Market Trends of North America Liquid Fertilizers Industry
This section covers the major market trends shaping the North America Liquid Fertilizers Market according to our research experts:
Adoption of Sustainable Agriculture Practices
The management of agricultural production is presently focused on a greater commitment to environmental sustainability, for which the rising adoption of organic agriculture, accepted by the North American region as an alternative to conventional agriculture, appears to be an environmentally friendly growing system since mineral fertilizers are responsible for health problems and environmental pollution. According to Fertilizer Canada, in 2019, the usage of nitrogen and phosphorus nutrients by the growers in the high yield categories for which utilization of 65.8% is used in the high yield category, followed by 55.6% for moderate yield, and 54.8% for low yield in the soil samples exclusively for corn, soybean, and canola crops in Canada, which will boost the demand of the liquid fertilizer for covering all modes of applications in the crops.
In August 2020, the United States of America's National Organic Program (NOP) proposed changes to the US Department of Agriculture (USDA) organic regulation aiming to strengthen oversight and compliance to the organic principles along the supply chain, which will impact the production, handling, and marketing of organic products, thereby, in turn, enhance the growth of the organic ingredients in the liquid fertilizer market in the region.
United States Dominates The Market
Liquid fertilizers hold the largest share of consumption in the United States within the North American region. More than one-fourth of the fertilizers used in the United States are liquid fertilizers.
The factors that are expected to drive the liquid fertilizer market in the United States are the easy application and the availability of large wagons to fill the liquid fertilizers. Additionally, the high adoption of precision agriculture technology is driving market growth, as the use of variable rate technology (VRT) requires the use of liquid fertilizers. Around 77% of VRT farming use fertilizers. However, the adoption of VRT farming for pesticides and seeds is quite low, estimated to be 11% and 7%, respectively. Among the fertilizers used in VRT, lime-based fertilizers have the largest share, followed by single nutrient and multiple nutrient fertilizers. Owing to these factors, the consumption of liquid fertilizers in the United States may increase at a high rate during the forecast period.
Liquid fertilizer applications to corn and soybean plants have become a common practice in crop production during the past few years in the United States. According to the research conducted by the Soybean Management and Research Technology (SMaRT) project in 2017, the prescription-based foliar fertilizer mixture increased soybean yields at three of the 20 sites (15% of the time).
