Thailand Fertilizers Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Thailand Fertilizers Market Trends and Insights

Government Subsidies for Fertilizer Purchases

Thailand protects farmers from international fertilizer price volatility through direct subsidies and price controls, which mitigated the price increase from USD 400 to USD 1,200 per metric ton in 2024. While this policy ensures farmers can access fertilizers, it reduces profit margins for producers. The country plans to launch a USD 1.8 billion domestic potash project in 2026 to enhance supply security and reduce future subsidy requirements, following similar results achieved in neighboring markets with domestic production capabilities. The policy's success is demonstrated by Thailand maintaining consistent rice export volumes despite significant cost increases.

Rising Domestic Food Demand and Population

According to the OAE agricultural statistics of Thailand 2024, Thailand's agricultural product imports reached 740 billion Thai baht (USD 22.8 billion) in 2024, compared to 725.5 billion Thai baht (USD 22.4 billion) in 2023. The tourism sector's recovery contributed to increased premium food consumption. Government initiatives, including the "Young Smart Farmers" program, enhanced awareness about precision fertilization on crop quality. The 2023-2027 Food Management Action Plan focuses on increasing agricultural output through optimized fertilizer usage.

Declining Soil Fertility and Nutrient Depletion

Soil degradation from overuse is prevalent in the Northeast region, where many farmers rely on rain-fed agriculture. Nitrate pollution affects irrigation water at 95% of surveyed sites. Magnesium and other micronutrient deficiencies reduce durian and oil palm yields, increasing the need for targeted fertilizer supplements. The government's climate-smart agriculture policies focus on balanced fertilization to improve soil health. The National Science and Technology Development Agency (NSTDA) of Thailand developed a chelated fertilizer in 2021, which uses amino acids bonded with mineral micronutrients as organic complexing agents to enhance nutrient delivery.

Carbon-Credit Incentives for Low-Emission Fertilizers

The Joint Crediting Mechanism with Japan supports 48 pilot projects that monetize emission reductions through carbon markets. Rice cultivation accounts for the majority of farm-sector greenhouse gases and receives incentives for reduced-nitrogen practices. Premium T-VER credits generate additional revenue for farmers who adopt low-emission fertilizers. Thailand's voluntary carbon market, overseen by the Thailand Greenhouse Gas Management Organization (TGO), issues Thailand Voluntary Emission Reduction (TVER) credits. Organizations purchase these credits to offset their carbon footprints, creating financial incentives for emission reduction projects and encouraging lower-emission agricultural practices in fertilizer use and rice straw management.

Volatile Natural Gas and Raw Material Prices

Thailand's domestic gas production averaged 2.1 million metric tons per month in 2024, while LNG imports increased to 11.3 million metric tons, increasing vulnerability to global price fluctuations. Pipeline supply uncertainties from Myanmar and elevated feedstock costs have limited new capacity investments. PTT Global Chemical secured a 400,000 metric tons ethane import agreement beginning in 2029 to diversify supply sources, though this requires significant capital investment. Export restrictions implemented by major fertilizer-producing countries in 2022 and 2023 led to supply constraints in Thailand, causing fertilizer prices to reach USD 1,200 per metric ton in 2023, according to the Thai Fertilizer and Agricultural Suppliers Association. The increased import costs have created financial strain for Thai farmers, especially smallholders, who make up over 60% of the agricultural workforce, as reported by the National Statistical Office. 

Stricter Thai Nitrate-Runoff Regulations

Agriculture contributes substantial nitrogen levels to major river basins, leading to stricter runoff control measures. The implementation of odor concentration limits for fertilizer manufacturing facilities and potential mandatory application reporting requirements increases operational costs. Farmers are required to adopt balanced fertilization practices and enhanced-efficiency products to comply with new standards. The Thailand fertilizers market faces constraints from environmental regulations that impact compliance requirements and market growth. The Ministry of Natural Resources and Environment has implemented strict guidelines through the Environmental Quality Management Plan (2022-2026) to reduce soil and water pollution from nitrate fertilizers.

