Global N fertilizer market to reach $110 billion by 2017
The global nitrogen fertilizer market is forecast to reach an estimated $109.83 billion in 2017 with good progress over the next five years. Global population growth and insufficiently nutritious diets are the major concerns in emerging countries. These issues drive the application of nitrogen fertilizer, and are leading the industry to future growth.
Lucintel, a leading global management consulting and market research firm, has analyzed the global nitrogen fertilizer industry and presents its findings in "Global Nitrogen Fertilizer Industry 2012-2017: Trend, Profit, and Forecast Analysis."
The nitrogen fertilizer industry industry is fragmented, and is highly dependent on crop yield, farmer awareness, and the availability of credit. The Asia Pacific (APAC) region dominates the industry. APAC witnessed the highest growth during last the five years due to increased meat and dairy product consumption. The higher consumption led to greater demand for additional plant cultivation in APAC, and therefore a higher demand for nitrogen fertilizers. Unfavorable weather conditions have negatively affected crop production in many producer countries. This scenario has led to a constant decrease in the world's crop stocks, which in turn creates a higher demand for nitrogen fertilizers.
Lucintel's Chemical market research indicates that raw materials such as crude oil, which saw prices increase 37% while natural gas prices increased 27% during 2007-2008. These higher costs drove the price and the growth of nitrogen fertilizer in 2008. Global production and trade of nitrogen fertilizer, however, were adversely affected in 2009 as the global demand for fertilizers collapsed due to the economic downturn.
As indicated in the study, maintaining adequate food supplies remains a serious problem in many locations around the globe. Nitrogen fertilizers have been proven to significantly increase farming productivity by providing essential soil nutrients in both developed and developing countries. Global population and economic growth are the major forces driving increased global food demand, crop production, and nitrogen fertilizer use.
This study provides an overview of the nitrogen fertilizer industry, tracking one market segment across four geographic regions. Thus, a total of four segments of the global nitrogen fertilizer industry are tracked.