Market Size & Trends
The Australia fertilizers market size was valued at USD 1.6 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 1.6% from 2023 to 2030. The growth of the product is attributed to the surge in demand for increased crop yield and crop quality. In addition, increasing adoption of precision farming methods, growing demand for food, and shrinking arable land, due to the growing population are some other factors driving the market. Plants require several mineral elements for their nutrition, which include nitrogen, potassium, phosphorous, magnesium, and calcium. These nutrients are usually obtained from the soil. Deficiency of any one of the aforementioned minerals reduces crop yield and affects the growth of plants.
The efficiency of crops gets restricted due to the degrading soil nutrition and the presence of potentially toxic mineral elements in the soil. This has generated the necessity to supply nutrients externally to improve crop productivity thus driving the demand for products in Australia.
Australia is a major importer of urea from China and Russia, with 80% of it being imported from China. The ban on the trade of urea by China in 2021 to lower China’s fertilizer prices domestically has resulted in a shortage of urea in Australia, resulting in increased prices in 2022. Thus, to overcome this shortage, in December 2020, Australia entered an agreement with Incetic Pivot, a fertilizer manufacturer, to secure the local production of urea. All these factors have contributed to the growth of the urea market in the country.
Type Insight
Nitrogenous in type segment dominated the market with a revenue share of 57.8% in 2022. This growth is attributed to the growing production of corn, as it is a widely planted crop in Australia that requires the most nitrogen per hectare of land compared to other crops. According to the Observatory of Economic Complexity, in 2021, Australia exported corn worth USD 34.4 million, making it the 39th largest exporter in the world with South Korea, Malaysia, the UAE, and the Philippines being the major importers and accounting for USD 24.9 million, USD 1.94 million, USD 3.77 million, and USD 0.84 million, respectively.
Urea in nitrogenous fertilizer type dominated the market with a revenue share of 42.9% in 2022. If urea is applied to the bare soil surface, a significant quantity of ammonia might be lost owing to the volatilization of urea caused by its rapid hydrolysis to form ammonium carbonate. Thus, it is necessary to properly place urea fertilizers with respect to seeds. Factors such as the low cost of urea and the high level of nitrogen present in it are expected to fuel the growth of urea.
Potassic is another segment witnessing growth over the forecast period. Potash is the third-most important nutrient required by plants for proper growth and development. It helps improve water retention in plants, influences the texture, improves crop yield, and imparts nutritional value to many crops. Thus, to minimize potassium deficiency and improve productivity, farmers are switching to potassic fertilizers.
Key Companies & Market Share Insights
Australia fertilizers market is highly competitive with the presence of a large number of manufacturers and suppliers. The top players have been dominating the market owing to the increasing investments in research & development activities related to new product developments. Multinational companies have further adopted strategies like partnership, acquisition, and joint venture to maintain a strong foothold in the market. For Instance, in March 2022, Koch Ag & Energy Solutions (Koch) and Morocco-based OCP agreed to enter into a fifty-fifty joint venture in Jorf Fertilizers Company III. This joint venture will help in improving the continuous sulfur and ammonia supply thus, helping the company to strengthen its position among competitors. Some of the prominent players in the Australia fertilizers market include:
Koch Fertiliser Australia Pty Ltd
Incitec Pivot Limited
Wesfarmers Limited
Spraygro Liquid Fertilizers
S.J.B. Ag-Nutri
Yara
Tradecorp APAC Pty. Ltd.
Neutrog Australia
Pacific Fertiliser Pty Ltd
Perdaman