Potash Fertilizers Market Size, Share and Trends 2024 to 2034

Potash Fertilizers Market Size and Forecast 2024 to 2034

The global potash fertilizers market size is worth around USD 22.26 billion in 2024 and is anticipated to reach around USD 32.42 billion by 2034, growing at a CAGR of 3.83% over the forecast period 2024 to 2034. The rising agricultural activities, demand for quality food, and increasing environmental concerns drive the potash fertilizers market growth.

Potash Fertilizers Market Key Takeaways

• Asia Pacific dominated the potash fertilizers market in 2023.
• North America held the second-largest share of the market.
• By type, the potassium chloride segment dominated the market in 2023.
• By type, the potassium sulfate segment is expected to grow at a significant rate during the forecast period.
• By crop type, the cereals and grains segment dominated the market in 2023 and is expected to grow at the fastest rate during the forecast period.
• By form, the solid segment dominated the potash fertilizers market in 2023.
• By form, the liquid segment is estimated to grow at the fastest rate during the forecast period.
• By application method, the broadcasting segment dominated the market in 2023 and is expected to grow at the fastest rate during the forecast period.

Market Overview

The potash fertilizers market involves extracting, processing, manufacturing, and distributing potash-based fertilizers to improve crop productivity. Plants mainly require three primary nutrients: nitrogen, phosphorus, and potassium. Fertilizers containing potassium as a primary nutrient are called potash fertilizers. Potash fertilizers contain potassium in their salt form, either chloride or sulfate. It enables the maturation of the plant, increases yields, strengthens roots, resistance to diseases, and prevents insect attacks.

It plays a vital role in improving crop quality, such as increasing nutrient content in a plant and producing plump grains and strong stalks in cereals. Additionally, it can also flavor and color fruits and increase the size of tubers. Although potash has numerous applications, it is widely used as an agricultural fertilizer. Over 90% of potash produced globally is used as a fertilizer for food crops. In 2022, approximately 64.6 million tons of potash was produced globally.

What is the role of AI in the Potash fertilizers market?

Smart Farming Systems highlight the need for advanced technologies like the Internet of Things (IoT) and Artificial Intelligence (AI) in the agricultural sector. Automation is obtained by using sensors and processors to increase speed and efficiency. AI can be prominently utilized for soil nutrient analysis. This involves using soil NPK sensors and stores in a cloud environment to recommend fertilizer.

AI can detect nitrogen, phosphorus, and potassium levels within the soil and can further recommend the use of a particular fertilizer. Additionally, it can also suggest the required amount of fertilizer and timings that can help farmers reduce their money on extra fertilizer and the corresponding workforce.  Since potash is majorly available deep down the earth’s surface, mining is an important step in extracting potash. AI has been used to automate mining procedures.

• In June 2024, Nutrien incorporated AI to improve efficiency and safety in mining potash. The company expects to spend between 15 million and 20 million annually on implementing technology and computer vision systems.

Potash Fertilizers Market Growth Factors

• The rising demand for high-quality and nutrient-rich food increases the demand for potash fertilizers.
• There is a need to produce nutrient-rich crops on less available agricultural land and advance agricultural activities.
• The gradually expanding population has diverse food needs, which increases the demand for potash fertilizers.
• Technological advancements in agricultural activities and mining potash also drive the market.

Market Scope

Market Dynamics

Drivers

Rising Demand for Quality Food

According to the Food and Agriculture Organization of the United Nations, approximately 723.8 million people, i.e., 9.1% of the global population, faced hunger in 2022. Hence, to fulfill the food needs of the people worldwide, agricultural output needs to be improved. The agricultural output can be improved by increasing crop productivity and yield to cater to larger consumers. The crop yields can be increased by implementing balanced fertilization practices, thereby preserving soil fertility. Potash fertilizers increase the nutrient content of the plant and fruit yields. It can also promote the appropriate color, flavor, and texture of the food crop.

Restraints

Potash fertilizer is prepared using two different methods: the pelletization method and the compaction granulation method. Potash possesses several challenges during large-scale manufacturing. The major challenge faced during the pelletization method is to maintain the ideal moisture level throughout processing. Moisture levels should be monitored during potash conditioning, pelletizing, and drying. The challenge faced during the compaction granulation method is attrition. Due to irregular surfaces and jagged edges, potash granules collide, resulting in a change of shape and size of the granules. This produces a large amount of unwanted potash fines, stimulating material waste. Another major challenge is the rising demand for organic farming, limiting the use of mineral fertilizers. All these aspects hinder the growth of the potash fertilizers market.

