Southeast Asia Fertilizer Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Southeast Asia Fertilizer Market Analysis

The Southeast Asia Fertilizer Market sizeis estimated at USD 10.77 billion in 2024, and is expected to reach USD 12.69billion by 2029, growing at a CAGR of 4.20% during the forecast period(2024-2029). Due to the shortage of labor and the shutdown of fertilizer plantslocated in the integrated chemical complexes, shipments were affected in theinitial lockdown process. The shortage of fertilizers in countries likeMyanmar, which is highly dependent on imports, was highly impacted due to thepandemic. The prices of imported fertilizer skyrocketed all over the country.

Agriculture forms the major sector in thenational economy of most of the countries in the Southeast Asian region. Asthese countries are expanding the sector through diversification of agricultureand extensive multiple cropping programs, the demand for agriculturalfertilizers has continued to grow.

Some countries, endowed with raw materialresources, like natural gas, developed and expanded their productionfacilities, whereas some still continue to depend on imports from neighboringcountries in the region and beyond. Urea fertilizer production has been thedominant sector in the fertilizer industry of Southeast Asia, the main reasonbeing the availability of large natural gas resources.

Vietnam and Indonesia are among the largestconsumers of urea in Southeast Asia. Consumption growth is mainly driven byurea demand as a direct application fertilizer. According to the FAO, there isa significant rise in the production of Urea in Vietnam over the past fewyears. For instance, in 2016, urea production was recorded at 2,033.7 thousandmetric tons and increased to 2,425.1 thousand metric tons by 2018. However, dueto the negative impact of weather on Vietnam agriculture, there was a slightdecline in the growth of urea consumption in 2020.

Southeast Asia Fertilizer Market Trends

Thissection covers the major market trends shaping the Southeast Asia FertilizerMarket according to our research experts:

Need for Improving Productivity AmidGrowing Demand for Food Crops

Population in the region is increasing at arapid rate. The growing population is adding to the food demand. Supplying foodto this growing population is important to increase production. On the otherhand, the increasing urbanization and industrialization may lead to a decreasein the arable land in coming years. Fertilizers have been used for a long timeto increase the productivity of crops.

Adequate and balanced use of fertilizer islikely to help in feeding the increasing population from the availablecultivable land. In order to increase the production of corn due to theincreasing demand from the poultry sector, the Indonesian government has alsoimplemented policies promoting domestic corn production and other crops.According to the Food and Agriculture Association, the fruits yield inSoutheast Asia decreased to 118,890 hg/ha in 2019, from 127,138 hg/ha in 2016.It is an indication of the need to increase the productivity of agriculturalland by application of fertilizers as increasing health consciousness anddemand for fruits is increasing in the region. This is expected to drive marketgrowth over the forecast period.

Technical and scientific advances have madethe application of fertilizers more efficient in recent years and helpedfarmers maximize fertilizers benefits, while reducing risks of theirover/under/misuse. An increasing number of innovative fertilizer productscontain secondary macronutrients (S, Ca, and Mg) and micronutrients (e.g., Znand B) to address the increasing occurrence of deficiencies. Therefore,fertilizers are viewed as the future of crops to increase the production andfill the gap, as they can solve problems, like salinity of the soil andchemical-run offs from fields, among others. Therefore, they ensure the soil ismore fertile with time.