Potassium Chloride Market Outlook
Surging food consumption across continents is accenting for the need of agrochemicals to satiate the ever-growing food demand without compromising on the quality aspect. Potassium chloride (KCl) accounts for a majority of the potassium (K) utilized in pesticides and fertilizers. Potassium chloride uses include cosmetics and personal care products where optimizing the acid-base ratio is important. Moreover, the oil & gas industry is also leveraging potassium chloride as a powerful shale or clay stabilizer in water-sensitive fluids. By 2030, the global value of the potassium chloride market will surpass US$ 16 Bn, as suggested by a new FMI study.
Potassium Chloride Market: Key Research Findings
- The global potassium chloride market will exceed the US$ 16 Bn mark in 2030.
- Market growth will majorly be driven by surging agricultural output, globally.
- Agricultural grade potassium chloride continues to register higher revenue than chemical/ industrial grade.
- The agriculture sector would remain the key consumer of potassium chloride; water softeners and industrial applications to offer investment prospects.
- Market players would continue to reap substantial returns from Asia Pacific (APAC) through 2030.
Key Factors Shaping Potassium Chloride Market
Population Growth and Subsequent Increase in Food Consumption
The global population was pegged at 7.6 billion in 2019, with a change of 1.08% during 2018-2019. High population growth has fuelled food consumption, globally, which has boosted the demand for agricultural products. There is significant pressure on the agricultural industry to cater to the increasing demand for food, owing to population growth. Thus, various technologies have been used to improve the yield of the available fertile land over the past few years. With an increase in the demand for agricultural products, it is imperative to ensure high output with the available resources, and this factor is boosting the use of fertilizers, including potassium chloride, to improve crop yield and production.
Precision Farming to Boost Consumption of Potassium Chloride
The rise of precision agriculture and growing adoption of latest technologies lead to an increase in the consumption of potassium chloride by farmers and agro-producers. The adoption rates for soil sampling and computer high speed Internet is 98% and 94%, respectively. Other common practices, such as yield monitors and maps and GPS guidance systems, increased with more than 80% of adoption rates. With growth in precision farming, the potassium chloride market is expected to surge over the forecast period.
Agricultural Development, Supported by Economic Growth
As per IMF data, the global economy grew by 2.9% (real GDP) in 2019. Economic growth improves the standard of living, alongside the spending power of people. Increasing spending power leads to a change in the eating habits of the population. Growth in food demand has been stronger than population growth, due to the changing eating habits of people. This, in turn, has been accelerating the demand for fertilizers and pesticides.
Fertilizers and pesticides are used to improving crop yield, fertility of soil, and enhance production. Therefore, the demand for potassium chloride is expected to grow in tandem with the growth of the agriculture industry. Developing economies spend money on the development of various industries. The agricultural industry is an important contributor to a nation’s GDP. Therefore, any improvement in economy is always a positive sign for the growth of the agricultural sector.
Region Outlook of Potassium Chloride Market
In terms of value, the potassium chloride market in East Asia led the global market in 2019. The potassium chloride market in China holds a prominent share, and is projected be the most attractive location for revenue growth over the forecast period, owing to the high demand for potassium chloride for agriculture and industrial applications.
Having said that, the coronavirus (COVID-19) pandemic is resulting in widespread disruption to Asia’s agricultural sector, with rice and wheat at the forefront of the impact. The predominant impact of the pandemic on the agricultural sector in Asia is that of workforce displacement, particularly for migrant workers. The supply chain in Asia is still in the pre-transformation era, and the agricultural industry is heavily dependent on workforce for planting, harvesting, and food transportation. Restrictions on import-export activities have adversely affected the profit margins of various segments of the supply chain. All these factors are casting a negative shadow on the potassium chloride market.
Potassium Chloride Market: Structure Analysis
- Collaborations and mergers & acquisitions are among the key strategies followed by leading manufacturers in the potassium chloride market.
- Key players are constantly enhancing their manufacturing capabilities by expanding and enhancing existing production facilities, along with investments in the R&D sector to have product differentiation. Moreover, long-term supply contracts with prominent end users also remains a key strategy in the global potassium chloride market.
Base year considered
Actual estimates/Historical data
2015 - 2019
2020 - 2030
Value (USD) Bn
Grade, Application, Crop, and Region
Americas (The US, Canada, Brazil, Mexico, and Rest of Americas), Europe (UK, Germany, France, Spain, Italy, Russia, and Rest of Europe), Asia Pacific (China, Japan, India, ASEAN, and Rest of APAC), and MEA (GCC Countries, South Africa, Turkey, Northern Africa and Rest of MEA).
EMC Corporation, Atlantis Computing Inc., Cisco Systems, DataCore Software Corporation, Fujitsu Ltd., Gridstore Inc., Hitachi Data Systems, Nutanix Inc., NetApp, and Pivot3
Revenue forecasts, COVID-19 impact, company share, competitive landscape, growth factors, and trends
Potassium Chloride Market Size by Grade
Agricultural grade continues to shape the revenue growth of the potassium chloride market. Under the category, granular and coarse fertilizers would be highly preferred, capturing around 75% of the overall agricultural grade potassium chloride revenue. These grade types are prevalent in formulated fertilizers such as bulk blended mixtures. However, this study has revealed that, chemical/ industrial grade potassium chloride would gain slight traction in the coming years, especially in the pharmaceutical industry. Nevertheless, players in the global potassium chloride market would continue to capitalize on agricultural grade potassium chloride.
Potassium Chloride Market Regional Analysis
Manufacturers of potassium chloride continue to resort to Asia Pacific (APAC) for bigger margins. Presence of chemical manufacturing hubs such as China is influencing market players to invest their resources in APAC. In addition, the agricultural and industrial sectors of China and India are making material progress, thus, adding next the leg of market growth in the region. At present, the APAC potassium chloride market represents a US$ 5 Bn market. FMI finds that, this figure is slated to increase stably over the decade ahead.
