Summary

The global fertilizer market, valued at $155 billion in 2019 with an expected CAGR of 3.8% to reach $193 billion by 2025, has seen a shift in trends starting from 2020. Despite the COVID-19 pandemic, the market halted its historic decline with a sustained demand, particularly noting a rise in consumption for water-soluble, simple mineral, and organic nitrogen fertilizers. Italy specifically experienced a stark increase in fertilizer prices, with a 27.4% rise in producer prices in just a year from 2021 to 2022, likely influenced by the Russo-Ukrainian war. Organic fertilizers, significant for Italy's leading organic agriculture, accounted for 10.6% of total use in 2021. The market also observes a growing trend towards chemical-free biostimulants, driven by sustainability goals and favorable European policies, with Italy spearheading this segment which is expected to grow exponentially. The Italian fertilizer sector remains robust with turnover valuations, such as Biolchim at €120 million in 2021, while the entire trade and manufacturing market combined represented €19.59 billion in the same year. Subcontracting practices in agriculture have contributed to this volume, with the entire sector reaching a turnover of about €7.7 billion in Italy. Employment in the industry also mirrors this strength with more than 25,000 people employed in 2020. Globally, the organic fertilizer market stood at $9.95 billion in 2021 and is projected to climb to approximately $22.13 billion by 2028..Trends in the Italian Fertilizer Market: A Comprehensive Analysis The Italian fertilizer market appears to be going through a period of transformation and dynamism. At the heart of this market are nitrogen, potassium, and phosphorus, the fundamental elements for the creation of chemical or NPK fertilizers. Despite a historical negative trend in the domestic market, with an average year-on-year decline of roughly 4% since the 2010s, certain segments such as nitrogen/nitrogen fertilizer sales have shown an uptick. The market, which had a downturn of approximately 5-6% in the preceding years, surprisingly halted this decline amid the COVID-19 pandemic, with a notable increase in the consumption of water-soluble, simple mineral, and organic nitrogen fertilizers, although liquid fertilizers experienced a minor consumption decrease. In terms of trade flows, Italy's fertilizer imports and exports present a stark contrast. The year 2021 saw a significant surge in imports, exceeding the one billion euro mark, reaching somewhere around USD 1.1 to 1.3 billion. This was nearly double the value of exports, which clocked in at about USD 600 million. The importation sources of fertilizers to Italy are primarily non-European, with Egypt being a key supplier. Russia and Ukraine are also notable partners, reflecting Italy's reliance on external sources for these essential agricultural inputs – a fact underlined by burgeoning geopolitical tensions. The exports are much more diversified without any single entity dominating. On the domestic front, the Italian fertilizer market caters to diverse needs through both trading and manufacturing sectors, with the trading market overwhelmingly larger, having a value of roughly between 17 and 19 billion euros in 2020 as opposed to a manufacturing market of around 1.5 billion euros. Interestingly, the penetration of biological fertilizers is increasing, reflecting the global shift toward sustainability. Italy's leadership in organic food production and the corresponding use of organic farming methods on about 17% of its arable land bolsters this trend. The proportion of organic fertilizer use is significant, accounting for over 10% of the total fertilizer use in the country. The Russo-Ukrainian War has cast a profound influence over this sector, sending shockwaves through the market via escalated prices of key fertilizers such as urea and ammonium nitrate. Italy, heavily dependent on both Russia and Ukraine for its fertilizer imports, has been particularly vulnerable to this volatility. These price hikes are attributed to grips in domestic demand, surging energy costs, and the.### Leading Forces in the Italian Fertilizer Industry: Key Market Players Shaping the Sector As we delve into the intricate tapestry of the Italian fertilizer market, several companies emerge as pivotal players with substantial impact and influence. Their contributions range from innovation in biostimulants to the robust trade networks that define the sector's dynamics. While specific figures on their financial turnover are not in focus here, their market presence is undoubtedly significant. **Biolchim** stands out as a purveyor of fertilizers and biostimulants. With a commendable dedication to sustainability and agricultural efficacy, Biolchim has carved out a name for itself as a leader in developing products that not only support plant growth but also align with environmental stewardship. Their portfolio extends to biostimulants that are increasingly sought after in an industry looking to reduce its ecological footprint. In the domain of fertilizer trading, **Algio S.p.A** has established a strong foothold. They are well-known for their expansive distribution network and ability to maneuver through the logistics of supply and demand, making them a key player in ensuring that the Italian agricultural sector remains well-supplied with necessary nutrients. **Sip Cam Italia S.p.A.** is another major figure in the fertilizer trade. Their extensive range of products and deep market penetration underscores their importance in the circulation of fertilizers across Italy. Their success is attributed to their strategic approach to sales and distribution. On the manufacturing side, **Valagro S.p.A.** is recognized for its expertise in creating high-quality fertilizers. Their commitment to innovation and product development reflects the sector's move towards more specialized and targeted nutrition solutions for diverse agricultural needs. **Eurochem Agro S.p.A.** is also a prominent manufacturer, known for its extensive catalog of fertilizer products. They are instrumental in shaping the industry with their focus on both volume and variety, catering to a wide array of agricultural applications. **Biopro S.r.l.** is another influential manufacturer, whose work in developing and providing fertilizers is crucial for the continued productivity and growth of Italian agriculture. Their presence reflects the competitive and diverse nature of the manufacturing sector within the industry. Lastly, **Adrica S.p.A.** is a name that echoes through the manufacturing corridor of the fertilizer market. Their expertise and steady supply of necessary nutrients contribute heavily to the agricultural landscape of Italy and position them as a notable force in the sector. Each of these companies, through their unique roles, either in trading or manufacturing, contributes to the strength and resilience
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Summary and extracts

