Asia Pacific Fertilizer Market Outlook, 2029

Asia Pacific region has a favourable weather that best suits agriculture and so is the foremost occupation of the people. China and India together constitute for 36% of the world’s population. Such expanding population directly relates to increased food production. Fertilizer is the indispensable part of this. New land is inevitable and the existing land areas are being converted for other uses. This means intensification of existing land areas with good amounts of fertilizer nutrients. Asia Pacific region is dooming from a naturally fertile soil to a fertilizer dependent soil. Countries like Japan, Korea and Taiwan are estimated to be applying theomax in agriculture with no extra yields. Asian countries lack soil testing that are effective than other western countries. This is due to high prices for soil testing and an average Asian farmer cannot afford to shell out more than his income. According to the research report "Asia Pacific Fertilizer Market Overview, 2029," published by Bonafide Research, the Asia Pacific Fertilizer market is anticipated to grow at more than 3.74% CAGR from 2024 to 2029. China is the principal market for fertilizers in this region as one of the major fertilizer exporter, producer and consumer. Less arable land results in repetitive use of fertilizers on same piece of land. Complex fertilizers are expected to be growing in demand by farmers at a rapid rate while nitrogen fertilizer is indispensable fertilizer. The fertilizer raw materials are highly fragmented and unequally found around the world as a result of which the transportation costs are very high. Nitrogen and Phosphorus fertilizers amount for majority market share in Asia Pacific. Dry fertilizers are expected to grow enormously in this region during the forecast period as liquid fertilizers are associated with high costs. China is estimated to be exporting around five to six Million Tonnes of fertilizers to the world in a year. Chinese government banned the fertilizer exports in lieu of prices skyrocketing in their home country due to scarcity of fertilizers. This move had a drastic effect on the world fertilizer markets. China is the largest producer of phosphates and exported to USA, India, Pakistan and South East Asia. Chinese Agriculture Industry Development reported to have set a goal to become self- sufficient in staple food grains like rice, wheat, corn by 2035. China’s 2021 stats showed grain production hit a new level of 685 Billion Kg with significant rise in production of rice, wheat, corn, potatoes while, and beans production fell drastically.

Plants need all the three nutrients for their overall growth namely, nitrogen, phosphorus and potassium. In spite of being naturally available plants cannot absorb these nutrients and so are created in fertilizer form for absorption by plants. Nitrogen is mainly available from the natural air, but ammonia is a combination of air, hydrogen and natural gas. Plants need the nitrogen to take up from the roots as they are unable to absorb naturally present nitrogen in air. Since millions of years ago potassium is found from sea beds that are formed there naturally. The woods ashes left behind after burning is high in potassium and the name potash has originated from these phenomena. Again this potassium’s are deep down the soil from which plants cannot absorb them. The largest potassium deposits are found in Russia, Belarus, Canada and China. Phosphates are an insoluble calcium rock that plants cannot absorb directly. China, Russia and Morocco have some of the world’s biggest rock phosphate reserves. The application segment of the fertilizer market in the Asia Pacific region is experiencing substantial growth, driven by increasing agricultural demands and changing dietary preferences. The vegetable and fruits sector is expanding rapidly, as consumers shift towards healthier diets, prompting farmers to enhance production through targeted fertilizer applications. In parallel, the cereals and grains segment remains a cornerstone of agricultural output, with significant investments in nitrogenous fertilizers to boost yields of staple crops like rice and wheat, which are crucial for food security in densely populated countries. The oilseeds and pulses segment is also gaining traction, supported by rising demand for protein-rich diets and sustainable farming practices. Governments across the region are implementing initiatives to promote the cultivation of these crops, further driving fertilizer usage. Additionally, the others category includes various commercial crops benefiting from specialized fertilizers tailored to specific nutrient requirements. The growth of the physical formulation segment of the fertilizer market in the Asia Pacific region is characterized by a notable shift towards both dry and liquid fertilizers, each catering to specific agricultural needs. Dry fertilizers, traditionally dominant, continue to be widely used due to their ease of application and long shelf life, making them suitable for large-scale farming operations. However, the liquid fertilizer segment is witnessing rapid expansion, driven by modern agricultural practices such as fertigation and precision farming. Liquid fertilizers offer advantages like rapid nutrient absorption and precise application, allowing farmers to meet the specific nutritional requirements of crops more effectively. This trend is particularly significant in high-value crops like fruits and vegetables, where uniform nutrient distribution is crucial for optimal growth. The increasing adoption of liquid formulations is also supported by government initiatives promoting sustainable agriculture and efficient resource use. COVID-19 Impacts: The COVID-19 pandemic has had a mixed impact on the Asia Pacific fertilizer market. Initially, the sector faced significant disruptions due to lockdowns and restrictions, which hindered the supply chain, leading to delays in the transportation of fertilizers and raw materials. This resulted in temporary shortages and price fluctuations, particularly affecting nitrogenous fertilizers essential for staple crops. However, as the pandemic progressed, there emerged a heightened awareness of sustainable agricultural practices and food security, fostering a shift towards organic and eco-friendly fertilizers. Governments in the region began implementing supportive policies and subsidies to promote agricultural resilience, which is expected to drive long-term growth in fertilizer demand. Major Companies present in the market The Mosaic Company, Yara International, Nutrien Limited, K+S Aktiengesellschaft, OCP Group, CF Industries Holdings, Sociedad Química y Minera de Chile (SQM), National Fertilizers Limited Coromandel International Limited, EuroChem Group, Wesfarmers, Indian Farmers Fertilizer Co-operative Limited (IFFCO) Considered In the Report • Geography: Asia-Pacific • Historical year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecasted year: 2029 Aspects covered in this report • Europe fertilizer market with its value and forecast along with its segments • Country-wise fertilizer market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

Countries covered: • China • Japan • India • Australia By nutrient in the report • Nitrogenous fertilizer (Urea, ammonium sulphate, Calcium ammonium nitrate/ ammonium nitrate, others UAN, anhydrous ammonia etc.) • Phosphate fertilizer (Diammonium phosphate, monoammonium phosphate, others phosphate rock, superphosphates etc.) • Potash fertilizer (Muriate of potash/potassium chloride, sulphate of potash others potassium nitrate etc.) • Complex fertilizer (NPK, NK, PK, NP compounds etc.) By Product type in the report: • Urea • Ammonium sulphate • Calcium ammonium nitrate/ Ammonium nitrate • Di-ammonium phosphate (DAP) • Mono-ammonium phosphate (MAP) • Muriate of potash (MOP)/ (KCl) • Sulphate of potash (SOP) • Complex (NPK, NK, PK, NP) By physical formulation in the report: • Dry • Liquid By Application in the report: • Vegetable & Fruits • Cereals & Grains • Oilseeds & Pulses • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to fertilizer industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.