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China Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 121 Pages
  • August 2022
  • Region: China
  • Mordor Intelligence
  • ID: 4828306
The Chinese fertilizers market is projected to register a CAGR of 5.4% during the forecast period 2022-2027.

The COVID-19 pandemic affected all the processes that connect farm production to the final consumer. It struck the food production system and the food value chain. Farmers of China faced a shortage of agricultural fertilizers. China is one of the major producers and exporters of fertilizers. Therefore, when China went into lockdown, the global supply chain was disrupted. China is the most significant producer and consumer of phosphates, sulfur, and sulphuric acid. Production rates fell to around 20-30% of total capacity, causing a significant impact on the supply of phosphate fertilizers and also on demand for raw materials such as sulfur and sulfuric acid.

The requirement for fertilizers is rising owing to the growing production of fruits and vegetables in the country. China is the largest producer of fertilizers, and the market is dominated by nitrogen fertilizers, followed by phosphatic and potassic fertilizers.​ China’s soil is naturally phosphate deficient, which led to government policies to encourage the production and use of phosphate to boost agricultural yields. The animal and other types of manure used as fertilizer contain a small amount of organic matter to compensate for the loss of nutrients in the soil. ​China faces several soil productivity problems, and to feed a large population and ensure food security, it has become essential to maintain fertile land all across China. This has augmented the market for chemical fertilizers in the country.​

Key Market Trends

Increasing Cultivation of Fruits and Vegetables

As per a World Bank study, China is the world’s largest producer and exporter of nitrogen and phosphate fertilizers. Also, according to the Agriculture Ministry of China, the country ranked first in the production of cereals, cotton, fruits, and vegetables in 2019. The country feeds around 21% of the world's population, with 9% of the global farmland. With the changing consumption patterns and continuous increases in population, the demand for more food grains has led to an upsurge in demand for chemical fertilizers in the country.​ As per the International Fertilizer Industry Association, China accounts for 30% of the global fertilizer usage, with 46 million ton of ammonia produced in 2016. Also, the country is a major producer of many crops, including rice, wheat, sorghum, and others. According to the Organization for Economic Cooperation and Development (OECD) statistics, China grew 260 thousand ton of maize, 146 thousand ton of rice, and 133 thousand ton of wheat in 2019. This has led to an augmented demand for chemical fertilizers in the country.​ The UN’s Food and Agricultural Organization predicted that the global fertilizer use would grow by 1.4% each year between 2014 and 2018, with China accounting for 18% of that growth.​ Hence, to ensure food security and increase the productivity of crops, the demand for fertilizers is expected to be impacted by this trend and may add to the revenues from fertilizer in the country.​

Nitrogenous Fertilizers Dominating the Market

The urea fertilizer segment accounts for more than 50% share of the nitrogenous fertilizers market. According to the China National Nitrogen Fertilizer Industry Association, the production capacity of urea declined from 72.8 million ton in 2017 to 69.5 million ton in 2018. China is the largest consumer of urea fertilizers in the Asia-Pacific region and globally, with almost one-third of the global urea production being consumed in the country. However, the demand for urea slightly declined in 2017, partly due to a more modest application rate compared to the over-application in previous years, driven by China’s zero fertilizer consumption policy. Ammonium bicarbonate and ammonium chloride are still popular in China due to their ongoing availability and usage by farmers. About 60% of urea in China is consumed in the production of cereals and oilseeds, such as maize, soybean, and rapeseed. In 2017, the International Plant Nutrition Institute (IPNI) of China conducted a Controlled-Release Urea (CRU) Fertilizer Application Program in the Hubei province in Central China. It has been proven that the consistent use of CRU fertilizer helps in improving the yield and profitability of major crops, such as rice and eggplant. The Government of China is conducting various awareness programs by organizing farmer meetings and field trials to alleviate the use of urea fertilizers and increase yield with the use of CRU fertilizers.

Competitive Landscape

The Chinese chemical fertilizer market is highly consolidated, with Sinofert Holdings Limited, Yara China Limited, and Nutrien Limited accounting for significant market shares. Since the market is consolidated, vast product portfolios, investments in R&D, expansions, mergers, acquisitions, and a few other business strategies are aiding the companies in achieving higher shares in the market. The players are also investing in the development of new products and mergers and acquisitions, which is expected to increase their market share while strengthening R&D activities.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Competitive Rivalry
5.1 Type
5.1.1 Nitrogenous Fertilizer Urea Calcium Ammonium Nitrate (CAN) Ammonium Nitrate Ammonium Sulfate Ammonia Other Nitrogenous Fertilizers
5.1.2 Phosphatic Fertilizer Mono-ammonium Phosphate (MAP) Di-ammonium Phosphate (DAP) Triple Superphosphate (TSP) Other Phosphatic Fertilizers
5.1.3 Potassic Fertilizers
5.1.4 Secondary Nutrient Fertilizers
5.1.5 Micronutrient Fertilizers
5.2 Application
5.2.1 Grains and Cereals
5.2.2 Pulses and Oil Seeds
5.2.3 Fruits and Vegetables
5.2.4 Commercial Crops
5.2.5 Other Applications
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Sinofert Holdings Limited
6.3.2 Yara China Limited
6.3.3 The Mosaic Company
6.3.4 Nutrien Limited
6.3.5 Hubei Xinyangfeng Fertilizer Co. Ltd
6.3.6 Henan XinlianXin Chemicals Group Company Limited
6.3.7 Laizhou Guangcheng Chemical Co. Ltd
6.3.8 Israel Chemicals Ltd
6.3.9 Kirns Chemical Ltd
6.3.10 Haifa Group
6.3.11 Sociedad Química y Minera (SQM)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Sinofert Holdings Limited
  • Yara China Limited
  • The Mosaic Company
  • Nutrien Limited
  • Hubei Xinyangfeng Fertilizer Co. Ltd
  • Henan XinlianXin Chemicals Group Company Limited
  • Laizhou Guangcheng Chemical Co. Ltd
  • Israel Chemicals Ltd
  • Kirns Chemical Ltd
  • Haifa Group
  • Sociedad Química y Minera (SQM)