Nitrogen market in Germany

Earlier Report Observations

Starting in 2018, the nitrogen market in Germany faced increasing regulatory pressure following an EU Court of Justice ruling against the country for breaching the Nitrates Directive, which mandated effective reduction measures. The publication of nitrogen surplus data provided a basis for future national targets. In 2020, a draft National Nitrogen Law was introduced to coordinate federal and state-level actions, continuing the regulatory uncertainty. During this period, the market size fluctuated, with a slight decline in 2019 to 342.0 million US dollars and stabilization in 2020 at 344.7 million US dollars.

From 2021 onwards, the market entered a phase of substantial value growth. The EU's climate and energy package increased CO₂ prices, raising costs for energy-intensive ammonia and nitrogen fertilizer production, which drove up product prices. In 2022, rapidly rising gas and electricity prices further burdened manufacturers, leading to production halts at some facilities, while BASF's sale of ammonia and methanol plants reduced domestic production capacity. Tighter EU emission limits for ammonia also added compliance costs. By 2023, BASF planned to shut down glufosinate ammonium production, further constricting supply, and the accelerated adoption of on-site nitrogen generator systems by small businesses began to shift some demand, though overall market value rose to 507.1 million US dollars due to persistent high prices.

In 2024, the nitrogen market size contracted by 3.7% to 488.3 million US dollars. A crisis in the chemical industry resulted in further plant closures, including reductions by BASF and Evonik, limiting the availability of chemical precursors for nitrogen production. Soaring gas and electricity prices continued to elevate production costs. Concurrently, EU regulations amended greenhouse gas market rules, affecting energy costs, and the German government set a long-term target to reduce nitrogen surplus to 70 kg N/ha per year by 2030, signaling ongoing regulatory pressure.

Production nitrogen in Germany

In value, 2017-2020, M $ US

In Germany, nitrogen production was valued at 344.9 million US dollars in 2020, marking a 2.3% increase from 2019. Over the 2017-2020 period, production grew by 14.7%, with a compound annual growth rate of 4.7%. The highest value was recorded in 2018 at 346.7 million US dollars, while the largest decline occurred in 2019 at 2.7%. The most significant increase was seen in 2018, with a 15.3% rise.

Annual dynamics of production in Germany in value, 2017-2020, M $ US

Exports nitrogen from Germany

Exports in kind, M m³

Germany's nitrogen export volumes have increased for the third consecutive year. In 2020, exports reached 170.2 million cubic meters, representing a solid 10.6% growth compared to 2019. Over the 2017-2020 period, exports surged by 84.2%, with a compound annual growth rate of 22.6%.

Annual dynamics of product's exports from Germany in kind, 2017-2020, M m³

From 2017 to 2020, the Netherlands, Austria, and Poland were the primary markets for Germany's nitrogen exports in volume terms, accounting for 48.6%, 18.2%, and 9.9% of exports, respectively. Together, these three countries represented 76.8% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Germany in kind, 2017-2020

Exports in value, K $ US

Germany's nitrogen export value has risen for the third year in a row. In 2020, exports totaled 17,073 thousand US dollars, showing a solid 10.6% year-over-year improvement. Over the 2017-2020 period, export value increased by 50.8%, with a compound annual growth rate of 14.7%.

Annual dynamics of product's exports from Germany in value, 2017-2020, K $ US

Between 2017 and 2020, the Netherlands, Austria, and Switzerland consistently served as the main destinations for Germany's nitrogen exports in value terms, with shares of 35.1%, 18.7%, and 10.9%, respectively. Collectively, these three countries accounted for 64.7% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Germany in value, 2017-2020

Imports nitrogen to Germany

Imports in kind, M m³

Germany's nitrogen import volumes declined for the second consecutive year. In 2020, imports stood at 164.9 million cubic meters, reflecting a 19.5% reduction from the previous year. Between 2017 and 2020, imports decreased by 19.5%, equating to an annualized rate of 7.0%. The peak was recorded in 2018 at 209.1 million cubic meters, while the largest increase occurred in 2018 with a 2.0% rise.

Annual dynamics of product's imports to Germany in kind, 2017-2020, M m³

From 2017 to 2020, France, Czechia, and Austria were the principal sources for Germany's nitrogen imports in volume terms, contributing 32.6%, 29.9%, and 14.2% of imports, respectively. Together, these three countries made up 76.6% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Germany in kind, 2017-2020

Imports in value, K $ US

Germany's nitrogen import value declined for the second year in a row. In 2020, imports amounted to 16,000 thousand US dollars, indicating a robust 16.2% decrease from 2019. Between 2017 and 2020, import value fell by 16.9%, with an annualized rate of 6.0%. The highest value was recorded in 2018 at 22,098 thousand US dollars, and the largest increase was in 2018 at 8.9%.

Annual dynamics of product's imports to Germany in value, 2017-2020, K $ US

Over the 2017-2020 period, Czechia, France, and Switzerland were the main sources for Germany's nitrogen imports in value terms, accounting for 31.1%, 24.1%, and 19.5% of imports, respectively. These three countries together absorbed 74.8% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Germany in value, 2017-2020