Australia Fertilizer Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 6.51 Billion |
| Market Size (2030) | USD 8.78 Billion |
| Growth Rate (2025 - 2030) | 6.17% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Australia Fertilizer Market Analysis by Mordor Intelligence
The Australia fertilizer market size was USD 6.51 billion in 2025 and is forecast to reach USD 8.78 billion by 2030, representing a 6.17% CAGR over the period 2025-2030. Rising domestic urea capacity, government incentives for green ammonia, and widening adoption of precision agriculture tools are propelling demand, while supply-chain resilience priorities are nudging growers toward locally produced inputs. Continued infrastructure spending, exemplified by the Perdaman Karratha complex, underpins long-term volume growth, and specialty formulations are gaining traction in high-value horticulture and protected cropping systems. Competitive intensity remains fragmented, with the top five suppliers leveraging vertically integrated distribution networks to secure customer loyalty. Policy shifts such as the Hydrogen Headstart program and tightening heavy-metal standards are reshaping cost structures and product portfolios, adding both opportunity and compliance pressure across the Australia fertilizer market.
Key Report Takeaways
- By Type, Straight fertilizers led with 87.5% revenue share in 2024 and are projected to advance at a 6.2% CAGR through 2030, underscoring their operational efficiency in broad-acre systems.
- By Form, conventional formulations held 94.3% revenue share in 2024, and Speciality formulations are anticipated to grow at a 6.7% CAGR to 2030, reflecting entrenched equipment compatibility and cost advantages.
- By Application Mode, soil commanded a 94.8% share in 2024, while fertigation applications are projected to record the highest CAGR at 6.6% through 2030, as growers strive for rapid nutrient correction under water-scarce conditions.
- By Crop Type, field crops accounted for 97.2% of Australia's fertilizer market share in 2024 and are progressing at a 6.2% CAGR through 2030, mirroring the nation’s expansive grain and oilseed acreage.
Australia Fertilizer Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Surge in domestic urea‐ammonium nitrate plants | +1.8% | Western Australia, Queensland | Medium term (2-4 years) |
| Federal subsidies for green-ammonia projects under Australia’s Hydrogen Headstart program | +1.2% | National, early gains in WA and Queensland | Long term (≥ 4 years) |
| Widespread adoption of variable-rate technology (VRT) among broad-acre growers | +0.9% | NSW, Victoria, South Australia | Medium term (2-4 years) |
| Soil-carbon trading schemes boosting demand for bio-enhanced NPK blends | +0.7% | Murray-Darling Basin states | Long term (≥ 4 years) |
| Phosphate rock supply-chain shocks from Morocco and China elevating import substitution | +0.6% | National | Short term (≤ 2 years) |
| Rapid expansion of controlled-environment horticulture in peri-urban zones | +0.4% | South Australia, NSW, Victoria | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Surge in Domestic Urea‐Ammonium Nitrate Plants
Australia's fertilizer landscape is experiencing a fundamental shift with two major urea-ammonium nitrate facilities scheduled for commissioning between 2025-2027. Perdaman's AUD 6 billion Karratha facility will produce 2.3 million tons annually, while Woodside's acquisition of the Beaumont New Ammonia project adds another 1.1 million tons of capacity, with first production targeted for hydrogen in half of 2026 [1]Source: Australian Renewable Energy Agency, “Advancing Green Ammonia,” arena.gov.au. This domestic capacity expansion addresses Australia's heavy import dependence, where the nation currently imports over 2.1 million tons of fertilizer annually, with urea accounting for a significant volume of total imports. The strategic timing coincides with global supply chain disruptions and volatile shipping costs, positioning Australian producers to capture import substitution opportunities while reducing exposure to international price volatility and logistics constraints.
Federal Subsidies for Green-Ammonia Projects Under Australia’s Hydrogen Headstart Program
In 2023, the Australian government's AUD 814 million (USD 536.9 million) Hydrogen Headstart program represents a paradigm shift toward low-carbon fertilizer production, with green ammonia projects receiving unprecedented federal support. In 2021, the Australian Renewable Energy Agency (ARENA) committed AUD 103.3 million (USD 68.1 million) to multiple green hydrogen-to-ammonia initiatives, including Yara Pilbara's feasibility study and Origin Energy's Hunter Valley development. The regulatory influence extends beyond production subsidies, with the Clean Energy Regulator developing measurement and verification protocols for green ammonia under the Australian Carbon Credit Unit scheme, creating additional revenue streams for low-emission fertilizer producers.
