Asia-Pacific Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia-Pacific Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia-Pacific fertilizers market was valued at USD 9.38 billion in 2020, and it is expected to register a CAGR of 6.9% during the forecast period (2021-2026).

The COVID-19 pandemic has had a direct impact on the supply chain of the fertilizers market in Asia-Pacific. Crop producers were affected by disruptions in local and international transport systems, clogged ports and roads, and delays in customs clearances, which inhibited their access to intermediate inputs like fertilizers. The dependence of grains and oilseeds production on these inputs has resulted in reduced production due to the inaccessibility of inputs by farmers.

The major factors driving the market are technological innovations in the fertilizers market, growth in the demand for micronutrient fertilizers, decrease in per capita arable land, and increase in demand for food. However, high production costs and growing demand for biofertilizers are slightly restraining the growth of the market.

Key Market TrendsDecreasing Per Capita Arable Land and Increasing Demand for Food

The population in the Asia-Pacific region is increasing at a rapid rate. This growing population is adding to the food demand. Supplying food to this growing population has become a threat. On the other hand, arable land is declining due to industrialization and urbanization. Fertilizers have been used for a long time to increase the productivity of crops. This adequate and balanced use of fertilizers may help in feeding the growing population from the available cultivable land. Hence, the major factors driving the demand for fertilizers include the need for crop intensification while pursuing increasingly sustainable practices and seeking biological alternatives to boost production with decreased pressure on the environment to close the yield gap. According to the FAO, fertilizer consumption is projected to increase by 1% in South Asia every year up to 2030 to increase agricultural productivity.

China Dominates the Asia-Pacific Fertilizers Market

China feeds 22% of the world’s population with merely 12.68% of the arable land. The major crops grown in China are rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton, and oilseed. According to the China Agriculture Industry Development report, China has a goal to become self-sufficient in staple foods, like rice, corn, and wheat, by 2035. The government ensures a minimum price for the grains and provides storage for them in government silos. Farmers in the country are also using fertilizers and pesticides to increase production. The most important agricultural area in the country is the North China Plain, which extends across several provinces.

In 2017, the International Plant Nutrition Institute (IPNI) of China conducted a Controlled-Release Urea (CRU) fertilizer application program in Hubei province in Central China. It has been proved that the consistent use of CRU fertilizer helps in improving the yield and profitability of major crops, such as rice and eggplant. These research studies can create awareness among farmers, which may increase the consumption of fertilizers in the country.

Competitive Landscape

The Asia-Pacific fertilizers market is highly fragmented, with the top five market players cornering a very minimal share in the market. The development of regional markets and increasing shares of local players in foreign direct investments are the major factors promoting the fragmented nature of the market. Some of the players operating in the market are Yara International, Sinofert Holdings Ltd, Groupe OCP, Pt Petrokimia Gresik, and China Blue Chemical Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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