United States Specialty Fertilizers Market is expected to grow at a CAGR of 4.82% during the forecasting period (2020-2027).

U.S. specialty fertilizers market valued at USD  5,992.76 million in 2019 and is expected to grow at a CAGR of XX% over the forecast period to reach a USD  XX million by 2027.

Specialty fertilizers are materials that help enhance the water and nutrient efficiency in farming practices. These chemicals are formulated to cater the unique nutrient needs of particular plant or soil. The application of these materials prolongs the availability of nutrients to plants by controlling the amount of moisture contact with the plant.  Specialty fertilizers also contain a considerable amount of primary, secondary, and micronutrients essential for the growth of plants and thus evolved as an integral part of crop nutrition. Most of the U.S. agrochemical manufacturers are involved in the production of specialty fertilizers and are witnessing lucrative growth in this business. However, the adverse effects of synthetic specialty fertilizers on the environment is the major restraint for the growth of the market. Several state and federal governments regulated the use of these materials in agricultural chemicals. 

On the basis of type, the U.S. specialty fertilizers market is segmented into compound fertilizers, slow release fertilizers, controlled release fertilizers, stabilized fertilizers, micronutrient fertilizers and others. Controlled-release fertilizer segment is expected to have the highest growth rate of 5.83% in the forecast period.

On the basis of form, the market is segmented into dry and liquid. Dry segment is dominating the market,  but the liquid segment is expected to have the highest growth rate of 5.66% in the forecast period.

On the basis of crop type, the U.S. specialty fertilizers market is segmented into cereals and grains, fruits and vegetables, oilseeds and pulses and  others. Fruits & vegetable segment is the dominating segment in this category.

Market Dynamics

 Drivers

• Growing need for crop nutrition
• Increasing Adoption of Precision Farming Technique

Restraints

• High cost investment and high price

Growing need for crop nutrition

One of the main drivers for fertilizer products is the need to supply sufficient food to a steadily growing population, with more and more diverse and crop-intensive diets and with more food from limited land resources. With growing pressure to achieve this, both governments and farmers are adopting ways to produce more nutritional crops of high quality, such as specialty fertilizers. For instance, according to IFA (International Fertilizer Association), fertilizers are responsible for about half of the world’s crop production, supplying food, feed, fiber, and fuel for the world population that is anticipated to reach 9 billion before 2050. To supply the proportion of food is challenging, because of which various countries are adopting new fertilization technology which is driving the growth of the U.S. specialty fertilizers market. The insurance of global food security largely depends on the use of fertilizers. For instance, more than 48 percent of the 7 billion people present today are sustaining life because of increased crop production due to the application of nitrogen (N) fertilizers. World food production will inevitably depend more on fertilizer use in the future. Without innovative fertilizers application, the farmers would produce only half of the staple food that is required right now, and more forested lands would be needed to be put into production, according to IFA. According to the FAO’s (Food and Agriculture Organization) modified projection on world agriculture, the production of agricultural food in 2050 should be 60 percent higher than that of 2005/2007. Along with the gradual improvement in the standard of living in much of the world will further increase the demand for food and fiber. The demand for more nutritional food production is also pressurizing U.S. farmers as they need to feed more than 300 million people. The growth in the specialty fertilizers market is also creating an opportunity for the U.S. to export more agricultural products to other countries. For instance, according to The Fertilizer Institute (TFI), in 2015, the U.S. fertilizer industry has invested USD 5.1 billion in capital infrastructure projects. These investments have helped in creating jobs, increased worker and community safety, and helped in conserving energy, land, water, and air resources.  The high investment in the fertilizer industry is also helping in the market growth of the specialty fertilizer market.

The global fertilizer industry earns the bulk of its revenue from a few commodity fertilizers, where prices are subject to external volatility and margins can be thin. In comparison, specialty fertilizers provide protection from these financial pressures, and more producers have become involved in the specialty fertilizer business due to the benefits of using specialty fertilizers to increase the yield of crop production.

Simultaneously there is a continuing decrease in productive arable land so that mineral fertilizer is expected to play a significant role in the world’s food security and will be vital from both the yield and food quality viewpoint. But in recent times, farmers are aware of the side effects of artificial fertilizers on soil & environment and demanding a more sustainable way of producing food through scientifically efficient fertilizer use, which is driving the growth of the U.S. specialty fertilizers market.

Competitive Landscape

The U.S. specialty fertilizers market is fragmented, with top players accounting for major share. The key players operating in the global specialty fertilizers market are BASF SE, Israel Chemicals Ltd., Soiltech, Eurochem, Yara International ASA, Haifa Chemicals Ltd., Sinochem Corporation, The Mosaic Company, among others. The companies are competing within themselves in terms of research & development, new product development, agreements and merger & acquisition. Other than the leading companies, all other SMEs are mainly activated within their own country and are focusing on local market share. For instance, the Mosaic company‘s most revenue comes from the U.S., which was 70.4% of the total net sale. Many companies are increasingly investing in research & development activities as well as new product development. For instance, ICL, in recent years, has developed several new technologies such as dual coating technology and E-Max Release Technology, which bolsters its product portfolio in the market. Some companies are trying to expand into other regions by merger & acquisition activities. For instance, On September 20, 2019, EuroChem Group AG announced a multi-year agreement with Houston-based American Plant Food (APF) to deliver fertilizers to its blending business to strengthen its distribution network in U.S.. 

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