|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
5.14
MMT
|
|
CAGR
(2023-2028)
|
4.31%
|
|
Fastest
Growing Segment
|
Grains
& Cereals
|
|
Largest
Market
|
Central
|
Market Overview
Vietnam
Fertilizers Market has valued at 5.14 MMT in 2022 and is anticipated to project
robust growth in the forecast period with a CAGR of 4.31% through 2028. Fertilizers
are essential in farming as they play a vital role in enhancing crop yield.
These fertilizers contain crucial nutrients like potassium, nitrogen, and
phosphorus, which are necessary for the healthy growth of plants. By providing
these nutrients, fertilizers not only improve the overall fertility of the soil
but also enhance its water retention capacity, ensuring proper nourishment for
the crops.
The
growth of the Vietnam fertilizer market is influenced by multiple factors.
Firstly, farmers in Vietnam are increasingly focusing on agricultural expansion
to boost productivity and cater to the growing consumer base. Agriculture plays
a significant role in Vietnam's economy, making it a key contributor. However,
the market growth faces challenges due to climate change. For instance, the
intrusion of seawater into certain areas affects farming activities, leading to
a decrease in farmers' income. As farmers are the end-users of fertilizers,
this decline in income is expected to hinder the demand for fertilizers.
On
the other hand, there is a rising trend towards organic agriculture, which
drives the demand for organic fertilizers. This shift towards organic farming
presents lucrative opportunities for the fertilizer market in the coming years.
With the increasing awareness and preference for organic produce, the demand
for organic fertilizers is anticipated to experience significant growth,
contributing to the overall expansion of the market.
Key Market Drivers
Increase in Agricultural Practices
Vietnam,
with its rich and diverse agricultural sector, has experienced a remarkable
upswing in the fertilizer market. This growth can primarily be attributed to
the increasing adoption of advanced agricultural practices across the country,
resulting in a surge in demand for fertilizers.
The
expansion of agriculture in Vietnam is a direct consequence of the government's
unwavering focus on this sector as a key driver of economic development.
According to the Ministry of Agriculture and Rural Development (MARD), the
agricultural sector in Vietnam witnessed a growth rate of 2.68% in 2020,
further fueling the demand for fertilizers. These essential nutrients play a
crucial role in enhancing crop productivity and improving the overall quality
of agricultural produce.
One
of the significant trends observed in the Vietnam fertilizers market is the
escalating shift towards organic fertilizers. This transition aligns perfectly
with the global movement towards sustainable and environmentally friendly
farming practices. In line with this, the Ministry of Agriculture and Rural
Development (MARD) of Vietnam has set an ambitious target of achieving 25
percent local production of organic fertilizers.
In
conclusion, the increasing adoption of advanced agricultural practices in
Vietnam serves as a major driving force behind the flourishing fertilizer
market. As the country continues to expand its agricultural sector, the demand
for fertilizers, particularly organic ones, is poised to witness a further rise.
This trend presents a significant opportunity for both existing players and new
entrants in the market. With Vietnam's unwavering commitment to agricultural
development, the fertilizer market will continue to play a pivotal role in
supporting and sustaining the country's remarkable growth trajectory.
Growth in Crop Diversity
Vietnam's
agricultural sector has undergone remarkable diversification in recent years.
This diversification has not only involved a shift from traditional rice
cultivation to cash crops like coffee, pepper, fruits, and vegetables, but it
has also led to the emergence of various sub-sectors within each crop category.
For instance, within the fruit category, there has been a surge in the
production of tropical fruits such as mangoes, dragon fruits, and durians.
Similarly, the coffee sector has witnessed the cultivation of specialty coffee
varieties renowned for their unique flavors and aromas.
As
each crop requires specific nutrient inputs for optimal growth and quality, the
demand for a diverse range of fertilizers has grown exponentially. Farmers now
seek fertilizers tailored to the specific needs of each crop, ensuring maximum
productivity and quality. This has spurred innovation in the fertilizer
industry, with companies developing specialized formulations to cater to the
varied requirements of different crops.
In
conclusion, the increasing diversity in crops and the subsequent demand for a
wide range of fertilizers have become pivotal drivers of the fertilizer market
in Vietnam. As the country continues to diversify its agricultural sector,
exploring new crops and adopting advanced cultivation techniques, the demand
for both specialty and organic fertilizers is projected to rise further. This
upward trend not only presents significant opportunities for market players but
also contributes to the overall growth and sustainability of Vietnam's economy.
