North America Liquid Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Liquid Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for liquid fertilizers is estimated to grow at a CAGR of 4.7% for the forecast period 2022-2027.

In the North American region, the outbreak of the COVID-19 pandemic has had a significant effect on the liquid fertilizer market. ​Consequently, the widespread COVID-19 pandemic across North America has impacted various aspects of the industry, such as labor shortages, procurement of raw materials, and restrictions on trade resulting in supply chain disruptions. Further, the pandemic interrupted the distribution channel of the liquid fertilizer industry through fertilizer stores, which caused a shift of consumers toward online sales channels to buy fertilizer products.

North America is estimated to be the second-largest consumer of liquid fertilizers. Within the region, the US, Canada, and Mexico are the largest markets for liquid fertilizer, with the US dominating the market. In the North American region, the lands are acidic in nature and the use of nitrogen fertilizers helps in maintaining the desirable pH level of the soil, which is one of the major drivers for the growth of the liquid nitrogen-based fertilizer market.

The increasing demand for highly efficient fertilizers across North America, along with the demand for liquid fertilizer, is expected to increase during the coming years in the region. The recent rise in high nutrient-based liquid fertilizers, wherein with growing crop yield and productivity among the growers, is proving to be a major driver for the market.

Urea is the most widely used liquid nitrogenous fertilizer in the region. The liquid micronutrient segment of the North American liquid fertilizer market is growing at a rapid pace, and the growth can be attributed to the rising demand for food grains and increasing soil deficiency.

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.​

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 the 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). ​

The North American market is Slightly consolidated, with major players occupying a share of 39.7% and others accounting for 60.3% of the total shares. Yara International, Nutrien Ltd, ICL Group, and Agro Liquid are the key players in the market studied. As per the key developments observed during the review period, product launches and partnerships are the most adopted strategies by the dominant players in the market, followed by merges and acquisitions.​ The major players in the market studied are increasing their product portfolio by partnering with other players in the region to maintain their position in the market.

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