Indonesia Amino Acid Fertilizer Market - 2023-2030

Indonesia Amino Acid Fertilizer Market - 2023-2030

Indonesia Amino Acid Fertilizer Market reached US$ 450.2 million in 2022 and is expected to reach US$ 625.7 million by 2030, growing with a CAGR of 4.2% during the forecast period 2023-2030.

Collaborations between fertilizer manufacturers, distributors and agricultural research institutions are playing a crucial role in developing new amino acid fertilizers. The partnerships help in research and development efforts, product innovation and expanding the reach of amino acid fertilizers to a broader customer base. Collaborative efforts are accelerating the growth of the Indonesian amino acid fertilizer market.

Research is ongoing to fully ascertain the impact of amino acid fertilizers on soil conditions. The studies could prove vital in the development of new types of fertilizers. For instance, in a 2022 research study published by scientists from the University of Gadja Mada in Yogyakarta, Indonesia, found that amino acid fertilizers could potentially improve and increase the chemical properties of soil.

Market Dynamics

Increasing Emphasis on Crop Quality

Indonesian consumer preferences are shifting towards high-quality, premium agricultural products. It includes a rising demand for crops that are visually appealing, have better taste, texture and nutritional value. Improving crop quality allows farmers to charge more, thus leading to an improvement in their incomes. Indonesia’s large agricultural sector is gearing towards increasing agricultural exports on the global markets. The focus on crop quality becomes even more crucial when targeting global markets.

By using amino acid fertilizers, farmers can produce crops with improved quality attributes that command premium prices and stand out from the competition. The value differentiation helps farmers enhance their market position and profitability. By promoting better plant health and stress tolerance, amino acid fertilizers help crops withstand post-harvest challenges, such as transportation, storage and handling. Longer shelf life enhances marketability and reduces post-harvest losses, thus increasing profits for farmers.

Increasing Adoption of Sustainable Agricultural Practices

Like many rapidly growing and industrializing countries, Indonesia is facing challenges with environmental pollution. The growing pressure to increase agricultural output for Indonesia’s burgeoning population has led to overuse of chemical fertilizers, resulting in soil degradation and widespread environmental contamination in rural areas. Indonesian farmers are thus, gradually adopting sustainable agricultural practices.

Sustainable agriculture aims to minimize negative environmental impacts, such as water pollution and greenhouse gas emissions. Compared to chemical fertilizers, amino acid fertilizers have a lower environmental footprint. The fertilizers release nutrients slowly, reducing the risk of nutrient leaching and minimizing the potential for water contamination.

Sustainable agriculture places a strong emphasis on maintaining soil health and optimizing nutrient management. Amino acid fertilizers contribute to these goals by improving soil fertility, enhancing nutrient availability and promoting nutrient uptake by plants. As the importance of sustainable farming practices grows, farmers in Indonesia are increasingly adopting amino acid fertilizers as a viable alternative to conventional chemical fertilizers.

Fragmented Agricultural Sector

Indonesia is a developing country where the vast majority of the rural population depends on farming and other primary occupations for livelihood. Most of the country’s agricultural output is produced by small, independent farmers instead of major agricultural conglomerates. The fragmented nature of Indonesia’s agricultural sector presents several challenges in increasing the adoption of amino acid fertilizers.

Many farmers in the fragmented agricultural sector face limitations in terms of financial resources, access to technology and modern farming practices. The adoption of new agricultural inputs, including amino acid fertilizers, may require additional investments or changes in traditional farming methods, which many small-time farmers are unable to achieve.

Furthermore, the fragmented agricultural sector is characterized by a wide network of small-scale farmers, distributors and retailers. The distribution channels for agricultural inputs, including amino acid fertilizers, are disjointed and highly inconsistent. It can lead to challenges in reaching farmers in remote or rural areas, resulting in limited availability and accessibility of amino acid fertilizers.

COVID-19 Impact Analysis

The economic impact of the COVID-19 pandemic, including job losses, reduced income and financial uncertainties, affected the purchasing power of farmers. Affordability concerns became more prominent, leading to a reduction in spending on agricultural inputs, including amino acid fertilizers. Farmers opted for more cost-effective alternatives or reduced their fertilizer usage, impacting the demand for amino acid fertilizers.

However, in the aftermath of the pandemic, amino acid fertilizer demand in Indonesia is undergoing a sustained recovery. The Indonesian government has introduced policies in the post-pandemic period to increase the adoption of amino acid fertilizers and reduce demand for imported chemical fertilizers.

Russia-Ukraine War Impact Analysis

The ongoing war between Russia and Ukraine has caused major disruptions in the global agricultural commodities market. It has led to volatility in prices of sunflower cooking oil, beef, wheat and corn, some of the major commodities exported by Ukraine. Indonesia, being a major food importer was directly affected by the rise in agricultural commodity prices.

Although Indonesia secured enough alternative supplies, prices have remained stubbornly high. Furthermore, prices of imported chemical fertilizers also witness marked increases in the months after the beginning of the conflict. As a result, the government has created policies to increase the local production of amino acid fertilizers.

Segment Analysis

The Indonesia amino acid fertilizer market is segmented based on type application and distribution channel.

Rising Demand For High Value Crops Makes Horticulture the Largest Application

Horticulture encompasses a wide variety of crops, including fruits, vegetables and ornamental plants. Indonesia has a rich agricultural landscape that produces a diverse range of horticultural crops. The major horticulture crops in Indonesia include fruits like citrus, mango and papaya, as well as vegetables like tomatoes, peppers and leafy greens.

Consumers are increasingly seeking fresh and high-quality produce, including fruits and vegetables. Indonesia is also exporting a wide range of horticultural products to international markets. The demand for high-quality horticultural crops in export markets is growing, particularly for tropical fruits and exotic flowers. Amino acid fertilizers play a vital role in improving the quality and yield of high-value horticultural crops, thereby increasing their market value.

Competitive Landscape

The major global players include Acele, TAGROW CO., LTD, PT Agro Parkim Indonesia, IT CJ INDONESIA, PT Hanampi Sejahtera Indonesia, Hebei Monband Water Soluble Fertilizer Co.,Ltd, EuroChem Group, PT PUPUK KUJANG, PT Pupuk Kalimantan Timur and PT Pupuk Sriwidjaja Palembang.

Why Purchase the Report?
• To visualize the Indonesia amino acid fertilizer painting market segmentation based on type, application and distribution channel and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Indonesia amino acid fertilizer market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Indonesia amino acid fertilizer painting market report would provide approximately 36 tables, 24 figures and 140 Pages.

Target Audience 2023
• Fertilizer Manufacturers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies