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Fertiliser & Nitrogen Compound Manufacturing in the UK - Market Research Report (2014-2029)

Martha Garcia Guerrero Martha Garcia Guerrero London, United Kingdom Last Updated: November 2024 SIC C20.150

Revenue

£1.7bn

2024-25

£1.7bn

Past 5-Year Growth

Profit

£XXX.Xm

Employees

2,542

Businesses

64

Wages

£XXX.Xm

Fertiliser & Nitrogen Compound Manufacturing in the UK industry analysis

The Fertiliser and Nitrogen Compound Manufacturing industry has faced significant challenges in recent years, mostly due to the Russia-Ukraine conflict and its influence on fertiliser prices. The war brought huge disruption to the natural gas market, escalating prices and directly impacting ammonia production, an essential component of fertiliser. In fact, the World Bank reported disruptions to 70% of European ammonia production capacity in October 2022. These ammonia supply chain issues, along with soaring inflation of other key feedstocks in 2022-23, incited sharp volatility in extremely fertiliser producers’ revenue over the past few years, as revenue soared in 2022-23 only to sink the following year as prices started to fall. Overall, revenue is estimated to dip at a compound annual rate of 2.5% over the five years through 2024-25 to just under £1.7 billion. This includes an expected 18.9% slump in 2024-25 as fertiliser prices continue to inch down, coupled with limited demand from cereals and rapeseed oil farmers.

Trends and Insights

  • Cereal crop area reductions hit fertiliser demand. As a key market for fertiliser, cereal crop production has a huge influence on sales volumes. Significantly reduced crop area due to poor weather is dampening fertiliser demand.
  • Nitrogen sales volumes edge down as farmers look for cheaper alternatives. A global fertiliser shortage has propelled prices upwards, driving up product prices and boosting nitrogen’s share of revenue.
  • Being near farmers is hugely beneficial. Obviously, they’re the key market for fertilisers. The East of England is the most beneficial region in this regard – it’s home to East Anglia, a popular farming area.
  • Lower agricultural income makes price even more important. It’s long been one of the key bases of competition in the industry but now, with farmers across the UK struggling with falling yields and crop quality, farmers are placing more emphasis on getting the most for their money.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated £1.7bn in 2024.

Trends and Insights

Fertiliser manufacturers’ revenue sinks in line with feedstock prices

  • The Russia-Ukraine conflict significantly disrupted the global natural gas market, as sanctions were placed on Russia, which produces the second-largest quantity of natural gas in the world. This caused costs to soar in 2022-23, as ammonia, a critical ingredient in fertiliser production, is produced using natural gas.
  • Additional trends and insights available with purchase
Fertiliser & Nitrogen Compound Manufacturing in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Natural gas prices will remain a key concern for manufacturers

  • The Russia-Ukraine conflict has considerably disrupted the global natural gas market, as Russia is a major energy supplier. However, the natural gas shortage shows signs of easing, as the UK has found alternative suppliers.

Biggest companies in the Fertiliser & Nitrogen Compound Manufacturing in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Origin UK Operations Ltd
269.9
CF Fertilisers UK Ltd
208.0
Yara UK Ltd
182.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Fertiliser & Nitrogen Compound Manufacturing in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Nitrogenous fertilisers, Potassic fertilisers and Phosphatic fertilisers. Nitrogenous fertilisers is the largest segment of the Fertiliser & Nitrogen Compound Manufacturing in the UK.

Trends and Insights

Compound fertilisers benefit from the adoption of precision agriculture techniques

  • Compound fertilisers supply two or three of the major plant foods (nitrogen, phosphorus and potassium). Sulphur is becoming a popular addition to overcome deficiencies in certain British crops. In the UK, the main constituents for compound fertilisers are urea, Diammonium phosphate and potassium chloride.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry covers companies that manufacture fertilisers. This includes the production of simple and complex nitrogen, phosphate and potassium fertilisers, alongside urea, raw phosphates, potassium salts and related nitrogen compounds like ammonia, nitric acid and various ammonium and potassium salts. It also includes companies that manufacture associated nitrogen products, potting soil and potting soil mixtures comprising natural soil, sand, clays and minerals.

What's included in this industry?

Nitrogenous fertilisersPotassic fertilisersPhosphatic fertilisersOrganic origin fertilisersCompound fertilisersPotting soil

Companies

Origin UK Operations LtdCF Fertilisers UK LtdYara UK Ltd

Purchase this report to view all 4 major companies in this industry.

Related Terms

AMMONIAUREAFEEDSTOCKSOLVAY PROCESSSlurry

Industry Code

SIC 2007

SIC 20.15 - Fertiliser & Nitrogen Compound Manufacturing in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Cereal crop area reductions hit fertiliser demand. As a key market for fertiliser, cereal crop production has a huge influence on sales volumes. Significantly reduced crop ar...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Nitrogen sales volumes edge down as farmers look for cheaper alternatives. A global fertiliser shortage has propelled prices upwards, driving up product prices and boosting n...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Being near farmers is hugely beneficial. Obviously, they’re the key market for fertilisers. The East of England is the most beneficial region in this regard – it’s home to Ea...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Lower agricultural income makes price even more important. It’s long been one of the key bases of competition in the industry but now, with farmers across the UK struggling w...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

High natural gas prices throw CF Fertilisers into disarray. In the face of high production costs the company announced the closure of its Billingham ammonia plant in July 202...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Origin UK Operations Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of CF Fertilisers UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Yara UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Origin UK Operations Ltd, and factors influencing its performance in the industry
  • Description and key data for CF Fertilisers UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Yara UK Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Fertiliser manufacturers are subject to strict regulations due to their handling of chemicals. These regulations primarily revolve around accurately labelling and packaging t...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profit takes a dip as fertiliser prices normalise. Though manufacturers benefitted from rising costs by passing on the costs to clients, as feedstock prices normalise and ave...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom in 2024?

The market size of the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom is £1.7bn in 2024.

How many businesses are there in the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in 2024?

There are 64 businesses in the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom, which has declined at a CAGR of 0.3 % between 2019 and 2024.

Has the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom has been declining at a CAGR of 2.5 % between 2019 and 2024.

What is the forecast growth of the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Fertiliser & Nitrogen Compound Manufacturing in the UK market in United Kingdom?

The biggest companies operating in the Fertiliser & Nitrogen Compound Manufacturing market in United Kingdom are Origin UK Operations Ltd, CF Fertilisers UK Ltd and Yara UK Ltd

What does the Fertiliser & Nitrogen Compound Manufacturing in the UK in United Kingdom include?

Nitrogenous fertilisers and Potassic fertilisers are part of the Fertiliser & Nitrogen Compound Manufacturing in the UK industry.

Which companies have the highest market share in the Fertiliser & Nitrogen Compound Manufacturing in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Origin UK Operations Ltd.

How competitive is the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom?

The level of competition is high and steady in the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Non-Hazardous Waste Treatment & Disposal in the UK
  • Biotechnology in the UK

Complementors

  • Cereals, Leguminous Crops & Oilseed Growing in the UK
  • Gravel, Sand & Clay Extraction in the UK
  • Chemical & Fertiliser Mineral Mining in the UK
  • Pesticide & Other Agrochemical Manufacturing in the UK

International industries

  • Global Fertilizers & Agricultural Chemicals Manufacturing
  • Fertilizer Manufacturing in the US
  • Fertilizer Manufacturing in Canada
  • Fertiliser Manufacturing in Australia
  • Nitrogenous Fertilizer Manufacturing in China

View all industries in United Kingdom

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Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

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  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

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