No. 50  Edition  Jan., 2023            

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Industry News » Market outlook of the fertilizers market in Thailand

Market outlook of the fertilizers market in Thailand


Fertilizers are used to prompt the growth of plant and also in increasing the crop yield. They help plants in holding the soil, thereby reduce soil erosion. Technavio’s market research analyst has estimated that the consumption of fertilizers in Thailand was 2.74 million metric tons in 2014 and is expected to reach a volume of 3.34 million metric tons in 2019, growing at a CAGR of more than 4%. Agriculture is one of the major sources of the economy in Thailand, wherein more than 60% of the population is involved in agriculture.
The increasing population in Thailand every year has increased the demand for food, thereby increasing the production and consumption of fertilizers in the country. The consumers are expanding their diets with these dietary changes manifested in the form of increased demand for grain-intensive animal protein and dairy products. However, with the decline in arable land, it is difficult for farmers to increase productivity enough to cater to the high demand for food. Therefore, farmers are increasingly depending on fertilizers to improve plant growth and yields.
Segmentation of the fertilizers market in Thailand by product
Nitrogen
Phosphate
Potash
In 2014, the nitrogen segment led the market with a share of over 63% and this segment is likely to retain their top position through 2019. Corn, sugarcane, and cassava crops use significant amount of nitrogen fertilizers in Thailand, which is one of the main reasons influencing the market growth. Moreover, the growth in the nitrogen fertilizer market is majorly driven by imports from the Middle East countries (Saudi Arabia, Oman, Qatar, and Kuwait), Malaysia, and the US.
Competitive landscape and key vendors
The fertilizers market in Thailand is extremely competitive, with players competing to enhance market share. Factors such as intense competition, rapid advances in technology, and frequent changes in consumer preferences create significant risks for market vendors. Therefore, the market is expected to witness increased consolidation because of the growing competition among vendors.
Top vendors in this market are
Artemis & Angel
Chia Tai
National Chemical Fertilizer Public Company
Thai Central Chemical
Yara International
Other prominent vendors are Ajinomoto, Crop Argo, Global Bio, ICL Fertilizers, and Terragro Company.
Growth drivers, challenges, and upcoming trends: Fertilizers
Technavio’s market research analysts consider upcoming trends such as the increase in adoption of biofertilizers, which is driven by the increase in awareness of the negative impact of chemical fertilizers on health and environment. The increasing adoption of biofertilizers can also be attributed to the growing demand for organic food and increase in government regulations for environmental safety.
http://www.technavio.com/report/thailand-agricultural-equipment-fertilizers-market
The fertilizer consumption in Thailand has remained at low levels as compared to other Asian countries such as China, India and Indonesia. However as the population and food production in the country grew, so did the demand for fertilizers thereby making it the fastest growing fertilizer industry of Asia. The country however has not been able to achieve sufficient production levels of fertilizers. Thus imports play a crucial role in the Thailand fertilizer industry. The leading fertilizer companies in Thailand are Thai Central Public Company Limited, Yara International and Chia Tai which are the leading importers in the country. As the number of chemical fertilizer producing plants is less in the country, most of the straight fertilizers are imported in the country and are used for bulk blending. Various initiatives by the government as well changes in the crop consumption pattern have significantly contributed to the consumption of fertilizers in the country which has grown at a CAGR of 7.5% during 2006-2012. Diversification of crop production such as greater production of perennial crops and the economies accruing from fertilizer distribution to the fertilizer companies and fertilizer use to farmers. In the coming years 2013-2017, increasing knowledge and awareness among the farmers would also help to increase the application rates in the country which was historically low as compared to the global average.
“Imports of fertilizers in Thailand growing at the fastest of 9.1% during 2006-2012 and reached 2,571.7 thousand tons nutrients in 2011” – According to the research report ‘Thailand Fertilizer Industry Outlook to 2017- Growth Fostered by Favorable Imports’ by Ken Research.
During 2013-2017, the fertilizer industry of Thailand would continue to be largely dependent on imports. The leading importers would be Thai Central, Chia Tai and Yara International. This would because of the fact that Thailand would continue to have a large of bulk blending plants and lesser fertilizer producing plants. The consumption of fertilizers in the country would reach ~ thousand tons nutrients in 2012 of which the majority of would be contributed by imports in the country.

The fertilizer industry plays a significant role in Thailand as agriculture is one of the most important sectors of the country with about 60.0% of the population being involved in this sector either directly or indirectly. The consumption of fertilizers in the country is bound to grow in Thailand with the many of the factors contributing to a significant growth. These include factors such as diversification of crop production, prevailing climatic conditions, credit availability, economies of fertilizer use and fertilizer distribution facilities. 2006-2012. The fertilizer industry of Thailand is competitive but leading players such as Thai Central Public Company Limited, Chia Tai, Yara International and few others have been the largest importers in the country contributing the largest shares in the overall fertilizers market The fertilizer market of Thailand is expected to reach thousand tons nutrient in 2017 growing at the fastest CAGR of 10.6% as compared to all the other Asian countries. With the growing knowledge and technological advancement, a slight change would also be observed in the consumption pattern of fertilizers. However the largest contributing segment would continue to be the nitrogen segment followed by potash and phosphate at second and third position respectively with the major products being urea, ammonia phosphate and compound fertilizers in the country in the coming years.



    
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