Global Potassium Chloride Market: Snapshot
Potassium chloride is salt of odorless and colorless metal halide which occurs naturally due to evaporation of ancient seabeds. The salts of the potassium chloride are generally known as muriate of potash (MOP) which are used as fertilizers.
Growth of the potassium chloride market is gaining traction by the surge in demand for potash fertilizers owing to its properties which supports the improvement in flavors, color, and texture to crops used as food. Additionally, the fertilizers industry is witnessing positive growth owing to higher demand from the developed and developing countries which are focusing on the improvement in agricultural sectors. The countries such as India and China are fuelling adoption of fertilizers and which is likely to boost the growth of the global potassium chloride market.
However, fluctuations in the prices of raw material lead to instability for farmers which is a key restraint for the growth of the global potassium chloride market. Nevertheless, the trend of adoption of bio-based fertilizers is creating lucrative growth opportunities for the key players operating in the potassium chloride market.
Thanks to these growth prospects, TMR estimates that the global potassium chloride market is likely to grow with a CAGR of 10.8% over the forecast period from 2013 to 2019. In 2012, the market registered revenue of more than US$21.6 bn and likely to reach the value of US$32.8 bn. In 2012, the global consumption of potassium chloride was recorded the volume of 51 mn tons.
Rising Need for Food to Boost Adoption of Fertilizers
On the basis of application, the potassium chloride market is segmented into fertilizers, pharmaceuticals, industrial and other. Of these, the fertilizer segment dominated the global market by gathering revenue of US$18.71 bn in 2012. This growth is attributable to the increasing demand for food grains due to increasing population from developed and developing countries. On the other hand, the industrial application segment is gaining traction owing to its utmost usage in the industries for water treatment plant.
Rising Initiatives for Improving Agricultural Productivities to Boost Adoption in Asia Pacific
On the basis of region, the global potassium chloride market is segmented into North America, Europe, Asia Pacific, and Rest of the World. Of these, demand from the Asia Pacific is increasing in order to improve agricultural productivities. To achieve higher yield production, the modern agricultural practices are used owing to this initiatives, the segment is likely to expand with CAGR of 5.2% over the forecast period from 2013 to 2019. In addition, in the developing countries such as India and China, the government initiatives such as farm subsidies and raising minimum prices. However, North America region is likely to account for the noticeable share owing to the advanced farming technology.
The global potassium chloride market has highly fragmented competitive landscape due to the presence of the large and small manufacturers of the potassium chloride. Some of the companies operating in the potassium chloride market are Agrium Inc., Arab Potash Company, Israel Chemicals Ltd. (ICL), JSC Belaruskali, and PotashCorp. The competition among these key players is expected to be intense in coming future with innovation and technological advancements. However, the key players have managed to maintain their share in the global market by geographical expansion.
- Others (Feed, food products, etc.)
- North America
- Rest of the World (RoW)