North America Fertilizer Market: A Report on Growth, Sustainability, and Alignment with Sustainable Development Goals (SDGs)
A comprehensive analysis of the North America fertilizer market indicates a valuation of USD 60.72 billion in 2024. The market is projected to grow from USD 63.87 billion in 2025 to USD 95.74 billion by 2033, reflecting a Compound Annual Growth Rate (CAGR) of 5.19%. This growth is intrinsically linked to the pursuit of global food security, as outlined in SDG 2 (Zero Hunger), while simultaneously navigating the environmental challenges addressed by SDG 6 (Clean Water and Sanitation), SDG 13 (Climate Action), and SDG 15 (Life on Land). The market, encompassing nitrogenous, phosphatic, and potassic fertilizers, is critical for agricultural productivity in the United States, Canada, and Mexico. The evolution of this market is increasingly shaped by the principles of SDG 12 (Responsible Consumption and Production), with a notable shift towards precision agriculture and sustainable nutrient management solutions to mitigate environmental impacts such as nutrient runoff and water contamination.
Market Dynamics: Drivers and Restraints
Market Drivers
- Increasing Demand for High-Yield Crops: The primary driver is the escalating demand for food driven by population growth, directly addressing the objectives of SDG 2 (Zero Hunger). With the U.S. population exceeding 335 million, intensive farming practices are necessary to meet domestic food and feed requirements. Major crops like corn, which covered 92 million acres in the U.S. in 2023, depend on significant nutrient inputs to maintain yields, underscoring the fertilizer market’s role in ensuring national and global food security.
- Adoption of Precision Farming Techniques: The integration of advanced agricultural technologies aligns with SDG 9 (Industry, Innovation, and Infrastructure) and promotes SDG 12 (Responsible Consumption and Production). Precision farming, utilizing GPS mapping and variable rate technology (VRT), optimizes fertilizer application, enhances nutrient use efficiency, and minimizes waste. This technological shift has been shown to reduce nitrogen losses by up to 20%, contributing to the protection of water resources as targeted by SDG 6.
Market Restraints
- Regulatory Restrictions on Fertilizer Usage: Environmental regulations pose a significant constraint, reflecting global efforts to achieve SDG 6 (Clean Water and Sanitation) and SDG 15 (Life on Land). Policies under the U.S. Clean Water Act and mandates from Environment and Climate Change Canada aim to curb nutrient runoff and prevent eutrophication in vital water bodies like the Great Lakes. These necessary environmental protections limit fertilizer application volumes and influence market dynamics.
- Volatility in Raw Material Prices: Fluctuations in the price of raw materials, such as natural gas and phosphate rock, present economic challenges that affect the stability of the agricultural sector, impacting SDG 8 (Decent Work and Economic Growth). Geopolitical events and supply chain disruptions can elevate production costs, which are often transferred to farmers, potentially constraining fertilizer use and affecting farm profitability.
Market Opportunities and Challenges
Opportunities
- Expansion of Organic and Bio-Based Fertilizers: A growing consumer and regulatory focus on sustainable agriculture creates significant opportunities for organic and bio-based fertilizers. This trend supports SDG 12 (Responsible Consumption and Production) and SDG 15 (Life on Land) by promoting soil health and reducing reliance on synthetic chemicals. Government initiatives, such as the USDA’s allocation of over $300 million for regenerative agriculture, are accelerating the adoption of these eco-friendly alternatives.
- Technological Advancements in Smart Fertilizers: Innovations in controlled-release fertilizers (CRFs) and smart fertilizers represent a key opportunity aligned with SDG 9 (Industry, Innovation, and Infrastructure). These technologies enhance nutrient efficiency, reduce environmental leaching, and minimize greenhouse gas emissions, thereby contributing to SDG 6, SDG 12, and SDG 13 (Climate Action). Major firms are actively developing enhanced efficiency fertilizers tailored to North American agricultural systems.
