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“Growth in food demand has been stronger as compared to population growth, due to the changing eating habits of people. This, in turn, has been accelerating the demand for fertilizers and pesticides. These fertilizers and pesticides are used to improve crop yield, fertility of soil, and enhance production. Therefore, the demand for potassium chloride is expected to grow in tandem with the growth of the agriculture industry.”

Potassium Chloride Market expanding at a healthy 3.6% CAGR, the industry size is projected to total US$ 16.5 Bn by 2030 | Future Market Insights, Inc.

Potassium chloride is used in various applications such as fertilizers in agriculture, deicing, water softening, and industrial applications. It is an important source of potassium nutrient in plants and animals. Increasing food demand in tandem with the rising population is expected to drive the potassium chloride market. The need for better yield per unit area of cultivation land, owing to the shrinking size of cultivable land, is further anticipated to fuel the growth of the market, globally.

According to a latest report by FMI, the global potassium chloride market is expected to reach a valuation of US$ 16.5 Bn by 2030.

Manufacturers of potassium chloride are significantly dependent on the agriculture sector; around 9 out of 10 stakeholders invest in the agriculture industry. The impact of coronavirus (COVID-19) on the agriculture sector is complex and varied across different segments of the supply chains. This impact will echo across larger economies, and will persist in the coming months. Nationwide closures have disrupted the international flow of labor across the agricultural sector. All these factors are having a detrimental impact on the growth of the potassium chloride market.

Key Takeaways of Potassium Chloride Market Study

Growth of potassium chloride market is attributed to growth in the agriculture industry, as it is a primary consumer of potassium chloride. Further, development in new compositions of potassium fertilizers is projected to offer white spaces.

Asia Pacific (APAC) holds leading share in the global potassium chloride market, and would maintain its hegemony through 2030, driven by China’s flourishing agricultural and industrial sectors.

Chemical / industrial grade potassium chloride would gain traction in the coming years, backed by increasing demand from food and pharmaceutical industries.

Granular and coarse fertilizers hold over 3/4 of total agricultural grade potassium chloride revenue. They are prevalent in formulated fertilizers such as bulk blended mixtures.

Potassium Chloride Market Landscape: Fairly Fragmented

The global potassium chloride market is fairly consolidated, owing to a small number of players holding large shares in the market. Top ten players account for over 95% of total revenue. Manufacturers in the potassium chloride market space are focusing on collaborations and mergers & acquisitions. Key players such as Nutrien Ltd., The Mosiac Company, K+S Kali GmbH, Israel Chemicals Ltd., Intrepid Potash, Inc., Uralkali, JSC Belaruskali, EuroChem, Arab Potash Company, and SQM S.A. are focusing on penetrating into local markets.

IndexBox has just published a new report: ‘Canada – Potassium Chloride (MOP) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Canada dominates the global exports of potassium chloride, providing 42% of its total volume. In 2020, Canadian potassium chloride exports grew by +8.8% y-o-y to 21M tonnes. The U.S., Brazil and China remain the key importers of Canadian potassium chloride. Last year, supplies to India, Indonesia and Brazil saw the most prominent growth rate among other trade partners. The average export price for Canadian potassium chloride dropped by -16.1% compared to the figures of the previous year.

Potassium Chloride Exports from Canada

Canada remains the largest potassium chloride (MOP) exporter worldwide. The supplies from Canada account for 42% of the global potassium chloride exports.

Potassium chloride exports from Canada reached 21M tonnes in 2020, growing by +8.8% on 2019 figures. In value terms, potassium chloride exports dropped to $4.5B (IndexBox estimates) in 2020.

The U.S. (10M tonnes) was the main destination for potassium chloride exports from Canada, accounting for a 48% share of total exports. Moreover, supplies to the U.S. exceeded the volume sent to the second major destination, Brazil (3.4M tonnes), threefold. China (2.4M tonnes) ranked third in terms of total exports with a 11% share.

In 2020, the average annual growth rate of volume to the U.S. stood at +3.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Brazil (+19.9% per year) and China (-3.6% per year).

Last year, supplies from Canada to India, Indonesia and Brazil saw the highest growth rate among other destinations. Exports to India grew by +40% y-o-y to 1.8M tonnes, while supplies to Indonesia and Brazil rose by +45% y-o-y to 1.3M tonnes and +20% y-o-y to 3.4M tonnes respectively.

In value terms, the U.S. ($2.2B) remains the key foreign market for potassium chloride exports from Canada, comprising 48% of total exports. The second position in the ranking was occupied by Brazil ($698M), with a 15% share of total exports. It was followed by China, with an 11% share.

The average potassium chloride (MOP) export price stood at $212 per tonne in 2020, shrinking by -16.1% against the previous year. Average prices varied noticeably for the major foreign markets. In 2020, the destinations with the highest prices were the U.S. ($214 per tonne) and China ($214 per tonne), while the average prices for exports to India ($207 per tonne) and Brazil ($208 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to the U.S., while the prices for the other major destinations experienced a decline.

Source: IndexBox Platform

Rising use of Fertilizers in Agriculture is Fueling Demand for Potassium Chloride with the USA Holding 86% Market Share in North America

Potassium Chloride Exports from Canada

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