Opportunity

Rising Demand for Sustainable Agriculture

Sustainable agriculture includes farming to protect the environment, aid and expand natural resources, and make the best use of nonrenewable resources. It aims to supply society’s food demands while also protecting the capacity of future generations to supply their own. It addresses several issues like high energy costs, groundwater contamination, soil erosion, loss of productivity, depletion of fossil resources, and low farming incomes. Potash fertilizers play a major role in sustainable agriculture. Potassium is involved in transporting water, nutrients, and carbohydrates in plant tissue. Additionally, it aids in photosynthesis, increases root growth, helps retard crop diseases, and enhances the translocation of sugar and starch.

Nutrien’s Investment in Potash Fertilizer: A Company Outlook

Nutrien, a major fertilizer producer, announced that it achieved an adjusted EBITDA of $3.3 billion in the first half of 2024. The increased crop input margin, robust potash demand, and reduced operating costs were the drivers of their earnings. Out of the overall $3.3 billion, the potash fertilizer accounted for the $1 billion EBITDA in the first half of 2024. The company aims to increase the demand for fertilizers to maintain optimal plant health and yield potential.

Due to higher demand for potash fertilizers, the company raised its full-year global potash shipment forecast to 69-72 million tonnes. The high demand for granular potash in the first half of 2024 was seen majorly in Southeast Asia due to strong domestic consumption and solid affordability of potash in China. North America also showed huge demand due to high affordability and consumption in the region. The company plans to increase fertilizer sales volume by 2-3 million by 2026. The planning is based on the fertilizer operations like mine automation projects in potash.

Type Insights

The potassium chloride segment dominated the potash fertilizers market in 2023. Potassium chloride, or KCl, is a highly valued and widely used fertilizer globally. It provides both potassium and chloride elements essential for plants and animals. KCl is widely preferred as a fertilizer due to its affordability and high potassium content. KCl contains around 60-62% of potassium and around 45-47% of chlorine. In addition to the diverse applications of potassium in plants, chlorine is also essential for plant growth and productivity. The high solubility of KCl, the only suitable form of Cl supply, facilitates its use for irrigation and fertigation. Crops like kiwi fruit and palm trees have a high chlorine demand.

The potassium sulfate segment is anticipated to grow at a significant rate during the forecast period. Potassium sulfate, or K2SO4, is a rich source of both potassium and sulfur, which are essential for plant growth. It contains around 50-52% of potassium. Potassium sulfate is highly preferred for chloride-sensitive crops like potatoes, tobacco, some vegetables and fruits, and tree crops like almonds, walnuts, and citrus.

Crop Insights

The cereals & grains segment dominated the potash fertilizers market in 2023 and is anticipated to grow at the fastest CAGR during the predicted period. Cereal crops include a variety of grass family plants such as wheat, barley, maize, rice, etc. The fertilization of cereals and grains enables high yields, profitability, and harvest quality. Cereals and grains require fertilizer with balanced quantities of nitrogen, phosphorus, and potassium. Forage-seeded grains require a large amount of phosphorus and potassium fertilizer. According to the Food and Agriculture Organization of the United Nations, the global cereal production in 2024 was reported to be 2,854 million tonnes. Potash controls cell sap content to maintain the turgor of the plant and supports the movement of all materials within the plant. A sufficient quantity of potash is essential to produce high-quality, marketable grain with good specific weight and well-filled grains.

Form Insights

The solid segment dominated the potash fertilizers market in 2023. Solid potash fertilizers include using potash as granules, powders, or pellets. Solid fertilizers are generally cheaper than liquid fertilizers. Solid potash fertilizers are sprayed on the soil near the roots either in powder form or after dissolving in liquid. The plants need to be watered after applying solid fertilizers for their rapid absorption within the soil. Solid potash fertilizers can provide a sustained-release effect by gradually releasing their nutrients. All these advantages foster the demand for solid potash fertilizers.

The liquid segment is anticipated to grow fastest in the potash fertilizers market during the forecast period. Liquid fertilizers offer several advantages over solid fertilizers. Liquid fertilizers are either sprayed directly or mixed with water. They are absorbed faster compared to solid fertilizers. The amount of solid fertilizers to be applied must be calculated based on the surrounding agricultural area. Excess solid fertilizers may result in the burning or wastage of plants, whereas insufficient quantity hinders appropriate nutrition for the plants. Unlike solid fertilizers, liquid fertilizers need to be sprayed on the leaves of the plants.

