Southeast Asia Fertilizer Market Research Report 2021 – Growth, Trends, COVID-19 Impact, and Forecast to 2026 –


DUBLIN – (COMMERCIAL THREAD) – The report “Fertilizer Market in Southeast Asia – Growth, Trends, Impact and Forecasts of COVID-19 (2021 – 2026)” has been added to offer.

Southeast Asia Fertilizer Market Expected to Register 4.2% CAGR

Due to labor shortages and the closure of fertilizer factories located in integrated chemical complexes, shipments were affected during the initial lockdown process. The fertilizer shortage in countries like Myanmar, which is heavily dependent on imports, has been severely impacted due to the pandemic. Prices of imported fertilizers have skyrocketed across the country.

Agriculture is the main sector of the national economy in most countries in the Southeast Asia region. As these countries develop the sector through agricultural diversification and extensive multi-crop programs, the demand for agricultural fertilizers has continued to grow.

Some countries, endowed with raw material resources, such as natural gas, have developed and expanded their production facilities, while others continue to depend on imports from neighboring countries in the region and beyond. The production of urea-based fertilizers has been the dominant sector of the fertilizer industry in Southeast Asia, the main reason being the availability of significant natural gas resources.

Vietnam and Indonesia are among the largest consumers of urea in Southeast Asia. The growth in consumption is mainly driven by the demand for urea as a direct application fertilizer. According to the FAO, there is a significant increase in urea production in Vietnam in recent years. However, due to the negative impact of weather conditions on Vietnamese agriculture, there is a slight decrease in the growth of urea consumption in 2020.

Key market trends Need to improve productivity in a context of growing demand for food crops

The population of the region is growing at a rapid rate. The growing population increases the demand for food. Providing food for this growing population is important for increasing production. On the other hand, increasing urbanization and industrialization could lead to a decrease in arable land in the coming years. Fertilizers have long been used to increase crop productivity.

The proper and balanced use of fertilizers is likely to help feed the growing population from the available arable land. In order to increase maize production due to growing demand from the poultry sector, the Indonesian government has also implemented policies promoting domestic production of maize and other crops.

According to the Food and Agriculture Association, fruit yield in Southeast Asia declined to 118,890 hg / ha in 2019, from 127,138 hg / ha in 2016. This indicates the need to increase the productivity of agricultural land in applying fertilizers as the growing health awareness and demand for fruits increase in the region. This is expected to drive the market growth during the forecast period.

Technical and scientific advancements have made fertilizer application more efficient in recent years and have helped farmers maximize the benefits of fertilizers, while reducing the risks of their over / under / misuse. A growing number of innovative fertilizer products contain secondary macronutrients (S, Ca and Mg) and micronutrients (eg Zn and B) to cope with the growing occurrence of deficiencies.

Therefore, fertilizers are seen as the future of crops to increase production and fill in gaps, as they can solve problems, such as soil salinity and chemical runoff from fields, among others. Therefore, they ensure that the soil is more fertile over time.

Cereals and grains segment dominates the market

Rice is the main staple food in the region. Modern mechanized farming methods and new varieties of rice are gaining popularity in the region. Some research institutions, such as the International Rice Research Institute (IRRI), are actively involved in research aimed at promoting rice cultivation in the region. She introduced several varieties of rice to Vietnam and is also involved in the irrigated rice ecosystem. More than 1,600 varieties of rice are cultivated in the Mekong Delta.

More nitrogen fertilizer is applied to rice cultivation because the soil in the area is depleted of nutrients due to intensive rice cultivation. Thus, the increasing research and the launch of new varieties encourage the cultivation of rice and lead to the increased use of fertilizers, which in turn stimulates the growth of the market in the region.

According to FAO data during the study period, the grain and grain industry in the Philippines produced 27.2 million metric tons of grains and grains in 2017. Rice, corn and sorghum are the main crops grown in the Philippines. Of all the crops, maize and rice are the two dominant crops, which use a significant share of fertilizer in the country. Maize grown in the Philippines uses 17.7% of total Philippine fertilizer, according to FAO analysis.

The countries are focused on achieving self-sufficiency in grain production and require the use of an appropriate number of fertilizers, which in turn drives market growth in the region.

Competitive landscape

The fertilizer market in Southeast Asia is highly fragmented in nature with major players accounting for 22.43% market share. Major players, such as Yara International and Southern Fertilizer Ltd, are among the global fertilizer manufacturers.

PT Petrokimia Gresik, (PT. Pupuk Kalimantan Timur, Pupuk Siriwidjaya Palembang, PT Pupuk Kujang, Wilmar International Limited and Thai Central Chemical Public Company Limited are some of the major players in the market studied.

New product launches, partnerships, expansions and acquisitions are the main strategies adopted by the main companies in the market.

Companies mentioned

  • Yara International ASA

  • Terragro Fertilizer Co. Ltd

  • Thai Central Chemical Public Company Limited

  • Southern Fertilizer JSC

  • Ninh Binh JSC phosphate fertilizer

  • Song Gianh Company

  • Saksiam Group

  • Nufarm

  • Farmcochem Group

  • PK fertilizer

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