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Key Market Challenges
Complexities Associated with Soil
Health Management
In
crop production systems, soil pollution often arises from the excessive
application of fertilizers and the presence of pesticide residues. In Vietnam,
as farmers increasingly rely on fertilizers to enhance crop yields, the risk of
over-application becomes more prominent, leading to soil degradation and
compromising long-term agricultural sustainability. This not only poses
challenges for farmers but also presents a significant issue for the fertilizer
market.
Moreover,
the nutrient composition of organic fertilizers available in Vietnam's markets
has come under scrutiny, raising concerns regarding their production and
evaluation. The complexities surrounding these issues further complicate soil
health management, creating additional challenges for both farmers and
fertilizer manufacturers who strive to address these concerns effectively. By
delving into these intricacies and exploring potential solutions, we can work
towards sustainable soil management practices that ensure the long-term health
and productivity of crop production systems.
Key Market Trends
Rising Shift Towards Balanced
Nutrient Use
The
rising awareness about the importance of balanced crop nutrition is playing a
pivotal role in shaping Vietnam's fertilizer market. Farmers are increasingly
recognizing that different crops have specific nutrient requirements for
optimal growth and yield. This realization has led to a significant shift from
the traditional practice of excessive fertilizer application to a more
judicious and efficient use of nutrients, tailored to the specific needs of
each crop.
Furthermore,
there is a growing trend towards the adoption of organic and bio-fertilizers as
part of sustainable agriculture in Vietnam. Organic fertilizers, derived from
various organic materials, offer a more balanced nutrient composition,
promoting soil health and long-term fertility. In fact, the Vietnamese
government has formulated an action plan to boost the production and usage of
organic fertilizers, aiming to reduce the dependency on synthetic fertilizers
and promote environmentally friendly farming practices.
In
conclusion, the rising shift towards balanced nutrient management is not just a
passing fad but a key and enduring trend in Vietnam's fertilizer market. This
trend is driven by the growing understanding of the significance of balanced
crop nutrition and the environmental impact of excessive fertilizer use. As the
demand for specialty and organic fertilizers continues to surge, stakeholders
in the market have a unique opportunity to contribute to sustainable
agricultural practices and foster a greener future for Vietnam.
Segmental Insights
Crop Type Insights
Based
on the category of crop type, the grains & cereals segment emerged as the
dominant player in the Vietnamese market for fertilizers in 2022. One of the
key reasons behind the dominance of grains and cereals in Vietnam's fertilizer
market is the surging demand for higher yields of these crops. With the to grow
population in Vietnam and the surrounding region continuing to grow at a rapid
pace, the need for food has become increasingly pressing. As a result, there
has been a heightened focus on improving the yield of staple crops such as
rice, maize, and other grains and cereals, which in turn has driven the demand
for fertilizers.
Another
factor contributing to this trend is the growing global demand for Asian
cuisine. Rice, being a primary ingredient in many Asian dishes, holds a
significant position as a major cereal crop in Vietnam. As the popularity of
Asian cuisine continues to rise across the globe, the demand for rice has also
experienced a significant surge. Consequently, this further fuels the need for
fertilizers to boost rice production to meet the ever-increasing demand. This
symbiotic relationship between the demand for Asian cuisine and the necessity
for fertilizers showcases the interconnectedness of various factors shaping the
dominance of grains and cereals in Vietnam's fertilizer market.
Mode of Application Insights
The
foliar spraying segment is projected to experience rapid growth during the
forecast period. One of the main reasons for the dominance of foliar spraying
in Vietnam's fertilizer market is its exceptional efficiency. This method allows
for the rapid absorption of nutrients, leading to significantly quicker and
more noticeable results. The nutrients are directly absorbed by the leaves of
plants, bypassing the traditional pathway through the soil and root system. As
a result, the nutrients become immediately available for the plants to utilize,
promoting their growth and development.
The
growing population and the limited availability of arable land in Vietnam have
further contributed to the widespread adoption of foliar spraying. With an
ever-increasing demand for food and agricultural products, farmers are faced
with the challenge of maximizing crop yields on limited land resources.
Utilizing foliar spraying provides a solution by enabling more precise
application of fertilizers, minimizing wastage, and ultimately enhancing crop
productivity.
Moreover,
the extensive use of foliar spraying extends beyond fertilizer application; it
also encompasses the administration of crop protection chemicals. This method
proves to be particularly effective in delivering these essential chemicals,
further solidifying its dominance in the market. Its versatility and efficacy
make foliar spraying a preferred choice for farmers, ensuring optimal plant
nutrition and protection.
