Asia Pacific Fertilizers Market – Industry analysis and Forecast (2023-2029)

Asia Pacific Fertilizers Market size was valued at USD 98.48 Bn in 2022 and is expected to reach USD 146.13 Bn by 2029, at a CAGR of 5.8 %.
Overview
Fertilizers are the chemical substance used in agriculture for increasing crop production and yielding capacity. Farmers utilize these regularly to boost crop productivity. The fertilizers include nitrogen, potassium, and phosphorus, which are crucial elements that plants need. Also, rise the soil's fertility while enhancing its ability to retain water. It has two types such as organic fertilizer and Inorganic fertilizer. The Asia Pacific is one of the largest and most important are for the fertilizers market globally.

Also, the agricultural sector plays a crucial role in providing food security for its growing population and contributing to the global food supply. The increasing food demand due to population growth and improving agricultural practices, and government initiatives to raise agricultural productivity are primary factors for the Asia Pacific Fertilizers Market growth.To know about the Research Methodology :- Request Free Sample Report
Asia Pacific Fertilizers Market Dynamics:
Population Growth and Increasing Food Demand Key Influencing Driver for the Market Growth

The huge population growth in Asia Pacific is the main factor for the Asia Pacific Fertilizers Market growth. As the population continues to increase, there is a rising need for better fertilizer. It is used to increase agricultural productivity and food security. Fertilizers play a vital role in replenishing essential nutrients in the soil, thereby improving crop yields and meeting the increasing demand for food. Technological advancements in the fertilizer industry make the development of innovative products and improved manufacturing processes. Precision agriculture or farming uses modern technologies such as satellite imagery or field mapping to improve crop quality and profitability.

Additionally, it optimizes the use of traditional resources. Since, this agricultural management system contributes to the development of sustainable agriculture, allowing it to solve both economic and ecological problems, which are becoming more acute. For example, advanced technologies such as satellite imagery, drones, and sensors to assess soil conditions and nutrient requirements accurately. This allows farmers to apply fertilizers more efficiently, reducing wastage and optimizing nutrient uptake by crops. The adoption of technology-driven solutions contributes to the growth of the fertilizers market in the Asia Pacific region.

China is one of the five major countries, along with the US, China, Germany, and Israel, in precision agriculture. In 2022, the Chinese market was valued at $558 million, an annual growth of 18.7%. During 2017-21, the market raised at a compound annual growth rate of 12.7%. As a result, there is increasing demand for fertilizer which is expected to boost the market. However, recurrent lockdowns in the People’s Republic of China, the Russian invasion of Ukraine, and slowing Asia Pacific Fertilizers Market growth.



Government Support & Initiatives and Shift towards Intensive Farming Practices to Boost the Market Growth

Asia Pacific is the most important region for fertilizer consumption, accounting for over 59.68% of the global demand for nitrogen fertilizers due to the large population and suitability of urea for the climate in the region. Demand growth in Asia Pacific is mainly driven by demand growth in China and India, the two most populous countries in the region. Governments across the Asia Pacific region have recognized the significance of agriculture in their respective economies and have implemented various support programs and initiatives to drive the agricultural sector.

These initiatives such as subsidies, financial assistance, research and development investments, and infrastructure development. Such government support creates a favorable environment for the fertilizers Asia Pacific Fertilizers Market. This also encourages the farmers to adopt modern agricultural practices and invest in fertilizers to optimize crop yields.


This shift towards intensive farming practices drives the demand for fertilizers as farmers seek to maximize productivity and profitability. The need for balanced nutrient management and the use of fertilizers tailored to specific crop requirements become critical in such farming systems. In response to the increasing demand for food, many countries in the Asia Pacific region are transitioning from traditional farming practices to more intensive and commercial farming methods. Intensive farming involves higher crop density, increased use of machinery, and greater reliance on fertilizers to achieve higher yields. Such all factors are expected to influence the Asia Pacific Fertilizers Market growth.

The Asia Pacific fertilizers market contains both domestic production and imports. Major fertilizer manufacturers have established production facilities or distribution networks in the region to cater to the demand.

Rise in Environmental Concerns and Sustainability to Restrain the Market Growth

Chemical fertilizers are chemically processed fertilizers made from minerals and other natural substances. They are produced industrially and are characterized by low cost and stable quality. Nitrogen is an extremely important element in food production. Many chemical fertilizers contain nitrogen, which is an essential ingredient for supporting food production to meet the needs of a growing population that is expected to reach approximately 10 billion by 2050. Farmers are encouraged to adopt practices such as precision agriculture, nutrient management planning, and the use of organic or bio-based fertilizers. These factors are expected to pose a challenge for traditional fertilizer manufacturers in Asia Pacific Fertilizers Market.

However, there is also concern that chemical fertilizers place a burden on the environment. The challenges are decarbonization in chemical fertilizers production and optimization in nitrogen cycling. In terms of decarbonization, for example, the full process for nitrogen fertilizer (from production to use) accounts for 3% of total GHG (greenhouse gas) emissions. The largest share of these emissions arises during production and use, with approximately 38.40% occurring during the production process and about 59.70% during use, while the remainder occurs during transportation. The ammonia used to make nitrogen fertilizer contributes to crop growth, while the remaining ammonia that is not returned to the atmosphere as nitrogen gas causes environmental pollution, including an increase in greenhouse gas and the eutrophication of rivers.



Also, the volatility in raw material prices, particularly for key ingredients such as natural gas (used in nitrogen fertilizers) and phosphate rock (used in phosphorus fertilizers). Fluctuations in commodity prices, geopolitical factors, and supply-demand imbalances, the availability and accessibility of raw materials are expected to hinder the Asia Pacific Fertilizers Market growth during the forecast period.
Asia Pacific Fertilizers Market Segment Analysis
By Conventional Form: Based on the conventional form, the Liquid fertilizer held the largest Asia Pacific Fertilizers Market share in 2022 and is expected to grow at a significant CAGR over the forecast period. This growth is driven by the increasing use of sprinkling and spraying water-soluble fertilizers in their agriculture fields for plants. The increasing demand for vegetables has influenced the demand for various liquid fertilizers. Also, it has fertilizers generally have low concentrations of chemical compounds with fairly good nutrient content to fulfill the plant requirement.

By Type:
Based on type, nitrogen or nitrate fertilizer dominated the largest Asia Pacific Fertilizers Market share in 2022. Nitrogen is critical to plant growth and reproduction. Pasture and crop growth will often respond to the increased availability of soil nitrogen. This situation is often managed through the addition of nitrogen fertilizers. Nitrous oxide is a powerful greenhouse gas and accounts for 6 percent to 8 percent of global greenhouse emissions with 90 percent of these derived from agricultural practices. Nitrogen-based fertilizers and livestock manure (urine and dung) are the key sources of nitrous oxide emissions on farms.


By Application:
Based on application, the fruit and vegetables segment held the largest Asia Pacific Fertilizers Market share in 2022 and is expected to sustain its position over the forecast period. The growing concern about food security and rising demand for smart and efficient fertilizers are the driving factors for segment growth.

Asia Pacific Fertilizers Market Country Analysis

Based on country, China accounted for the largest Asia Pacific Fertilizers Market share in 2022 due to its large population. Also, it is the largest producer and exporter of fertilizers country as well as the world and contributes 26% of global fertilizer production, according to our research, USDA said. China’s fertilizer market is estimated to be valued at USD 56.8 billion in 2022, with a volume consumption of 111 million tons. However, India is the world’s second-largest consumer of fertilizers, with a consumption volume of 75 million metric tons in 2022. Despite being the third-largest producer of fertilizers globally, India is still import-dependent for 24% of urea, 56% of phosphorous, and 98.23% of potash annually.

Other Asia-Pacific countries such as Japan, Indonesia, Vietnam, Australia, Bangladesh, Pakistan, Thailand, etc., together accounted for 19% of the total consumption volume in the country. These countries are highly use of fertilizer, and the growth trend is anticipated to continue in the future.

Competitive Landscape

The competitive analysis of key players in the fertilizer industry highlights their distinct strengths and market positioning. For example, Coromandel International offers a diverse range of phosphatic and micronutrient fertilizers, while Lee Kun Kee Group specializes in organic and bio-based solutions. These players collectively contribute to a competitive landscape, providing to diverse needs and promoting sustainable agricultural practices.
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Asia Pacific Fertilizers Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 98.48 Bn.


Forecast Period 2023 to 2029 CAGR:
5.8%
Market Size in 2029:
US $ 146.13 Bn.


 Segments Covered:
by Type
Nitrogen fertilizer(N)
Phosphorus fertilizer (P)
Potassium fertilizer (K)
Secondary Macronutrients fertilizer (Sulphur, Calcium & Magnesium)
other


by Form
Liquid Fertilizer
Water Soluble
Organic Fertilizer
Inorganic Fertilizer


by Crop Type
Field Crops
Horticultural Crops
Turf & Ornamental


by Application
Pulses & Oilseeds
Plantation Crops
Fruits & Vegetables
Grains & Cereals
Others



Asia Pacific Fertilizers Market, Key Players are
1. Sinochem Group
2. Sinofert Holdings Limited
3. Coromandel International Limited
4. Lee Kun Kee Group
5. Sumitomo Chemical Co., Ltd.
6. Indian Farmers Fertilizer Cooperative Limited
7. Hanfeng Evergreen Inc.
8. Tata Chemicals Ltd.
9. Multiplex Group
10. Camson Bio Technologies Limited
11. Wengfu Group
12. Luxi Chemical Group
13. China BlueChemical Ltd.
14. Sichuan Chemical Co. Ltd.
FAQs:
1. What are the growth drivers for the Asia Pacific Fertilizers Market?
Ans. Rapid Growth in the Industrial and Manufacturing Sectors in APAC is expected to be the major driver.

2. What is the major restraint for the Asia Pacific Fertilizers Market growth?
Ans. Government regulation and volatility of prices in Restrain Asia Pacific Fertilizers Market.

3. Which country is expected to lead the Asia Pacific Fertilizers Market during the forecast period?
Ans. China is expected to lead the Asia Pacific Fertilizers Market during the forecast period.

4. What is the projected market size & growth rate of the Asia Pacific Fertilizers Market?
Ans. The Asia Pacific Fertilizers Market size was valued at USD 98.48 Billion in 2022 and the total Asia Pacific Fertilizers Market revenue is expected to grow at a CAGR of 5.8 % from 2022 to 2029, reaching nearly USD 146.13 Billion.

5. What segments are covered in the Asia Pacific Fertilizers Market report?
Ans. The segments covered in the Asia Pacific Fertilizers Market report are Type, Application, Form, Crop Type and Region.