Growing pains: Advances in fertiliser distribution techniques have limited industry demand

The Fertiliser and Nitrogen Compound Manufacturing industry produces fertilisers containing nitrogen, potassium, phosphate and potting soil. Fertiliser application rates have fallen slightly over the past five years, as technological advances have enabled farmers to become more efficient in their distribution, thereby reducing waste and requiring less fertiliser. Volatile fertiliser prices have been the driving force behind industry revenue fluctuations in recent years. Industry revenue is expected to fall at a compound annual rate of 2.3% over the five years through 2018-19, including a 6.2% rise in the current year, to reach £1.6 billion...read more.

Industry Statistics & Market Size
Revenue
£1.6bn
Annual Growth 14-19
-2.3%
Forecast Growth 19-24
Profit
Employment
2,637
Businesses
63

Industry Threats & Opportunities

  • Volatile fertiliser prices have caused fluctuations in revenue over the past five years
  • The weak value of the pound has made UK goods more competitive in international markets
  • The price of fertiliser will be the most significant driver of revenue changes in the industry
  • Industry Report - Starting a New Business Chapter

    The initial capital outlay needed to enter the industry is quite significant. Operators can require more than £300 million to construct a competitive world-class fertiliser plant. Nitrogen plants capable of producing two million tonnes of nitrogen products can cost more than £1 billion and take numerous years to build. However, the need for large-scale, capital-intensive production facilities that are capable of generating economies of scale means that big firms that primarily manufacture other chemical products often manufacture straight fertilisers. Sometimes, such players switch between producing straight fertilisers and processing chemicals depending on the prevailing market conditions. Stringent regulatory controls also act as entry barriers. All...purchase to read more.

    Additional Insights for the Fertiliser & Nitrogen Compound Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fertiliser & Nitrogen Compound Manufacturing Industry are

  • Ability to accommodate environmental requirements
  • Ability to expand and curtail operations rapidly in line with market demand
  • Availability of resource
  • IBISWorld analysts also discuss how external factors such as Downstream demand from agriculture and Fertiliser prices in the Fertiliser & Nitrogen Compound Manufacturing industry impact industry performance..

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    What's in this report

    What is the Fertiliser & Nitrogen Compound Manufacturing Industry?

    This industry covers companies that manufacture fertilisers. It also includes companies that manufacture associated nitrogen products, potting soil and potting soil mixtures comprising natural soil, sand, clays and minerals.

    Industry Products
  • Nitrogen
  • Potassium
  • Phosphorus
  • Organic fertilisers
  • Industry Activities
  • Manufacturing mineral or chemical fertilisers containing nitrogen, phosphorus and potassium
  • Manufacturing animal or vegetable fertilisers and urea
  • Manufacturing ammonia, ammonium chloride and ammonium carbonate
  • Manufacturing nitrites, nitric acid, sulphonitric acids and nitrates of potassium
  • Manufacturing potting soils
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Downstream demand from agriculture
  • Fertiliser prices
  • Agricultural income
  • World price of natural gas
  • Level of annual rainfall

  • Current Performance
  • Pricing pressures
  • Distribution habits
  • International markets
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising prices
  • A turbulent departure
  • Green sentiment
  • Table: Fertiliser & Nitrogen Compound Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fertiliser & Nitrogen Compound Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cereals, Leguminous Crops & Oilseed Growing
  • Vegetable Growing
  • Dairy Cattle Raising

  • Key Selling Industries
  • Chemical & Fertiliser Mineral Mining
  • Natural Gas Extraction

  • Products & Services
  • Nitrogen
  • Potassium
  • Phosphorus
  • Organic fertilisers
  • Chart: Fertiliser & Nitrogen Compound Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Land planted with cereals
  • Grassland
  • Other
  • Land planted with oilseed rape
  • Chart: Major Market Segmentation for the Fertiliser & Nitrogen Compound Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Fertiliser & Nitrogen Compound Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fertiliser & Nitrogen Compound Manufacturing Industry

  • Industry Globalization
    CF Fertilisers UK Ltd, Origin UK Operations Ltd,
  • Table: CF Fertilisers UK Ltd - financial performance
  • Table: Origin UK Operations Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fertiliser & Nitrogen Compound Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fertiliser & Nitrogen Compound Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ammonia
  • The basis for all nitrogen fertilisers, ammonia can either be applied directly to the soil or further processed into urea or nitrates.
  • Compound Fertiliser
  • Fertiliser containing a combination of nitrogen, phosphorus and potassium.
  • Feedstock
  • Raw material that supplies an industrial process.
  • Nitric Acid
  • A powerful oxidising agent used to manufacture explosives, dyestuffs and fertilisers such as ammonium nitrate.
  • Prill
  • A pellet formed from a liquid solidified as part of an industrial process.
  • Urea
  • The main nitrogen fertiliser product. Sales of urea tend to drive sales of nitrogen products as a group.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fertiliser & Nitrogen Compound Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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    This report on Fertiliser & Nitrogen Compound Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fertiliser & Nitrogen Compound Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fertiliser & Nitrogen Compound Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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