Global potash fertilizer market share is poised to grow with a burgeoning population and rising food consumption. It has prompted farmers to focus on improving crop yield and encouraged manufacturers to boost the production of potash fertilizers.
Potash fertilizers are prevalently known to describe a range of K-containing agricultural fertilizers. The inclusion of potash fertilizers helps enhance plant quality and boost their shelf life. Technological developments and awareness will remain instrumental in the potash fertilizer market expansion. Robust initiatives undertaken by governments to modernize farming will augment agriculture productivity. Notably, potash fertilizers will find increased applications in wheat, rice, soybean, palm oil, sugar and apples.
Potash fertilizers market share from the broadcast segment will gain prominence owing to its uniform distribution of material on the soil surface. Considering that broadcast fertilizer needs inexpensive application equipment, minimizes the chance of salt injury to seedlings and increases the overall fertility of the soil, industry leaders will continue to up their investments in the portfolio.
In terms of type, potassium nitrate will gain a considerable surge as a fertilizer for high-value crops. Farmers seek to fertilize with potassium nitrate as it is easy to handle and is compatible with other fertilizers for high-value specialty crops. Manufacturers are likely to further the investment in potassium nitrate fertilizers in the next few years.
Potash fertilizers will be profoundly used in rice production, with the Asia Pacific poised to contribute to the demand for the fertilizer. Notably, the Government of India projected rice production at 102.36 million tons in the 2020-21 season. Meanwhile, the USDA has forecast Vietnam 2020/21 rice production at 27 million metric tons. Asia Pacific potash fertilizer industry share will grow at a significant rate, partly attributed to the consumption of rice, cereals and wheat.
Industry players are expected to further their investments in the North America market following the surge in potash production. Globally, Canada had the largest reserves of potash with 1 billion tons in 2019. It accounted for around 31.6% of the world’s total potash production in the same year. With Canada being the hub for potash production, stakeholders are likely to expand potash fertilizer market penetration in the region.
Major participants in the global potash fertilizers industry are CF Industries, Yara, Israel Chemicals, Mosaic, OCP and Urakali, among others. Given that the industry is largely a commodity business, investment in R&D activities will be minimal. A soaring number of fertilizer companies have started investing in non-traditional domains to become full-service plant nutrition solution providers.
Uralchem, for instance, acquired a majority stake in Uralkali in December 2020. It may help companies boost production and logistics efficiency and will provide an opportunity to propel potassium portfolio.
Israel chemicals inked a deal with Indian Potash Limited in May 2020 to supply around 410,000 metric tons of potash to be supplied through December 2020. Similarly, the Tel-Aviv-based company signed various deals in China to supply more than 900,000 metric tons of potash by 2020-end.
COVID-19 impact on potash fertilizer market share
The influence of the COVID-19 outbreak in the potash fertilizer market has been subtle, partly attributed to the exemption of lockdown restriction on agriculture activities. Panic buying from farmers, coupled with a spike in crop prices, has led to a surge in demand for potash fertilizers. However, a dip in wheat production is likely to hamper the industry outlook. According to the USDA, global wheat production in January 2021 was projected to be 772.64 million metric tons, a plunge of 1.02 million tons as compared to the previous month’s forecast. Moreover, the environmental footprint of potash fertilizers will come under increasing scrutiny with new governments’ regulations.
That said, burgeoning food consumption will complement the rise in potash production, which in turn, will stimulate global potash fertilizer market value.