Widespread Adoption of Variable-Rate Technology (VRT) Among Broad-Acre Growers
Precision agriculture adoption in Australia has accelerated dramatically, with 72% of farmers currently using agricultural technology and 89% having used or considering AgTech solutions according to Roy Morgan's 2024 survey. Variable-Rate Technology (VRT) systems integrate yield mapping, real-time soil sensors, and GPS-guided spreaders to cut input use by up to 30%, translating into notable cost savings during periods of high nutrient prices. The Australian Farm Institute estimates a potential AUD 2.28 billion (USD 1.62 billion) uplift in gross value of production if precision nutrient management becomes mainstream. Equipment costs remain a hurdle, but machinery hire cooperatives and dealer financing schemes are easing adoption barriers for medium-sized growers. As decision-support software becomes more intuitive, the Australia fertilizer market benefits from higher-value service offerings bundled with nutrient products, enhancing supplier stickiness.
Soil-Carbon Trading Schemes Boosting Demand for Bio-Enhanced NPK Blends
Australia's soil carbon trading schemes under the Australian Carbon Credit Unit framework are driving unprecedented demand for bio-enhanced NPK blends that support soil organic matter accumulation. The Clean Energy Regulator has approved multiple soil carbon methodologies, enabling farmers to generate carbon credits worth AUD 15-25 per tons of CO2 equivalent sequestered. This economic incentive is catalyzing the adoption of enhanced-efficiency fertilizers containing nitrification inhibitors, controlled-release coatings, and microbial inoculants that reduce greenhouse gas emissions while maintaining yield performance. Innovative approaches include enhanced rock weathering using crushed basalt, which Queensland trials demonstrate can reduce synthetic fertilizer requirements by approximately 33% while permanently sequestering atmospheric CO2.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising natural-gas prices increasing ammonia production costs | -1.4% | National, focused on major ammonia hubs | Short term (≤ 2 years) |
| Tightening limits on cadmium and heavy-metal content in imported fertilizers | -0.8% | National, most acute in import-dependent eastern states | Medium term (2-4 years) |
| Water-allocation volatility in Murray–Darling Basin discouraging fertilizer use | -0.6% | NSW, Victoria, South Australia, Queensland | Long term (≥ 4 years) |
| Growing on-farm composting reducing synthetic nutrient demand | -0.4% | National, concentrated in mixed-farming regions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising Natural-Gas Prices Increasing Ammonia Production Costs
Australia's ammonia production costs face significant pressure from volatile natural gas prices, with spot LNG exceeding USD 12 per million British thermal units during peak demand periods. Natural gas represents approximately 70% of ammonia production costs, making fertilizer manufacturers highly sensitive to energy price fluctuations. The Australian Energy Market Operator has warned of supply constraints in eastern states, particularly during winter peak demand periods, which coincide with key fertilizer application seasons. This cost pressure is driving strategic responses, including long-term gas supply contracts, energy efficiency investments, and accelerated adoption of renewable energy sources for electrolytic hydrogen production.
Tightening Limits on Cadmium and Heavy-Metal Content In Imported Fertilizers
Australia's tightening regulations on cadmium and heavy metal content in imported fertilizers, with limits not exceeding 300 mg/kg cadmium from 2026, are constraining supply options and increasing compliance costs. The Australian Pesticides and Veterinary Medicines Authority has implemented Maximum Permissible Concentrations for various heavy metals, requiring extensive testing and certification of imported products[2]Source: Australian Pesticides and Veterinary Medicines Authority, “Heavy Metal Limits,” apvma.gov.au .
Segment Analysis
By Type: Straight Fertilizers Lead Through Broad-Acre Efficiency
Straight fertilizers led with an 87.5% revenue share in 2024 and are projected to advance at a 6.2% CAGR through 2030, serving specialized applications, including top-dressing operations and specific nutrient corrections. Nitrogenous products, such as urea, represent the largest straight fertilizer category due to Australia's nitrogen-deficient soils. Within straight fertilizers, micronutrients are experiencing accelerated growth, driven by soil testing programs that reveal widespread zinc, boron, and copper deficiencies across Australian cropping regions. Zinc deficiency affects approximately 58% of Australian agricultural soils, resulting in a sustained demand for zinc sulfate and chelated zinc products.
