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The African fertilizer market is projected to register a CAGR of 5.5% during the forecast period (2022-2027).
COVID-19 has a direct and negative impact on the value chain of the African fertilizers market. The lockdown in different countries of the region has affected the transportation systems adversely. This has led to the use of the emergency stock of raw materials by manufacturers for continuing production.
Fertilizer consumption is the key to Africa's food security, as it increases agricultural production. The region continues to offer the greatest growth opportunities with respect to fertilizer sales. However, few challenges, such as an uncertain policy environment, limited access to finance, and infrastructural constraints are hampering its growth to a certain extent.
In Africa, opportunities for the fertilizer market’s growth can be materialized if certain aspects, such as improved regional trade cooperation, increased private sector involvement, and improved infrastructure and transportation arrangements, are successfully combined to support the growth the potential of the market.
Scope of the report
The International Fertilizer Association defines a fertilizer as “any solid, liquid, or gaseous substance containing one or more plant nutrient in a known amount, that is applied to the soil, directly on plants, or added as aqueous solutions (as in fertigation) to maintain soil fertility, improve crop development, yield, and/or crop quality”. The African fertilizer market is segmented by type (straight and complex fertilizers), crop type (grains and cereals, pulses and oilseeds, commercial crops, fruits and vegetables, and other crop types), and geography (South Africa, Kenya, Egypt, Morocco, Nigeria, and Rest of Africa).
|Grains and Cereals|
|Pulses and Oilseeds|
|Fruits and Vegetables|
|Other Crop Types|
|Rest of Africa|
Key Market Trends
Increasing Food demand and Need for Sustainable Agricultural Development
Africa has the highest population when compared with the area of arable land. For instance, the Sub-Saharan Africa region has 13.0% of the world population and has approximately 20.0% of the global agricultural land by area. However, the region faces severe food insecurity, which is primarily attributed to inadequate food production due to a lack of access to modern mechanization and limited use of fertilizers. For instance, according to FAO, the count of undernourished people in Sub-Saharan Africa has risen from 232.0 million in 2017 to 239.0 million in 2018. The governments are consistently implementing various policies for improving agricultural productivity to reduce undernourishment in the region. By focusing on this, governments are partnering with private entities to boost fertilizer production in the region. In addition, current regional policies favoring domestic fertilizer production in countries like Kenya and Morocco can stimulate market growth during the forecast period.
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Increasing Investments in Fertilizer Production
There is an increase in domestic fertilizer production (including potassic fertilizers) in the region due to the investments to develop new fertilizer manufacturing plants. Favorable tax slabs promoting the domestic mining of ammonia and potash have further augmented the investments across various regions. Ethiopia, in recent years, has become a hotspot for the potassic fertilizer market, accompanied by ongoing investments in the country’s fertilizer sector. For instance, in 2017, Yara signed an agreement with the Ethiopian government to develop the Yara Dallol potash mine. The mine production capacity is about 600,000 metric ton of SOP (sulfur of potash) per year, equivalent to 10.0% of global production. Similarly, in 2020, other investments (for example, Dangote is constructing an ammonia urea complex of 2.6 million metric ton in Lagos, Nigeria) are likely to stimulate market growth during the forecast period.
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The African fertilizers market is fragmented with the presence of many global and local players in the region. Yara International ASA, Israel Chemicals Ltd, Haifa Group, Groupe OCP, and Omnia Holdings Limited are some of the major players who have their operations in the region. These companies are expanding their presence by building new fertilizer manufacturing plants to boost domestic fertilizer production.
In July 2018, Haifa Group expanded its product portfolio by launching a new Multicote Micro to provide complete, balanced nutrition throughout the lifecycle. The compnay has launched it globally, including Africa.
In February 2017, Yara opened a USD 2.3 million liquid fertilizer plant in Malmesbury, South Africa. With this investment, the firm expanded its production capacity to exploit the agricultural potential of South Africa and to become the leading crop nutrition company in the country.
Table of Contents
1.1 Study Assumptions & Market definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Straight Fertilizers
220.127.116.11 Nitrogenous Fertilizers
18.104.22.168.2 Calcium Ammonium Nitrate
22.214.171.124.3 Ammonium Nitrate
126.96.36.199.4 Ammonium Sulfate
188.8.131.52.5 Anhydrous Ammonia
184.108.40.206.6 Other Nitrogenous Fertilizers
220.127.116.11 Phosphatic Fertilizers
18.104.22.168.1 Mono-Ammonium Phosphate (MAP)
22.214.171.124.2 Di-Ammonium Phosphate (DAP)
126.96.36.199.3 Single Super Phosphate (SSP)
188.8.131.52.4 Triple Super Phosphate (TSP)
184.108.40.206.5 Other Phosphatic Fertilizers
220.127.116.11 Potash Fertilizers
18.104.22.168.1 Muriate of Potash (MoP)
22.214.171.124.2 Sulfate of Potash (SoP)
126.96.36.199 Secondary Macronutrient Fertilizers
188.8.131.52.1 Calcium Fertilizers
184.108.40.206.2 Magnesium Fertilizers
220.127.116.11.3 Sulfur Fertilizers
18.104.22.168 Micronutrient Fertilizers
22.214.171.124.7 Other Micronutrient Fertilizers
5.1.2 Complex Fertilizers
5.2 Crop Type
5.2.1 Grains and Cereals
5.2.2 Pulses and Oilseeds
5.2.3 Commercial Crops
5.2.4 Fruits and Vegetables
5.2.5 Other Crop Types
5.3.1 South Africa
5.3.6 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Yara International ASA
6.3.2 Israel Chemicals Ltd
6.3.3 Haifa Group
6.3.4 Omnia Holdings Limited
6.3.5 Groupe OCP
6.3.6 Kynoch Fertilizer
6.3.7 Notore Chemical Industries Plc
6.3.8 UPL Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. AN ASSESSMENT OF THE IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Africa Fertilizer Market market is studied from 2017 - 2027.
What is the growth rate of Africa Fertilizer Market?
The Africa Fertilizer Market is growing at a CAGR of 5.5% over the next 5 years.
Who are the key players in Africa Fertilizer Market?
Yara International ASA, Haifa Group, Omnia Holdings Limited, Groupe OCP, Israel Chemicals Ltd are the major companies operating in Africa Fertilizer Market.