Potash Fertilizers Market, By Product Type (Potassium Nitrate, Sulphate of Potash, and Potassium Chloride), By Composition (Organic and Inorganic), By Form (Solid and Liquid Soluble Powder), By Crop Type (Oil seeds & Pulses, Fruits & Vegetables, Cereals & Grains, and Others), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Feb 2024

Code : CMI1398

Pages :200

Formats :

Excel and PDF

Industry : Agrochemicals

Potash Fertilizers MarketSize and Trends

Global potash fertilizers market is expected to reach US$ 47.19 Bn by 2031, from US$ 32.23 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 5.6% during the forecast period (2024-2031).

Potassium (K), which is often referred as Potash, is one of the essential nutrients used in the fertilizer industry. Increasing demand for food grains as well as fruits & vegetables are expected to drive growth of the global potash fertilizers market over the forecast period. Potash fertilizers offer advantages such as the prevention of infection of plants from pests and other microbes.

Global Potash Fertilizers Market Trends:

Sustainable farming: Sustainable farming practices are having a significant influence on the global potash fertilizers market. With growing consumer demand for organic and sustainably grown food, many farmers are transitioning to more environmentally-friendly methods of cultivation. This shift away from conventional chemical-intensive agriculture is reducing the usage of potash-based fertilizers.

Many farmers are adopting practices like crop rotation, organic manure application, integrated pest management and precision farming to improve soil health and minimize negative environmental impacts. These are replacing synthetic potash fertilizers with natural or organic soil amendments like compost, green manure and bone meal. According to the 2021 report by the International Federation of Organic Agriculture Movements, the number of organic farmers across the world has increased by over 30% from 2018 levels. The shift towards organic production methods has led to declining demand for water-soluble potash fertilizers in many countries.

Consolidation activities among major potash producers: The global potash fertilizers market has seen significant consolidation activities among major producers over the past few years. Mega-mergers such as the formation of Nutrien through the merger of Agrium and PotashCorp have created agricultural behemoths with unprecedented scale and market power. As the biggest producer by a wide margin, Nutrien is now better positioned than ever to leverage economies of scale, achieve significant cost synergies, and gain pricing influence over buyers globally. Such industry consolidation is likely to continue as smaller players seek to bolster production capabilities and competitive positioning through partnerships or acquisitions.

According to World Bank data, demand for potash fertilizers is projected to grow steadily through 2025 to support increasing global food needs. This steady downstream demand flow bodes well for top producers in a consolidated market structure to exercise stronger control over supply and pricing. Furthermore, Russia's move in 2020 to restrict potash exports, according to the United Nation Comrade database, during the pandemic disrupted global supply chains and inflated prices. This type of geopolitical event highlights the benefits of consolidation in mitigating risks, as consolidated firms can better navigate supply shocks through their diversified asset bases and geographic footprints.