The segment encompasses various nutrient-specific fertilizers such as nitrogenous, phosphatic, and potassic variants, with nitrogenous fertilizers contributing the major share. The demand for straight fertilizers is particularly strong in field crops, which represent the largest application area. The segment's growth is being driven by the increasing need to improve production to meet the rising demand for food, coupled with the expansion of agricultural cultivation areas. The segment benefits from farmers' preference for these fertilizers due to their ability to address specific nutrient deficiencies in crops and their compatibility with various application methods, including soil application and fertigation. The use of granular fertilizers within this segment enhances nutrient delivery efficiency.
Note: Segment shares of all individual segments available upon report purchase
By Form: Conventional Dominance Faces Specialty Innovation
Conventional fertilizers maintained a 94.3% market share in 2024, reflecting the sector's reliance on granular and prilled products, which are suited to mechanical spreading equipment prevalent in Australian broad-acre systems. Farmers across Australia predominantly favor conventional fertilizers due to their proven track record in agricultural applications and well-established distribution networks. The segment's strength is further reinforced by its compatibility with traditional farming practices and the extensive range of products available for different crop types. The lower price point of conventional fertilizers makes them particularly attractive to large-scale agricultural operations where cost management is crucial. The segment's robust performance is also supported by the country's strong agricultural export sector, which drives steady demand for reliable and economical fertilizer solutions, including solid fertilizers.
Speciality formulations are anticipated to grow at a 6.7% CAGR to 2030, this accelerated growth is driven by increasing adoption of sustainable agricultural practices and the rising demand for high-efficiency fertilizer products. The segment's expansion is further supported by growing awareness among farmers about the benefits of precision agriculture and environmental stewardship. Specialty fertilizers, particularly CRFs, are gaining traction due to their ability to reduce nutrient leaching and optimize nutrient uptake efficiency. The segment is also benefiting from technological advancements in coating materials and release mechanisms, making these products more effective and reliable for various crop applications.
By Application Mode: Fertigation Efficiency Drives Market Leadership
Soil commanded a 94.8% share in 2024, its method remains the most widely adopted application mode due to its versatility and compatibility with various crop types and environmental conditions. The segment's dominance is particularly evident in field crops, which contribute significantly to the overall market value. The popularity of soil application stems from its cost-effectiveness for large-scale agricultural operations and its ability to provide sustained nutrient release to plants. The method encompasses various application techniques, including broadcasting, band placement, and drill application, offering farmers flexibility in their nutrient management strategies.
Fertigation applications are projected to record the highest CAGR of 6.6% through 2030, reflecting Australia's irrigation-dependent agriculture and the efficiency gains achieved by combining water and nutrient delivery systems. This dominance is particularly pronounced in water-scarce regions where precise irrigation scheduling necessitates integrated nutrient management to maximize water use efficiency. The Great Barrier Reef Marine Park Authority's water quality regulations have accelerated the adoption of enhanced-efficiency application methods that reduce nutrient losses, with fertigation systems offering superior control over nutrient timing and placement compared to broadcast soil applications.
By Crop Type: Field Crops Dominance Reflects Agricultural Structure
Field crops represented 97.2% of fertilizer consumption in 2024, with a projected growth of 6.2% CAGR through 2030, reflecting Australia's position as a major grain and oilseed exporter with 22 million hectares under cultivation. Wheat, barley, canola, and cotton dominate fertilizer demand, with nitrogen requirements varying significantly based on seasonal conditions and soil organic matter levels. The Australian Bureau of Agricultural and Resource Economics and Sciences reports that grain production contributes AUD 15 billion (USD 97.0billion) annually to farm gate value, necessitating intensive fertilizer inputs to maintain yield and quality standards.
Major field crops, including corn, rice, wheat, sorghum, soybean, canola, and cotton, have varying nutrient requirements.It is essential to note that primary nutrient requirements can vary depending on factors such as soil quality, crop variety, and regional conditions. Given their significance as the main nutrient source for crops, the application rates of primary nutrients are expected to witness substantial growth in the coming years, driven by concerns about soil depletion and leaching.
