Australia Fertilizer Market Size, Share, Growth Analysis Report and Forecast Trends 2024-2032

Australia Fertilizer Market Trends

The growth of the Australia fertilizer market significantly boosts crop yields by providing essential nutrients that promote healthier, more productive plants. Fertilizers replenish vital soil nutrients, ensuring long-term soil fertility and reducing the need for extensive land use. They support sustainable farming practices, ensuring crops receive the right nutrients, and contribute to food security by increasing crop availability. In 2023, the Australian Government, through the Department of Agriculture, launched an initiative to encourage the use of environmentally friendly fertilizers, offering funding for farmers to adopt slow-release and organic options, helping reduce nutrient runoff into waterways and supporting Australia’s environmental sustainability goals.

The Australia fertilizer market also contributes to the national economy by driving agricultural growth and enhancing export sectors. It creates employment in production, distribution, and sales, particularly in rural areas, and strengthens Australia’s position in global agricultural markets. Fertilizers improve crop quality, increasing market value and reducing environmental impacts due to more efficient application methods. The Australian Government’s Natural Heritage Trust (NHT) launched a USD 302.1 million Climate-Smart Agriculture Program for 2023-24 to enhance sustainability, productivity, and competitiveness in agriculture.

Australia Fertilizer Market Growth

Technological innovations are a key trend in the Australia fertilizer market, enhancing the efficiency of fertilizer products and application methods. These advancements support livestock feed production by ensuring the availability of high-quality feed crops and help farmers build resilience to climate change by improving soil health. Fertilizer exports also contribute to Australia's revenue, while nutrient recycling plays a crucial role in closing the agricultural nutrient cycle, promoting sustainable farming practices. In October 2023, research by The Australian National University (ANU) highlighted that improved nutrient management could reduce fertilizer use by up to 20% without affecting crop yields, highlighting the potential of precision agriculture to optimise fertilizer efficiency.

The growth of the Australia fertilizer market is further supported by advancements in application methods that improve water efficiency, enhancing crops' drought tolerance and water retention. Fertilizers accelerate crop growth, leading to faster harvests and increased farm profitability. They also enable crop diversification, expanding Australia's agricultural market. The fertilizer industry fosters innovation through investment in research and development, while optimised nutrient delivery ensures crops receive the precise nutrients needed for optimal growth. In June 2024, the Fertilizer Industry Federation of Australia (FIFA) introduced new guidelines to promote sustainable fertilizer use, focusing on nutrient efficiency and reduced environmental impact, supporting Australia's commitment to sustainable agricultural practices.

Australia Fertilizer Market Insights

• Industry reports indicate that agriculture accounted for 2.7% of Australia's GDP and 2.2% of total employment in 2022–23.
• As of December 2023, the Department of Agriculture, Fisheries and Forestry reported that 55% of Australia's land is allocated for agricultural use.
• The Department of Foreign Affairs and Trade has stated that Australia’s total official development assistance (ODA) budget for agriculture is estimated at USD 221.8 million for 2024–25.
• The fertilizer market share in the Australian Capital Territory is projected to grow significantly, with a forecasted CAGR of 2.2% from 2024 to 2032.
• The Australian Capital Territory and Victoria is expected to grow at a CAGR of 3.0% and 2.6% respectively from 2024 to 2032.

Industry News

April 2024

Incitec Pivot revealed a USD 200 million investment to expand its fertilizer production facility in Queensland. This investment aims to boost the domestic fertilizer supply, reducing Australia’s reliance on imports. The expansion is expected to enhance supply chain efficiency and lower fertilizer costs for local farmers.

January 2023

CSIRO initiated a new research project to develop more efficient fertilizers for Australia’s agricultural sector. The project focuses on improving nutrient management, minimising fertilizer waste, and supporting the long-term sustainability of Australian farming. Early findings suggest a reduction in nitrogen losses in soils.

