According to the research study conducted by DataM Intelligence, the global soil amendment market size valued at USD XX billion in 2021, is expected to reach USD XX billion by the end of 2029, with growth at a CAGR of 12.5% during the forecast period 2022-2029.
Rising concerns related to soil pollution coupled with an 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, phosphorous, and potassium. This rampant use of chemical fertilizers has been the cause of air and groundwater pollution by the 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 composted before they are used on plants.
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. The ever-rising population has put considerable pressure on land and various other natural resources that have, in turn, resulted in damage done to the ecological base of agriculture and led to various socio-economic problems. An accelerated rate of crop production has led to a rapid loss of plant nutrients, thereby putting pressure on soil resources. Most farmers have been seen resorting to the use of various chemical and inorganic fertilizers to help replenish this loss of nutrients.
In organic farming, the use of chemical fertilizers is typically avoided, and alternatives like biofertilizers, green manure, and compost are preferred over these fertilizers. As the consumers' income levels are increasing, their dietary habits are also changing, and there is a rise in the demand for organic food. In countries such as the US, the demand for organic food is outpacing its supply, and many farmers are also considering transitioning
their conventional farming practices to organic farming. A growing market for organic crops, which leads to more income for them, is discouraging some farmers from using chemical or inorganic fertilizers, directly affecting their market. Australia, Argentina, and the US are some of the countries where most of the agricultural land is used for organic farming. In addition, countries such as Bhutan and Denmark are increasing the focus on sustainable agriculture and are turning completely organic.
The soils in many areas are also deficient in micronutrients such as iron and manganese, leading to their lower content in edible plant parts, causing health problems in human beings. This is encouraging many farmers to adopt the practice of precisely applying chemical fertilizers.
There is a rise in the demand for proper use of fertilizers, as the degrading soil quality is leading to micronutrient deficiency in crops worldwide, and balanced crop nutrition helps in sustainable production. It is estimated that 50% of the agricultural soil worldwide is deficient in zinc. The increasing demand for agricultural products, owing to a rise in population is pressurizing the farmers across the world to improve production yield. Availability of limited arable land and unfavorable climate change further add to the demand for better yield. The soil quality in many countries is depleting, and the use of an adequate quantity of fertilizers helps farmers increase the yield by 3-4 times.
Therefore, farmers find the use of chemical fertilizers to be a much more convenient option whereby, these fertilizers offer quicker results and a higher yield of crops. Also, chemical fertilizers have a uniform effect on the soil and crop yields, unlike biofertilizers that have microorganisms in them, which may or may not react with the crops and the plants in a desirable manner. Also, chemical fertilizers being cheaper and widely available in comparison to biofertilizers has resulted in hindering the market growth for biofertilizers.
One of the major innovations in biofertilizers is the advent of liquid biofertilizers. Liquid biofertilizers are special liquid formulations containing not only the desired microorganisms and their nutrients but also special cell
protectants or chemicals that promote the formation of resting spores or cysts, which help the biofertilizer attain a longer shelf life and tolerance to adverse conditions. Carrier-based biofertilizers, which are solid ones, have a shelf life of only six months. These biofertilizers are not tolerant to ultra-violet rays and temperatures of more than 300C.
Report Coverage Overview:
According to the research report, the global soil amendment market is segmented based on Type, Crop Type, Soil Type, and Foam. Based on Type it is divided into Humic Acid, Biofertilizers, Polysaccharide Derivatives, Gypsum, and Others. Based on Crop Type into Cereals & Grains, Fruits & Vegetables, Oilseeds & Pulses, and Others. By Soil Type into Clay, Silt, Sand, and Loam. Based on Foam is divided into Dry, and Liquid.
The agriculture industry widely uses humic acid as a soil supplement for crops. Moreover, humic acid is a flake, powder, or granular form of Leonardite, which is a type of humic acid potassium salt /humic plus. It is a basic raw material for manufacturers of natural and agricultural additives for fertilizer to improve soil structure and increase fertility, which is expected to boost the market growth during the forecast period.
Biofertilizers play a crucial role in soil treatment application as they significantly advance the soil condition and make it more suitable for plants to absorb essential minerals from the soil. When utilized in the soil, they fix the nitrogen present in the root and soil nodules. They also aid in scavenging phosphate in the soil and make it readily available for plant intake.
Polysaccharides are the most prevalent of the biopolymers as well as the most abundant organic material. In addition, being an excellent source of energy for soil microorganisms, carbohydrates are fairly rapidly decomposed when added to the soil unless they enter into complex formation with soil colloids. Moreover, polysaccharide directly derived from plant materials (e.g., guar gum) is an environment-friendly polymer with no irritating or adverse effects on aquatic species. It can interact with soil by clay flocculation, hence reducing runoff and erosion.
By Geography, the global market is segmented into North America, Europe, Asia Pacifica, Latin America, the Middle East and Africa, and the Rest of the world.
North America region is projected to show at largest share in the global market share during 2022-2029, due to rising in soil degradation in the North American region, this factor driving the growth of the market. US Soil Amendment Market is estimated to produce a decent growth rate in the North American region.
Competitive Landscape Analysis:
The production of soil amendments has been a demand-driven one. The creation of demand among the farmers is one of the significant factors in 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.
Some of the major companies leading the global soil amendment market are; Adama, Agrinos, BASF SE, Bayer, Evonik Industries AG, FMC Corporation, Lallemand Inc, Novozymes A/S, Nufarm, T.Stanes & Company, UPL, and other major players.
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