 kg/ha, 135.35 kg/ha, and 120.97 kg/ha, respectively. Primary nutrient fertilizers are vital for crops as they facilitate crucial plant metabolic processes and contribute to the formation of key tissues, including cells, cell membranes, and chlorophyll. Phosphorus is pivotal for cultivating high-quality crops, while potassium activates enzymes crucial for plant growth.
- The global average application rate for nitrogen, potassium, and phosphorus in field crops stands at 164.31 kg/ha. Nitrogen leads the pack as the most widely used primary nutrient fertilizer, with an application rate of 224.6 kg/ha, followed by potassic fertilizers at 150.3 kg/ha. Phosphorus ranks third, with an application rate of 117.9 kg/ha in 2022.
- In 2022, rapeseed recorded the highest nitrogen application rate at 347.4 kg/ha, while corn topped the phosphorus application rate at 156.3 kg/ha. Canola took the lead for potassium application, with a rate of 248.6 kg/ha.
- The global cultivation area for field crops is on the rise, notably in South America and the Asia-Pacific region, making them potential growth markets for fertilizers. Developed regions like Europe and North America, along with areas grappling with nutrient deficiencies, are increasingly turning to specialty fertilizers for their efficacy. These factors are poised to propel the primary nutrient fertilizers market in the coming years.
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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 can cause several detrimental effects in vegetable crops.
- Plants require a steady supply of sulfur from early growth stages until harvest, as its immobility within the plant can lead to limited yields if not adequately supplied
- 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
- Compared to other vegetable crops, tomatoes receive many primary nutrients, with an average primary nutrient application rate of 232.06 kg/ha
- Magnesium has accounted for the highest average application rate in vegetable crops among the secondary nutrients