Challenges
- Supply Chain Disruptions: The market’s vulnerability to global supply chain instability poses a direct challenge to achieving SDG 2 (Zero Hunger) and maintaining economic stability under SDG 8. Logistical bottlenecks, trade disputes, and geopolitical conflicts can lead to fertilizer shortages and price inflation, disrupting planting cycles and threatening food production.
- Declining Arable Land Per Capita: The progressive loss of farmland due to urbanization and land-use changes presents a structural challenge to SDG 2 and SDG 15 (Life on Land). With less available land, farmers are pressured to increase yields on existing plots, which can lead to unsustainable intensification. This underscores the urgent need for practices that maximize productivity while preserving long-term soil health and ecosystem integrity.
Segmental Analysis
By Type
The straight fertilizers segment, providing single primary nutrients, dominated the market with a 62.5% share in 2024, driven by its use in large-scale commodity crop production essential for SDG 2. Meanwhile, the complex fertilizers segment is projected to be the fastest-growing, reflecting a shift towards balanced nutrient management and efficiency, in line with the principles of SDG 12.
By Form
Conventional fertilizers remain the largest segment due to their cost-effectiveness in broad-acre farming. However, the specialty fertilizers segment is expanding most rapidly, with a projected CAGR of 6.2%. This growth is fueled by demand for high-value horticultural crops and the adoption of sustainable formulations like controlled-release and water-soluble products, which support the goals of SDG 12 by improving resource efficiency.
By Application Mode
Soil application commanded a 66.4% market share in 2024, being the traditional method for field crops. The fertigation segment, however, is the fastest-growing, with a projected CAGR of 7.1%. By delivering nutrients through irrigation, fertigation significantly enhances water and nutrient use efficiency, directly contributing to SDG 6 and SDG 12.
By Crop Type
Field crops, including corn, wheat, and soybeans, constitute the largest segment, accounting for 65% of consumption and highlighting the market’s fundamental role in achieving SDG 2. The horticultural crops segment is the fastest-growing, driven by consumer demand for fresh produce and the need for precise, sustainable nutrient solutions in high-value production systems.
Country Analysis
United States
The U.S. dominates the regional market, holding a 55.4% share in 2024. Its position as a leading agricultural exporter makes fertilizer use critical for meeting global food demands (SDG 2). The country is also a leader in adopting precision agriculture technologies to balance high productivity with environmental stewardship, addressing goals under SDG 6 and SDG 12.
Canada
As a major producer of potash and a significant exporter of grains, Canada plays a crucial role in both fertilizer production and consumption. The nation is actively promoting sustainable nutrient management strategies to align its agricultural sector with climate targets (SDG 13) and protect vital ecosystems (SDG 15), demonstrating a commitment to responsible production.
Mexico
Mexico’s market is growing steadily, driven by national efforts to enhance food security (SDG 2) and modernize its agricultural sector. An increasing focus on specialty crops and protected agriculture is boosting demand for efficient fertilizer solutions, reflecting a move towards more sustainable and productive farming systems in line with SDG 12.
Competitive Landscape
Key Market Players
Leading companies in the North America fertilizer market include:
- CF Industries Holdings, Inc.
- Haifa Group
- ICL Group Ltd
- Koch Industries Inc.
- Nutrien Ltd.
- Sociedad Quimica y Minera de Chile SA
- The Andersons Inc.
- The Mosaic Company
- Wilbur-Ellis Company LLC
- Yara International ASA
Key Strategies of Market Participants
Market leaders are employing strategies that align with broader sustainability objectives:
- Product Innovation: Companies are investing heavily in enhanced efficiency fertilizers (EEFs) and bio-based solutions. This strategy directly supports SDG 9 and SDG 12 by developing products that improve nutrient uptake and reduce environmental footprints.
- Vertical Integration: Securing access to raw materials through backward integration helps stabilize production costs and supply chains, contributing to the economic resilience of the agricultural sector as envisioned in SDG 8.
