GCC Fertilizer Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 438.91 Billion |
| Market Size (2029) | USD 672.23 Billion |
| CAGR (2024 - 2029) | 8.90 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
GCC Fertilizer Market Analysis
The GCC Fertilizer Market size is estimated at USD 438.91 billion in 2024, and is expected to reach USD 672.23 billion by 2029, at a CAGR of 8.90% during the forecast period (2024-2029).
Fertilizers are indispensable for enhancing agricultural productivity, supplying vital nutrients that boost crop yields and improve the quality of produce, including food grains, vegetables, and fruits. The increasing demand for food, along with greater awareness among farmers about the benefits of fertilizers, drives the market. Additionally, rising international demand for fertilizers is stimulating the production of fertilizers in the GCC countries. According to the FAOSTAT, Saudi Arabia produced 55.9 million metric tons of urea in 2021, which increased to 56.0 million metric tons in 2022.
The arid climate of the GCC region, marked by scant rainfall, poses significant challenges for natural soil nutrient replenishment. To counteract this, fertilizers play a crucial role, supplying essential nutrients that boost agricultural productivity, even under the region's harsh conditions. Data from the Food and Agricultural Organisation reveals that Saudi Arabia's agricultural consumption of NPK fertilizers rose to 520,000 metric tons in 2022, up from 490,000 metric tons in 2021. Additionally, the Umm Wu'al Phosphate Project in Saudi Arabia, recognized as the world's largest phosphate production facility, not only produces vast quantities of phosphate annually but also engages in mining, processing, and producing phosphoric acid.
Furthermore, fruit and vegetable production in the GCC region has been expanding as governments focus on achieving self-sufficiency. In 2023, the UAE unveiled its National Food Security Strategy 2051, with ambitions to rank among the top 10 on the Global Food Security Index by 2021 and clinch the top spot by 2051. The strategy emphasizes sustainable food production through modern technologies, bolstering local output, and forging international partnerships for diverse food sourcing. In the United Arab Emirates, fruit production has notably increased over the past two years. According to FAOSTAT, fruit production volumes rose from 407,435.3 metric tons in 2021 to 424,491.1 metric tons in 2022. This uptick in vegetable production has, in turn, spurred a heightened demand for fertilizers, propelling market growth during the forecast period.
GCC Fertilizer Market Trends
Nitrogenous Fertilizer Holds the Largest Share
Nitrogenous fertilizers dominate production in the GCC countries due to the abundant natural gas resources, which serve as a primary raw material. Consequently, urea and ammonia, each with a nitrogen content of 46%, are the most widely consumed nitrogenous fertilizers in the region. Their high domestic production ensures easy availability. According to FAOSTAT, Qatar's agricultural use of Calcium Ammonium Nitrate increased from 1,350 metric tons in 2021 to 1,370 metric tons in 2022.
Moreover, state-owned production facilities, along with abundant feedstock for urea and ammonia, significantly enhance the nation's production capabilities. The expansion of existing plants and the establishment of new units have led to a notable increase in production. Major domestic producers are scaling up ammonia output, and the adoption of green ammonia production is projected to further boost fertilizer output. For instance, in 2022, the Saudi Arabian Mining Company commenced commercial ammonia production across three plants, each with substantial annual output, poised to significantly impact the market during the forecast period.
Additionally, in the GCC countries, food demand is projected to rise, driven by macroeconomic improvements, a growing population, a thriving tourism sector, and government initiatives aimed at enhancing self-reliance. Changing consumer preferences and increased health awareness are fueling a surge in demand for innovative dining concepts and diverse cuisines. As the food services sector rapidly adapts to consumer needs, it emerges as a key driver of food consumption in the region. This trend is anticipated to bolster the demand for nitrogenous fertilizers in the coming years. Consequently, the projected steady increase in domestic nitrogenous fertilizer demand will drive market growth throughout the forecast period.
Saudi Arabia Dominates the Market
Fertilizer use in Saudi Arabia is a critical component of its agricultural strategy, especially given the country's arid climate and limited arable land. Saudi Arabia is the largest ammonia exporter in the GCC region, accounting for more than 40% of GCC output. The presence of well-established oil and gas industries and the availability of cheaper natural gas give the local players a competitive advantage of the low cost of production. According to the ITC Trade Map, in 2023, Saudi Arabia exported 2.5 million metric tons of ammonia followed by Oman (0.7 million metric tons), and Qatar (0.5 million metric tons). There are various potential sales destinations for Saudi Arabian ammonia producers in the Asia-Pacific, including China, Japan, South Korea, Thailand, and Vietnam. Arabian producers have a competitive advantage in supplying the Asian-Pacific region (especially South and South-East Asia) compared to its other European, African, and South American counterparts.
Saudi Arabia plays a pivotal role in the global urea market, exporting to numerous countries worldwide. According to the ITC Trade Map, in 2022, Saudi Arabia exported 551,818 metric tons of urea to the United States, making it the largest export market for Saudi fertilizers, with a significant 17.1% share by value. Other key markets for Saudi fertilizers included Australia, Thailand, India, and Bangladesh. With increased production capacity and a diversifying product portfolio, the industry is on a robust growth trajectory.
Furthermore, Saudi Arabia is the sole producer of NPK fertilizers in the GCC region. According to FAOSTAT, Saudi Arabia produced 9.6 million metric tons of NPK fertilizers in 2022, compared to 9.0 million metric tons in 2021. Companies such as Ma’aden Wa’ad Al Shamal Phosphate Company produce three million tons annually of the DAP/MAP/NPK complex in Saudi Arabia. In addition, the availability of natural gas at a competitive price in the country provides a significant advantage in terms of production costs. The ability of producers to operate plants efficiently and reliably makes the construction of export-oriented, integrated urea plants highly attractive. This is projected to drive the overall growth of the market during the study period.
