Saudi Arabia’s Fertilizer Market – Growth Trends, Covid-19,
Saudi Arabia’s Fertilizer Market – Growth Trends, Covid-19,

Saudi Arabia’s Fertilizer Market – Growth Trends, Covid-19,

New York, March 2, 2022 (GLOBE NEWSWIRE) – Reportlinker.com announces the release of the report “Saudi Arabia Fertilizer Market – Growth Trends, Covid-19, and Forecasts (2022-2027)” – https://www.reportlinker.com/p06241318/?utm_source=GNW
Although factories have resumed operations, there were problems with shipping and logistics. Finding air, sea or land freight was thus a significant factor that disrupted the companies involved in the industry. Higher costs for containers and shipping, transport and storage increased fertilizer prices.

Over the years, Saudi Arabia, a country that receives on average only about four centimeters of rain each year, has aimed to develop its agricultural sector to achieve self-sufficiency in food security. Thus, the application of fertilizer to improve crop growth and yield is expected to become crucial, creating greater demand for fertilizer.

The fertilizer market in Saudi Arabia is expected to register a CAGR of 7.4% in the forecast period (2022-2027). ? The effects of COVID-19 were severe on the economy across sectors in Saudi Arabia, resulting in labor shortages, temporary factory closures and reduced operating rates across all industrial sectors in the country. Although factories have resumed operations, there were problems with shipping and logistics. Finding air, sea or land freight was thus a significant factor that disrupted the companies involved in the industry. Higher costs for containers and shipping, transport and storage increased fertilizer prices.

Although the nitrogen fertilizer segment took the largest share of the market with a share of 39.3% in 2021, the potassium fertilizer supply is growing rapidly as it can increase the plants’ tolerance to abiotic stress, especially lack of water, which can otherwise reduce crop yields significantly. Fruit and vegetable production has grown in the country. In addition, the COVID-19 pandemic has highlighted the importance of developing local food sources. An increase in agricultural activity as a result of the government’s various initiatives to achieve self-sufficiency is thus expected to drive the fertilizer market in the country over the forecast period.

Important market trends

Increased export potential for fertilizer

Saudi Arabia is the largest ammonia exporter in the GCC region. The export of ammonia is mainly destined for the Indian market, the rest is diverted to other Asian and African countries.? There are various potential sales destinations for Saudi Arabian ammonia producers in the Asia-Pacific, including China, Japan, South Korea, Thailand and Vietnam. Arab producers have a competitive advantage in supplying to the Asia-Pacific region (especially South and Southeast Asia) compared to its other European, African and South American counterparts.?

According to the ITC trade, the export volume of urea increased during 2017-2020 in Saudi Arabia. The country’s urea exports were recorded as 3.797.5 thousand tonnes in 2017 and reached 4.428.7 thousand tonnes in 2020. Thailand was the main destination for Saudi Arabia with a value share of 23.9% in 2020. Other destinations include USA, Australia, South Africa and New Zealand.?

The availability of natural gas at an attractive price in the country provides an advantage at the low production costs. The manufacturers’ ability to operate plants efficiently and reliably makes the construction of export-oriented, integrated urea plants very attractive. This is expected to result in overall market growth.?

Nitrogen-containing fertilizers dominate the product type segment

Saudi Arabia accounts for about a third of the GCC fertilizer export volume of about 7.2 million tonnes, with urea representing 53% and the remainder being split between ammonia and DAP. Saudi Arabia is mostly dependent on imports for domestic vegetable consumption. To avoid complete dependence on vegetable imports, the Saudi government formulated policies that encouraged farmers to grow crops that require low water content rather than crops that consume more water. The yield of vegetables increased from 174,026 hg / ha in 2016 to 176,524 hg / ha in 2018 due to the improved water conditions.

Further, increased cultivation of vegetable crops (tomatoes) primarily drives the demand for ammonium sulfate as it also helps in the growth of plants by supplying nitrogen. ?? Domestic demand for ammonium sulphate is mainly met through imports. SafSulfur company is one of the main companies offering good quality ammonium sulfate in Saudi Arabia.? Imports of ammonium sulphate into the country experienced stable growth during the IP. According to ITC trade, imports of ammonium sulphate increased from 1,981 tonnes in 2019 to 2,126 tonnes in 2020, indicating possible market growth in the coming years.?

In addition, the government wants the country to be self-sufficient in vegetable production, especially after the food crisis a few years ago. As a result, the demand for nitrogenous fertilizers, such as urea, is expected to increase in the coming years.?

Competitive landscape

The Saudi Arabia Fertilizers market is moderately consolidated in nature, with major players accounting for 53.2% of the market share. Saudi Basic Industries Corporation (SABIC), Maaden Phosphate Co., Arabian Agricultural Services Co. (ARASCO), Saudi United Fertilizer Co. (Al-Asmida) and Saf Sulfur Company are the biggest players in the Saudi fertilizer market.

The national and international players in the market focus on strategies such as increased investment in research and development, product launches, expansions and partnerships to improve their market share in the region.

Additional benefits:

Market Estimate (ME) sheet in Excel format
3 months analyst support
Read the full report: https://www.reportlinker.com/p06241318/?utm_source=GNW

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