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United States Fertilizers Market Size and Forecast (2025–2033)

Rising Precision Farming, Bio-Based Inputs, and High Crop Demand Propel America’s Fertilizer Future

By jaiklin FanandishPublished 2 months ago 5 min read

The United States Fertilizers Market is expected to reach US$ 42.65 billion by 2033, rising from US$ 27.42 billion in 2024, according to Renub Research. This reflects a CAGR of 5.03% during 2025–2033, driven by the increasing demand for food production, technological advancements in fertilizer formulation, and the rapid adoption of precision agriculture across major farming states. With grains and cereals accounting for a substantial share of fertilizer consumption, the U.S. remains one of the world’s most influential agriculture-driven economies.

From chemical and dry fertilizers to organic and specialty variants, the U.S. fertilizers industry is undergoing a profound transformation. Growing environmental regulations, sustainability commitments, and shifting consumer preferences are reshaping fertilizer production and application methods nationwide.

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United States Fertilizers Industry Overview

Agriculture remains a strategic pillar of the U.S. economy, and fertilizers play a crucial role in strengthening food security and enhancing soil productivity. As the demand for nitrogen, phosphate, and potash fertilizers continues to increase, farmers are adopting modern, data-driven tools to optimize nutrient use.

The market is experiencing strong momentum due to:

Precision and smart farming technologies such as drones, GPS systems, AI-based farm tools, and soil sensors.

Government initiatives promoting soil health management and sustainable agricultural practices.

Increased biofuel crop cultivation, particularly corn and soybeans.

Rising adoption of organic and bio-based fertilizers, aligned with consumer preference for clean-label foods.

Customized fertilizer blends suited to regional soil profiles and crop requirements.

In addition, the integration of digital platforms for soil monitoring and crop diagnostics has enabled growers to apply fertilizers more precisely, cutting wastage and enhancing yield. Agricultural cooperatives and research institutions are deepening awareness about nutrient balance, soil testing, and environmentally responsible fertilization.

Biofuels Fueling Fertilizer Demand

A major growth catalyst is the expanding U.S. biofuel sector. As of January 2024, renewable diesel and biofuel manufacturers reached a production capacity of 4.3 billion gallons annually, an increase of 1.3 billion gallons from 2023 (U.S. EIA data). Ethanol production—primarily from corn—remains the backbone of the biofuel industry.

This growth translates directly into higher fertilizer usage due to the nutrient-intensive requirements of biofuel feedstock crops.

Soil Degradation and Climate Challenges Boosting Market Need

Significant soil degradation, rising temperatures, and shifting precipitation patterns require scientifically balanced fertilizers to improve soil resilience and maintain crop yields. Specialty fertilizers—such as controlled-release products, micronutrient blends, and organic additives—are gaining traction to counter these challenges.

Key Factors Driving the United States Fertilizers Market Growth

1. Growing Adoption of Precision Agriculture

Precision agriculture is revolutionizing fertilizer use across America’s farms. Using drones, GPS-guided tractors, automated spreaders, and real-time soil mapping, farmers are applying nutrients only where and when needed. This approach maximizes efficiency and reduces environmental footprints.

Key benefits driving adoption include:

Reduced nutrient runoff

Lower fertilizer input costs

Higher crop yields

Better nutrient use efficiency

Enhanced environmental compliance

The integration of AI-driven analytics helps forecast nutrient requirements, predict soil deficiencies, and customize fertilizer blends. As precision agriculture expands, so will demand for controlled-release, customized, and slow-release fertilizers built for data-driven farming.

2. Rising Demand for Sustainable and Organic Fertilizers

Sustainability is reshaping the U.S. fertilizer landscape. With rising consumer preference for organic foods and chemical-free farming, organic and bio-based fertilizers are seeing unprecedented growth.

Drivers include:

Federal and state incentives for regenerative agriculture

Increased awareness of soil microbiome health

Lower risk of nutrient leaching and pollution

Growing adoption of microbial and enzyme-based fertilizers

Waste-to-fertilizer initiatives under circular economy models

Biofertilizers—derived from beneficial microbes—enhance nutrient uptake and promote soil biodiversity. Meanwhile, organic fertilizers such as compost and manure enhance long-term soil health.

These trends will strengthen as environmental regulations tighten and climate-smart agriculture becomes a national priority.

3. Expansion of Horticulture and Specialty Crop Cultivation

High-value horticulture crops—fruits, vegetables, nuts, and ornamental plants—continue to expand across states like California, Florida, and New York. These crops require precise nutrient management, propelling demand for:

Micronutrient-rich fertilizers

Water-soluble fertilizers

Controlled-release formulations

Specialty blends for landscaping and turf

Urban gardening, greenhouse farming, and hydroponic production are growing rapidly, boosting demand for nutrient-rich, water-efficient fertilizers.

