Global Fertilizers & Agricultural Chemicals Manufacturing:Market Research Report

Following a marked contraction in 2009, fertilizer and agrochemical demand has rebounded strongly in traditional markets and emerging markets, where food pressures have led to calls for higher agricultural productivity and crop yields. Industry production has also continued to recover from the depressed levels of 2008 and 2009, although it is still operating at less than 85.0% of installed capacity. Tight agricultural commodity markets and relatively high agricultural prices are benefiting the industry. Industry revenue is expected to grow at an annualized rate of 3.3% over the five years through 2012. In 2012, revenue is estimated to reach $147.2 billion, up 2.2% from 2011. Global debt concerns are weighing on industry performance. At the same time, the industry will continue to contend with a changing climate, food security issues and establishing a green economy. The top producers are Yara International ASA, Cargill Inc., Potash Corporation of Saskatchewan Inc. and Syngenta. Industry consolidation has increased over the past five years because an increasing number of operators have merged or been acquired. For example, BASF acquired the Sorex Group in 2008.

Over the next five years, the industry's performance will hinge on the strong demand growth expected from emerging economies in Asia and the Americas, and new industry operations in Asia, Africa and the Middle East. Farmers will increasingly demand industry products as farm production increases. Prices will also grow over the next five years, which will further expand industry revenue. Any continued volatility in energy and agricultural commodity prices will also affect the industry. Within the pesticide segment, variables like the flow-on effects of biotechnology developments and the growing sizes of the areas dedicated to genetically modified (GM) crops will impact industry demand. Over the next five years, industry revenue is forecast to grow. The industry is expected to display a lower degree of volatility, but demand and supply imbalances will influence industry performance on a year-to-year basis