Thailand Fertilizers Market by Application, Type and Product - Forecast and Analysis 2024-2028

Thailand Fertilizers Market Forecast 2024-2028

The Thailand Fertilizers Market size is forecast to increase by USD 880.39 million, at a CAGR of 6.76% between 2023 and 2028. The growth rate of the market depends on several factors, the rising need to boost agricultural productivity in Thailand, increasing export of agricultural products from Thailand, and water soluble fertilizers gaining traction in Thailand. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Aditya Birla Management Corp. Pvt. Ltd. provides a comprehensive fertilizers solution, covering the entire agricultural process from sowing to harvesting, through their brand Indo Gulf Fertilizers. Simultaneously, CITY PLANT CO. LTD. offers fertilizers like MAX 88, Power Max, and Soil Plus under the brand KB KHUU.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamic

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Driver - Rising need to boost agricultural productivity in Thailand

The need to boost agricultural productivity in Thailand is a significant driver for the market. The agriculture sector of Thailand plays a crucial role in the country's economy, not just in terms of domestic consumption but also in the global export market. For instance, in 2022, agriculture contributed to around 8% of Thailand's total gross domestic product. As the country grapples with limited arable land and the challenges posed by climate change, the demand to enhance crop yields becomes high. Fertilizers, both organic and inorganic, are vital for replenishing soil nutrients that are depleted after each harvest cycle. 

Further, Thai government initiatives to support farmers, including subsidies for liquid fertilizer purchases and the promotion of modern agricultural techniques, underscore the importance in achieving national agricultural goals. These efforts are aimed at not only increasing production but also ensuring that farming remains a viable livelihood for millions of Thais. Thus, the increasing need to boost agricultural productivity in the country, facilitated by the adoption of liquid fertilizers and other modern practices, will continue to drive market growth during the forecast period. Liquid fertilizers are integral to optimizing crop yields efficiently, aligning with sustainable agricultural practices promoted by government policies, and supporting the agricultural sector's overall resilience and productivity goals.

Trends - Growing focus on adoption of precision agriculture

Precision agriculture, also known as smart farming or precision farming, is an emerging trend revolutionizing the agricultural landscape in Thailand. This approach utilizes advanced technologies such as Global Positioning System (GPS), drones, sensors, and data analytics to optimize various aspects of farming operations, including fertilizer application, irrigation, pest management, and harvesting. In Thailand, precision agriculture is gaining momentum as farmers seek to improve efficiency, productivity, and sustainability in their operations. By leveraging precise data on soil conditions, weather patterns, crop health, and nutrient levels, farmers can make informed decisions about when, where, and how much fertilizer to apply. 

Moreover, government initiatives and private sector investments are driving the adoption of precision agriculture in Thailand, with various programs and partnerships promoting the use of technology in farming practices. Training and education programs, including those focused on amino acid fertilizer applications, are also helping farmers acquire the skills and knowledge needed to implement precision agriculture techniques effectively. Thus, as technology continues to advance and awareness grows, precision agriculture, bolstered by innovations like amino acid fertilizers, is expected to become increasingly prevalent. This trend will contribute significantly to the growth of the agricultural market in Thailand during the forecast period, enhancing productivity, sustainability, and the overall efficiency of farming practices across the country.

Challenge - Health and environmental concerns associated with the use of fertilizers 

Fertilizers can poison humans and pets if inhaled or accidentally consumed. Contact with manure can cause skin irritation. Many commercially available synthetic or chemical-based fertilizers contain heavy metals, ammonium nitrate, potassium chloride, and cadmium. Plants absorb these toxic chemicals in fertilizers, and these toxic chemicals enter the food chain through fruits and vegetables. Also, these toxic chemicals can leak and contaminate groundwater, and contaminated water can contain high levels of nitrates and nitrites that cause methemoglobinemia. 

Additionally, the misuse of fertilizers can contribute to soil acidification and the accumulation of heavy metals, which can enter the human food chain through crops, posing further health risks, including kidney damage, osteoporosis, and cancer. Thus, the rising concern about health issues due to fertilizers may hinder the market growth during the forecast period.

