Fertile soil: Recovery in fertilizer prices will stabilize industry revenue growth

Industry performance has been volatile over the five years to 2018. Through 2014, falling prices of certain staple products like wheat caused diminishing production, lowering demand. While demand improved in 2015, that was also the year of peak fertilizer prices, following which a global supply glut has prompted declines in fertilizer prices that has slashed industry revenue despite increased downstream demand. Overall, industry revenue has fallen over the five years to 2018. Over the five years to 2023, industry revenue is expected to increase. Rising farm production will prompt increased demand for fertilizers...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Fertilizer prices are expected to recover during this period, boosting industry revenue
  • Volatile US agriculture production has led to a decline in exports
  • Strong demand from farmers and distributors will benefit the industry in the next five years
  • Industry Report - Starting a New Business Chapter

    The initial capital outlays required to enter this industry are quite significant. Operators require more than $500.0 million to construct a competitive fertilizer plant. For example, nitrogen plants that can produce one million metric tonnes of nitrogen products cost between $700.0 million and $1.0 billion and take two to three years to build, while phosphate plants can cost over $1.5 billion and take three to four years to build. Recent plants have cost up to $2.5 billion, excluding infrastructure outside of the plant, such as natural gas lines, rail lines and cars and port facilities, while also having a longer development time of five to seven years. Taken together, these factors illustrate that this industry has high barriers to entry...purchase to read more.

    Additional Insights for the Fertilizer Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fertilizer Manufacturing Industry are

  • Guaranteed supply of key inputs
  • Access to the latest available and most efficient technology and techniques
  • Availability of resources
  • IBISWorld analysts also discuss how external factors such as Demand from crop production and Price of fertilizer in the Fertilizer Manufacturing industry impact industry performance..

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    What's in this report

    What is the Fertilizer Manufacturing Industry?

    This industry primarily manufactures fertilizer products. These products contain a different mixture of the three vital nutrients essential for plant growth: nitrogen, phosphorous and potassium. The products are distributed via wholesale arrangements with third parties or, in the case of vertically integrated operations, by the manufacturer.

    Industry Products
  • Nitrogen
  • Phosphate
  • All Other
  • Urea
  • Industry Activities
  • Manufacturing ammonia, ammonium nitrate, ammonium sulfate and ammonium phosphates
  • Manufacturing natural-organic and animal-waste or sewage-origin fertilizers
  • Manufacturing nitric acid and phosphoric acid
  • Manufacturing nitrogenous fertilizer materials
  • Manufacturing urea
  • Manufacturing phosphatic fertilizer materials
  • Manufacturing potting soil, plant foods and compost
  • Mixing purchased fertilizer materials
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from crop production
  • Price of fertilizer
  • US Gross domestic product (GDP)
  • Canadian effective exchange rate index
  • World price of natural gas

  • Current Performance
  • Shifting revenue landscape
  • Domestic conditions
  • Changing industry cost structure
  • International trade, servicing global demand
  • Industry expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing demand and international trade
  • Shifting industry structure
  • Table: Fertilizer Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fertilizer Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soybean Farming in Canada
  • Corn Farming in Canada
  • Plant & Flower Growing in Canada

  • Key Selling Industries
  • Inorganic Chemical Manufacturing in Canada
  • Organic Chemical Manufacturing in Canada

  • Products & Services
  • Nitrogen
  • Urea
  • Phosphate
  • All Other
  • Chart: Fertilizer Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Canola Farming
  • Wheat farming
  • All Other including commercial Industries
  • Soybeans
  • Barley Farming
  • Corn farming
  • Chart: Major Market Segmentation for the Fertilizer Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Rent and utilities
  • Wages
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Fertilizer Manufacturing

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fertilizer Manufacturing Industry

  • Industry Globalization
    Nutrien Ltd., CF Industries Holdings Inc., Yara International ASA,
  • Table: Nutrien Ltd. - financial performance
  • Table: CF Industries Holdings Inc. - financial performance
  • Table: Yara International ASA - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fertilizer Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fertilizer Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of Fertilizer (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Futures Market
  • An auction market where participants buy and sell commodities or future contracts for delivery on a specified future date.
  • Mono-Ammonium Phosphate
  • A type of high analysis fertilizer used to generate higher yields in pastoral activities.
  • N Fertilizers
  • A nitrogen-based fertilizer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fertilizer Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Fertilizer Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fertilizer Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fertilizer Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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