GCC Fertilizer Industry Overview
The GCC fertilizer market is fragmented. Some of the leading players in the market are Qatar Fertilizer Company, Saudi Basic Industries Corporation, MITSUI & CO, Ltd., Union Chemicals Co. LLC, and RNZ International FZCO. The domestic and international players in the market are focusing on strategies such as increasing investments in research and development, product launches, expansions, and partnerships to improve their market share in the region.
GCC Fertilizer Market Leaders
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Qatar Fertilizer Company
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Saudi Basic Industries Corporation
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Union Chemicals Co. LLC
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RNZ International FZCO
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MITSUI & CO, Ltd.
*Disclaimer: Major Players sorted in no particular order
GCC Fertilizer Market News
- June 2024: Mitsui & Co., Ltd., partnered with TA'ZIZ, Fertiglobe, and South Korea's GS Energy Corporation, to construct an ammonia production facility in Al Ruwais, United Arab Emirates. Through this initiative, Mitsui aims to significantly contribute to the realization of a decarbonized society.
- January 2023: SABIC Agri-Nutrients (SABIC AN) partnered with Atmonia for the application of its technology for sustainable ammonia production in several Middle Eastern countries. This partnership between the companies helps to launch fertilizer products in the GCC region in the future.
GCC Fertilizer Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Export to Global Market
4.2.2 Continuous Research and Developmnet in GCC region
4.2.3 Rising Government Support
4.3 Market Restraints
4.3.1 Regulatory and Environmental Constraints
4.3.2 Falling Commodity Prices
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product type
5.1.1 Nitrogenous
5.1.1.1 Urea
5.1.1.2 Calcium Ammonium Nitrate (CAN)
5.1.1.3 Ammonium Nitrate
5.1.1.4 Ammonium Sulfate
5.1.1.5 Ammonia
5.1.1.6 Other Nitrogenous Fertilizers
5.1.2 Phosphatic
5.1.2.1 Mono-ammonium Phosphate (MAP)
5.1.2.2 Di-ammonium Phosphate (DAP)
5.1.2.3 Triple Superphosphate (TSP)
5.1.2.4 Other Phosphatic Fertilizers
5.1.3 Potassic
5.1.3.1 Muriate of Potash (MOP)
5.1.3.2 Sulfate of Potash (SOP)
5.1.4 Secondary Nutrient Fertilizers
5.1.5 Micronutrient Fertilizers
5.2 Application
5.2.1 Grains and Cereals
5.2.2 Pulses and Oil Seeds
5.2.3 Fruits and Vegetables
5.2.4 Commercial Crops
5.2.5 Other Applications
5.3 Geography
5.3.1 Saudi Arabia
5.3.2 Qatar
5.3.3 Oman
5.3.4 United Arab Emirates
5.3.5 Rest of GCC
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Qatar Fertilizer Company
6.3.2 Saudi Basic Industries Corporation
6.3.3 Emirates Biologica Fertilizer WLL
6.3.4 Union Chemicals Co. LLC
6.3.5 RNZ International FZCO
6.3.6 Desert Oasis Fertilizers Packaging LLC
6.3.7 MITSUI & CO, Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
GCC Fertilizer Industry Segmentation
Fertilizers are natural or artificial substances containing chemical elements that improve the growth and productivity of plants. The GCC fertilizer Market is segmented by Product Type (Nitrogenous, Phosphatic, Potassic Fertilizers, Secondary Nutrients Fertilizers, and Micronutrient fertilizers), Application (Grains and Cereals, Pulses and Oilseeds, Fruits and Vegetables, Commercial Crops, and Other Applications), and Geography (Saudi Arabia, United Arab Emirates, Qatar, Oman, and the Rest of GCC). The report offers market size and forecasts in terms of value (USD) for the above segments.
| Product type | ||||||||
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| Secondary Nutrient Fertilizers | ||||||||
| Micronutrient Fertilizers |
| Application | |
| Grains and Cereals | |
| Pulses and Oil Seeds | |
| Fruits and Vegetables | |
| Commercial Crops | |
| Other Applications |
| Geography | |
| Saudi Arabia | |
| Qatar | |
| Oman | |
| United Arab Emirates | |
| Rest of GCC |
GCC Fertilizer Market Research Faqs
How big is the GCC Fertilizer Market?
The GCC Fertilizer Market size is expected to reach USD 438.91 billion in 2024 and grow at a CAGR of 8.90% to reach USD 672.23 billion by 2029.
What is the current GCC Fertilizer Market size?
In 2024, the GCC Fertilizer Market size is expected to reach USD 438.91 billion.
Who are the key players in GCC Fertilizer Market?
Qatar Fertilizer Company, Saudi Basic Industries Corporation, Union Chemicals Co. LLC, RNZ International FZCO and MITSUI & CO, Ltd. are the major companies operating in the GCC Fertilizer Market.
What years does this GCC Fertilizer Market cover, and what was the market size in 2023?
In 2023, the GCC Fertilizer Market size was estimated at USD 399.85 billion. The report covers the GCC Fertilizer Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC Fertilizer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Fertilizer Industry Report
Statistics for the 2024 GCC Fertilizer market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Fertilizer analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
GCC Fertilizer Market Report Snapshots