- Strategic Partnerships: Acquisitions and collaborations with agritech firms are expanding service offerings to include digital tools for data-driven nutrient management. This enhances the implementation of precision agriculture, furthering the goals of SDG 9 and SDG 12.
Competition Overview
The competitive environment is shaped by a drive for innovation and sustainability. Companies are differentiating themselves by offering solutions that help farmers increase yields while adhering to environmental regulations. The growing emphasis on sustainable farming practices is making alignment with SDGs, particularly SDG 12 and SDG 13, a critical component of competitive strategy. Firms that successfully balance profitability with environmental responsibility are best positioned for long-term growth.
Recent Market Developments
- January 2024: Nutrien launched a digital platform for real-time nutrient recommendations, advancing precision agriculture in line with SDG 9 and SDG 12.
- March 2024: Yara International expanded its Louisiana nitrogen plant to increase the supply of low-emission fertilizers, contributing to SDG 13.
- June 2024: The Mosaic Company partnered with an agritech firm to integrate satellite analytics into its nutrient planning tools, promoting data-driven, efficient farming.
- September 2024: CF Industries introduced a line of carbon-negative nitrogen fertilizers, a significant innovation for sustainable agriculture and climate action (SDG 13).
- November 2024: K+S Potash Canada initiated upgrades to its Bethune mine to improve efficiency and reduce water usage, supporting SDG 6 and SDG 12.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 2: Zero Hunger
- The article extensively discusses the need to increase agricultural productivity to feed a growing population. It highlights the role of fertilizers in achieving high-yield crops to ensure food security in North America. For instance, it states, “The rising demand for high-yield crops driven by population growth and heightened focus on food security is one of the primary drivers fueling the North America fertilizer market.”
SDG 6: Clean Water and Sanitation
- The article directly addresses water quality issues resulting from fertilizer use. It mentions “nutrient runoff and water contamination concerns,” “eutrophication in water bodies,” and regulatory actions under the “Clean Water Act to limit nutrient discharge into rivers and lakes.” This shows a clear connection to protecting water resources from agricultural pollution.
SDG 9: Industry, Innovation, and Infrastructure
- The article emphasizes technological advancements and innovation within the agricultural and fertilizer industries. It details the “adoption of precision farming technologies,” “controlled-release fertilizers (CRFs) and smart fertilizers,” and the development of “low-emission fertilizer solutions.” These innovations represent an upgrade of industrial and agricultural practices towards greater efficiency and sustainability.
SDG 12: Responsible Consumption and Production
- The core theme of improving nutrient use efficiency and reducing waste is central to this SDG. The article discusses the shift towards “sustainable agriculture,” “organic and bio-based fertilizers,” and methods that “have cut nitrogen losses by up to 20%.” This reflects a move towards more sustainable production patterns in agriculture.
SDG 13: Climate Action
- The article links fertilizer production and use to climate change mitigation efforts. It notes that Canadian provincial agencies endorse certain products to comply with “emissions reduction targets under the federal government’s climate action plan” and mentions the introduction of “carbon-negative nitrogen fertilizers.”
SDG 14: Life Below Water
- The article’s discussion of nutrient pollution directly impacts marine and freshwater ecosystems. It explicitly states that regulations in Canada aim to “protect the Great Lakes ecosystem” from phosphorus runoff, which is a direct effort to mitigate pollution of water bodies, aligning with the goal of protecting life below water.
SDG 15: Life on Land
- The article addresses issues of soil health and land use. It discusses the need to “enhance soil fertility” and the challenge of “declining arable land per capita.” It also notes that excessive fertilizer use can “degrade land quality over time,” connecting directly to the goal of protecting terrestrial ecosystems and halting land degradation.