1 Market Overview

1.1 Definition and presentation

Like all living things, plants have certain nutritional needs that must be met to ensure their proper development. Four distinct needs have been scientifically identified: potassium(K), nitrogen(N), oxygen(O) and phosphorus(P). Although oxygen is naturally present in the air, it is often necessary to ensure the supply of the other three elements to ensure regular and high yields.

Nitrogen, potassium and phosphorus are therefore the basis for chemical fertilizers, usually called "NPK fertilizers." These fertilizers are also called mineral fertilizers. Another category of fertilizers is natural or organic fertilizers (produced from plant or animal matter).

Fertilizers are used to fertilize the soil. The goal is to increase agricultural yields to meet the world's growing demand for food.

The global fertilizer market has been estimated at $155 billion in 2019. It is expected to grow at a compound annual growth rate(CAGR) of 3.8 % and reach a value of $193 billion by 2025. Asia-Pacific is the largest geographic segment but also the driver of this market, with a 60 percent share. Global population growth, food security issues, and environmental concerns are expected to lead to sustained growth in this market.

In 2018, more than 2.5 million tons of fertilizers were sold in Italy, the most important of which are urea (27 %), nitrates (11.6 %) and organic fertilizers (10 %). However, the domestic market has been steadily declining (-5.7% from 2017 to 2018 and -6% from 2017 to 2016). There has been an average decline of 4% year-on-year since 2010. However, in terms of fertilizer families, nitrogen/nitrogen fertilizer sales are increasing.

In terms of geographical distribution, 65% of fertilizers are used in northern regions, 15% in the center of the peninsula, and 20% in the south and islands.

The COVID-19 pandemic seems to have had little impact on this market; in fact, it halted the historical negative trend. The first half of 2020 saw fertilizer consumption equal to the same period of the previous year, while the second half of 2020 saw a -0.2% drop in consumption. The increase in consumption was recorded for water-soluble fertilizers (+10.6%), simple mineral fertilizers (+2.3%) and organic nitrogen fertilizers (+11.2%). At the same time, liquid fertilizers recorded a moderate decrease in consumption (3.8%).

 

1.2 The world market is growing strongly

The value of the global organic fertilizer market stood at $*.** billion in ****, about $*.* billion more than in ****. The value of global organic fertilizers is expected to reach about $** .** billion by ****.

Market value of organic fertilizers in the world World, ****-****, in billions of USD Source: ****

In addition to steadily growing global ...

1.3 The domestic fertilizer market

Fertilizers are a very important part of a country's agriculture; Italy is a producer and marketer of these products, in the country and around the world. For this reason there are two Ateco Codes to consider, as there are two important markets. These are:

Fertilizer trade: **.**.** Manufacture of fertilizers: **.**.**

Fertilizer Market ...

1.4 Fertilizer trade flows

In ****, Italian fertilizer imports exceeded the * billion euro mark for the first time, reaching USD *.* billion. Exports, on the other hand, are still far lower, with the value in **** being USD *** million.