Challenges in the United States Fertilizers Market

1. Environmental Concerns and Regulatory Pressures

Environmental sustainability remains a major challenge. Excessive fertilizer use contributes to:

Nitrogen runoff

Water eutrophication

Soil degradation

Greenhouse gas emissions

Consequently, federal and local authorities have tightened norms on fertilizer composition and usage. Compliance requires significant investment from manufacturers and can increase costs for farmers.

Transitioning toward eco-friendly formulations—such as biodegradable or low-emission fertilizers—demands high R&D costs, posing a barrier for smaller manufacturers.

2. Raw Material Price Volatility and Supply Chain Issues

The U.S. fertilizer industry depends heavily on raw materials such as natural gas, phosphates, and potash—much of which is imported. The market faces ongoing risks from:

Global supply chain disruptions

Rising shipping and logistics costs

Import tariffs

Currency fluctuations

Geopolitical tensions

The COVID-19 pandemic exposed vulnerabilities, prompting companies to explore domestic sourcing, strategic partnerships, and long-term procurement contracts to stabilize supplies.

United States Fertilizers Market Overview by Key States

California

California’s vast agricultural diversity—from almonds to grapes to citrus—drives demand for tailored fertilizer solutions. Sustainable and organic fertilizers are increasingly adopted, while water shortages promote fertigation-based nutrient delivery.

Texas

Texas leads in large-scale cultivation of grains, cotton, and forage crops. High nutrient requirements and frequent drought conditions push farmers toward precision nutrient management and water-efficient practices.

New York

Known for dairy, horticulture, and specialty crops, New York’s fertilizer market is shaped by organic farming trends and stringent environmental regulations. Greenhouse and urban farming also contribute to steady fertilizer consumption.

Florida

Florida’s sandy soils demand frequent nutrient replenishment, especially for citrus, berries, and turf. Water quality concerns have accelerated adoption of controlled-release and environmentally friendly fertilizers, particularly in landscaping and golf course management.

Recent Developments in the U.S. Fertilizers Market

January 2025:

The U.S. Department of Energy granted Michigan Potash a US$ 1.26 billion loan to strengthen domestic natural fertilizer production.

September 2024:

Itafos expanded into Brazil by opening a new office in Bahia, aiming to increase its sales volume contribution from 20% to nearly 30% by 2025.

September 2024:

The USDA awarded AdvanSix a US$ 12 million grant under the Fertilizer Production Expansion Program, supporting domestic production capacity and supply chain stability.

Market Segmentation

By Type

Nitrogen Fertilizers: Urea, Ammonium nitrate, Ammonium sulfate, Anhydrous ammonia, Others

Phosphorus Fertilizers: Superphosphates, MAP, DAP

Potassium Fertilizers: Potash, SOP

Bio-Fertilizers: Microbial, Organic variants

By Category

Organic

Inorganic

By Form

Dry

Liquid

By Application

Agriculture

Horticulture

Gardening

Others

By Crop

Grassland

Vegetables

Fruits/Treenuts

Roots/Tubers

Sugar Crops

Fiber Crops

Oil Palm

Soybeans

Maize

Rice

Wheat

Others

By States

California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, New Jersey, Washington, North Carolina, Massachusetts, Virginia, Michigan, Maryland, Colorado, Tennessee, Indiana, Arizona, Minnesota, Wisconsin, Missouri, Connecticut, South Carolina, Oregon, Louisiana, Alabama, Kentucky, and the Rest of United States.

Key Players Covered

CF Industries Holdings, Inc.

The Andersons Inc.

The Mosaic Company

Wilbur-Ellis Company LLC

Haifa Group

ICL Group Ltd

SQM (Sociedad Quimica y Minera de Chile SA)

Koch Industries Inc.

Nutrien Ltd.

Each company’s profile includes an overview, key executives, revenue performance, SWOT analysis, and recent developments.

Final Thoughts

The U.S. fertilizers market is entering a dynamic growth phase fueled by precision agriculture, sustainability-driven innovation, and rising crop demand from the food and biofuel sectors. While environmental regulations and supply chain challenges pose obstacles, they are also steering the industry toward cleaner, resilient, and technologically advanced solutions.

With increasing fertilizer customization, digital nutrient management tools, and investments in domestic production, the U.S. fertilizer industry is well-positioned for a transformative decade. Stakeholders who innovate early—particularly in bio-based and controlled-release technologies—will lead this emerging landscape.

Nature

About the Creator

jaiklin Fanandish

Jaiklin Fanandish, a passionate storyteller with 10 years of experience, crafts engaging narratives that blend creativity, emotion, and imagination to inspire and connect with readers worldwide.

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