Asian countries are behind US and European countries in terms of achieving agricultural crop yield. The focus on improving crop yields has driven the demand for complex fertilizers in the Asian subcontinent over the past decade. Asia complex fertilizer market registered moderate growth during 2012-2017, growing at a CAGR of ~%, to register revenues worth USD ~ billion in 2017 as compared to USD ~ billion in 2012. Moderate growth was due to decline in consumption of complex fertilizers in certain key territories and slump in price of complex fertilizers, driven by decline in cost of raw materials in international markets. Overall, complex fertilizer production in Asia grew at a CAGR of ~% during 2012-2017, whereas consumption of complex fertilizers grew at a CAGR of ~% during the same period.
India ranked second and comprised for ~% of the market share in 2017. Vietnam, Indonesia and Thailand were other major countries utilizing complex fertilizers in Asia and accounted for ~%, ~% and ~% market share respectively in 2017. All other Asian countries together comprised for remaining ~% of the market.
NPK 16-16-8 was the most widely used complex fertilizer in Asia and accounted for ~% market share in overall complex fertilizer market in 2017. NPK 20-20-15 was the next popularly used fertilizer grade and comprised for ~% market share in 2017. NPK 15-15-15 and NPK 20-20-0 were other popularly used complex fertilizers which comprised for ~% and ~% market share respectively in 2017. All other grades/formulas of complex fertilizers together comprised for about ~% of the market share in 2017.
China is the largest producer and consumer of complex/compound fertilizers in the world. The complex NPK fertilizer industry in China is large and has grown steadily in the last decade. China is almost self sufficient to meet the demand of compound fertilizer in the country. It has considerable natural reserves of raw materials utilized for production of compound fertilizers. Complex fertilizers worth USD ~ million were sold in the country in 2017 as compared to USD ~ million in 2012, representing growth at a CAGR of ~ during the period 2012-2017. The market witnessed a slowdown in revenue growth during the last two years due to decline in price of complex fertilizers in the country. Consumption of complex fertilizers grew at a CAGR of ~% during the period 2012-2017, rising from ~ million MT in 2012 to ~ million MT in 2017.
China complex fertilizer market is highly competitive and quite concentrated with top 4 players occupying about ~% of the market share, in terms of revenue in 2017. In terms of complex fertilizer production, the top 4 players accounted for about ~% of market share as of 2017. Kingenta was the market leader and comprised for ~% market share in 2017, in terms of revenue. Hubei Xinyangfeng emerged as the second largest player in this space and comprised for ~% market in 2017. Other prominent players included China XLX Fertilizers and Sino-Arab Chemical Fertilizers which comprised for market shares of ~% and ~%, respectively.
Consumption of complex fertilizers in China is expected to grow at a slower pace during the period 2018-2022. As per reports, Chinese government has agreed on lowering export tariff on complex fertilizers, reducing from current 30% export duty to CNY 100 (USD 15.14) per MT in 2018. This is expected to significantly boost exports of complex fertilizers from China 2018 onwards. Hence, production of complex fertilizers is expected to grow at healthy CAGR of ~% during 2017-2022. Complex fertilizers market is anticipated to be worth USD ~ million by 2022 rising from USD ~ million in 2018.
The agriculture and fertilizer sector in India is highly dependent on monsoons. India has limited amount of rock phosphate of low grade which can only be utilized for production of SSP. The fertilizer industry is highly regulated and monitored by the Government of India. The complex fertilizer market declined at a CAGR of ~% during the period FY’2012-FY’2017 from USD ~ million in FY’2012 to USD ~ million in FY’2017. This was majorly due to decontrol of fertilizer prices by the Indian government except for Urea, which augment the demand for Urea and had a negative effect on sale of complex fertilizers. Furthermore, drought like situation in during FY’2013-FY’2014, adversely impacted fertilizer sales in the industry as a whole. Monsoon, on which a major part of agriculture depends, was erratic and inconsistent which led to condensed demand for complex fertilizers in FY’2017. Consumption of complex fertilizers declined at a CAGR of ~% during the period FY’2012-FY’2017, whereas, production grew marginally at a CAGR of ~% during FY’2012-FY’2017.
India complex fertilizer market is highly competitive and concentrated with top 5 players comprising for over ~% of the market share, in terms of revenue in FY’2017. In terms of complex fertilizer production, the top 5 players accounted for about ~% of market share as of FY’2017. There are about 13 companies (3 public, 1 cooperative and 9 private companies) engaged in the production of complex fertilizer in India.
Coromandel international was the market leader and comprised for ~% market share in FY’2017, in terms of revenue. IFFCO emerged as the second largest player in this space and comprised for ~% market in 2017. Other prominent players included Paradeep Phosphates, Rashtriya Chemicals and Fertilizers Limited, Fertilizers and Chemicals Travancore, Gujarat State Fertilizers & Chemicals Limited and Gujarat Narmada Valley Fertilizers & Chemicals Limited.
Tata Chemicals Limited (TCL), Coromandel International and Zuari Fertilisers and Chemicals Limited are the only companies known to have invested and established blending plant facilities for customized NPK production. However, the production capacities of these plants are very small and farmers are reluctant in experimenting new grades of NPKs.