Application Insights

The broadcasting segment dominated the potash fertilizers market in 2023 and is expected to grow at the fastest rate during the forecast period. Broadcasting fertilizers involves spreading fertilizers uniformly over the field. The application of fertilizers through broadcasting is relatively simple and requires straightforward equipment compared to other application methods. This method can be easily applied on large and small fields and a wide range of fertilizer types including granular, coated, and powdered. All these aspects boost the broadcast method for fertilizer application.

Regional Insights

Asia-Pacific dominated the potash fertilizers market in 2023. The presence of larger areas for agriculture, increasing consumption of vegetable crops, rising population, changing food trends, and increasing awareness for using micronutrients as fertilizers drive market growth. China is one of the world’s largest agricultural countries, leading to higher potash fertilizer import and consumption. China imports approximately 8 million metric tons of potash every year. Indonesia is the fourth-largest importer of potash in the world, spending around $2.1 billion in 2022. Furthermore, Malaysia is the sixth largest importer of potash in the world, spending around $1 billion in 2022. India imports 100% of its potash consumption, i.e., around 40 lakh metric tons annually.

• In February 2024, the Government of India announced that the sugar mills would sell potassium-based fertilizer, PDM, to fertilizer companies in the nation. PDM is derived from ash in molasses-based distilleries and is a by-product of the sugar-based ethanol industry. This initiative was made to reduce import dependence on fertilizer and generate revenue for the country.

North America held the second-largest share of the potash fertilizers market in 2023. The rising population, demand for better food quality, urbanization, increasing investment, and presence of key players drive the market growth. Countries like the U.S. and Canada are at the forefront of boosting the potash fertilizers market globally. Canada is the world’s largest producer of potash, accounting for 38% of total potash production in 2022. The production volume of potash in the U.S. was found to be 400,000 metric tons. Almost 95% of the potash is imported into the U.S. from Canada. According to the U.S. Geological Survey, Mineral Commodity Summaries, the domestic potash resources are estimated to be approximately 7 billion tons. Most of these are present in Montana and North Dakota as an extension of the Williston Basin deposits in Manitoba and Saskatchewan, Canada.

• In October 2023, BHP approved an investment of US$4.9 billion for stage two of the Jansen potash project in Saskatchewan, Canada. The stage two investment is a step forward in BHP’s goal to broaden its exposure to commodities.

The European region is anticipated to grow fastest during the forecast period. The increasing technological developments in the farming sector, collaborations and investments, high exports, demand for quality food, and rapid urbanization augment the potash fertilizers market. Russia’s fertilizer export in 2022 reached $16.7 million, whereas the export of potash fertilizer in the first half of 2024 amounted to 6.7 million tonnes. According to Fertilizers Europe, potash fertilizer consumption is estimated to reach 2.6 million tonnes by 2033. The European region comprises 123.8 million hectares of land for fertilization.

Potash Fertilizers Market Companies

• ICL Group Ltd.
• Nutrien
• Intrepid Potash
• The Mosaic Company
• Chambal Fertilisers
• Encanto Potash Corp.
• EuroChem Group
• K+S
• Salt Lake Potash Ltd.
• Emmerson PLC
• Uralkali

New Advancements

• In April 2024, Brazil Potash announced that it received the mine Installation License from the Amazon State Environmental Protection Institute (IPAAM) for the Autazes Potash Project. The license approval will facilitate the mining of potassium, thereby bypassing the risks and costs of potash imports.
• In June 2024, IHC Mining secured a new contract to build a new machine for the Arab Potash Company (APC). The new machine, a floating pontoon, will be used to harvest carnallite (potassium salt) in the Dead Sea in Jordan. Also, the machine is fully electric, thereby generating a smaller carbon footprint and operating in a sustainable way.
• In July 2024, ICL Group signed a major contract with China to supply potash to Chinese customers. The deal was made to supply 840,000 metric tonnes of potash at $273 per ton.
• In October 2022, Encanto Potash Corp announced that it is committed to promoting truth and reconciliation with the First Nations people of Canada. Encanto and Muskowekan First Nation will continue to work towards developing Canada’s first potash mine on a First Nations Reserve. Encanto will consider new technology for selective solution mining to enable potash production on a smaller scale and more environmentally sustainable approach.

Segments Covered in the Report

By Type

• Potassium Chloride
• Potassium Sulphate
• Potassium Nitrate
• Others

By Crop

• Pulses & Oilseeds
• Cereals & Grains
• Fruits & Vegetables
• Others

By Form

• Solid
• Liquid

By Application

• Broadcasting
• Foliar
• Fertigation

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa