Potassium Fertilizers Market: Overview
- Potassium fertilizers are usually mined from salt deposits. Canada and Russia are the largest producers of potassium fertilizers in the world owing to their surplus deposits.
- Potassium chloride or Muriate of Potash (MOP) contains 60% of potash, measured in K2O. Brazil is one of the largest consumers of potash fertilizers, primarily due to its significant production of soybean.
- Commonly available potassium fertilizer formulations in the market are Muriate of Potash (MOP) and Sulfate of Potash (SOP)
Rise in Demand for Potash in Cereals and Staple Crops
- Cereals, rice, wheat, and maize are the major determinants of potash consumption in the global market, owing to their relatively higher value-to-cost ratio. Cereals rank the highest in the value-to-cost ratio, followed by wheat and rice.
- Potassium helps plants survive stress, pests, and diseases. Furthermore, potassium improves metabolic process and help plants fight pests when supplied adequately.
- Global potash reserves stood at 66.16 million metric tons in 2020; of this, Canada held 20.9 million metric tons. Russia and Belarus held 13 million metric tons and 12 million metric tons, respectively. These three countries dominate the global potash supply. Therefore, they control the global potash prices.
- Despite many hardships on the fertilizer prices due to the COVID-19 pandemic, the potash fertilizers market has been recovering with the tightening of global potash supply-demand balance. However, supplies have struggled to keep pace with demand in many countries, including the U.S., during the pandemic. Major players such as Nutrien Ltd. and K+S AG are ramping up their production capacities to cater to the rising demand.
- India, China, the U.S. Russia, and Brazil are the largest consumers of potash, owing to their growing share in the production of cereals and staples
Muriate of Potash Product Type Segment to Offer Lucrative Opportunities
- Based on product type, global potassium fertilizers market can be segmented into Muriate of Potash (MOP), Sulfate of Potash (SOP), and others
- Belarus is the largest producer of Muriate of Potash. It produced approximately 11.9 million metric tons of Muriate of Potash in 2019, accounting for 94.2% of the world’s potassium chloride production. It was followed by the U.S., Uzbekistan, Poland, and Portugal. White vegetables, especially potatoes, are the largest contributors to the demand for K-fertilizers.
Field Crops Segment to Hold Major Share of Market
- Field crops generally absorb potassium at a much faster rate compared to N and P nutrients, owing to their improved grain characteristics. As a result, rice and wheat require large quantities of K, and a continuous supply of K is necessary to improve the quality and length of grain.
- Therefore, field crops account for relatively higher share of the global potassium fertilizer sales. China, India, U.S., Russia, and Brazil have been the largest producers of cereals since the last few years. Thus, significant increase in field crop acreages in these countries is likely to boost the sale of potassium fertilizers in the near future.
Asia Pacific to Account for Prominent Share of Global Potassium Fertilizers Market
- In terms of region, the global potassium fertilizers market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Asia Pacific dominates the potassium fertilizer market, due to the presence of the largest agricultural area. Major crops produced in the region, which demand high potassium requirement, include rice, sugar beets, fruits and vegetables, cereals and grains. Thus, rise in production of field crops in the region is likely to positively impact the demand for potassium fertilizers in Asia Pacific in the near future.
Key Players in Global Potassium Fertilizers Market
The global potassium fertilizers market is consolidated, with the presence of a few regional and global manufacturers. Prominent players operating in the market are investing in mergers, acquisitions, expansion, and new product launches in order to maintain their leading position in the market. Potash fertilizers are supplied by a small number of large industrial players. Thus, the potassium fertilizers market is heavily consolidated, reflecting the concentrated availability of raw material deposits in certain regions of the world.
Key players operating in the global potassium fertilizers market include:
- Nutrien Ltd. (Potash Corp)
- Belaruskali Company
- Uralkali Company
- The Mosaic Company
- K+S AG
Global Potassium Fertilizers Market: Research Scope
Global Potassium Fertilizers Market, by Product Type
- Muriate of Potash (MOP)
- Sulphate of Potash (SOP)
Global Potassium Fertilizers Market, by Crop Type
- Cereals & Grains
- Pulses & Oil Seeds
- Fruits & Vegetables
- Turf & Ornamental
Global Potassium Fertilizers Market, by Mode of Application
Global Potassium Fertilizers Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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