Thailand Fertilizers Market Size (2024 - 2029)

Thailand Fertilizers Market Analysis

The Thailand Fertilizers Market size is estimated at USD 2.40 billion in 2024, and is expected to reach USD 3.28 billion by 2029, growing at a CAGR of 6.40% during the forecast period (2024-2029).

COVID-19 has a direct and negative impact on the value chain of the fertilizer market. The lockdown in Thailand has affected the transportation systems adversely. The primary raw materials used in the production of chemical fertilizers include ammonium, sulfuric acid, phosphorous, and potassium. The logistics restraints limited the supply of the raw material, and also, the prices of the fertilizers impacted the domestic fertilizer industry during the pandemic. Spike in fertilizer prices was also observed in 2020, owing to the logistics ban and increased international prices of phosphates and urea.

The increasing adoption rate of new technologies by farmers, increasing agricultural productivity, and growing country population are some of the major factors driving the Thailand fertilizer market. Additionally, the government has supported the farmers by providing them indirect intervention through fertilizer subsidy, i.e., cheap fertilizers and soft loans. For instance, in 2019, the government announced to launch new stimulus measures for the Thai farmers in the form of cheap fertilizers. This measure will be included on the state welfare smartcard, to provide subsidy directly to the card holders. It also announced a budget of TBH 60.36 billion (USD 1.98 billion) for three agricultural price subsidy programs for small rice and oil palm farmers in 2019. The rise in support provided to the farmers has led to the increased consumption of fertilizers, in order to increase the farm productivity. Similar trend is expected to be seen in the coming years.

Nitrogenous fertilizer dominates the market as the demand for notrogenous fertilizer is high owing to soil nitrogen deficient, due to the dominance of rice crops. Thus, nitrogenous fertilizers are the most frequently used, especially urea. For instance, according to IFASTAT, the nitrogenous fertilizer consumption in the form of Urea was 705.2 thousand metric ton in 2017. Despite the increasing area under organic cultivation in the country, the challenges in the usage of biofertilizers and organic fertilizers resulted in farmers to prefer synthetic or chemical fertilizers.

Thailand Fertilizers Industry Segmentation

According to OECD, chemical fertilizers are commercially produced, usually synthetic, chemical compounds, such as nitrogen, phosphorus, and potassium, as well as a variety of micronutrients and additives used in farming. . The Thailand fertilizers market is segmented by product (nitrogenous fertilizers, phosphatic fertilizers, potassic fertilizers, micronutrients fertilizers, and other products), and application (grains and cereals, pulses and oilseeds, commercial crops, fruits and vegetables, and other applications).