The United States soil amendment market value was USD XX million in 2020 and is expected to reach USD XX million by 2028 with a CAGR of 10.21% during the forecast period 2021 to 2028.
In the United States, land degradation as a result of nutrient deficiency in the soil is creating a high demand for fertilizers. During harvesting, nutrients such as nitrogen are removed from the soil by crops and the nutrient deficiency leads to decline in yields.
Many farmers are also increasing the use of fertilizers to speed up the crop growth and increase their agricultural productivity. However, overuse of chemical fertilizers is resulting in soil pollution in the form of fertilizer deposition and also causing damage to water resources. Rising concerns related to soil pollution coupled with increasing focus on sustainable agricultural practices to restore soil health may hinder the growth of the global fertilizer market over the long run while helping the growth of soil amendments.
Conventional agriculture plays a huge role in meeting the rising requirements for food of the growing global population. However, this has led to the increasing dependence of farmers on chemical fertilizers and pesticides. Chemical fertilizers are industrially manipulated, with substances composed of known quantities of nitrogen, phosphorus, and potassium. This rampant use of chemical fertilizers has been the cause of air and groundwater pollution by eutrophication of water bodies.
Growing awareness about the negative effects of chemical fertilizers on human health and the environment as a result of groundwater contamination has led to the increased adoption of soil amendments. These fertilizers are organic in nature and are usually composed before they are used on plants.
Market Dynamics
Drivers
- Transitioning from chemical-based farming techniques to organic-based farming techniques
- Increasing adoption of biofertilizers in soil fertility management practices
- The increase in soil degradation in the North American region is projected to drive the growth of the market
Restraints
- Factors affecting the efficacy of biofertilizers
- Widespread availability and use of chemical fertilizers
The increase in soil degradation in the North American region is projected to drive the growth of the market
The growing industrial activities in the United States is responsible for the soil degradation. Additionally, increasing various mining activities in the country leads to barren soil that is susceptible to erosion by wind and rain.
There are five major states in the country accounting for about one third of the total mineral production value for the entire country. The states include Minnesota, California, Texas, Arizona, and Nevada.
In 2019, Nevada mineral industry valued more than USD 7.65 billion which is approximately 11% of the US total value. The major minerals mined in the state are Gold, copper, sand and gravel (construction), stone (crushed), silver.
Arizona stood second place in the country in mineral production, the industry valued around USD 6 billion in 2019 which is nearly 8% of the total US value. Arizona leads the country in copper production and is one of the primary sources of molybdenum as well.
The increase in the mining industry in the country leads to soil degradation. According to a report published by Cornell study 2017, in the US, soil disappears ten-times faster than it is naturally replenished, at an estimated rate of nearly 1.7 billion tons of farmland per year.
Thus, the increase in soil degradation in the United States is projected to drive the growth of the soil amendment market during the forecast period 2021 to 2028, since soil amendments are used to increase soil health.
Competitive Scenario
The production of soil amendments has been a demand-driven one. The creation of demand among the farmers is one of the significant factors toward the promotion of soil amendments. Currently, the market is governed by various diversified international and national players who are expanding their footprints in new geographies. The market competitiveness is anticipated to rise due to an increase in product and service extensions.
Market players compete on various factors like price, availability, brand, and variety. However, the price is set to become a major base for competition among players that specialize in certain technologies to gain an edge in the market. The growth of players in the market also depends on market conditions, government support, and industry development.
Access to capital and advances in technology are major barriers to the entry of new players. Therefore, vendors must expand geographically and revive the domestic demand to achieve sustained growth over time. Vendors can boost profitability by practicing efficient production techniques to minimize product costs and prevent cost overruns.
The vendors are focusing on new strategic alliances for the better production output of soil amendment products. The competition among these companies is leading to innovative and advanced soil amendment solutions in the market. However, there are a number of constraints that these market vendors have to face in accordance with the given market conditions for the use of soil amendments.
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