The following graph shows the evolution of Italian trade and trade balance for the fertilizer market over the past ...

1.5 The influence of the Russo-Ukrainian War

The ongoing war (***) between the two countries, and which began in February ****, significantly affects the Italian fertilizer market. As seen in the previous part, *.*, regarding Italy's trade partners, the country is highly dependent on Russia and Ukraine. In addition, several European and global countries depend on exports from these two ...

2 Demand analysis

2.1 Constant high demand

The Italian agricultural sector consumes the entirety of fertilizer production. For this reason, the Istat database has created a special entry called fertilizers on the site. By exploring the data contained there, one can find all types of fertilizers produced in Italy. Only the most common and used in agriculture have ...

2.2 The geographical concentration of demand

Fertilizer consumption in Italy is very high, as seen in the previous part, but it is not uniform throughout the country. The map below shows fertilizer consumption by region:

We can immediately see that the northern regions consume the largest amount of fertilizer. In fact, the first ones are Emilia Romagna, ...

2.3 Arable surface area in Italy

To understand the fertilizer market well, one must also look at the cultivated areas in the country, as they directly affect and influence the market. Thus, the map below shows the areas in Italy that are cultivated in ****.

One can immediately see that the Islands are the two regions with the ...

3 Market structure

3.1 Fertilizer companies in the country

As for the companies in the fertilizer market, we must continue to make the distinction between fertilizer traders and manufacturers. The total number of companies in the area dealing with the market is **** companies in ****. This number has varied slightly over the past * years, so it is a market that has ...

3.2 Those working in the field

Given the large number of companies in the fertilizer market, there are also many people employed in the industry. On average, there were more than **,*** employees in the fertilizer industry in **** in total.

Number of employees in the fertilizer sector Italy, ****-****, in thousands Source: ****

The graph above shows the evolution ...

3.3 "Contracting out" increasingly common among fertilizer companies

The term "subcontracting" in agricultural matters refers to the work carried out by agromechanical companies that use their own agricultural machinery to work the land and fields of other companies. This practice is very widespread in agriculture in Italy because there are so many companies in this macro sector, and not ...

4 Supply analysis

4.1 The different types of products

There are two main categories of fertilizers, chemical fertilizers and natural fertilizers.

Chemical fertilizers:

Made from minerals that undergo a series of chemical transformations that allow for exact dosing of their composition, they are now the heart of the fertilizer market. They have certain advantages, such as almost immediate action on ...

4.2 Fertilizer producer prices in the domestic market

Fertilizers have experienced a huge increase in prices between the beginning of the year and now. As already analyzed in part *.* regarding the Russian-Ukrainian war, this increase in all fertilizers in all areas (***).

In the following part of the research, all prices charged in the Italian fertilizer market are analyzed.

Producer ...

4.3 Chemical-free fertilizers: new growing trend

Among the goals of the new green pact designed to revitalize Europe, in addition to halving the use of pesticides there is also a **% cut in the use of fertilizers in agriculture. Italy is already in the vanguard in this area: in fact, for several years now special fertilizers, called biostimulants, ...

5 Regulations

5.1 European regulation

The regulations particularly affect the use and sale of mineral fertilizers because of their chemical dimension. In March ****, the European Union adopted the text of the future European regulation on placing chemical fertilizers on the market. This new text entered into force on June **, ****, and is part of European agriculture's desire ...

6 Positioning of actors

6.1 Segmentation of Italian actors

List of charts

  • Trade value of ferilizer trade
  • Fertilizer exports
  • Fertilizer imports
  • Fertilizer market turnover
  • Percentage increase in fertilizer prices
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Latest news

Roullier in Saint-Malo: sales up 100% in 4 years - 11/04/2023
  • The Roullier Group's sales have been multiplied by 2 in four years, rising from 2 billion euros in 2019 to 4.2 billion euros in 2022.
  • 75% of sales are generated outside France.
  • The Roullier Group employs some 7,200 people in 42 countries, including 900 in France.
  • The company's products are sold in 125 countries.
  • Headquartered in Saint-Malo, the group has seven activities: food processing, algology, renewable energy, magnesia, phosphate, plastics and Timac Agro.
  • The group's rapid expansion is due to 11 acquisitions made over the last 3 years on 4 different continents.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Biolchim
Algio S.p.A.
Valagro S.p.A.
Roullier Groupe

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