2. What specific targets under those SDGs can be identified based on the article’s content?
SDG 2: Zero Hunger
- Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers. The article’s focus on “high-yield crops,” “intensive farming practices,” and optimizing yields on existing land directly supports the goal of increasing agricultural productivity.
- Target 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change… and that progressively improve land and soil quality. The discussion on “sustainable agriculture,” “precision farming,” “bio-based fertilizers,” and improving “soil health” aligns with this target.
SDG 6: Clean Water and Sanitation
- Target 6.3: By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally. The article’s mention of regulations to curb “nutrient runoff,” “water pollution,” and “eutrophication” directly relates to this target.
SDG 9: Industry, Innovation, and Infrastructure
- Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The article highlights the adoption of “precision farming technologies,” “controlled-release and smart fertilizers,” and “low-emission fertilizer solutions” as examples of this transition.
SDG 12: Responsible Consumption and Production
- Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The focus on “nutrient use efficiency,” “precision application methods,” and reducing fertilizer waste through technologies like fertigation and controlled-release products supports this target.
- Target 12.4: By 2030, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle… and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment. The article discusses efforts to reduce “nutrient runoff” and “nitrogen losses” and the shift to “organic and bio-based fertilizers” as part of this management.
SDG 13: Climate Action
- Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article references Canada’s “emissions reduction targets under the federal government’s climate action plan” as a direct example of this integration.
SDG 14: Life Below Water
- Target 14.1: By 2030, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution. The article’s reference to policies in Canada to reduce “phosphorus use in certain agricultural zones to protect the Great Lakes ecosystem” is a direct example of addressing nutrient pollution from land-based activities.
SDG 15: Life on Land
- Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world. The article addresses this by discussing the need to “enhance soil fertility” and the risk of land degradation from “excessive nutrient application,” as well as the challenge of “declining arable land.”
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Indicators for SDG 2 (Zero Hunger)
- Agricultural land area: “corn acreage in the U.S. reached 92 million acres in 2023.”
- Fertilizer application rates: “nitrogen fertilizer application averaging around 140 pounds per acre.”
- Crop yield: The article consistently refers to the goal of achieving “high-yield crops” and “predictable yield outcomes.”
Indicators for SDG 6 & 14 (Clean Water & Life Below Water)
- Reduction in nutrient pollution: “precision application methods have cut nitrogen losses by up to 20%.”
- Policy implementation for water protection: “Environment and Climate Change Canada has mandated reductions in phosphorus use in certain agricultural zones.”
Indicators for SDG 9 (Industry, Innovation, and Infrastructure)
- Adoption of new technologies: “over 18% of irrigated farmland in the U.S. now utilizes fertigation.”
- Investment in sustainable infrastructure: “Yara International expanded its production capacity at its nitrogen plant in Louisiana, aiming to meet rising demand for low-emission fertilizer solutions.”
- Development of innovative products: “CF Industries introduced a line of carbon-negative nitrogen fertilizers.”
Indicators for SDG 12 (Responsible Consumption and Production)
- Funding for sustainable practices: “U.S. Department of Agriculture (USDA) has allocated over $300 million under the Inflation Reduction Act to support regenerative agriculture practices.”
- Market share of sustainable products: The article notes the growing demand and market for “organic and bio-based fertilizers” and “specialty fertilizers.”
Indicators for SDG 15 (Life on Land)
- Change in arable land area: “the U.S. lost approximately 24 million acres of farmland between 1992 and 2012.”
- Arable land per capita: “the average arable land per person in the U.S. stood at about 0.45 hectares, down from 0.52 hectares in 2010.”
4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.
SDGs | Targets | Indicators |
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SDG 2: Zero Hunger |
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SDG 6: Clean Water and Sanitation |
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SDG 9: Industry, Innovation, and Infrastructure |
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SDG 12: Responsible Consumption and Production |
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SDG 13: Climate Action |
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SDG 14: Life Below Water |
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SDG 15: Life on Land |
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Source: marketdataforecast.com