On July 1, 2020, the US-Mexico-Canada Agreement (USMCA) officially superseded the 26-year-old North American Free Trade Agreement (NAFTA). According to analysis,this new agreement saw the United States and Mexico eliminate all tariffs on agricultural products, though country-specific tariff quotas were implemented for orange juice and sugar. Additionally, Canada and Mexico removed tariffs on all agricultural commodities except for dairy products, poultry, eggs, and sugar. Certain Canadian products such as wheat, barley, beef, and butter are subject to Mexican tariff quotas.
The legacy of NAFTA and the introduction of USMCA have significantly boosted Mexico's agricultural exports, particularly vegetables and fruits to the United States, thus enhancing Mexico’s agriculture and planting industries. This growth has also stimulated Mexico's fertilizer industry. According to the analyst, Mexico boasts considerable agricultural resources and maintains a high demand for chemical fertilizers.
In 2023, Mexico's consumption of chemical fertilizers exceeded 6 million tons. According to analysis, nitrogen fertilizer is the most prevalent, accounting for over 65% of usage, followed by phosphate fertilizers at about 20%. However, Mexico's domestic fertilizer production is limited, producing just over 2 million tons annually and importing 3-4 million tons.
Key players in the Mexican fertilizer market include Nouryon Chemicals SA de CV, Compo Expert Mexico SA de CV, Yara Mexico S de RL de CV, and Coromandel Agronegocios de Mexico, SA de CV. The market is highly concentrated due to its relatively small size.
Looking ahead, the analyst projects that Mexico's fertilizer consumption will continue to rise from 2024 to 2033. Given the limited domestic production, imports are expected to grow, potentially reaching 5.6 million tons by 2033, with a compound annual growth rate (CAGR) of 2.2% from 2024 to 2033.
For foreign investors, there are dual opportunities: exporting fertilizers to Mexico and, under suitable conditions, establishing local production facilities to gain a foothold in the Mexican market.
Topics covered:
- Mexico Fertilizer Industry Overview
- Economic and policy environment for fertilizers in Mexico
- Mexico fertilizer market size from 2019 to 2023
- Analysis of major Mexican fertilizer manufacturers
- Key drivers and market opportunities for the Mexican fertilizer industry
- What are the key drivers, challenges and opportunities for the Mexican fertilizer industry during the forecast period 2024-2033?
- What is the expected revenue of the Mexico Fertilizer market during the forecast period 2024-2033?
- What strategies are adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Mexico Fertilizer Market is expected to dominate the market in 2033?
- Mexico Fertilizer Market Forecast from 2024 to 2033
- What are the main headwinds facing the Mexican fertilizer industry?
Table of Contents
Companies Mentioned
- Nouryon Chemicals SA De CV
- Compo Expert Mexico SA de CV
- Nutrien Ltd.
- Yara Mexico S de RL de CV
- Coromandel Agrongocios de Mexico SA de CV
- JCO Fertilizer S. de RL de CV
- Haifa Chemicals Mexico SA de CV
Methodology
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 80 |
| Published | May 2024 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value in 2024 | 4.6 Million Tons |
| Forecasted Market Value by 2033 | 5.6 Million Tons |
| Compound Annual Growth Rate | 2.2% |
| Regions Covered | Mexico |
| No. of Companies Mentioned | 7 |