* This data is only a representation. Actual data may vary and will be available in report.
E-retail Ecosystem for Bigger Profit Margins
Top-line growth of the e-retail ecosystem for chemicals and materials, particularly in developing regions, is helping potassium chloride market players in reaching areas where services of offline distributors are inaccessible. As the supply chain model of the e-retail ecosystem does not involve distributors, the profit margin is significantly greater as compared to that of offline retailing. Players in the potassium chloride market must invest in e-retail strategies to boost revenue development, expand customer base, and enhance customer retention and loyalty.
Agricultural grade stays high in demand
Chemical/ industrial grade to gain momentum
Surging adoption in agriculture sector
Application in water softeners to rise
High usage in cultivation of cereals
Usage in cultivating fruits & vegetables to swell
How Growth will Unfold
Major portion of the potassium chloride market revenue would come from the agricultural sector. Around 9 out of 10 market players are investing in this end-use industry. FMI finds that, the trend will remain intact over the following decade. Adoption of precision farming for improving agricultural output has further boosted the consumption of potassium chloride in the agricultural sector. Moving ahead, market players are unfolding the potential of potassium chloride as a water softener as an alternative to sodium chloride in household water softener facilities.
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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A recent market study published by Future Market Insights (FMI) on the potassium chloride market includes global industry analysis of 2015-2019 and opportunity assessment for 2020-2030, and delivers a comprehensive assessment of the most important market dynamics. Our analysts conduct thorough research on the historical as well as current growth parameters of the market to obtain the growth prospects with maximum precision.
Potassium Chloride Market Taxonomy
- Agricultural Grade
- Chemical / Industrial Grade
- Water Softeners
- Fiber / Sugar and R&T
- Fruits & Vegetables
- Others (Grass & Residuals)
- North America
- Latin America
- East Asia
- South Asia
- Middle East & Africa
The report initiates with the executive summary of the potassium chloride market, which includes a summary of the key findings and statistics of the market. It also includes the demand & supply-side trends pertaining to the market.
In this chapter, readers can find the definition and a detailed taxonomy of the potassium chloride market, which will help them understand the basic information about the industry. Along with this, comprehensive information about potassium chloride is provided in this section. This section also highlights the inclusions and exclusions, which help readers understand the scope of the potassium chloride market report.
The potassium chloride market report provides key market trends that are expected to significantly impact market growth during the forecast period. Detailed industry trends are provided in this section.
This section includes successful factors and strategies adopted by key market participants.
This section explains the global market value analysis and forecasts for the potassium chloride market for the period of 2020-2030. This chapter includes a detailed analysis of the historical market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2020), and incremental $ opportunity for the forecast period (2020-2030). Along with this, pricing analysis of the potassium chloride market at the regional level has been provided in this section. This section also explains the global market volume analysis and forecast for the potassium chloride market during the forecast period of 2020-2030.
This chapter explains the key macroeconomic factors that are expected to influence the growth of the potassium chloride market over the forecast period. Along with the macroeconomic factors, this section also highlights the value chain, supply chain, forecast factors, and value chain analysis for the potassium chloride market. Moreover, in-depth information about the market dynamics and their impact analysis on the market have been provided in the successive section.
Based on grade, the potassium chloride market is segmented into agricultural grade and chemical / industrial grade. In this chapter, readers can find information about the key trends and developments in the potassium chloride market and market attractiveness analysis based on grade.
Based on application, the potassium chloride market is segmented into agriculture, deicers, water softeners, industrial, and others. In this chapter, readers can find information about the key trends and developments in the potassium chloride market and market attractiveness analysis based on application.
This chapter provides details about the potassium chloride market based on crop, and has been classified into cereals; oilseeds; fiber, sugar and R&T; fruits & vegetables, and others.
This chapter explains how the potassium chloride market will grow across various geographic regions such as North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
This chapter includes a detailed analysis of the growth of the North America potassium chloride market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find the pricing analysis, regional trends, and market growth based on application and countries in North America.
This chapter provides the growth scenario of the potassium chloride market in Latin American countries such as Brazil, Mexico, and the Rest of Latin America. Along with this, an assessment of the market across target segments has been provided.
Important growth prospects of the potassium chloride market in several countries such as the Germany, France, the U.K., Russia, and the Rest of Europe are included in this chapter.
This chapter highlights the growth of the potassium chloride market in East Asia by focusing on China, Japan, and South Korea. This section also helps readers understand the key factors that are responsible for the growth of the potassium chloride market in East Asia.
This chapter highlights the growth of the potassium chloride market in South Asia by focusing on India, ASEAN and Rest of South Asia. This section also helps readers understand the key factors that are responsible for the growth of the potassium chloride market in South Asia.
This chapter highlights the growth of the potassium chloride market by focusing on Oceania. This section also helps readers understand the key factors that are responsible for the growth of the potassium chloride market in Australia and New Zealand.
This chapter highlights the growth of the potassium chloride market in the Middle East & Africa by focusing on Turkey, GCC Countries, South Africa, and Rest of Middle East & Africa. This section also helps readers understand the key factors that are responsible for the growth of the potassium chloride market in the Middle East & Africa.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the potassium chloride market, along with their market presence analysis by region and product portfolio.
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the potassium chloride market, along with detailed information about each company, which includes company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are as Nutrien Ltd., The Mosiac Company, K+S Kali GmbH, Israel Chemicals Ltd., Intrepid Potash, Inc., Uralkali, JSC Belaruskali, EuroChem, Arab Potash Company, SQM S.A., and others.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the potassium chloride market report.
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the potassium chloride market.
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