Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Potash Fertilizers Market – Insights
Potassium (K), which is often referred to as Potash, which is one of the essential nutrient used in the fertilizer industry. The increasing demand for food grains as well as fruits & vegetables are expected to drive growth of the global potash fertilizers market over the forecast period. Potash fertilizers offers advantages such as prevention of infection of plants from pests and other microbes. Potash fertilizers also helps to adapt to weather conditions, helps in absorbing more minerals from the soil, and strengthens the tree stalks. According to the Fertilizers Institute, Washington, potassium is one of the “Big 3” primary nutrients, which plays a fundamental role in the plant nutrition process.
Global potash fertilizers market was valued at US$ 21.64 Bn in 2018 and is expected to exhibit a CAGR of 4.4%, in terms of value over the forecast period (2019-2027), and expected to reach US$ 32.08 Bn by 2027.
Figure 1. Global Potash Fertilizers Value Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Asia Pacific accounted for the largest revenue share of around 45% in the global potash fertilizers market in 2018. This is attributed to growing population and increasing demand for food grains, which is propelling the growth of potash fertilizers market in the region. For instance, according to a research article published by Asian Development Bank (ADB), Asia Pacific is expected to account one third of the estimated 2,600 Mn increase in global population during 2010 and 2050, thus requiring additional efforts to increase yield of crops to cater to rising population in the region.
Figure 2. Global Potash Fertilizers Market Share (%), By Product Type, 2018
Source: Coherent Market Insights, 2018-19
Asia Pacific is expected to be the fastest growing region in the global potash fertilizers market, owing to increasing demand of food grains from countries such as China and India. For instance, according to the India Brand Equity Foundation (IBEF), food grain production in India was 283,370 kilo tons in 2018 and the government estimated the production to reach 291,100 kilo tons in 2019.
Amongst product type, sulphate of potash (SOP) segment accounted for 15.6% market share in the global potash fertilizers market, in 2018. SOP provides essential nutrients to the plant and helps to improve the yield of the food grains and vegetables. For instance, according to the research article published by International Journal of Agronomy and Agricultural Research (IJAAR) in 2015, during the field research, SOP increased the yield of sugarcane, wheat, cotton, and rice by 13.55%, 4.8%, 27.5%, and 2.9% respectively.
In terms of form, potash fertilizers are available in liquid & solid forms. Solid potash fertilizers are spread using broadcasting method, whereas liquid potash is spread by foliar and fertigation method. Amongst forms, solid potash fertilizer held the largest market share, in terms of value, in 2018 due to increasing application of solid potash fertilizers in corn, cotton, soybean, and wheat crops. For instance, according to the research conducted by the Fertilizer Institute (TFI), crops such as corn and cotton require higher potassium uptake of around 266 pounds per acre and 210 pounds per acre respectively.
Potash fertilizers are applied on various crop types such as cereals & grains, oilseeds & pulses, and fruits & vegetables. Cereals & grains crop type amounted for the largest demand for potash fertilizers globally, followed by oilseeds & pulses. For instance, according to the Food and Agriculture Organization (FAO), the world production of cereals reached a record high of 2,715 million tons in 2019, a 2.3% rise as compared to 2018.
Major restraints for potash fertilizers market include increasing usage of natural fertilizers in organic farming operations. For instance, according to a research article published by University of Calabar, the combination of NPK with neem fertilizer (60 kg N/ha NPK + 60 kg N/ha) significantly increased the yield of Okra during the research studies.
Major players operating in the global potash fertilizers market include Israel Chemicals Ltd., EuroChem Group A.G., Agrium Inc., Uralkali PJSC, Yara International A.S.A., Migao Corporation, Sesoda Corporation, SQM S.A., Brazil Potash Corporation, and K+S KALI GmbH.
The companies are adopting strategies such as product launches for expanding their current product portfolio. For instance, in August 2019, China-based potash fertilizer manufacturer Migao Corporation and Belaruskali JSC jointly launched a new production facility near Soligorsk for manufacturing chlorine-free potash fertilizers. The plant is designed to manufacture potassium chloride as well as ammonium nitrate.