Potassium Salt Market Revenue to Decline During Coronavirus Disruption, Stakeholders to Realign Their Growth Strategies

13/gen/2021 08:15:19 Ankush Nikam Contatta l'autore

The global potassium salt market is anticipated to register a value of US$ 16.5 Bn by 2030, most of the demand being generated from the agriculture sector. With the world population slated to reach 8.5 billion by the end of the forecast period, availability of healthy and nutritious food has become a top priority of the international community. To accommodate the food requirements of this growing population, there would be more mouths to feed. The production of cereals, for instance, is anticipated to reach more than 10 billion tons in 2030. To ensure adequate yield, provision of essential nutrients such as potassium is absolutely essential, pushing up demand for potassium salt based fertilizers and supplements.

Unfortunately, the COVID-19 outbreak has generated difficulties in food production. Domestic supply chain disruptions coupled with logistical difficulties in transporting food to the market have resulted in significant shortage in food availability. Moreover, food production has experienced a downturn since farmers are unable to harvest their produce due to labor shortages and uncertainty of marketing. This is anticipated to generate stagnancy in the agriculture grade potassium salt market. Industrial grade potassium salt has also experienced a freefall as manufacturing units are operating at diminished capacities, leading to gaps in production cycles.

"Granular and coarse fertilizers captured nearly three-quarters of the net agriculture grade potassium salt revenue, available as bulk blended mixtures. Industrial grade potassium salt is catching up, especially in the pharmaceutical industry. Despite the pandemic inducing a considerable degree of sluggishness, market players continue to leverage production to keep pace with the rising demand for food production, keeping the market afloat," says a leading analyst at FMI.

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Potassium salt Market- Key Takeaways

  • Surging agricultural output is set to drive market growth during the forecast period 2020-2030. New product compositions will generate white areas for the market.
  • Water softening provides lucrative growth opportunities for the potassium salt market, attributed to its effectiveness in eliminating magnesium and calcium ions, primary minerals imparting water hardness.
  • Asia-Pacific remains a highly attractive market for potassium salt manufacturers due to the presence of a plethora of manufacturing industries in countries such as China and India. Currently, Asia-Pacific potassium salt market represents a value of US$ 5 Bn.
  • Burgeoning innovations in food and pharmaceutical industries is bolstering popularity of industry and chemical grade potassium salt. Application as a flavoring agent and nutrient supplement is boosting usage of potassium salt in the food industry while the pharmaceutical industry uses it to prepare intravenous infusions for electrolytic rebalancing of metabolism.

Potassium salt Market- Key Driving Factors

  • Developments in precision farming have boded well for the potassium salt market. Technologies such as GPS guidance systems, maps and yield monitors allows farmers to gather data regarding changing soil and climatic conditions and alter production practices accordingly.
  • Use of pesticides and fertilizers to improve crop yields has broadened prospects for potassium salt as an important ingredient in the chemical industry.
  • Population expansion has generated greater demand for food-based agricultural products. Consequently, demand for fertile lands to cultivate food crops is rising, driving increased usage of potassium salt based fertilizers.

Potassium salt Market- Key Restraints

  • Price volatility in the chemical and fertilizer markets deter farmers from purchasing potassium salt based fertilizers, restricting market growth.
  • Labor shortages due to the coronavirus pandemic has disrupted agricultural and industrial activities, limiting the usage of potassium salt in these sectors.

Anticipated Impact of the COVID-19 Outbreak

As the coronavirus pandemic expands its tentacles, the global potassium salt market is entering doldrums, with production cycles being halted to pave the way for manufacturing essential items associated with COVID-19 treatment. The market is taking a significant hit due to slumps across end-use industries. The fertilizer sector has been particularly impacted since the pandemic's onset, especially in China, which is one of the world's leading fertilizer manufacturers.

Production constraints have led to an upsurge in raw material prices, rendering them unaffordable. Additionally, logistical constraints have generated difficulties in procuring raw materials for the production process, leading to reduced output. Additionally, strict border controls have ceased imports and exports of fertilizers, leading to shortages in supply.

Disruptions in the fertilizer industry has further impacted the agriculture sector, the primary consumers. Since potassium is widely used to replenish soil nutrients and overcome mineral deficiencies, its usage has fallen significantly. Moreover, there is limited adoption of modern farming techniques, especially in the Asia-Pacific region. Agriculture here is still highly labor intensive, requiring copious amount of manual labor to sow and harvest the crops.

Shortage of workforce due to lockdowns is impeding agricultural growth. All these factors have been detrimental to the progress of agriculture and industrial grade potassium salt market. However, manufacturers are stepping up efforts to mitigate the impact of this crisis by strengthening their supply chains, using less manpower and increasing automation to sustain the production process and keep the market afloat.

Explore the Potassium salt Market report comprising 211 illustrative figures, 52 data tables and the table of contents. You can also find a comprehensive market segmentation on https://www.futuremarketinsights.com/askus/rep-gb-11613

Competition Landscape

The global potassium salt market is considerably fragmented. Prominent market players include Nutrien Ltd., SQM S.A., EuroChem, Arab Potash Company, K+S Kali GmbH, The Mosaic Company and Israel Chemicals Ltd. Product differentiation, investments in R&D and collaborations and mergers & acquisitions constitute the leading strategies of market players to acquire a competitive edge. Long-term supply contracts with prominent end-users also remains a principal strategy to expand market presence.

More about the Potassium salt Market

FMI's 250-page market research report offers comprehensive and unbiased insights on the potassium salt market. The report incorporates historical as well as forecast data from 2020 to 2030 and is divided into three segments: by grade, by application and by crop. By grade, the market is segmented into agricultural grade and chemical/industrial grade. In terms of application, the market is divided into agriculture, deicers, water softeners, industrial and others. By crop, the market is segmented into cereals, oilseeds, fiber/sugar and R&T, fruits & vegetables and others (grass & residuals). The market also includes a detailed regional analysis, incorporating the abovementioned segments. These regions include North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa (MEA).

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