Segment Analysis

By Product: Nitrogen Dominance Faces Micronutrient Challenge

Nitrogenous fertilizers account for 56.5% of the Thailand fertilizers market share in 2024, supported by rice exports of 7.5 million metric tons^{[3]U.S. Department of Agriculture, “Thailand: Grain and Feed Annual,” fas.usda.gov}. The growth in Thailand's agricultural exports increased the demand for nitrogen fertilizer, as farmers needed to enhance crop yields and soil quality to meet export requirements for products like fruits and rice. Urea remains the primary choice among farmers due to its cost-effectiveness and multiple applications. The micronutrient segment is anticipated to grow at 5.3% annually through 2030, driven by increasing magnesium and zinc deficiencies in soil. The market for micronutrients is expanding alongside investments in precision agriculture that enable customized fertilizer blends based on soil analysis.

Potash imports of 700,000 metric tons, valued at THB 10 billion (USD 285.7 million), highlight its strategic importance. The planned domestic mine, with an investment of USD 1.8 billion scheduled for 2026, is anticipated to transform the market by providing locally sourced muriate of potash and supporting regional exports. The market shows increased adoption of secondary macronutrient and NPK blends. Export-focused durian and rubber farmers are selecting specialized formulations to enhance fruit set, oil content, and stress tolerance. Environmental sustainability requirements are driving the adoption of nitrogen use efficiency enhancers and coated granules, creating new opportunities for technology providers.

Note: Segment shares of all individual segments available upon report purchase

By Application: Fruits and Vegetables Drive Premium Fertilizer Demand

Grains and cereals hold 42.1% of the Thailand fertilizers market size in 2024, supported by mechanized paddy fields using site-specific nutrient management. While stable export contracts sustain the grains segment, water scarcity poses risks to yields. The fruits and vegetables segment projects 6.7% annual growth, driven by premium varieties exported to China, ASEAN countries, and domestic high-end retail markets. Farmers increasingly implement drip fertilization and fertigation systems to enhance nutrient uptake and product quality.

The commercial crops segment maintains its significance through sugarcane and cassava production, supported by growing bio-ethanol and starch exports. Climate-smart programs promote pulses and oilseeds as crop diversification options to reduce monoculture risks. The ornamental and turf segment, while smaller, generates higher margins in resort areas focused on landscape maintenance. The expansion of livestock operations increases demand for fertilizers in forage crop production to improve feed quality and digestibility.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Northeast, Thailand's largest agricultural zone, faces challenges with saline soils and rain-fed water systems. Farmers in this region need sulfur-coated and potassium-fortified fertilizer blends to counter nutrient leaching. Central Thailand's extensive irrigation system, connected to Chao Phraya River dams, enables increased adoption of micronutrient and specialty products, improving yield per hectare. The Southern provinces focus on rubber, oil palm, and tropical fruit production, requiring magnesium-rich formulas and balanced NPK to maintain latex flow and fruit sugar content.

The establishment of potash mining operations in the Northeast aims to reduce logistics costs, potentially equalizing regional fertilizer prices. The Northern highlands support the cultivation of cool-climate vegetables and specialty fruits at different elevations. Farmers implement precision agriculture methods, including drone-assisted soil mapping for micronutrient application adjustment, establishing demonstration sites for technology providers. Coastal regions affected by saltwater intrusion rely on chloride-tolerant crops and chloride-free potassium sources.

The Eastern Economic Corridor infrastructure projects enhance deep-sea port capacity and freight rail connections, reducing inbound fertilizer costs and improving distribution to remote areas. Regional climate adaptation initiatives support crop diversification, with drought-affected areas transitioning from water-intensive rice to sorghum, changing nutrient requirements. The 2023-2027 Food Management Action Plan's regional production targets guide provincial extension services in adapting fertilizer recommendations to specific crop advantages.