China Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The China Fertilizers Market Report is segmented by Type (Nitrogenous, Phosphorous, Potassic, Micronutrients, and Secondary Fertilizers) and Application (Grains and Cereals, Pulses and Oilseeds, Fruits and Vegetables, Commercial Crops, and Other Applications).

Market Snapshot

China Fertilizers Market
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4.4 %

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Market Overview

The Chinese fertilizers market is projected to register a CAGR of 4.4% during the forecast period, 2021-2026.

COVID-19 has affected all the processes which connect farm production to the final consumer. It had struck the food production system and the food value chain. Farmers of China faced a shortage of agricultural inputs like seeds, fertilizers, and pesticides. China is one of the major producers and exporters of fertilizers. Therefore, when China went into lockdown, the global supply chain got disrupted.

Owing to the growing production of fruits and vegetables in the country, and China being the largest producer of fertilizers, nitrogen fertilizers dominated the fertilizers market, followed by phosphatic and potassic fertilizers.​ China’s soil is naturally phosphate deficient, which led to government policies to encourage production and use of phosphate to boost the yield. The animal and other types of manures used as fertilizer contain a small amount of organic matter to compensate for the loss of nutrients in the soil. ​China faces several problems in soil productivity and, in order 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.​

Scope of the Report

Fertilizer is a synthetic substance that is used to enhance plant growth and increase soil fertility. Fertilizers majorly offer three key nutrients, namely nitrogen, phosphorous, and potassium. Secondary fertilizers and agricultural micronutrients are also included in the study.​ The report presents an in-depth analysis of the market share, size, and trends of the Chinese fertilizer market. The market operates at a B2C level, and market sizing has been done at the manufacturer level.​ The Chinese fertilizers market is segmented by type (nitrogenous, phosphorous, potassic, micronutrients, and secondary fertilizers) and application (grains and cereals, pulses and oilseeds, fruits and vegetables, commercial crops, and other applications).

Type
Nitrogenous
Urea
Calcium Ammonium Nitrate (CAN)
Ammonium Nitrate
Ammonium Sulfate
Ammonia
Other Nitrogenous Fertilizers
Phosphatic
Mono-ammonium Phosphate (MAP)
Di-ammonium Phosphate (DAP)
Triple Superphosphate (TSP)
Other Phosphatic Fertilizers
Potassic
Secondary Nutrient Fertilizers
Micronutrient Fertilizers
Application
Grains and Cereals
Pulses and Oil Seeds
Fruits and Vegetables
Commercial Crops
Other Applications

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Key Market Trends

Increasing Cultivation of Fruits and Vegetables

As per a World Bank study, China was the world’s largest producer and exporter of nitrogen and phosphate fertilizers in 2018. 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 21.0% of the world population with 9.0% of its farmland. With the changing consumption pattern and continuous increase in population, the demand for more food grains leads to an upsurge in demand for chemical fertilizers in the country.​ As per the International Fertilizer Industry Association, China accounts for 30.0% of the global fertilizer usage, with 46 million metric 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’s (OECD’s) statistics, China grew 260.0 thousand metric ton of maize, 146.0 thousand metric ton of rice, and 133.0 thousand metric 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 18.0% of that growth.​ Hence, to ensure food security and increase the productivity of crops, demand for fertilizers is expected to be impacted by this trend and may add to the revenues of fertilizer in the country.

China Fertilizer Market

Urea dominates the Nitrogenous Fertilizers Market

The urea fertilizer segment accounted for more than 50.0% share in the nitrogenous fertilizers market. According to the China National Nitrogen Fertilizer Industry Association, the production capacity of urea declined from 72.8 million metric ton in 2017 to 69.5 million metric ton in 2018. China is the largest consumer of urea fertilizers in the Asia-Pacific region as well as globally, with almost one-third of the global urea production being consumed in the country. However, the demand for urea slightly declined in the year 2017, partly due to a more modest application rate compared to the over-application in the 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 60.0% of urea in China is consumed in cereals and oilseeds, such as maize, soybean, and rapeseed production. 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 proved 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.

fertilizer consumption in China

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 in 2018. Given that the market is consolidated, wide product portfolios, investments in R&D, expansions, mergers, acquisitions, and a few more business strategies lead the companies in achieving higher shares in the market. The players are also investing in the development of new products and mergers & acquisitions, which is expected to increase their market shares while strengthening R&D activities. For example, in 2019, the Mosaic Company signed the memorandum of understanding MoU with China’s Sinochem, where the latter agreed to purchase the phosphatic fertilizers from the former, which includes even the premium products.

Recent Developments

In February 2019, Haifa Group expanded its service offering in China with the opening of Haifa Beijing Trading Company. This will enable the group to significantly expand its offerings to the developing Chinese agricultural sector.

In June 2018, Haifa Group launched a novel a range of coated micronutrients, enabling an all-season complete nutrition. Based on Multicote technology, the coated micronutrients provide crops with all the benefits of controlled release nutrition.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Nitrogenous

        1. 5.1.1.1 Urea

        2. 5.1.1.2 Calcium Ammonium Nitrate (CAN)

        3. 5.1.1.3 Ammonium Nitrate

        4. 5.1.1.4 Ammonium Sulfate

        5. 5.1.1.5 Ammonia

        6. 5.1.1.6 Other Nitrogenous Fertilizers

      2. 5.1.2 Phosphatic

        1. 5.1.2.1 Mono-ammonium Phosphate (MAP)

        2. 5.1.2.2 Di-ammonium Phosphate (DAP)

        3. 5.1.2.3 Triple Superphosphate (TSP)

        4. 5.1.2.4 Other Phosphatic Fertilizers

      3. 5.1.3 Potassic

      4. 5.1.4 Secondary Nutrient Fertilizers

      5. 5.1.5 Micronutrient Fertilizers

    2. 5.2 Application

      1. 5.2.1 Grains and Cereals

      2. 5.2.2 Pulses and Oil Seeds

      3. 5.2.3 Fruits and Vegetables

      4. 5.2.4 Commercial Crops

      5. 5.2.5 Other Applications

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Sinofert Holdings Limited

      2. 6.3.2 Yara China Limited

      3. 6.3.3 The Mosaic Company

      4. 6.3.4 Nutrien Limited

      5. 6.3.5 Hubei Xinyangfeng Fertilizer Co. Ltd

      6. 6.3.6 Henan XinlianXin Chemicals Group Company Limited

      7. 6.3.7 Laizhou Guangcheng Chemical Co. Ltd

      8. 6.3.8 Israel Chemicals Ltd

      9. 6.3.9 Kirns Chemical Ltd

      10. 6.3.10 Haifa Group

      11. 6.3.11 Sociedad Química y Minera (SQM)

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The China Fertilizers Market market is studied from 2016 - 2026.

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