Global fertilizer market demand continues to grow

June 12, 2024, 9:21 AM

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In 2020, global fertilizer demand grew by 2% to 193.5 million tons despite the pandemic, driven by strong crop prices, favorable weather, weaker currencies in major agricultural exporters, and proactive government policies, according to the International Fertilizer Association (IFA). Farmers also advanced purchases to mitigate supply disruptions. Phosphate (P2O5) saw the highest growth at 3%, followed by nitrogen (N) at 1.6% and potassium (K2O) at 1.4%. Growth is expected to slow in 2021, with a projected increase of just 1.1%. Regional demand was led by South Asia, with significant contributions from Eastern Europe, Central Asia, Latin America, and Africa. Eastern Europe, Central Asia, and Africa are expected to be the fastest-growing markets in relative terms, followed by South Asia, highlighting shifting dynamics in global agricultural productivity and input use.

According to the International Fertilizer Association (IFA), in 2020, despite the new crown pneumonia pandemic, global fertilizer demand will continue to grow. The main influencing factors include the government’s proactive measures, crop prices are more resilient, and the relationship between crops and fertilizer prices is even greater. It is attractive, with weaker domestic currencies of large agricultural exporting countries, and good weather conditions in major consumer countries. In addition, some farmers may purchase fertilizers earlier than usual to prevent possible delivery delays or financial difficulties.

IFA predicts that in 2020, global fertilizer consumption will increase by 2% to 193.5 million tons, of which phosphate (P2O5) consumption will increase by 3%, while nitrogen (N) will increase by 1.6%, while potassium (K2O) will increase by 1.4%; in 2021 Fertilizer usage will increase by 1.1%, far below the growth level in 2020.

Among them, South Asia will continue to drive the expansion of global fertilizer use, followed by Eastern Europe, Central Asia, Latin America and Africa. In terms of relative value, the fastest-growing markets will be Eastern Europe, Central Asia and Africa, followed by South Asia.

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