EUROPE FERTILIZER MARKET
- Industry and agriculture (together with forestry and other land use) represent 18% and 24% of global GHG emissions respectively.
- The International Fertilizer Association estimates that the fertilizer industry represents 2.5% of the global GHG emissions, including 1.5% related to fertilizer use.
- The production of nitrogen fertilizers is characterized by its high carbon intensity due to use of fossil fuels, mainly natural gas, used as fuel and feedstock.
- On an average of three seasons, fertilizers containing an average of 11.2 million tons of nitrogen, 2.7 million tons of phosphate, and 3.1 million tons of potash were applied to 133.7 million hectares of farmland in the European Union.
- Europe has estimated annual nitrogen, phosphate and potash fertilizer consumption to reach 10.6, 2.7 and 3.1 million tons respectively by the 2029/2030 season, applied to 132.4 million hectares of farmland.
- Imported fertilizers with a higher carbon footprint have increasingly substituted domestic EU products, resulting in an import penetration increasing from 20% to 30% of EU consumption over the last decade and a leading/resulting to a net increase of GHG emissions globally.
- The European Commission’s “The European Green Deal” represents the fertilizer industry, which is expected to play a vital role in delivering the EU’s ambition to lead sustainable agricultural production as well as contribute the transition towards a low-carbon economy.
With the development of agricultural production and an increase in the demand for food crops, farmers are on the lookout for methods to improve efficiency in their fields. With the further development of commercial fertilizers, nutrient gap has been somewhat closed.
The application of fertilizers increases the production of biomass in the plant and thus, yields. Therefore, it contributes to addressing the major challenge of feeding a growing world population. The United Nations predicts that the population will increase by 2.3 billion people through 2050, and the world will have to produce 70 percent more food to meet everyone’s needs.
EUROPE FERTILIZER MARKET DYNAMICS
European fertilizer producers operate in a global market as fertilizers are traded in large amounts between continents. Currently, the fertilizer industry’s competitiveness is already being affected by the EU Emissions Trading System (ETS). Further decarbonization will increasingly expose the industry to the risk of carbon leakage.
Current measures under EU ETS are not enough to limit the European fertilizers sector’s genuine exposure. Since 2014, the sector has had no surplus and is a net buyer of emission allowances.
Investments in ammonia/fertilizer capacities are happening mostly outside the EU. The industry has made huge improvements in the energy efficiency by its production. Companies are at a point where any future investment in current technology will only result in marginal efficiency improvements.
The Green Deal has a profound impact on key areas of the economy, requiring all sectors to play their part in decarbonization efforts. For the fertilizers industry, the Green Deal brings many challenges but also opportunities if supported by the right policy solutions.
From summer 2022 onwards, fertilizer producers, traders and farmers will be subjected to confront the Fertilizing Products Regulation (FPR), which will change the way fertilizers are receiving the CE mark and the labeling requirements provided on the products.
EUROPE FERTILIZER MARKET SEGMENTATION
By Product Type
- Mineral Fertilizers
- Organic Fertilizers
- Nitrogen Fertilizers
- Phosphorus Fertilizers
- Potassium Fertilizers
- NPK Fertilizers
- Grains & Cereals
- Oil Seeds
- Fruits & Vegetables
EUROPE FERTILIZER MARKET SIZE AND FORECAST
The Europe Fertilizer market is estimated at $XX Billion in 2020, growing at XX% CAGR till 2026.
Global presence, knowledge, and crop solutions make manufacturers well-positioned to expand their collaboration with the food industry. Consumers are increasingly willing to pay for quality and sustainability, which helps to achieve better crop nutrition, application knowledge, and tools.
Resource scarcity, growing sustainability awareness and increased consumer pressure is creating a push towards a circular economy, including the Agri and food value chain. Recycling and reuse of materials coupled with reduced waste and pollution are core ideas that are in trend.
Digital agriculture is developing rapidly, with several multinationals and start-ups making a large sum of investments into digital platforms. Securing competitiveness in delivering knowledge and solutions hinges on their ability to achieve scale, generate value, and protect knowledge advantage.
Companies dedicated partnerships to increase yield and farmer income and to achieve a carbon-positive future. Partnering with many companies and organizations including larger food, technology, and energy producers.
To further support circular economy progress, market players have also joined the European Sustainable Phosphorous Platform (ESPP), The Platform for Accelerating the Circular Economy (PACE), the European Biogas Association (EBA) and the German Association for Water, Wastewater, and Waste (DWA).
The fertilizer industry has developed and prioritized the notion of product and nutrient stewardship: setting standards for the environmental footprint of individual products and optimizing their use to minimize impact.
- Yara International ASA
- OCI N.V
- PETROKEMIJA dd FERTILIZER FACTORY
- Nitrogénművek Zrt
- ICL Specialty Fertilizers
- Grupa Azoty Group
- BASF SE
- The Mosaic Company
- Nutrien Limited
- CF Industries