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The potash market size is forecast to increase by USD 15.56 billion, at a CAGR of 4.77% between 2023 and 2028.
The growth rate of the market hinges on several key factors the increasing demand for fertilizers, where potash plays a pivotal role due to its contribution to crop yield enhancement. Additionally, potash and its derivatives find extensive application in food processing, further fueling market growth. This is particularly notable in the Asia-Pacific region, where the demand for potash is significantly high. As agricultural activities expand and food processing industries thrive, the demand for potash is expected to soar, driving the growth trajectory of the market in the foreseeable future.
Page Number | 171 |
Forecast period | 2024-2028 |
Historic period | 2018-2022 |
List of Exhibits | 182 |
Growth momentum & CAGR | Accelerate at a CAGR of 4.77% |
Market Growth 2024-2028 | USD 15.56 billion |
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Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for fertilizers is the key factor driving market growth. The deficiency of potassium results in reduced crop yields, poor crop quality, and poor utilization of water, and plants become more susceptible to pest and disease damage. Further, the rising number of agricultural activities is attributable to the rapid increase in population, which is expected to increase the consumption of fertilizers. The upswing in population growth has accelerated the demand for food globally.
Furthermore, the shrinking availability of arable land due to the increasing rate of urbanization and industrialization has created a growth opportunity for agricultural fertilizers to enhance the yield per hectare. Thus, these trends are expected to contribute significantly to accelerating the demand for agricultural fertilizers to increase the yield per hectare of the currently cultivated land. Therefore, with the growing demand for fertilizers, the market is expected to grow significantly during the forecast period.
Increasing application of potash in hydroponics is the primary trend shaping market growth. Hydroponics, a farming practice, can be used to overcome the constraints associated with the limited availability of arable land. This farming technique involves the cultivation of crops/plants in water with the help of mineral nutrient solutions instead of soil. Potassium chloride and potassium sulfate are used to supplement potassium in hydroponic solutions. Currently, the technique is widely used for bioresearch purposes and home-based farming. Also, the technique is slowly gaining traction in countries that have limited availability of arable land.
In addition, hydroponic farming also requires smaller amounts of pesticides, water, and space when compared to traditional farming. Hydroponic systems can be implemented in vertical farming as well. Several countries in Europe, such as France, Finland, Sweden, and the Netherlands, are involved in hydroponics in farming. North America is expected to be the fastest-growing region in hydroponics farming, led by countries such as Canada, the US, and Mexico. Therefore, such factors will drive market growth during the forecast period.
The high price of SOP fertilizers is a challenge that affects market growth. SOP fertilizers are expensive due to their complex manufacturing process. The Mannheim process is one of the common processes used in SOP fertilizer production. This process is expensive, which translates into higher prices for SOP fertilizers. Potassium chloride is the main raw material and represents 75% of the overall cost of SOP. Manufacturers who use the Mannheim process are unable to sell hydrochloric acid, which is a byproduct of the process, and therefore, must recover the production cost from the sales of SOP.
Moreover, SOP is a specialized fertilizer used for chloride-sensitive crops such as potatoes, tobacco, fruits, and vegetables. While potassium chloride is the most economical potassium fertilizer, the price SOP is more than USD 150 per ton over that of potassium chloride. Hence, the high cost of production of SOP fertilizers can be detrimental to market growth and pose a significant threat to the growth of the market during the forecast period.
The key basic plant nutrients used in the production of fertilizers include potash, nitrogen, and phosphate, which are added to the soil to enhance crop yields. Potash is also known as sylvite and consists of potassium chloride, sodium salt, and minor quantities of other minerals and clay.
The market share growth by the fertilizers segment will be significant during the forecast years. The application of potash fertilizers in the agriculture sector accounts for a major share, which is expected to grow in the next five years. The main growth driver for the market is the benefits associated with potash-based fertilizers for plant growth. Potash-based fertilizers play an instrumental role in increasing crop yield.
The fertilizers segment accounted for USD 49.55 billion in 2018. Also, other influencing factors, such as rapid urbanization and the declining availability of land for cultivation, have made it imperative for agriculturists and governments to focus on more yield per cultivated land. Additionally, the increase in global food demand has resulted in a subsequent increase in the application of potash-based fertilizers globally. The growing demand for various types of potash, including muriate of potash, potassium nitrate, and sulfate potash, which are mainly used as fertilizers, is expected to drive the growth of the fertilizers segment of the market during the forecast period.
The muriate of potash?segment will account for the largest share of this segment.?Muriate of potash is also known as potassium chloride. It is a colorless crystalline organic compound. Potassium chloride (KCI) is widely used as a fertilizer in the agricultural industry. Other applications of potassium chloride include pharmaceuticals, industrial applications, and food processing. Thus, the muriate of potash segment of the market is projected to grow at a significant rate during the forecast period, majorly due to the increasing use of potassium chloride in the fertilizer industry and wastewater treatment.
APAC is estimated to contribute 51% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
The agriculture industry in the APAC region is expected to be the major end-user of potash in the form of fertilizers during the forecast period. Factors such as the rise in the population and the growth in per capita income of individuals have increased the consumption of food products in the region. Additionally, the decline in the availability of arable lands due to increased industrialization and urbanization in APAC has accelerated the demand for fertilizers to increase crop yields.
Furthermore, countries such as India and China are expected to drive the demand for potash in the APAC region. The government initiatives to promote agriculture in India are also expected to drive the potash market in the country. Thus, such factors are expected to promote the growth of the agriculture market in APAC, which will accelerate the demand for fertilizers and potash as well during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arab Potash Co., Compass Minerals International Inc., EuroChem Group AG, Evergrow, GUJARAT AKSHA FERTILIZER CO., Haifa Negev technologies Ltd., HELM AG, Indian Potash Ltd., Intrepid Potash, Israel Chemicals Ltd., JSC Uralkali, Kalium Lakes Ltd., Kiran Chemicals, KS Aktiengesellschaft, Nutrien Ltd., Tessenderlo Group NV, The Mosaic Co., Yara International ASA, and JSC Belaruskali
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Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.
Potash Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.44 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
US, Canada, China, India, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agrimin Ltd., Arab Potash Co., Compass Minerals International Inc., EuroChem Group AG, Evergrow, GUJARAT AKSHA FERTILIZER CO., Haifa Negev technologies Ltd., HELM AG, Indian Potash Ltd., Intrepid Potash, Israel Chemicals Ltd., JSC Uralkali, Kalium Lakes Ltd., Kiran Chemicals, KS Aktiengesellschaft, Nutrien Ltd., Tessenderlo Group NV, The Mosaic Co., Yara International ASA, and JSC Belaruskali |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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