GCC Fertilizer Market Size (2024 - 2029)

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 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.