By
leveraging the advantages of foliar spraying, Vietnamese farmers are able to
overcome the challenges posed by a growing population and limited arable land,
ultimately contributing to sustainable agriculture and food security in the
region.
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Regional Insights
- Central emerged as the dominant player
in the Vietnam Fertilizers Market in 2022, holding the largest market share in
terms of value. One of the key factors contributing to Central Vietnam's
dominance in the fertilizer market is its remarkable agricultural prominence.
The region boasts a rich and fertile land that supports a wide range of
agricultural activities. From growing staple crops like rice and maize, which
are the foundation of the local food supply, to cultivating cash crops such as
coffee and pepper, Central Vietnam showcases its agricultural diversity and
productivity.
- This diversity and intensity of farming
activities in Central Vietnam create a strong demand for fertilizers. Farmers
in the region rely on these essential nutrients to enhance the growth and yield
of their crops. The need for fertilizers is not only driven by the scale of
agricultural operations but also by the commitment to sustainable farming
practices and maximizing productivity.
- In addition to the thriving agricultural
sector, the presence of major domestic fertilizer companies further strengthens
Central Vietnam's position in the market. These companies, with their extensive
expertise and resources, play a vital role in meeting the diverse needs of
farmers in the region. With a market share of about 70%, these fertilizer
companies offer a wide range of products specifically tailored to the local
soil conditions and crop requirements, ensuring optimal results for farmers.
Recent Developments
- In
June 2022, Duc Giang Chemicals Group announced its plans to invest in two
significant projects in Dok Nong province. The first project, the Duc Giang-Dak
Nong Fertilizer Factory, will have a total investment of 13.16 million USD and
a production capacity of 200,000 tons per year of NPK fertilizer. This
state-of-the-art facility aims to contribute to the agricultural sector by
providing high-quality fertilizers to support crop growth and enhance
productivity.
- The
second project, the Aluminum-Dak Nong Complex, is expected to have a mining
scale of approximately 14.4 million tons of bauxite ore per year. With this
ambitious venture, Duc Giang Chemicals Group aims to tap into the potential of
the region's rich mineral resources and contribute to the economic development
of Dak Nong province.
- Moving
on to April 2022, PetroVietnam Fertilizer and Chemical Corp. introduced a new
product line called Phu My NPK - microbiology. This innovative offering
combines inorganic fertilizer NPK with beneficial microorganisms, aiming to
enhance soil fertility and improve crop productivity. By incorporating
microbiology into their fertilizer products, PetroVietnam Fertilizer and
Chemical Corp. demonstrates its commitment to sustainable agriculture and
environmental stewardship.
- In
November 2021, PetroVietnam Fertilizer and Chemical Corp. launched two new
product formula lines: PHU MY 18-12-8+TE and NPK 18-10-8+8+TE. These advanced
formulas are tailored to meet the specific nutritional needs of crops, offering
high protein content and quick dissolving properties. With these innovative
products, farmers can optimize nutrient uptake and promote healthier plant
growth, ultimately leading to higher yields.
- These
recent developments in the fertilizers and chemicals industry highlight the
commitment of both Duc Giang Chemicals Group and PetroVietnam Fertilizer and
Chemical Corp. to drive growth, innovation, and sustainability in their
respective fields.
Key Market Players
- Ninh
Binh Phosphate Fertilizer JSC
- Southern Fertilizer JSC
- Thien Sinh JSC
- Binh Dien Fertilizer JSC (BFC)
- Can Tho Fertilizer & Chemical JSC
|
By Crop Type
|
By
Mode of Application
|
By
Region
|
- Grains
& Cereals
- Pulses
& Oilseeds
- Commercial
Crops
- Fruits
& Vegetables
- Others
|
- Foliar Spraying
- Fertigation
- Sowing
- Drip Method
- Others
|
|
Report Scope:
In this report, the Vietnam Fertilizers Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Vietnam Fertilizers Market, By Crop Type:
o Grains & Cereals
o Pulses & Oilseeds
o Commercial Crops
o Fruits & Vegetables
o Others
- Vietnam Fertilizers Market, By Mode of Application:
o Foliar Spraying
o Fertigation
o Sowing
o Drip Method
o Others
- Vietnam Fertilizers Market, By Region:
o Northern
o Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Vietnam
Fertilizers Market.
Available Customizations:
Vietnam Fertilizers Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Vietnam Fertilizers Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]