U.S FERTILIZER MARKET

 

KEY FINDINGS

  • The global demand for Nitrogen, Phosphate and Potash is forecast to grow annually on average by 1.5, 2.2, and 2.4 percent respectively from 2015 to 2020.
  • The U.S. fertilizer industry contributes $130.85B to the economy annually and $8B to the transportation economy annually.
  • The United States is the fourth-largest producer of nitrogen-based fertilizers in the world and the second-largest producer of phosphate.
  • Fertilizer provides the nutrients that farmers need to grow crops. In 2019, the U.S. fertilizer industry made possible the production of $188.78 million worth of vegetables, fruits, nuts, and food for livestock in the United States.
  • The cost of natural gas ranges from 70 to 90 percent of the cost of nitrogen fertilizer production, and it takes approximately 32,000 cubic feet of natural gas to produce one ton of ammonia.

 

INTRODUCTION

Fertilizer is a key ingredient in feeding a growing global population, Half of the food grown around the world today, for both people and animals combined, is only made possible through the use of fertilizer. As demand continues to grow, farmers around the world will continue to rely on fertilizers to increase production efficiency to be able to produce more food while optimizing inputs.

 

A continuous supply of chemical fertilizers is vital to farmers and consumers because crop output and food availability depends directly on fertilizer use.

 

infographic: U.S Fertilizer Market, U.S Fertilizer Market Size, U.S Fertilizer Market Trends, U.S Fertilizer Market Forecast, U.S Fertilizer Market Risks, U.S Fertilizer Market Report, U.S Fertilizer Market Share

 

In the U.S, farmers spend billions of dollars on fertilizers annually, which flows through a complex chain of manufacturers, formulators, blenders, and dealers.

 

The industry which supplies these products is highly capital-intensive, a multibillion-dollar segment to the economy that is expected to not only provide products that are vital to agricultural productivity but also generate adequate returns for investors and owners in the industry.

 

 

U.S FERTILIZER MARKET DYNAMICS

 

Sl.no Timeline Developments
1 Q3-2021 The fertilizer institute of the US announced 4R Nutrient Stewardship management by 2030 for the US fertilizer industry by allocating 70 million acres of land. The 4R refers to using the right fertilizer source at the right place, at the right time and at the right rate to support growers.
2 Q2-2021 Canadian company Ostara Nutrient Recovery Technologies Inc., to set up a sustainable fertilizers plant at $25 million in Missouri, USA. The plant starts its operations next year and it will produce 200,000 tons of fertilizers a year.
3 Q1-2021 Mid Kansas Coop(MKC) is associated with Growers Edge to provide new technologies and warranty backed agronomic offers for customers to boost their profits. MKC also sells fertilizers in prepaid payment options to growers. 
4 Q2-2021 The price of fertilizers are increasing dramatically from the third quarter of previous year due to a surge in fertilizer chemicals, farm taxes, production cost and machineries, which resulted in rise of commodity price.
5 Q4-2021 The United States Department of Agriculture said the production of fertilizers are produced less in the third quarter compared to last year but prices are high.

 

The trend towards globally competitive U.S. energy prices have enabled the nitrogen fertilizer industry to reverse a decade-old decline in domestic manufacturing capacity.

 

The production of fertilizer is energy-intensive. Natural gas is used in the production of nitrogen and in manufacturing dry phosphate fertilizers. Government policies that encourage fuel switching from other sources to natural gas may affect demand by creating energy supply or pricing issues. This can impact the U.S. fertilizer industry’s competitiveness in the global market.

 

The technical development of the fertilizer industry is likely to concentrate on increasing efficiency in the production of the existing products as well as in their agricultural use.

 

infographic: U.S Fertilizer Market, U.S Fertilizer Market Size, U.S Fertilizer Market Trends, U.S Fertilizer Market Forecast, U.S Fertilizer Market Risks, U.S Fertilizer Market Report, U.S Fertilizer Market Share

 

The importance of the cost of energy will continue to drive research towards processes involving less energy or more economic forms of it. For example, coal gasification technology has made important progress in recent years, and in some areas, local price relationships between coal and natural gas may develop to the benefit of coal as the main energy source for ammonia production.

 

Fertilizer production requires the most advanced environmental management systems if it is to minimize its potential for creating environmental damage. Such systems, involving the use of the best available technologies and expert management, relates not only to the chemical processes involved but also to the storage, transportation and handling of the downstream production and waste materials.

 

The United States Department of Agriculture (USDA) has announced that it will encourage increased fertiliser production for American farmers in order to combat growing costs, particularly the impact of Putin’s price hike on farmers, and spur competitiveness. 

 

This summer, the USDA will make $250 million available through a new grant programme to assist independent, creative, and sustainable fertiliser production in the United States to feed American farmers. 

 

USDA will also undertake a public inquiry to gather information on seeds and agricultural inputs, fertiliser, and retail marketplaces to address growing competition issues in the agriculture supply chain. 

