In the dirt: Falling input prices will continue to hinder industry growth

Fertilizer is a commodity, meaning that the world market determines prices, and as a result, the Fertilizer Manufacturing industry experiences high levels of volatility; over the five years to 2018, revenue declined overall. Price drops for both fertilizers and crops caught many industry operators by surprise in 2015 and caused a dip in revenue, and prices have continued their slide since, leading to an overall decline. However, crop production picked up in 2017. This trend is expected to broadly continue over 2018, and accordingly, industry revenue is expected to increase in the year. Moving forward, the industry is expected to grow modestly as fertilizer prices, especially potash, are expected to rise during the outlook period, which will boost revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 13-18
-9.7%
Forecast Growth 18-23
Profit
Employment
18,620
Businesses
680

Industry Threats & Opportunities

  • Price drops for both fertilizers and crops caught many industry operators by surprise
  • Over the past five years, merger and acquisition activity increased in the industry
  • Corn production relies heavily on fertilizer, aiding industry demand
  • Industry Report - Industry SWOT Analysis Chapter

    The Fertilizer Manufacturing industry is a mature industry, characterized by market acceptance for industry products and decreases in the numbers of enterprises and establishments. In response to declining revenue, the number of industry enterprises is expected to fall at an annualized rate of 0.6% to 486 operators over the five years to 2018. Industry value added, or the industry's contribution to the economy, will decrease slightly at an estimated annualized rate of 1.3% over the 10 years to 2023. GDP is expected to increase at an annualized rate of 2.1% over the same period.However, the industry is in its mature phase. There has been only a gradual change in the type of fertilizer used (e.g. more nitrogen-based as opposed to potash-based fertilizer). Add...purchase to read more.

    Additional Insights for the Fertilizer Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fertilizer Manufacturing Industry are

  • Guaranteed supply of key inputs
  • Access to the latest available and most efficient technology and techniques
  • Availability of resources
  • IBISWorld analysts also discuss how external factors such as Demand from crop production and Agricultural price index in the Fertilizer Manufacturing industry impact industry performance..

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    What's in this report

    What is the Fertilizer Manufacturing Industry?

    This industry primarily manufactures fertilizer products. These products contain a different mixture of the three vital nutrients essential for plant growth: nitrogen, phosphorous and potassium. The products are distributed via wholesale arrangements with third parties or, in the case of vertically integrated operations, by the manufacturer.

    Industry Products
  • Phosphate fertilizers
  • Nitrogenous fertilizers
  • Mixed fertilizers
  • Industry Activities
  • Manufacturing ammonia, ammonium nitrate, ammonium sulfate and ammonium phosphates
  • Manufacturing natural-organic and animal-waste or sewage-origin fertilizers
  • Manufacturing nitric acid and phosphoric acid
  • Manufacturing nitrogenous fertilizer materials
  • Manufacturing urea
  • Manufacturing phosphatic fertilizer materials
  • Manufacturing potting soil, plant foods and compost
  • Mixing purchased fertilizer materials
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from crop production
  • Agricultural price index
  • Price of natural gas
  • Trade-weighted index

  • Current Performance
  • Industry in transition
  • Merger and acquisition activity on the rise
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Costs and prices
  • Influencing imports
  • Table: Fertilizer Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fertilizer Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soybean Farming
  • Corn Farming
  • Wheat, Barley & Sorghum Farming
  • Tobacco Growing
  • Cotton Farming

  • Key Selling Industries
  • Chemical Product Manufacturing
  • Inorganic Chemical Manufacturing
  • Organic Chemical Manufacturing
  • Oxygen & Hydrogen Gas Manufacturing

  • Products & Services
  • Nitrogenous fertilizers
  • Phosphate fertilizers
  • Mixed fertilizers
  • Chart: Fertilizer Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corn industry
  • Other industries
  • Wheat industry
  • Soybean industry
  • Cotton Industry
  • Chart: Major Market Segmentation for the Fertilizer Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Fertilizer Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fertilizer Manufacturing Industry

  • Industry Globalization
    The Mosaic Company, CF Industries Holdings Inc, Nutrien Ltd.,
  • Table: The Mosaic Company - financial performance
  • Table: CF Industries Holdings Inc - financial performance
  • Table: Nutrien Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fertilizer 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 Fertilizer Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Demand from crop production (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Diammonium Phosphate (Dap)
  • A popular fertilizer that can be used on all types of soil for the fertilizing of field, garden, orchard and flower garden crops and plants.
  • Futures Market
  • An auction market where participants buy and sell commodities or future contracts for delivery on a specified future date.
  • K Fertilizers
  • A potash-based fertilizer.
  • Mono-Ammonium Phosphate
  • A type of high-analysis fertilizer used to generate higher yields in pastoral activities.
  • N Fertilizers
  • A nitrogen-based fertilizer.
  • What Our Customers Say

    Why buy this report?

    The Fertilizer Manufacturing Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fertilizer 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 of 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 Fertilizer 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 Fertilizer Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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