“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.