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.
Potassium sulphate (SOP) is one of the essential fertilizers that is used in the agricultural industry, as it provides one of the essential nutrients to plants such as Potassium. For instance, according to the Fertilizers Institute, Washington, potassium plays an important role in the plant nutrition process and is termed as “Big 3” primary nutrient. The increasing demand for potash fertilizers in the agriculture sector is expected to drive growth of the global potassium sulphate market over the forecast period. Moreover, potassium sulphate offers advantages such as prevention of infection of plants from pests and other microbes. Potassium sulphate also helps the plant to adapt to unfavorable weather conditions and aids plants in absorbing more minerals from the soil, and also strengthens the tree stalks. In addition, other end uses industries of potassium sulphate include industrial, pharmaceutical, cosmetics, food & beverages, and others.
The global potassium sulphate market was valued at US$ 4,043.7 Mn in 2019 and is expected to reach US$ 5,656.0 Mn by 2027, exhibiting a CAGR of 4.3% over the forecast period (2020-2027).
Figure 1. Global Potassium Sulphate Value Market Share (%), By Region, 2019
Among regions, Asia Pacific accounted for the largest revenue share of around 51.8% in the global potassium sulphate market in 2019. This is attributed to increasing population and growing demand for food grains, which is boosting growth of potassium sulphate use as a fertilizer in the region. For instance, according to an article published by Asian Development Bank (ADB), Asia Pacific is expected to account for around 1/3rd of the estimated 2,600 million increase in global population during the period of 2010 and 2050, thus requiring additional efforts to increase productivity of crops to cater to rising population in the region.
Figure 2. Global Potassium Sulphate Market Share (%) in Terms of Value, By Form, 2019
Moreover, Asia Pacific is expected to be the fastest growing region over the forecast period, owing to increasing demand of food grains from the emerging economies such as China and India. For instance, according to the India Brand Equity Foundation (IBEF), food grain production in India was 283 million tons in 2018 and the government estimated the production to reach 291 million tons in 2019.
Among the forms, solid segment accounted for a major market share of 89.6%, in 2019. SOP provides essential nutrients to the plant and aids in improving 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, SOP increased the yield of sugarcane, wheat, cotton, and rice by 13.55%, 4.8%, 27.5%, and 2.9% respectively.
Agriculture end-use amounted for the largest demand for potassium sulphate globally, owing to increasing demand for food grains and cereals. 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, which increased by 2.3% from 2018.
Major restraints for potassium sulphate market include increasing usage of natural fertilizers such as neem fertilizers in organic farming operations. For instance, according to a research article published by University of Calabar, the combination of neem with NPK significantly increased the yield of Okra during the research studies.
Major players operating in the global potassium sulphate market include Tessenderlo Group, K+S KALI GmbH, Compass Minerals International Inc., SQM SA, Sesoda Corporation, Migao Corporation, The Mosaic Company, Yara International ASA, SOPerior Fertilizer Corp., and Interpid Potash, Inc.