Australia Fertilizer Market Drivers

Sustainability and Eco-friendly Fertilizers

Sustainability is a key trend of Australia fertilizer market, driven by growing demand for eco-friendly products. Fertilizer manufacturers are focusing on organic, slow-release, and bio-based options that minimise environmental damage. This shift is prompted by the need to reduce the negative effects of traditional fertilizers on soil health, water systems, and greenhouse gas emissions. Regulatory pressures and increasing consumer awareness are encouraging farmers to adopt sustainable practices, with a preference for fertilizers that enhance soil fertility over the long term without contributing to over-fertilisation or excessive chemical runoff. This trend aligns with Australia’s wider agricultural sustainability goals. In July 2024, Suståne Natural Fertilizers launched an organic fertilizer line in Australia, made from renewable resources to reduce chemical reliance and improve soil health, supporting sustainable farming practices.

Technological Advancements and Precision Agriculture

Precision agriculture is reshaping the Australia fertilizer market, with technological innovations enhancing the efficiency of fertilizer application. Tools such as GPS, drones, and soil sensors enable farmers to apply fertilizers precisely, optimising nutrient distribution and cutting waste. Fertilizers are being developed to work better with precision farming techniques, including variable rate application that adjusts fertilizer use based on specific crop and soil requirements. This technology boosts crop yields, reduces input costs, and minimises environmental impact. It also allows for more efficient use of water and other resources. In November 2023, Nutrien Ag Solutions launched an AI-powered crop nutrient management system to optimise fertilizer use, reduce costs, and increase yields, promoting both economic and environmental sustainability.

Opportunities in the Australia Fertilizer Market

Government Initiatives and Regulation

Government policies and regulations are playing a crucial role in shaping the opportunities within the Australia fertilizer market. The Australian government is increasingly prioritising the promotion of sustainable farming practices, which includes the responsible use of fertilizers. Regulations are in place to reduce nutrient runoff, enhance nutrient efficiency, and protect waterways from fertilizer-related pollution. Additionally, the government is supporting research into alternative, more sustainable fertilizers through grants and initiatives. These regulations foster innovation within the fertilizer industry, guiding market trends towards eco-friendly products and practices. This regulatory focus also ensures the long-term sustainability of Australia’s agricultural sector. In 2022, FIFA partnered with government agencies to develop the "Fertilizer Sustainability Framework," aimed at encouraging nutrient stewardship and minimising the environmental impact of fertilizers, promoting sustainable agricultural practices nationwide.

Market Restraints

The Australia fertilizer market faces several constraints, including stringent environmental regulations that increase operational costs and limit the use of traditional fertilizers. Rising raw material costs, such as natural gas and phosphate, further strain the market, raising production costs. Supply chain disruptions, especially imports, make the market vulnerable to shortages and price hikes.

The growing demand for organic and bio-based fertilizers presents competition for conventional synthetic products. Additionally, climate change and unpredictable weather patterns affect crop yields and fertilizer use. Fluctuating global fertilizer prices create uncertainty, while resistance to adopting new technologies limits efficiency improvements. Lastly, dependence on imports exposes the market to geopolitical risks, impacting fertilizer availability and pricing.

Australia Fertilizer Industry Segmentation

“Australia Fertilizer Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Complex
• Straight
  • Nitrogenous Fertilizers
  • Phosphatic Fertilizers
  • Micronutrient Fertilizers
  • Potash Fertilizers
  • Others

Market Breakup by Product Type

• Chemical Fertilizer
• Biofertilizer
• Others

Market Breakup by Product Form

• Liquid
• Dry

Market Breakup by Crop Type

• Field Crops
• Horticultural Crops
• Turf and Ornamental
• Others

Market Breakup by Application

• Fertigation
• Foliar
• Soil
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Fertilizer Market Share

By Product Type Insights

According to the Australia fertilizer market analysis, chemical fertilizers dominate by supplying essential nutrients such as nitrogen, phosphorus, and potassium to crops, fostering better growth, increased yields, and improved crop quality. They are highly effective in meeting the nutrient needs of large-scale farming, boosting food production, and enhancing overall agricultural productivity in Australia. In June 2024, Nutrien Ag Solutions introduced a new slow-release urea-based fertilizer in Queensland. This innovative formula optimises nutrient absorption, reduces the frequency of applications, and helps farmers manage input costs while minimising environmental impact, ultimately improving farm efficiency.

