Asia Pacific Fertilizer Market size exceeded USD 97.4 billion in 2021 and is poised to showcase around 2% CAGR from 2022 to 2028.
The Asia Pacific region is home to countries with the highest population rates in the world. To this end, regional governments have been focusing on improving the quality and quantity of crop yields to cater to the ever-expanding population base. According to the Ministry of Agriculture and Rural Affairs of the People’s Republic of China, the national per capita grain share was estimated at 483 kilograms during 2021, about 20.75% higher than internationally recognized security standard of 400 kg.
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Food consumption behaviors are changing amongst regional consumers, especially after the COVID-19 health emergency. More individuals are opting for healthier food than before the pandemic. They have been showing greater inclination toward chemical-free products. As such, numerous companies have been developing organic products that have minimal negative impact on soil quality.
Regional consumers have become more conscious about the transparency in product labeling practices. In this regard, during 2020, the government of Indonesia passed a regulation enforcing assessment and registration of all biofertilizers, soil enhancers, and organic fertilizers. This move will ensure highest safety, efficiency, and quality standards, at the same time protecting consumers.
Growing health concerns, such as heart conditions, kidney failures, abnormal blood pressure, have been affecting the food decisions of the regional consumers. According to the Australian Government’s Department of Health, coronary heart disease is the top cause of disease burden mortality in the nation, leading to over 11% of total deaths. Due to the higher awareness regarding lifestyle choices associated with these health conditions, individuals are consuming more fresh agricultural produce.
The liquid segment is expected to show an upward curve in the market over the next few years. Several regional farmers have ben sprinkling and spraying water-soluble fertilizers in their fields to accelerate nutrient uptake of plants. Over the next decade, products that help maintain NPK nutrient balance will be widely adopted in the region, as they are compatible with all types of pesticides.
The organic fertilizer market will reach USD 2.8 billion revenue by 2028. Product benefits, such as retention of soil health, minimal damage to plants, and higher sustainability are strengthening product use. Since these products are rich in organic matter, they help microbes thrive, thereby improving nutrient access for plants. As more product formulations include nitrogen, phosphorous, and potassium (NPK) mixes, mineral-based organic fertilizers industry will continue to grow.
Asia Pacific dry fertilizer market share from the horticulture segment will demonstrate remarkable growth through 2028. Governments have been supporting the horticulture sector by sanctioning subsidies, incentives, and funds. Recently, in June 2022, in order to fortify the horticulture value chain across Indian province of Haryana, the state government had approved Japan International Cooperation Agency’s funding scheme worth over USD 328 million. With this collaboration, the domestic market will address consumer needs, at the same time ensuring adequate exports of fruits and vegetables.
Some of the leading companies involved in the Asia Pacific fertilizer market are Yara International ASA, National Fertilizers Ltd., Haifa Group, Coromandel International Limited, Bunge Limited, Nutrien Ltd., Indian Farmers Fertiliser Cooperative Limited (IFFCO), Israel Chemicals Ltd. (ICL), Syngenta Group, and Sumitomo Chemical Company, Ltd.
These companies have been signing contracts to cater to gardening, agriculture, and horticulture applications, among others. In the coming years, the companies will focus on expanding their production capacity in a bid to avoid long-standing shortages.