Fertiliser & Nitrogen Compound Manufacturing in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: August 2023
SIC C20.150Revenue
£2.7bn
Past 5-Year Growth
Profit
£XXX.Xm
Employees
2,342
Businesses
72
Wages
£XXX.Xm
Fertiliser & Nitrogen Compound Manufacturing in the UK industry analysis
Over the five years through 2022-23, the Fertiliser and Nitrogen Compound Manufacturing industry's revenue is set to swell at a compound annual rate of 10.6% to £2.7 billion. The Russian invasion of Ukraine has inflated natural gas prices, a key feedstock in fertiliser production, significantly disrupting operations. High fertiliser prices have forced farmers to adapt by increasing their spreading efficiency, reducing the amount of fertiliser farmers need. Even though output has been slashed, high fertiliser prices have still boosted industry revenue.Despite soaring natural gas prices eating into profit, manufacturers have begun optimising output to reduce costs, meet lower demand and boost their profitability. The inflated price of fertilisers means the industry continues to benefit from elevated revenue. However, fertiliser prices are inching downwards since their peak in April 2022; as a result, revenue is forecast to sink by 2.6% in 2022-23.Over the five years through 2027-28, industry revenue is forecast to fall by 2.4% to £2.4 billion. Continued instability in the market for natural gas and competition from foreign producers, like Russia, pose significant threats to the industry. UK fertiliser manufacturers are expected to continue facing high production costs because of increasing regulation, reducing their competitiveness.
Trends and Insights
- Ammonia production takes a big hit. It’s reliant on natural gas, prices of which are soaring as a result of Russia’s invasion of Ukraine. This put fertiliser manufacturers under huge strain last year.
- Nitrogen sales edge upwards in line with growing demand for fertiliser. A global fertiliser shortage has propelled prices upwards, driving up product prices and boosting nitrogen’s share of industry revenue, even though sales to the explosives market have fallen back.
- 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.
- Soaring inflation makes price even more important. It’s long been one of the key bases of competition in the industry but now, with prices across the UK and globally spiking, farmers are placing more emphasis on getting the most for their money.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 10.6 % over the past five years, to reach an estimated £2.7bn in 2023.
Trends and Insights
The Russian invasion of Ukraine cripples ammonia production
- Ammonia is a critical ingredient in fertiliser production; it's produced using natural gas. The Russian Invasion of Ukraine has significantly disrupted the global natural gas market, causing costs to soar.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Inflated natural gas prices continue to dampen production
- The Russia-Ukraine war has considerably disrupted the global natural gas market. It shows no signs of ending in the short term, posing a threat to ammonia production in the UK and EU.
Biggest companies in the Fertiliser & Nitrogen Compound Manufacturing in the UK
| Company | Market Share (%)
2023 | Revenue (£m)
2023 |
|---|---|---|
CF Fertilisers UK Ltd | 578.5 | |
Origin UK Operations Ltd | 468.9 | |
Yara UK Ltd | 358.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Nitrogen, Potassium and Phosphorus. Nitrogen is the largest segment of the Fertiliser & Nitrogen Compound Manufacturing in the UK.
Trends and Insights
Strong demand for fertilisers boosts nitrogen sales
- Nitrogen is an essential element in fertilisers, as it's needed to produce chlorophyll in plants.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
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
Table of Contents
About this industry
Industry definition
This industry covers companies that manufacture fertilisers. 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?
Nitrogen PotassiumPhosphorusOrganic fertilisersSulphur Potting soilCompanies
CF Fertilisers UK LtdOrigin UK Operations LtdYara UK LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
AMMONIAUREAFEEDSTOCKSOLVAY PROCESSIndustry Code
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
Ammonia production takes a big hit. It’s reliant on natural gas, prices of which are soaring as a result of Russia’s invasion of Ukraine. This put fertiliser manufacturers un...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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 edge upwards in line with growing demand for fertiliser. A global fertiliser shortage has propelled prices upwards, driving up product prices and boosting nitr...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- 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 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
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
Soaring inflation makes price even more important. It’s long been one of the key bases of competition in the industry but now, with prices across the UK and globally spiking,...
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 2018-2023
- 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 was forced to halt production at two of its plants in September ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of CF Fertilisers UK Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Origin UK Operations Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Yara UK Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for CF Fertilisers UK Ltd, and factors influencing its performance in the industry
- Description and key data for Origin UK Operations 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 face high regulation because they deal with chemicals. Many of the rules they have to follow relate to properly labelling and packaging products.
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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 spikes as fertiliser prices soar. Though high prices put the average industry margin under strain at first by raising costs, product prices have begun to catch up with...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
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.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
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 £2.7bn in 2024.
How many businesses are there in the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in 2023?
There are 72 businesses in the Fertiliser & Nitrogen Compound Manufacturing in the UK industry in United Kingdom, which has grown at a CAGR of 2.4 % between 2018 and 2023.
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 growing at a CAGR of 10.6 % between 2018 and 2023.
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 decline.
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 CF Fertilisers UK Ltd, Origin UK Operations Ltd and Yara UK Ltd
What does the Fertiliser & Nitrogen Compound Manufacturing in the UK in United Kingdom include?
Nitrogen and Potassium 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 CF Fertilisers UK 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.
