NPK & Calcium Ammonium Nitrate Fertiliser Market Trends in 2021

Farmers worldwide have been using different types of synthetic fertilisers for a long time to enhance crop production. But as the world tilts towards organic varieties of food and the rise in their constant demand is sweeping the world market, there is a scope for making the best use of NPK fertilisers — these can prove to be indispensable with regards to organic farming.

As nitrogen fertilisers find their use, CAGR in the Indian market is expected to rise by 11.9% during 2020-2025 from 2.35% in 2016. Globally the NPK fertilisers would grow by another 2.3% between the period 2019-2024. The NPK fertilisers are expected to expand to a whopping 25 billion by 2024. Maximum growth is predicted to occur in the foliar segment of the market. 

When talking about regional domination, the Asia Pacific is supposed to be responsible for the maximum consumption of NPK fertilisers. 

Driving Forces contributing to the growth of the NPK market

Driving forces in the growth of NPK fertilisers in the coming times would be;

1. Appropriate supply of fertilisers in the market. 

The factors which impact the supply of fertilisers are as follows:

• The volume of production and producers is a crucial factor.
• The location of producing plants and their distance from the demand areas is critical.
• Capacity for annual productions and its simultaneous utilisation

2. The following factors create a demand curve in the market

• Size of the market for NPK fertilisers.
• The usual trends in which fertilisers are consumed in the market
• Presence of materials that can compete with the fertilisers.
• Utilisation by end-users.

3. The trade facilities available across countries for NPK fertilisers.

4. The leading driving force is its market price and cost price. The price of these products is affected by many independent and co-dependant factors. 

Three market trends that have dominated the NPK markets recently

Market trends currently seem to be predominated by three significant factors, which include,

• The decrease in arable lands gives competition to the growing demand for food due to the population explosion.
• Domination of the global market by the Asia Pacific.
• The market competition is increasing rapidly. Competition has expanded to several dimensions right now and does not revolve around just one.

Reasons for increased NPK demand in the market and their probable forecasts

Food production is seasonal and takes only a few months from the year.

Forecasting fertiliser usage is therefore imperative. It is usually done in two ways — short-term and long-term models of the forecast. 

A proper study of the historical use of NPK fertilisers might not help forecast future demands due to their decreased preference for use in the past.

• Increased NPK demand in the country is driven by a single most source- the increased demand for organic foods.
• The shrinking farmlands are reason enough to increase crop yields.
• Support of government through various subsidy programs might also cause a spike in the production of NPK fertilisers.

The market is restricted mainly by the increased environmental concerns and organic farming uprising.

According to FAO (Food and Agricultural Organisation), the world’s balance of nitrogen, phosphate, and potash is built together, as presented in the table below.

Here are those factors that have hampered the growth of the NPK fertiliser market during the COVID-19 pandemic.

1. Disruption of supply chains over continents

Due to the lockdowns during the COVID-19 pandemic, the supply chain was acutely affected. Raw material transport and fertiliser transfer were further impacted due to vehicular restrictions. This brought about significant confusions and struck the demand-supply chain brutally during this period.

2. Shutdowns and labour loss also contributed to the declined productions

Shutdowns and labour migrations hampered productions brutally. Several strict measures were taken in every country to contain the virus, which reduced the production parameters majorly.

EIRI to the Rescue

In all honesty, this field is saturated with challenges. Facing them in the right way is very important for success. If, as a company or as an individual, you’re interested in knowing more about how best to overcome the market limitations & using the market boons in the best possible way, then Engineers India Research Institute can assist you thoroughly.

To know the market offerings, organisations need to understand the growth prospects and the industries’ scope in this sector. 

With the help of the Engineers India Research Institute‘s reports, you can assess the real-time market status and what could be expected in the forthcoming months. From a company’s standpoint, when proper analysis and assessment of this market is required, it would be wise to follow a few parameters which our reports would cover.

So, the questions that would be answered along with several other technicalities are being given below-

– Opportunities ahead for NPK fertiliser companies.

– Expected growth of NPK manufacturers in the country.

– Impact of COVID-19 on the future of NPK fertiliser companies.

– Growth strategies that can help change the future of NPK fertilisers.

– More lucrative nutrients compared to others in the market.

– A 3-month detailed analysis report.

See you on the other side!