Market Segmentation by Application, Type and Product

Application Segment Analysis: 

The agriculture segment is estimated to witness significant growth during the forecast period. In Thailand, the agriculture segment majorly drives the demand for fertilizers, reflecting the focus of the country on enhancing food security, improving crop yields, and boosting the agricultural economy. Agriculture in Thailand encompasses a wide range of crops, including rice, sugarcane, cassava, and corn, which are pivotal not only to domestic consumption but also to the export market. 

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The agriculture segment was the largest and was valued at USD 797.20 million in 2018. The use of fertilizers, particularly inorganic types such as nitrogenous, phosphatic, and potassic fertilizers, plays a crucial role in meeting the nutritional needs of these crops. Moreover, the Thai government's support through subsidies and the promotion of sustainable agricultural practices further accentuates the significance of fertilizers in the agriculture segment. For instance, the Thai government provides agricultural subsidies for small rice and oil palm farmers. Thus, the growing agricultural production in the country will continue to drive the growth of the market during the forecast period.

Type Segment Analysis:

Based on the type, the market has been segmented into inorganic and organic. The inorganic?segment will account for the largest share of this segment.?Inorganic include synthetic or chemically manufactured fertilizers, which are directly applied to soil or crops. Inorganic fertilizers are rich in essential nutrients such as nitrogen, phosphorus, and potassium (NPK) and are designed to provide immediate nutrient availability to plants. The demand for inorganic fertilizers in Thailand is significant, particularly for nitrogenous fertilizers such as urea and ammonium sulfate, due to the widespread nitrogen deficiency in the country's soils. These fertilizers are favored for their effectiveness in enhancing crop yield and are the predominant choice among farmers seeking to improve soil fertility and plant growth across various types of crops in the country. Thus, the growing need for increasing agricultural productivity in the country will continue to drive the growth of the segment during the forecast period. 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

COMPO EXPERT GmbH - The company offers fertilizers such as Fetrilon for foliar application and Basafer for soil application.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Aditya Birla Management Corp. Pvt. Ltd., Bayer AG, Chai Tai Co. Ltd., CITY PLANT CO. LTD., COMPO EXPERT GmbH, CropAgro, Global Crops Co. Ltd, Haifa Negev technologies Ltd., ICP Fertilizer Co. Ltd., ICP Ladda Co. Ltd., Israel Chemicals Ltd., Kaset Thai International Sugar Corporation Public Co. Ltd., NFC Public Co. Ltd., Terragro Fertilizer Co. Ltd., Thai Central Chemical Public Co. Ltd., Thai Nitrate Co. Ltd., TKK FERTILIZERZ Thailand Co. Ltd., TNA Agri Group Co. Ltd., Ube Corp., and Yara International ASA 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook 
  • Agriculture
  • Horticulture
  • Gardening

• Type Outlook 
  • Inorganic
  • Organic

• Product Outlook 
  • Dry
  • Liquid

Market Analyst Overview 

In the dynamic fertilizer market of Thailand, logistics restraints and supply intricacies impact prices and the domestic fertilizer industry. The industry grapples with spikes in fertilizer prices, occasionally exacerbated by logistics bans. International prices, especially for phosphates, influence adoption rates, with new technologies addressing the country's diverse population needs. Indirect interventions, such as fertilizer subsidies and stimulus measures, utilize tools like soft loans and state welfare smart cards to manage budgets and agricultural price subsidy programs, fostering a rise in support and farm productivity. Soil nitrogen deficiency, particularly in rice crops, remains a concern, as reflected in IFASTAT data. Nitrogenous fertilizer consumption, organic cultivation, and biofertilizers are pivotal in navigating agricultural challenges. FAOSTAT data emphasizes the critical role of fertilizers in cereal production, given Thailand's total land area and varied farm holdings.

In addition, the NorthEastern region, characterized by poor-quality soil, faces additional challenges with seasonality, variability of rainfall, and scarcity of surface water. Government schemes and declining availability of on-farm inputs impact agricultural commodity exports, prompting a focus on nitrogenous fertilizer with limited supply, pre-compounded grades, and efficient distribution. Addressing N loss and NH3 volatilization is crucial for major and key crops, while the emphasis on single-nutrient fertilizers aligns with Food and Agriculture Organization (FAO) guidelines, showcasing the intricacies of Thailand's fertilizer landscape. These efforts underscore the importance of optimizing nutrient management practices to enhance agricultural productivity and sustainability in challenging environmental conditions.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across Thailand
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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