Market Trends of asia-pacific specialty fertilizer Industry
The significant expansion of the cultivation of major growing crops is anticipated to boost the growth of the fertilizer market
- Field crop cultivation dominates the region, encompassing over 95% of the total crop area. In 2022, the region's major field crops were rice, wheat, and corn, collectively occupying around 38% of the total crop area. This expanding cultivation area is poised to drive up fertilizer demand in the country.
- The Asia Pacific, including China, India, Pakistan, and Australia, stands as a global powerhouse in wheat production. Notably, China and India lead both in production and consumption. Given wheat's status as a staple food in the region, coupled with a 638.6 thousand ha increase in cultivation area from 2018 to 2022, the demand for wheat has been on the rise. In 2022, China took the lead, producing 138 million metric tons, followed by India at 103 million metric tons.
- Rice takes the crown as the region's primary field crop, occupying a significant 16.44% of the agricultural land in 2022. Being a staple in Asia-Pacific, rice holds immense importance. In 2022, China is projected to produce 147 million metric tons, while India is set to harvest 124 million metric tons. Notably, India is poised to consume 109 million metric tons and emerge as the top exporter with 19.5 million metric tons.
- The surging demand, both domestically and internationally, for field crops has spurred an expansion in cultivation areas. This notable uptick in cultivated land is expected to have a direct and positive impact on the Asia-Pacific fertilizer market during 2023-2030.
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About 28% of nitrous oxide emissions from cropland in the world are from China's agricultural lands
- The average application rate of primary nutrients (nitrogen, potassium, and phosphorus) in field crops in the country stood at 129.1 kg/ha in 2022. Nitrogen dominated, accounting for 58.5% of the total, followed by potassium at 25.3% and phosphorus at 16.1%. The primary nutrient application in field crops is predominantly done through soil-based methods. In 2022, conventional soil-based primary macronutrient fertilizers held a 69.2% share of the primary macronutrient fertilizer market.
- Asia witnesses a significant demand for primary nutrients, especially nitrogen and potassium fertilizers, due to prevalent deficiencies in these nutrients in the region's soils. Notably, Asia-Pacific, encompassing the largest land area and population globally, leads both in agrochemical production and consumption. China's agricultural lands alone contribute around 28% of the global 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 top spot among primary nutrients, with an average application rate of 448.5 kg/ha. This high nitrogen requirement stems from its crucial role in plant metabolism, as well as its presence in chlorophyll and amino acids.
- Historically, inadequate guidance on fertilizer application rates, coupled with a focus on maximizing crop yields, has led to nitrogen and phosphorus contamination in surface and groundwater. However, the industry is now witnessing a shift toward more efficient fertilizers.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The growing demand for fruits and vegetables is driving the expansion of horticulture cultivation area in Asia-Pacific
- The deficiency of boron, zinc, manganese, and molybdenum is extremely common in cruciferous vegetables
- China and Bangladesh has 1.60% higher average application rate per hectare compared to the rest in Asia-Pacific
- Salinity is the major cause of the declining calcium and magnesium content in the soil. Asia-Pacific has more saline soils compared to other regions in the world
- Rapeseed/canola accounted for the highest average nutrient application rate of 9.2 kg/hectare in 2022
- About 28% of nitrous oxide emissions from cropland in the world are from China's agricultural lands
- Sandy soils and heavy dark clay soils are most likely to show secondary micronutrient deficiencies
- India possesses one of the most expansive irrigated regions, relying on a comprehensive infrastructure of canals, reservoirs, and tube wells to bolster its diverse agricultural sector.
