The covid-19 has shown a direct impact on the supply chain of the fertilizers market in the Asia Pacific. Crop producers were affected by disruptions in local and international transport systems, clogged ports and roads, and delays in customs clearances which inhibited their access to intermediate inputs like fertilizers. The dependence of grains and oilseeds production on these inputs has resulted in reduced production due to the inaccessibility of inputs by farmers.
The major factors driving the market are technological innovations in the fertilizer market, growth in the demand for micronutrient fertilizer, decrease in per capita arable land, and increase in demand for food. However, high production costs and growing demand for biofertilizers are slightly restraining the growth of the market.
Key Market Trends
Decreasing Per Capita Arable Land and Increasing Demand for Food
The population in the Asia-Pacific region is increasing at a rapid rate. This growing population is adding to the food demand. Supplying food to this growing population has become a threat. On the other hand, arable land is declining, due to industrialization and urbanization. Fertilizers have been used for a long time to increase the productivity of crops. This adequate and balanced use of fertilizer may help in feeding the growing population from the available cultivable land. Hence, the major factors driving the demand for fertilizers include the need for crop intensification while pursuing increasingly sustainable practices, and seeking biological alternatives to boost production with decreased pressure on the environment to close the yield gap. According to the FAO, the fertilizer consumption is projected to increase by 1% in South Asia in every year upto 2030 to increase agricultural Productivity.
Competitive Landscape
The Asia-Pacific fertilizers market is highly fragmented with the top five market players cornering very minimal share in the market. The development of regional markets and increasing shares of local players in the foreign direct investment are the major factors promoting the fragmented nature of the market. Some of the players operating in the market are Yara International, Sinofert Holdings Ltd, Groupe OCP, Pt Petrokimia Gresik and China Blue Chemical Ltd,
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