Market Trends of europe fertilizers Industry
The cultivation area of field crops is steadily expanding to meet domestic needs and export demand
- In Europe, field crops like rapeseed, wheat, rye, and triticale are predominantly grown in winter, while maize, sunflowers, rice, and soybean are summer crops. Barley, both winter and spring varieties, are widely cultivated. The region has witnessed a steady rise in the area dedicated to major food crops, driven by population growth and increasing food grain demand. In 2017, the area under field crops stood at 78.5 thousand ha, which climbed to 108 thousand ha by 2022.
- In 2021, the European Union harvested 129.9 million tonnes of common wheat and spelt, accounting for 43.7% of all cereal grains harvested. This marked an increase of 11.0 million tonnes, a growth rate of 9.3%, compared to 2020. The uptick was fueled by a 5.6% expansion in the harvested area, reaching 21.8 million hectares, and improved apparent yields.
- In 2021, the EU's production of grain maize and corn cob mix reached 73.0 million tonnes, up by 6.0 million tonnes from 2020. This overall surge was primarily driven by significant production rebounds in Romania (up by 46.8%, an additional 4.7 million tonnes) and France (up by 14.5%, an additional 1.9 million tonnes).
- Between 2019 and 2022, the harvested area in the region witnessed a notable 34% decline. However, despite this overall reduction, the acreages dedicated to corn/maize and wheat cultivation saw increases of 11% and 2%, respectively, while other field crops saw a decrease. Farmers are expected to increase their fertilizer usage during the study period. This move is driven by their goal to boost yields, especially in light of the declining harvested areas seen in recent years.
The prevalence of nitrogen deficiency in the soil facilitates the market's growth
- Field crops consumed the highest amount of primary nutrients in Europe, accounting for 85% share, with a volume consumption of 47 million metric tons in 2022. This is attributed to the large area under field crops and the large amounts of primary nutrients required by these crops. Key field crops in the region include wheat, rapeseed, rye, soybean, and corn, all of which exhibit substantial fertilizer consumption. In 2022, these crops had an average nutrient application rate of 187.3 kg per hectare, encompassing nitrogen, phosphorous, and potassium.
- Nitrogen emerged as the primary nutrient fertilizer for European field crops, with an average application rate of 130.64 kg/hectare in 2022. Nitrogen deficiency poses the most significant yield limitation, given its prevalence in agricultural soils. Consequently, it remains the most widely applied fertilizer in the region. Following nitrogen, potassium took the lead as the second most utilized fertilizer, with an average application rate of 103.75 kg/hectare in 2022. Notably, countries like Sweden, Spain, Poland, and Latvia face more pronounced potassium deficiencies, primarily due to their sandy soil composition. Phosphatic fertilizers trailed behind with an application rate of 56.93 kg/hectare in 2022.
- Primary nutrient fertilizers hold paramount importance for crops, serving critical roles in metabolic processes, tissue formation (such as cells, cell membranes, and chlorophyll), and crop quality. Phosphorous is particularly crucial for cultivating high-quality crops, while potassium aids in enzyme activation for plant growth and development.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Climate change and extreme weather conditions are the major challenges in the expansion of horticulture cultivation
- Manganese deficiency poses a prevalent challenge in sandy and organic soils with pH levels exceeding 6
- Out of all crops, corn stands out for its relatively high secondary nutrient consumption.
- In 2022, Russia accounted for a significant portion of Europe's irrigation area, holding 21.6% of the total
- Zinc has become the most used micronutrient fertilizer in the region
- The average application rate of primary nutrients in vegetable crops is 290.4 kg/ha, with nitrogen being the most applied primary nutrient
- Tomatoes rank as the top consumer of secondary macronutrients, with sulfur being the most crucial