Global Fertilizer Market Drivers
Global demand for fertilizers is driven by strong fundamentals: the world’s farmers need to increase crop output. With expanding populations, changing diets and increasing use of biofuels, demand for farmers to produce more food on less arable land per capita will continue to grow.
Growing population and shrinking arable land per capita
In the 20 years to 2011, the global population has increased by 1.6 billion people, while arable land per person has declined 25% to 0.22 hectares
World population (mln people)
and arable land per capita (hectares)
Source: US Census Bureau, FAO, World Bank
Economic growth
Economic growth is driving dietary changes...
GDP per capita (USD/capita)
and nominal GDP (USD trillion)
Source: FAO, World Bank
Changing diets
...and meat consumption is increasing, especially in growing economies...
Food consumption trends by type
(kg/person/year)
Source: World Bank
...while meat production is a key driver of grain consumption
Animal feed is a key driver for grain consumption
Kg of grain required to produce 1 kg meat
Increasing biofuels consumption
While demand for food increases, more and more crops are being used for biofuels production
Total biofuels consumption
(thousand barrels per day)
Source: US Energy Information Agency
Fertilizers are key to helping increase crop yields
Russian fertilizer use ratios are currently at very low levels compared to most major global agricultural producers, indicating significant potential growth for our domestic market
Fertilizer effect on yields
Source: World Bank