The agri-nutrients industry in the Arabian Gulf and globally is entering a new phase characterized by lower market growth, economic slowdown and increased consolidation, agreed speakers at the 10th Fertilizer Convention held by the Gulf Petrochemicals and Chemicals Association (GPCA) in Muscat, Oman, this week. Therefore, in order to enhance its competitive advantage the industry must work towards creating value through innovation and developing improved and sustainable agri-nutrient products.
Fertilizer demand is expected to grow at a compound annual growth rate (CAGR) of 1.4% over the 2019-2023 period, falling behind global GDP and other industries’ growth. The consolidation within the agri-nutrients industry is at an all-time high led by a rise in mega-mergers and acquisitions over the past decade, with the top ten fertilizer producers now controlling 45% of the market share. Speakers at the convention stressed that this highly competitive and consolidated industry environment presents new challenges and opportunities for agri-nutrient producers in the GCC who must pursue value creation through innovation and strategic integration if they are to remain successful in these times full of uncertainty and growing challenges.
There is also a growing need for strategic partnership, as Eng. Al Zadjali pointed out, as well as the exchange of experiences among producers in the Gulf Cooperation Council (GCC) countries in order to overcome the challenges facing the agri-nutrients industry, which is so central to ensuring global food security. Mr. Al Zadjali also said that with the global population expected to reach 9.6 billion by 2050, the role of agri-nutrients producers in addressing higher demand for food will be particularly important, as will improving crops and water management through balanced and effective fertilizer use.
“The agri-nutrients industry in the GCC must continue to enhance its competitive position and remain resilient in the face of future challenges and disruptions,” said Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA, and added that this “can only be achieved through building home-grown innovation capabilities, investing in strategic integration, utilizing cutting-edge technologies, and training and developing young indigenous talent – our region’s greatest asset.” The 10th GPCA Fertilizer Convention concluded yesterday (26 September), covering a wide variety of topics including food security in the Arabian Gulf, technology trends and disruptions, strategies for growth, market trends and producing enhanced quality agri-nutrients.
