The fertilizer industry is transitioning from a traditional model of "scale-based expansion" toward a new phase of high-quality development-characterized by eco-friendliness, high efficiency, optimized structure, and value-added services. Driven by the dual imperatives of ensuring food security and advancing the green transformation of agriculture, the industry's long-term outlook is highly positive, with significant structural opportunities emerging.
Core Policy Drivers and Market Fundamentals
The national strategy to reduce fertilizer use while enhancing efficiency continues to gain momentum. By 2025, the fertilizer utilization rate for the three major grain crops reached 43.3%, with the coverage of scientific fertilization practices maintained above 90%. Policy mandates now call for a steady decline in total fertilizer consumption, creating room for eco-friendly alternatives.
The agricultural foundation remains robust; between 2020 and 2024, my country's total agricultural output value grew at a compound annual growth rate (CAGR) of 5.7%. With total arable land remaining stable and the number of large-scale agricultural operations steadily increasing, there is a sustained, inelastic demand for fertilizers.
Global market demand continues to expand. Imports of compound fertilizers in Southeast Asia have grown at a rate of 7% for three consecutive years, while the urea trade deficit in Africa has widened to 2.8 million tons. Furthermore, major agricultural nations like Brazil are seeing an increase in fertilizer application intensity-all of which presents significant opportunities for competitive domestic fertilizer enterprises to expand into international markets.