Geography Analysis
Australia's fertilizer market exhibits distinct regional patterns, reflecting the continent's agricultural diversity, infrastructure constraints, and climatic variations. New South Wales leads the consumption market with a significant share in 2024, driven by the state's 6.2 million hectares of agricultural land and diverse cropping systems, which include wheat, cotton, canola, and intensive horticulture [3]Source: Australian Bureau of Agricultural and Resource Economics and Sciences, “Agricultural Commodities Report,” agriculture.gov.au . The Murray-Darling Basin's irrigation infrastructure supports high-intensity fertilizer applications, though water allocation volatility creates demand uncertainty for irrigated crops.
Queensland represents a significant share of national fertilizer consumption, with sugar cane, cotton, and tropical horticulture creating distinct seasonal demand patterns and specialized nutrient requirements. The state's proximity to Asian export markets influences fertilizer logistics and pricing, while Great Barrier Reef water quality regulations mandate the use of enhanced-efficiency products in coastal catchments. Western Australia commands a significant market share despite vast agricultural areas, reflecting lower rainfall and extensive farming systems that utilize lower input intensities per hectare. The state benefits from proximity to major fertilizer production facilities, including Wesfarmers' CSBP operations and the forthcoming Perdaman urea plant.
South Australia, Tasmania, Northern Territory, and Australian Capital Territory collectively represent 5% of fertilizer consumption, with South Australia's Riverland irrigation region and wine grape production creating concentrated demand centers. The geographic distribution of fertilizer demand correlates strongly with rainfall patterns and irrigation infrastructure, with coastal regions and river valleys exhibiting higher application rates than inland dryland farming areas.
Competitive Landscape
Australia's fertilizer market exhibits fragmentation with the top five companies including Wesfarmers Limited, Yara International ASA, ICL Group Ltd, K+S Aktiengesellschaft, and Incitec Pivot Fertilisers, creating an oligopolistic structure that reflects significant barriers to entry, including capital-intensive production facilities, established distribution networks, and long-term customer relationships. Market dynamics are characterized by vertical integration strategies, with major players controlling manufacturing, importing, blending, and retail distribution to capture value across the supply chain.
Strategic patterns emphasize supply chain resilience and technological differentiation, with companies investing in domestic production capacity to reduce import dependency and price volatility exposure. Nutrien's consolidation of Ruralco and Landmark operations under the Nutrien Ag Solutions brand creates a unified platform serving 290 corporate stores and 300+ independent retailers, leveraging scale economies and data analytics capabilities.
Technology adoption serves as a key competitive differentiator, with leading companies investing in digital platforms that integrate soil testing, weather data, and crop modeling to provide prescriptive nutrient recommendations. The Australian Pesticides and Veterinary Medicines Authority's regulatory framework requires extensive product registration and quality assurance systems, creating compliance advantages for established players while constraining new entrants. Innovation focus areas include controlled-release technologies, biological amendments, and carbon-sequestering formulations that align with sustainability mandates and carbon credit opportunities.
Australia Fertilizer Industry Leaders
-
Yara International ASA
-
ICL Group Ltd
-
K+S Aktiengesellschaft
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Incitec Pivot Fertilisers
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Wesfarmers Limited
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: Incitec Pivot Limited officially changed its name to Dyno Nobel Limited, while maintaining fertilizer operations through the Incitec Pivot Fertilisers subsidiary. The rebranding signals potential portfolio optimization and capital allocation priorities following years of fertilizer market volatility.
- July 2024: Australia’s Grains Research and Development Corporation (GRDC) has initiated a USD 17 million project aimed at maximizing the potential of fertilizers in the grains industry. The project seeks to minimize the risk of nitrogen loss by aligning fertilizer supply more effectively with crop demand. Through this national research initiative focused on enhanced efficiency fertilizers (EEFs), Australian grain growers may gain access to tools that improve nitrogen use efficiency and reduce on-farm greenhouse gas (GHG) emissions.
