Market Trends of nitrogenous fertilizer Industry
The rising pressure on the agricultural sector to increase food production is expected to drive area under field crop cultivation
- The global agricultural sector is currently facing many challenges. According to the UN, the world population will likely exceed nine billion by 2050. This population growth may overburden the agricultural sector, which is already experiencing an output loss due to a lack of laborers and the shrinkage of agricultural fields caused by rising urbanization. According to the Food and Agriculture Organization, 70% of the global population is expected to live in cities by 2050. Due to the global loss of arable land, farmers need more fertilizers to increase crop yields.
- Asia-Pacific is the world's largest producer of agricultural products. Agriculture is critical to the region's economy, as it employs about 20% of the total available workforce. Field crop cultivation dominates the region, accounting for more than 95% of the total crop area in the region. Rice, wheat, and corn are the major field crops produced in the region, together accounting for about 42.5% of the total crop area in 2022.
- North America is the second-largest arable region in terms of total agricultural land area in the world. Diverse varieties of crops are grown on North American farms, primarily field crops. According to the USDA, corn, cotton, rice, soybean, and wheat are among the region's dominant field crops. The United States dominated the market by accounting for 155.09 million hectares of the total area under crop cultivation in the region during the study period, with field crops covering the majority of the area, accounting for a share of 65.7% in 2022. Crop acreage in the country fell significantly between 2017 and 2019, primarily due to unfavorable environmental conditions that resulted in heavy floods in areas such as Texas and Houston.
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Nitrogen is the most widely used primary nutrient fertilizer in field crops, accounting for 45.57% of the total consumption
- In 2023, the average primary nutrient application rate for field crops stood at 164.3 kg per hectare. Notably, corn, rice, wheat, sorghum, soybean, rapeseed, and cotton represented the primary field crops cultivated, and these crops need higher nutrient levels to support their growth. The nutrient deficiency arising from intensive agricultural practices and the continuous cultivation of major crops, such as wheat, necessitates an increased application of nutrients. This situation calls for higher nutrient input to maintain soil fertility.
- Nitrogen stands out as the predominant nutrient consumed by field crops among all the primary nutrients. The average nutrient application rate of nitrogen reached a substantial 224.6 kg per hectare. The soils experience nitrogen deficiency due to their high pH levels, sandy soil composition, and persistent dry conditions resulting from recurrent droughts and heat waves. These factors collectively drive an increased demand for nitrogen nutrients in agricultural practices.
- Rapeseed emerged as a significant consumer of nitrogen nutrients, with an average nutrient application rate of 347.4 kg per hectare. This substantial nitrogen demand in rapeseed cultivation is primarily linked to the reduced nitrogen use efficiency (NUE) by these crops. China, Canada, India, Australia, and European countries are major producers of rapeseed crops. Changing climatic conditions like recent droughts and heavy flooding conditions lead to N loss from soils, which affects crop growth and yield formation of rapeseed. It is necessary to control the nitrogen application rate to keep it within the limits. Appropriate levels of nitrogen can boost the photosynthetic capacity, metabolic levels, and morphogenesis and increase yield.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The growing demand for fruits and vegetables drives the expansion of horticultural crop cultivation
- Technological advancements in irrigation equipment and well water management practices may increase the area under irrigation
- Compared to other vegetable crops, cabbage has a higher application rate of nitrogen, with an average application rate of 520.5kg/ha