Agriculture is a key sector in Vietnam’s economy; more than 70% of the country population consists of farmers. Vietnam is dependent on imports for manufacturing of complex fertilizers as it lacks potash reserves. NPK fertilizers comprised for the largest share in overall fertilizer sector by accounting for around ~% of the overall fertilizer demand in 2017. Existence of a number of small scale complex fertilizer manufacturers has resulted in diverse quality of complex fertilizers found in the country. The average selling price of NPK is ~% higher than the selling price of Urea.
Consumption of complex fertilizers grew at a CAGR of ~% during the period 2012-2017, whereas, production grew at a CAGR of ~% during the same period. Complex fertilizers market witnessed growth at a CAGR of ~% during 2012-2017, inclining from USD ~ million in 2012 to USD ~ million in 2017. During 2017, the demand for complex fertilizers witnessed a rise due to favorable weather and land conditions.
Complex fertilizers in Vietnam were largely utilized for cultivation of cereals, with cereals accounting for about ~% of overall complex fertilizer consumption in 2017.
Vietnam’s complex fertilizer market is relatively competitive with more than 20 major NPK producers and hundreds of spontaneous companies. Binh Dien Fertilizer was the largest player in this space and comprised for ~% market share in overall complex fertilizer market in Vietnam in 2017, in terms of revenue.
Despite a balanced demand and supply equilibrium, domestic manufacturers keep investing in NPK projects. Several new and existing players are expected to setup new manufacturing plants or enhance the production capacity of existing sites. Consumption of complex fertilizers in Vietnam is expected to grow at a CAGR of ~% during the period 2018-2022. Ken Research estimates the consumption of complex fertilizer to grow in the next five years, rising from ~ million MT in 2018 to ~ million MT by 2022. Production of complex fertilizers is expected to grow at healthy CAGR of ~% during 2017-2022, and complex fertilizers market is expected to grow at a CAGR of ~% during the period 2017-2022.
Indonesia complex fertilizer market is highly regulated and state-owned companies have a monopoly in this sector. Farmers are supplied NPK fertilizers at highly subsidized rate. Although only NPK 15-15-15 is subsidized by the government, the grade accounted for about ~% of overall NPK fertilizer consumption in the country in 2017. The government has announced in its recent plans to redirect government funds for fuel subsidies to improve agricultural production by purchasing seeds and fertilizers.
Consumption of NPKs has inclined from ~ million MT in 2012 to ~ million MT in 2017. This represents growth at a CAGR of ~% during the period 2012-2017. The market for complex fertilizers grew from USD ~ million in 2012 to USD ~ million in 2017, representing growth at a CAGR of ~% during the period 2012-2017.
Indonesian complex fertilizer market is very concentrated with top 4 players together comprising for ~% of the market share, in terms of revenue. Petrokimia Gresik was the market leader by far, in terms of revenue, by accounting for ~% market share in 2017. Pupuk Kalimantan Timur emerged as the second largest player in this space and comprised for ~% market share. Pupuk Kujang and Pupuk Sriwidjaya Palembang accounted for ~% and ~% market share, respectively. Several other players including Yara International, Wilmar International and Malaysian Agrifert-Kuoks comprised for the remaining ~% market share in 2017.
Indonesia has a very balanced demand and supply equilibrium, with high level of regulation and participation from the government. Since the country has been steadily increasing its utilization of complex fertilizers over Urea and other mineral fertilizers and the government has been pushing local companies to develop more complex fertilizer plants, complex fertilizer manufacturers are expected to keep investing and expanding their manufacturing capabilities at least in the near future.
Asia complex fertilizer market is expected to register steady growth in the near future owing to anticipated rise in international market prices of Urea, DAP and MAP. Planned capacity expansion and rising demand for complex fertilizers due to ever increasing food demand in Asian subcontinent and heightened need to improve crop yield will drive the market growth in the mid-long term. As countries strive to increase domestic production of complex fertilizers and improve agricultural productivity, the market for complex fertilizers is expected to gain traction. Complex fertilizer market is anticipated to grow from USD ~ billion in 2018 to USD ~ billion by 2022 at a CAGR of ~% during the period 2018-2022. Overall, complex fertilizer production in Asia is expected to grow at a CAGR of ~% during 2018-2022, whereas consumption of complex fertilizers is expected to incline at a CAGR of ~% during the same period.
China is expected to continue its dominance in the Asia complex fertilizer market by accounting for highest production and consumption of complex fertilizers in the forecasted period 2018-2022. The market share of Top 5 countries is expected to grow during the next five years due to rise is demand for complex fertilizers owing to increasing focus of countries to improve agricultural productivity and provide food security for the citizens.
Keywords:
Asia Complex Fertilizer Demand
Asia Complex Fertilizer Consumption
Asia Complex Fertilizer Production
Asia Complex Fertilizer Market
Asia Granulated NPK Consumption
Asia Blended NPK Consumption
Asia NPK Fertilizer Demand
Asia NPK Fertilizer Consumption
Asia NPK Fertilizer Production
Asia NPK Fertilizer Market
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