Australia Fertilizer Market Report Scope
The Australia Fertilizer Market is Segmented by Type (Complex and Straight), by Form (Conventional and Specialty), by Application Mode (Fertigation, Foliar, and Soil), and by Crop Type (Field Crops, Horticultural Crops, and Turf and Ornamental). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Metric Tons)
| Complex | ||
| Straight | Micronutrients | Boron |
| Copper | ||
| Iron | ||
| Manganese | ||
| Molybdenum | ||
| Zinc | ||
| Others | ||
| Nitrogenous | Urea | |
| Others | ||
| Phosphatic | DAP | |
| MAP | ||
| SSP | ||
| TSP | ||
| Potassic | MoP | |
| SoP | ||
| Others | ||
| Secondary Macronutrients | Calcium | |
| Magnesium | ||
| Sulfur | ||
| Conventional | |
| Speciality | CRF |
| Liquid Fertilizer | |
| SRF | |
| Water Soluble |
| Fertigation |
| Foliar |
| Soil |
| Field Crops |
| Horticultural Crops |
| Turf & Ornamental |
| Type | Complex | ||
| Straight | Micronutrients | Boron | |
| Copper | |||
| Iron | |||
| Manganese | |||
| Molybdenum | |||
| Zinc | |||
| Others | |||
| Nitrogenous | Urea | ||
| Others | |||
| Phosphatic | DAP | ||
| MAP | |||
| SSP | |||
| TSP | |||
| Potassic | MoP | ||
| SoP | |||
| Others | |||
| Secondary Macronutrients | Calcium | ||
| Magnesium | |||
| Sulfur | |||
| Form | Conventional | ||
| Speciality | CRF | ||
| Liquid Fertilizer | |||
| SRF | |||
| Water Soluble | |||
| Application Mode | Fertigation | ||
| Foliar | |||
| Soil | |||
| Crop Type | Field Crops | ||
| Horticultural Crops | |||
| Turf & Ornamental | |||
Market Definition
- MARKET ESTIMATION LEVEL - Market Estimations for various types of fertilizers has been done at the product-level and not at the nutrient-level.
- NUTRIENT TYPES COVERED - Primary Nutrients: N, P and K, Secondary Macronutrients: Ca, Mg and S, Micronutients: Zn, Mn, Cu, Fe, Mo, B, and Others
- AVERAGE NUTRIENT APPLICATION RATE - This refers to the average volume of nutrient consumed per hectare of farmland in each country.
- CROP TYPES COVERED - Field Crops: Cereals, Pulses, Oilseeds, and Fiber Crops Horticulture: Fruits, Vegetables, Plantation Crops and Spices, Turf Grass and Ornamentals
| Keyword | Definition |
|---|---|
| Fertilizer | Chemical substance applied to crops to ensure nutritional requirements, available in various forms such as granules, powders, liquid, water soluble, etc. |
| Specialty Fertilizer | Used for enhanced efficiency and nutrient availability applied through soil, foliar, and fertigation. Includes CRF, SRF, liquid fertilizer, and water soluble fertilizers. |
| Controlled-Release Fertilizers (CRF) | Coated with materials such as polymer, polymer-sulfur, and other materials such as resins to ensure nutrient availability to the crop for its entire life cycle. |
| Slow-Release Fertilizers (SRF) | Coated with materials such as sulfur, neem, etc., to ensure nutrient availability to the crop for a longer period. |
| Foliar Fertilizers | Consist of both liquid and water soluble fertilizers applied through foliar application. |
| Water-Soluble Fertilizers | Available in various forms including liquid, powder, etc., used in foliar and fertigation mode of fertilizer application. |
| Fertigation | Fertilizers applied through different irrigation systems such as drip irrigation, micro irrigation, sprinkler irrigation, etc. |
| Anhydrous Ammonia | Used as fertilizer, directly injected into the soil, available in gaseous liquid form. |
| Single Super Phosphate (SSP) | Phosphorus fertilizer containing only phosphorus which has lesser than or equal to 35%. |
| Triple Super Phosphate (TSP) | Phosphorus fertilizer containing only phosphorus greater than 35%. |
| Enhanced Efficiency Fertilizers | Fertilizers coated or treated with additional layers of various ingredients to make it more efficient compared to other fertilizers. |
| Conventional Fertilizer | Fertilizers applied to crops through traditional methods including broadcasting, row placement, ploughing soil placement, etc. |
| Chelated Micronutrients | Micronutrient fertilizers coated with chelating agents such as EDTA, EDDHA, DTPA, HEDTA, etc. |
| Liquid Fertilizers | Available in liquid form, majorly used for application of fertilizers to crops through foliar and fertigation. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: IDENTIFY KEY VARIABLES: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
