POTASSIUM SULPHATE MARKET ANALYSIS

Global Potassium Sulphate Market was valued at US$ 4,236.3 Mn in 2022, and is expected to exhibit a CAGR of 5.20%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 6,357.3 Mn by 2030. Over the forecast period, the global potassium sulphate market is expected to grow at a rapid pace. This is due to the increased use of potassium sulphate in a variety of end user industries such as cosmetics, pharmaceuticals, food, and others. As an alternative to sodium bicarbonate, potassium sulphate is used as a weighting agent in the oil and gas industry, glass production, and soda blasting.

Global Potassium Sulphate Market: Growth Drivers

Increase in agricultural output

It is becoming more common to use the unique properties of potassium sulphate, an inorganic compound that contains sulfuric acid, to produce high-quality crops and nutrient-rich feed. Due to the low concentration of chloride, which can harm crops, potassium sulphate is growing in popularity in the agricultural industryPotassium sulfates are used in the agricultural sector for a number of purposes, including the application of potassium sulfate to encourage optimal growth as the soil builds up chloride from irrigation water. Potassium increases the thickness of the outer cell walls, which helps the plant resist disease and promotes the growth of strong stems. A sufficient potassium supply can increase a plant's ability to withstand drought by reducing moisture loss from growing plants. They enhance the flavor, storage quality, and color of fruits and vegetables. Furthermore, the rising demand for arable land and high-yielding crops in Asian and Latin American countries is expected to drive the market. For instance, Uralkali, one of the largest potash producers, announced in May 2020 that Uralkali Trading, a wholly-owned subsidiary of Uralkali, had concluded a contract for potash deliveries with Indian Potash Limited (IPL), the major Indian fertilizer importer.

Figure 1. Global Potassium Sulphate Market, By End User, 2022 

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Growing demand in medical and industrial applications

Since the 17th century, potassium sulphate, an inorganic compound, has been used as a medical treatment ingredient. It is used to treat urinary issues and to increase perspiration. They are also used in a variety of industrial processes ranging from the manufacture of various chemicals to the dying industry. Potassium sulfate is used to make high-quality inorganic compounds like potassium alum, potassium per sulfate, extremely pure potassium sulfate, and potassium water glass, as well as a catalyst for special plasters, gypsum board, and anhydrite screed. They are also used as an additive in the manufacture of water-based, chloride-free drilling fluids, fire extinguishing powder for class B/C fires, and drawing lubricants. As a result of the thriving medical and chemical industries, it is expected that demand will increase, driving the potassium sulphate market share during the forecast period.

Figure 2. Global Potassium Sulphate Market, By Region, 2022 

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Global Potassium Sulphate Market: Market Restraints

Price volatility and natural fertilizers

The price of potassium sulphate fluctuates rapidly due to the volatility of potassium prices. For example, potassium sulphate prices fell by 0.33% between the beginning of August 2021 and the middle of August 2021. Furthermore, according to a study published by the University of Calabar, the use of neem fertilizers in organic farming significantly increases crop yield. As a result, these factors have become the major challenges of potassium sulphate in terms of consumption, impeding market growth during the forecast period.

Global Potassium Sulphate Market: Market Segmentation

On the basis of end user industry, the agriculture segment held the largest share of the potassium sulphate market in 2022 with a share of over 40%. Potassium sulphate, an inorganic substance, is an excellent source of potassium (K) nutrition for plants and crops. The K component of K2SO2 is comparable to other potash fertilizers that are widely used. Additionally, they provide an important source of sulphate (S), which supports the plants' need for enzymes and protein synthesis. One of the main market drivers is the rise in demand for high-quality crops. For instance, the Food and Agriculture Organization (FAO) reports that global cereal production increased by 1.7% in 2021 compared to 2020. This rising demand for cereals and other crops is expected to provide significant traction for market growth in the coming years. Many Asia Pacific countries' GDP growth is dependent on agricultural output, creating a strong demand for the market and driving the growth of the agricultural industry. As a result, the growing emphasis on agriculture in these countries (China, India, South Korea, Japan, and Indonesia) is expected to fuel the growth of the global potassium sulphate market over the forecast period.

Global Potassium Sulphate Market: Regional Analysis

Asia Pacific region held the largest share in the potassium sulphate market in 2022 up to 41%, owing to the accelerating agricultural industries in the region. The major growth drivers are population growth and rising food demand, particularly in China, India, and Indonesia. Development in the Middle East and Africa is expected to be the slowest due to saline soil quality and recurring droughts. The government has already begun to address the situation, and opportunities may become available in the near future. The global potassium sulphate industry is driven by the use of potassium sulphate in fertilizers. This is due to the product's unique benefits, which include a high potassium content, low chloride, and a low salt index. Expected to promote regional market growth over the course of the forecast period. Additionally, it is employed in the pharmaceutical sector, which is anticipated to drive the market growth during the forecast period due to the rise in lifestyle diseases.

Global Potassium Sulphate Market: Recent Developments

• In December 2020, Interpid Potash has provided pricing updates for Potash and Trio for 2021. The company is the largest producer of potassium chloride, also known as muriate of potash, in the U.S.
• In September 2020, Tessenderlo Kerley and Van Iperen International signed a long-term distribution agreement to sell Kemira's high-quality potassium sulfate. Tessenderlo Group is a diversified industrial group that focuses on agriculture, valorizing bio-residuals, and providing industrial solutions. The company markets its products to farm supply outlets and general supply stores throughout the Netherlands.
• In July 2022, Tessenderlo Group, a chemical company based in Belgium, merged with Picanol Group. The merger increases transparency and simplifies both companies' group structures by combining them into one industrial group. Picanol Group is a diversified industrial group based in Belgium that operates in mechanical engineering, agriculture, food, water management, and other industrial markets.

Global Potassium Sulphate Market: Key Companies

Major players operating in the global potassium sulphate market include Tessenderlo Group, K+S KALI GmbH, Compass Minerals International Inc., SQM SA, Sesoda Corporation, Migao Corporation, The Mosaic Company, Yara International ASA, SOPerior Fertilizer Corp., and Interpid Potash, Inc.

Global Potassium Sulphate Market- Impact of Coronavirus (Covid-19) Pandemic

Since the outbreak of COVID-19, the fertilizer industry has been significantly impacted in many parts of the world. The COVID-19 outbreak has partially disrupted fertilizer manufacturing and supply chains, resulting in lower availability and sales in 2020. The suspension of farming practices due to the uncertain food service industry and a labor shortage in the first half of 2020 also contributed to a drop in potassium sulphate sales. However, the market experienced a turnaround in the second half as a result of the essential category status granted to agriculture and related activities globally.

*Definition: Potassium sulphate (SOP) is one of the essential fertilizers that is used in the agricultural industry, as it provides one of the essential nutrients to plants such as Potassium. For instance, according to the Fertilizers Institute, Washington, potassium plays an important role in the plant nutrition process and is termed the “Big 3” primary nutrient. The increasing demand for potash fertilizers in the agriculture sector is expected to drive the growth of the global potassium sulphate market over the forecast period. Moreover, potassium sulphate offers advantages such as the prevention of infection of plants from pests and other microbes. Potassium sulphate also helps the plant to adapt to unfavorable weather conditions and aids plants in absorbing more minerals from the soil and also strengthens the tree stalks.  In addition, other end uses industries of potassium sulphate include industrial, pharmaceutical, cosmetics, food & beverages, and others.