Saudi Arabia Fertilizer Market Size (2024 - 2029)

Saudi Arabia Fertilizer Market Analysis

The Saudi Arabia Fertilizer Market size is estimated at USD 694.74 billion in 2024, and is expected to reach USD 992.75 billion by 2029, growing at a CAGR of 7.40% during the forecast period (2024-2029).

The effects of COVID-19 were severe on the economy across the sectors of Saudi Arabia, resulting in a shortage of labor, temporary plant closures, and reduced operating rates across all the industrial sectors in the country. Even if factories have resumed their operation, there were issues regarding shipping and logistics. Thus, finding air, sea, or land freight was a major factor disrupting the companies involved in the industry. Higher costs of containers and shipping, hauling, and storage increased fertilizer prices.

Over the years, Saudi Arabia, a country that receives an average of just about four inches of rain every 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 higher demand for fertilizer.

The effects of COVID-19 were severe on the economy across the sectors of Saudi Arabia, resulting in a shortage of labor, temporary plant closures, and reduced operating rates across all the industrial sectors in the country. Even if factories have resumed their operation, there were issues regarding shipping and logistics. Thus, finding air, sea, or land freight was a major factor disrupting the companies involved in the industry. Higher costs of containers and shipping, hauling, and storage increased fertilizer prices.

Although the nitrogenous fertilizer segment took the larger chunk of the market with the share of 39.3% in 2021, potassic fertilizer application is growing at a rapid rate, as it may enhance the plants' tolerance to abiotic stress, especially a lack of water, which may otherwise significantly reduce crop yields. Fruits and vegetable production has been growing in the country. The COVID-19 pandemic has emphasized the importance of developing local food sources. Thus, increased agricultural activity due to the government's various initiatives to achieve self-sufficiency is expected to drive the fertilizer market in the country over the forecast period.

Saudi Arabia Fertilizer Industry Segmentation

The International Fertilizer Association defines a fertilizer as 'any solid, liquid, or gaseous substance containing one or more plant nutrient in known amount, which is applied to the soil directly on plants, or as added aqueous solutions (as in fertigation), to maintain soil fertility, improve crop development, yield, and crop quality'.

The Saudi Arabia Fertilizers Market is segmented by Type (Nitrogenous Fertilizers, Phosphatic Fertilizers, Potassic Fertilizers, Secondary Fertilizers, and Micronutrient Fertilizers) and Crop Type (Grains and Cereals, Pulses and Oilseeds, Commercial Crops, Fruits and Vegetables, and Other Crop Types). The report offers the market sizes and forecasts in value (USD) for all the above segments.