The demand for biofertilizers in the Australia fertilizer market is growing as they are natural alternatives that enhance soil fertility by utilising beneficial microorganisms, promoting sustainable farming practices. The segment is expected to grow at a CAGR of 3.4% from 2024 to 2032. Biofertilizers improve nutrient availability, strengthen soil health, and decrease environmental pollution. Their eco-friendly properties have led to increasing popularity in Australia, where they offer a sustainable alternative to conventional chemical fertilizers. In October 2023, BioAg launched a microbial-based biofertilizer designed to improve plant nutrient availability and soil structure, aiming to boost farm productivity and sustainability by supporting natural nutrient cycling in line with Australia’s commitment to environmentally conscious farming.

By Product Form Analysis

According to the Australia fertilizer market report, liquid fertilizers dominate the market due to their rapid nutrient absorption, allowing crops to quickly access essential nutrients. The segment is expected to grow at a CAGR of 3.2% from 2024 to 2032. These fertilizers are easy to apply through irrigation systems or spraying, reducing labour costs, and improving operational efficiency. Liquid fertilizers also enable more precise nutrient delivery, minimising waste and reducing environmental impact, thus supporting sustainable agriculture in Australia. In December 2023, Terra Fertilizers launched a new organic fertilizer in South Australia. Specifically designed for organic farming, it reduces reliance on synthetic fertilizers and enhances soil biodiversity, aligning with the growing demand for eco-friendly and sustainable agricultural practices.

The growth of the Australia fertilizer market is further supported by dry fertilizers, including granular and powdered varieties, which are cost-effective, easy to store, and handle. These fertilizers provide a slow release of nutrients, ensuring consistent crop growth over time. Dry fertilizers are especially popular in large-scale farming due to their efficiency in bulk applications, helping Australian farmers optimise productivity while reducing costs. In March 2023, Agri-Chem introduced a new liquid fertilizer in Western Australia. The product enhances nutrient efficiency and water retention in broadacre farming, reducing leaching and improving crop yields, while supporting sustainable farming practices that promote environmental stewardship.

By Application Insights

The growth of the Australia fertilizer market is driven by fertigation, an efficient method of applying fertilizers mixed with irrigation water. This technique ensures precise nutrient delivery to the plant’s root system, improving nutrient uptake, reducing waste, and optimising water usage. It supports sustainable farming by boosting crop yields while minimising environmental impact. In March 2023, Agri-Tech Solutions launched an advanced fertigation system in Queensland. Incorporating cutting-edge sensors and technology, the system enables efficient nutrient delivery, helping farmers reduce fertilizer consumption, conserve water, and enhance crop yields, in line with Australia’s agricultural sustainability objectives.

The demand for the Australia fertilizer market is also bolstered by foliar fertilizers, which are applied directly to plant leaves for rapid nutrient absorption. This method is particularly effective for addressing nutrient deficiencies quickly, supporting healthy growth and improved yields. Foliar fertilisation is often used alongside soil-based fertilizers to optimise plant health and productivity. In January 2024, Yara Australia introduced a new foliar fertilizer aimed at improving cotton crop yields in New South Wales. The product provides essential micronutrients during critical growth stages, enhancing both the quality and quantity of the cotton harvest, while promoting sustainable farming practices.

