Middle East & Africa Fertilizer Market Outlook, 2029

South Africa is a dry land with less than 500mt of rainfall annually. It has a long coastline 3000 km from the desert border. Arable land in South Africa is 9.89% as of 2018 as per World Bank data. The region has limited agricultural potential and produces at much higher costs to attain same amount of produce as other countries. Only 12% of its 1.2 million square kilometres is suitable for cultivation of crops. Artificial lakes are used for crop irrigation. Majority of population are only upper secondary qualified, with less education and low skills the unemployment rate is very high in South Africa. And this populace is absorbed by mining and agriculture sector.

Factors that affect are low credit ratings, land reforms, volatile exchange rates and weather conditions. It needs investment in technology to further boost agricultural produce. Fertilizer Association of Southern Africa has been formed for the fertilizer industry to collaborate traders, producers, blenders and distributing them. They also conduct trainings for soil fertility, plant nutrition, fertilizer advice and recommendations.

According to the research report, the Middle East & Africa Fertilizer market is expected to reach a market size of more than USD 26.01 Billion by 2029. The fertilizer market in the Middle East and Africa is experiencing robust growth, driven by a combination of agricultural expansion and increasing food security concerns. The region's diverse agricultural landscape, characterized by both arid and fertile areas, is prompting a rise in fertilizer adoption across various crops.

The vegetable and fruits segment is particularly dynamic, as consumers increasingly demand fresh produce, leading to enhanced use of nitrogenous fertilizers for improved yields. Similarly, the cereals and grains sector remains vital, with fertilizers playing a crucial role in boosting production to meet the needs of a growing population. The oil seeds and pulses segment is also gaining traction, supported by the rising awareness of their nutritional benefits and the push for sustainable farming practices.

The growth of the fertilizer market in the Middle East and Africa region is significantly influenced by various product segments, including nitrogenous, phosphatic, and potash fertilizers. Urea remains the largest segment, accounting for a substantial market share due to its effectiveness and widespread use in field crops. The demand for ammonium sulfate (AS) is also increasing, driven by its dual role as a nitrogen source and sulfur provider, essential for crops like corn and cotton. In terms of phosphatic fertilizers, DAP and MAP are gaining traction as they supply vital phosphorus for root development in various crops.

The potassium chloride (MOP) segment is expanding as farmers recognize the importance of potassium in enhancing drought resistance and overall plant health. Additionally, complex fertilizers are becoming increasingly popular due to their balanced nutrient profiles that cater to diverse crop needs. This trend is particularly relevant as agricultural practices evolve towards precision farming, optimizing nutrient application.

The application segment of the fertilizer market in the Middle East and Africa is experiencing significant growth, driven by diverse agricultural needs. The vegetable and fruits sector is expanding rapidly, fueled by rising consumer demand for fresh produce and government initiatives aimed at enhancing local food production. This has led to increased use of nitrogenous fertilizers, particularly urea, which is essential for improving yields.

The cereals and grains segment remains a cornerstone of agriculture in the region, with a strong reliance on fertilizers to boost staple crop production, especially wheat and rice. Additionally, the oil seeds and pulses segment is gaining traction as farmers recognize the importance of these crops for protein supply and sustainable farming practices. The others category includes various commercial crops that benefit from specialized fertilizers tailored to their nutrient requirements.

The physical formulation segment of the fertilizer market in the Middle East is witnessing substantial growth, particularly in dry and liquid fertilizers. Dry fertilizers, such as urea and ammonium sulfate, dominate the market due to their long shelf life and ease of application, making them ideal for large-scale agricultural operations. The region's arid climate necessitates efficient nutrient delivery, which has led to an increased reliance on liquid fertilizers.

These formulations are gaining popularity for their ability to provide rapid nutrient absorption and precise application through methods like fertigation, enhancing crop yields in high-value crops such as fruits and vegetables. Additionally, advancements in technology are facilitating the development of specialty liquid fertilizers that cater to specific crop needs, further driving their adoption. Government initiatives aimed at improving food security and sustainable agricultural practices are also supporting this growth.

COVID-19 Impacts:

Due to pandemic, Agriculture in the United Arab Emirates was short of labour at the time of harvesting and input supply that hampered the production. The repeated lockdowns and shutdowns of processing units affected the supply chain and limited trade movements to other countries. Furthermore, lack of storage facilities resulted into huge losses of the country's produces. As the country is a tourist destination for luxurious resorts and places, the worldwide lockdowns, decreased the demand for fresh produce including cereals, fruits, and vegetables rampantly.

Major Companies present in the market

The Mosaic Company, Yara International, Nutrien Limited, K+S Aktiengesellschaft, OCP Group, CF Industries Holdings, Sociedad Química y Minera de Chile (SQM), National Fertilizers Limited Coromandel International Limited, EuroChem Group, Wesfarmers, Indian Farmers Fertilizer Co-operative Limited (IFFCO)

Considered In the Report

• Geography: Middle East & Africa
• Historical year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Aspects covered in this report

• Middle East & Africa fertilizer market with its value and forecast along with its segments
• Country-wise fertilizer market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered:

• Saudi Arabia
• UAE
• South Africa

By nutrient in the report

• Nitrogenous fertilizer (Urea, ammonium sulphate, Calcium ammonium nitrate/ ammonium nitrate, others UAN, anhydrous ammonia etc.)
• Phosphate fertilizer (Diammonium phosphate, monoammonium phosphate, others phosphate rock, superphosphates etc.)
• Potash fertilizer (Muriate of potash/potassium chloride, sulphate of potash others potassium nitrate etc.)
• Complex fertilizer (NPK, NK, PK, NP compounds etc.)

By Product type in the report:

• Urea
• Ammonium sulphate
• Calcium ammonium nitrate/ Ammonium nitrate
• Di-ammonium phosphate (DAP)
• Mono-ammonium phosphate (MAP)
• Muriate of potash (MOP)/ (KCl)
• Sulphate of potash (SOP)
• Complex (NPK, NK, PK, NP)

By physical formulation in the report:

• Dry
• Liquid

By Application in the report:

• Vegetable & Fruits
• Cereals & Grains
• Oilseeds & Pulses
• Others

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to fertilizer industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.