Market Size of Indonesia Fertilizer Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.72 Billion |
| Market Size (2029) | USD 5.91 Billion |
| CAGR (2024 - 2029) | 4.60 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Indonesia Fertilizer Market Analysis
The Indonesia Fertilizer Market size is estimated at USD 4.72 billion in 2024, and is expected to reach USD 5.91 billion by 2029, growing at a CAGR of 4.60% during the forecast period (2024-2029).
The COVID-19 pandemic had the most critical impact on the fertilizer industry in the country. Production went down by 20-30%, and prices increased due to supply constraints. The industry also suffered from severe labor shortages due to repeated lockdowns that affected the production, export, and import business. A large part of the industry was shut down from the end of January 2020, limiting both demand and supply of all relevant inputs, as transport and storage constraints presented mounting challenges across the sector.
Over the long term, Indonesian fertilizer production has been anticipated to expand continuously. In the case of basic and widely available fertilizers such as urea-based fertilizers, production capacities have recently increased significantly in the country. The domestic increase in demand in this regard comes primarily from the plantation industry. Indonesia is the world's third-largest exporter of rubber and cocoa. An increase in export-oriented cultivation of plantation crops led to an increased demand for fertilizers in the commercial crops segment. Indonesia is one of the world's largest importers of fertilizers.
Further, the Ministry of Agriculture of Indonesia (MOA) regulates and monitors standards that affect farmer productivity, such as possessing and using fake fertilizer, bad seed, and dangerous pesticides off the market, in order to eliminate the root cause of decreased land productivity.
The nitrogenous segment is considered the largest segment of the market and accounts for a major share among other segments. Urea is the most-traded nitrogenous fertilizer. There is high demand for exports of urea fertilizers from several countries, such as Vietnam, Singapore, Thailand, and the Philippines, which augments the demand for the production of urea fertilizers in the country.
Therefore, with the increasing food demand and growing population, the country requires much effort to improve food crop productivity. This can be achieved by rising cropping intensity and providing the appropriate fertilizers. Therefore, these factors are anticipated to drive the market and aid in registering positive growth during the forecast period.