Australia Fertilizer Market Regional Insights

New South Wales Fertilizer Market Overview

The fertilizer market in New South Wales (NSW) is influenced by the state’s agricultural diversity, particularly in crops such as wheat, cotton, and grains. Demand for fertilizers is focused on enhancing soil health and increasing crop yields. With growing environmental concerns, there is increasing pressure on the state to adopt more sustainable, eco-friendly fertilizers to comply with environmental regulations. Fertilizer use is crucial to maintaining agricultural productivity in NSW. In 2023, the Department of Primary Industries (DPI) encouraged the use of nutrient-efficient fertilizers to minimise environmental impact and improve crop quality.

Queensland Fertilizer Market Trends

According to the Australia fertilizer industry analysis, in Queensland, the fertilizer market is experiencing growing demand, driven by the state’s robust agricultural sector, which includes sugarcane, horticulture, and cattle farming. There is a noticeable shift towards precision farming techniques and the use of environmentally sustainable fertilizers to enhance sustainability. Fertilizers are essential for optimising crop yields, particularly in the sugarcane and horticultural sectors. In 2023, the Department of Agriculture and Fisheries (DAF) promoted sustainable nutrient management practices to support farming in Queensland.

Western Australia Fertilizer Market Dynamics

Western Australia’s fertilizer market is largely driven by extensive grain farming, especially wheat and barley. The state is seeing an increased need for fertilizers that improve soil health and address issues such as dryland salinity and drought. Fertilizer use is vital for the efficient growth of crops, particularly in cereal farming. A 2022 report from the Department of Primary Industries and Regional Development (DPIRD) emphasised the importance of nutrient management to boost crop yields and ensure sustainability in the region.

Competitive Landscape

The Australia fertilizer market key players have a crucial role in the agricultural, industrial, and mining sectors, supplying essential nutrients to improve soil health and crop yields. They offer a variety of fertilizer products, including ammonium nitrate and urea, designed to boost crop productivity while prioritising sustainability. These companies are dedicated to minimising their environmental impact through resource-efficient production processes and a focus on sustainable farming practices. With operations both domestically and internationally, they continue to innovate within the fertilizer industry, striving to meet the increasing global demand for food while promoting responsible agricultural methods.

Key Industry Players

Incitec Pivot Limited: Founded in 1999, Incitec Pivot Limited is a leading fertilizer producer and distributor in Australia, with a focus on nitrogen-based products. Headquartered in Melbourne, the company caters to the agricultural, industrial, and mining industries across Australia and globally, prioritising sustainability and efficient use of resources.

Wesfarmers Limited: Founded in 1914 and based in Perth, Wesfarmers Limited is one of Australia’s largest conglomerates, with diverse interests spanning retail, chemicals, and fertilizers. Its agribusiness division plays a crucial role in the production and distribution of fertilizers, providing Australian farmers with sustainable and effective solutions.

Liquid Fertilizer Pty Ltd: Established in 1995 and headquartered in Sydney, is a major supplier of liquid fertilizers for agricultural purposes. The company focuses on offering innovative, environmentally sustainable products that enhance soil health and boost crop yields for farmers across Australia.

Katek Fertilizers: Established in 1983 and based in Melbourne, Katek Fertilizers is an Australian company specialising in the production and distribution of granular and liquid fertilizers. The company provides nutrient-rich solutions aimed at improving soil fertility and optimising crop performance for the agricultural industry.

Other key players in the Australia fertilizer market report are Ferti-Tech Australia Pty Ltd., FertPro Manufaturing Pty Ltd., Koch Fertilizer Australia Pty Ltd., Spraygro Liquid Fertilizers and Neutrog Trading Pty Ltd., among others.

Recent Developments

December 2023

Yara Australia announced the launch of a new, environmentally friendly fertilizer product designed to reduce nitrogen leaching and improve crop yields. The product is part of Yara’s ongoing efforts to support sustainable agriculture and combat soil degradation in Australia’s farming regions.

June 2023

Nutrien Ag Solutions launched a new digital platform aimed at improving fertilizer application precision in Australian agriculture. The platform uses satellite data and soil sensors to tailor fertilizer use for individual farms, optimising nutrient delivery and reducing waste, thus supporting sustainability.