 

USDA will use funds set aside in September by the Commodity Credit Corporation (CCC) for market disruptions to design a grant programme that will offer “gap” funding to bring new, independent domestic production capacity online—similar to the previously announced USDA grant programme.

 

 

U.S FERTILIZER MARKET SEGMENTATION

 

U.S Fertilizer Market By Product Type

  1. Mineral Fertilizers
  2. Organic Fertilizers

 

U.S Fertilizer Market By Segment

  1. Nitrogen Fertilizers
  2. Phosphorus Fertilizers
  3. Potassium Fertilizers
  4. NPK Fertilizers
  5. Others

 

U.S Fertilizer Market By Application

  1. Grains & Cereals
  2. Oil Seeds
  3. Fruits & Vegetables

 

 

U.S FERTILIZER MARKET SIZE AND FORECAST

 

The U.S Fertilizer market is estimated at $XX Billion in 2020, growing at XX% CAGR till 2026.

 

 

U.S FERTILIZER MARKET COMPETITIVE LANDSCAPE

 

SI.no Timeline Developments
1 Q1-2021 Pivot Bio raises $430 million series D funding to grow it’s fertilizer business market by releasing new products.
2 Q4-2021 The rise in fertilizer cost affected the trade and supply chain of poultry and egg export. Industries are maximizing their production to meet the market demand.
3 Q2-2021 The International Trade Commission of the US has raised import taxes on phosphorus fertilizers from Morocco and Russia. 
4 Q4-2021 CF Industries made $183 million in third quarter earnings.
5 Q4-2021 The Mosaic Company announced its third quarter sales revenue of $258 million. 

 

There have been tremendous advances in fertilizer productive technology in the last three or four decades. Through the early part of the seventies, these advances were accompanied by a reduction in the unit cost of producing fertilizers, thereby making these products more economical for users.

 

Along with many technological advances, a trend towards building larger manufacturing plants, as economies of scale are significant for many types of fertilizer plants has also developed in the recent years. This has direct implications on long-run planning of the industry and, consequently, for future fertilizer supplies.

 

The U.S. industry is composed of establishments primarily engaged in manufacturing nitrogenous fertilizer materials or mixed fertilizers from nitrogenous materials produced in the same establishment, as classified in Standard Industrial Classification (SIC), manufacturing phosphatic fertilizer materials, or mixed fertilizers, from phosphatic materials, produced in the same establishment.

 

Geographic distribution of the U.S. fertilizer industry is dictated by proximity with its natural resources, primary inputs, or end-use markets and is clustered by nutrients along the gulf coast (N and S), Florida and North Carolina (P), and New Mexico (K). Fertilizer production may be characterized as moderately labour intensive overall.

 

Several regulatory issues affect the fertilizer industry, including Superfund, the General Agreement on Tariffs and Trade (GATT), and the Farm Bill. Superfund required EPA to establish a national inventory of toxic chemical emissions called the Toxics Release Inventory (TRI). As this legislation affects the production of each major fertilizer nutrient product group, the impact will be addressed separately for each nutrient, as appropriate.

 

 

U.S FERTILIZER MARKET COMPANIES PROFILED

 

 

THIS U.S FERTILIZER MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

  1. U.S Fertilizer Market size and Forecast, by region, by application
  2. Average B-2-B price for U.S Fertilizer Market, by region, per user
  3. Technology trends and related opportunity for new U.S Fertilizer Market tech suppliers
  4. U.S Fertilizer Market share of leading vendors, by region,
  5.  Coronavirus impact on U.S Fertilizer Market earnings

 

Sl no Topic
1 Market Segmentation
2 Scope of the report
3 Abbreviations
4 Research Methodology
5 Executive Summary
6 Introduction
7 Insights from Industry stakeholders
8 Cost breakdown of Product by sub-components and average profit margin
9 Disruptive innovation in the Industry
10 Technology trends in the Industry
11 Consumer trends in the industry
12 Recent Production Milestones
13 Component Manufacturing in US, EU and China
14 COVID-19 impact on overall market
15 COVID-19 impact on Production of components
16 COVID-19 impact on Point of sale
17 Market Segmentation, Dynamics and Forecast by Geography, 2021-2026
18 Market Segmentation, Dynamics and Forecast by Product Type, 2021-2026
19 Market Segmentation, Dynamics and Forecast by Application, 2021-2026
20 Market Segmentation, Dynamics and Forecast by End use, 2021-2026
21 Product installation rate by OEM, 2021
22 Incline/Decline in Average B-2-B selling price in past 5 years
23 Competition from substitute products
24 Gross margin and average profitability of suppliers
25 New product development in past 12 months
26 M&A in past 12 months
27 Growth strategy of leading players
28 Market share of vendors, 2021
29 Company Profiles
30 Unmet needs and opportunity for new suppliers
31 Conclusion
32 Appendix

 

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