Market Trends of asia-pacific fertilizers Industry
The increase in cultivation area is attributed to the growing domestic and export demand
- Field crop cultivation dominates the Asia-Pacific region, accounting for more than 95% of the total crop area. Rice, wheat, and corn are the major field crops produced in the region, together accounting for about 38% of the total crop area in 2022. The rising area under cultivation is expected to increase the need for fertilizer usage in the country.
- The Asia-Pacific region, which includes China, India, Pakistan, and Australia, is among the world's largest wheat producers. China and India are also the world's largest wheat producers and consumers. Wheat is one of the major staple foods of this region, driving the increase in demand and consumption. Notably, the area under wheat cultivation increased by 638.6 thousand ha from 2018 to 2022. In 2022, China accounted for the production of 138 million metric tons of wheat, making it the largest wheat producer in the world, and India recorded wheat production of 103 million metric tons.
- Rice is the largest cultivated field crop in the region. Its cultivation alone accounted for about 16.44% of the total agricultural land in 2022. Rice is the staple food of Asia and most parts of the Pacific region. China was projected to produce 147 million tons of rice, and India was expected to harvest 124 million tons of rice in 2022. India was also expected to consume 109 million tons while exporting a world-leading 19.5 million tons.
- The surge in both domestic and international demand for field crops has prompted an expansion in the cultivation area dedicated to these crops. This significant increase in cultivated land is expected to have a direct and positive impact on the Asia-Pacific fertilizer market throughout the 2023-2030 period.
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About 28% of nitrous oxide emissions from cropland globally are from Chinese agricultural lands
- The average application rate of primary nutrients (nitrogen, potassium, and phosphorus) in field crops in China stood at 129.1 kg/ha in 2022. Nitrogen dominated the mix, accounting for 58.5%, followed by potassium at 25.3% and phosphorus at 16.1%. The primary nutrients are predominantly applied through soil-based methods. In 2022, conventional soil-based primary macronutrient fertilizers held a commanding 69.2% share of the primary macronutrient fertilizer market.
- Asia witnesses a significant demand for primary nutrients, especially nitrogen and potassium fertilizers, owing to the prevalent deficiencies in these nutrients in the region's soils. Notably, the Asia-Pacific region, with its vast land area and population, leads the global agrochemical production and consumption. China's agricultural lands alone contribute to about 28% of the world's nitrous oxide emissions from croplands.
- Among field crops, wheat recorded the highest average primary nutrient application rate at 214.9 kg/ha in 2022. Nitrogen took the lead among primary nutrients, with an average application rate of 448.5 kg/ha. This high nitrogen demand is attributed to its crucial role in plant metabolism, as well as its presence in chlorophyll and amino acids.
- The contamination of surface and groundwater with nitrogen and phosphorus has been linked to inadequate guidance on fertilizer application rates and the potential for excessive crop yields. However, there is a noticeable shift toward the adoption of highly efficient fertilizers.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Micro and sprinkler irrigation systems has made horticultural crop cultivation more convenient in Asia-Pacific
- The deficiency of boron, zinc, manganese, and molybdenum is extremely common in cruciferous vegetables
- Sandy soils and heavy dark clay soils are most likely to show secondary micronutrient deficiencies
- India, China, Pakistan, Bangladesh, and Indonesia collectively accounted for 80% of agricultural irrigation usage in Asia-Pacific in 2022
- Rapeseed/canola accounted for the highest average nutrient application rate of 9.2 kg/hectare in 2022
- China and Bangladesh exhibit an average primary macronutrient application rate in vegetable crops that surpasses the Asia-Pacific average by 1.60%
- Salinity is the primary factor behind the declining calcium and magnesium content in Asia-Pacific, which exhibits higher salinity levels than soils in other parts of the world
