Year 12 | 26 January 2020 | email@example.com
The growing population and consequently ensuring food supply would escalate the demand of fertilizers in China
The chemical fertilizer industry of China has grown at a CAGR of 2.0% during 2006-2012 with nitrogen fertilizers being the chief contributing segment. The country has been the largest contributing market in the Asia fertilizer industry. Application of chemical fertilizers plays an important role as China is the most populous country of the world. Thus ensuing food supply is one of the most important objective of the government as the application of fertilizer has helped the developing country such as China to help increase the yield per area of grain crop by around 55.0% to 57.0% while the overall production increased by amplified by almost 30.0%. Over the years 2006-2012, many small firms have emerged in the fertilize industry of China particularly nitrogen and phosphate fertilizers. At present the fertilizer industry of China is characterized by a large number of small firms contributing smaller share in the overall fertilizer market of the country. Thus most of the firms have continued in order to maintain competitive edge in the industry have started focusing on consolidation to achieve various goals such as elaborating the potential capacity, cost reduction, change of production structure and others through collective advantages and modernization. This would help the small players to save themselves from being the first target of elimination during shakeout periods.
“Consolidation would be an important area of focus of the government in the coming years as the top ten phosphate fertilizer producers in China accounted for just about 50.0% of the total output in 2012 which was far below the target of the Chinese government of 70.0%.” – According to the research report ‘China Fertilizer Industry Outlook to 2017-Strategic Consolidation to Drive the Industry Growth’ by Ken Research.
Since the fertilizer industry of China is fragmented, many of the small players would face elimination in times of economic turmoil. Thus many of the small firms would continue to consolidate particularly in the phosphate fertilizer industry in order to avail synergies thereby making consumption of China fertilizer reach ~ thousand tons nutrients in 2017 growing at a CAGR of 5.7% during 2012-2017.
The report provides detailed overview on the fertilizer market in China and help reader to identify the ongoing trends in the key segments of the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will aid industry consultants, fertilizer companies and marketing companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.
by S. C.
03 february 2014, World News > Asia