According to a new report published by Allied Market Research titled, “Vietnam Fertilizer Market by Type, Form, Application/Crop Type, and Nutrient Content:Opportunity Analysis and Industry Forecast, 2020–2027,” the Vietnam fertilizer market was valued at $4.5 billion in 2019, and is projected to reach $5.7 billion by 2027, growing at a CAGR of 3.8% from 2020 to 2027.
Fertilizers are used to improve quality as well as yield of the crops as an adequate balance of the nutrients is essential for crops.
There is a significant demand for fertilizers in Vietnam as agriculture is one of the major sectors of Vietnam. Vietnam is one of the largest exporters of rice, cashew nuts, and coffee. Rise in prominence on enhancing fertilizer quality, curbing soil pollution, better land management practices, and urgent need to improve agricultural yield are anticipated to increase the demand for fertilizers in the country. In addition, favorable governmental policies for agriculture is also one of the key factors driving the demand for fertilizers. However, the Vietnam’s agricultural sector has faced challenges due to climate change and industrialization, which is expected to hamper the Vietnam fertilizer market growth. On the contrary, the Vietnam fertilizer market is expected to grow in the coming years, owing to favorable government policies for domestic organic fertilizer development and consumption.
The report segments the Vietnam fertilizer market on the basis of type, form, application (crop type), nutrient content, and region. By type, it is classified into organic and inorganic. Organic is sub-divided into pure organic fertilizers, microbiological fertilizers, bio organic fertilizers, and mineral organic fertilizers. Inorganic is further classified into nitrogen, phosphorous, potassium, and NPK. On the basis of form, the market is bifurcated into dry and liquid. By application (crop type), the market is divided into crop-based and non-crop–based. The crop-based segment is further categorized into cereals &grains, pulses &oilseeds, and fruits &vegetables. The non-crop–based segment is further categorized into turf &ornamentals and others. By nutrient content, the market is bifurcated into organic and inorganic. On the basis of region the market is analyzed across Northern Vietnam, Central and Southern Vietnam. The Vietnam fertilizer market share is analyzed across for all segments and regions.
The organic sub-segment is further classified into presence of organic substances is more than 60%, presence of organic substances from 40% to 60%, and presence of organic substances from 20% to 40%. The inorganic sub-segment is further fragmented into presence of inorganic substances up to 60%, presence of inorganic substances from 40% to 60%, presence of inorganic substance from 20% to 40%, and others. By region, it is analyzed across Northern Vietnam, Central Vietnam, and Southern Vietnam.
On the basis of type, the organic fertilizer segment is expected to grow at the fastest growth rate during the forecast period in terms of volume. This is attributed to numerous factors such as rise in concerns regarding environmental pollution, crop yield, and others. The Government of Vietnam is also prioritizing utilization of organic fertilizer for sustainable development of crop production.
On the basis of form, the liquid segment is anticipated to grow at a fastest CAGR of 4.8% during the forecast period, in terms of volume. Farmers are expected to adoption liquid-based fertilizer in coming years, owing to numerous factors such as ease in handling, ease of blending, and others. In addition, liquid-based fertilizerpenetrates rapidlyin the soil andresults in faster access to the nutrients to plants.
Based on the application (crop type), the crop-based segment garnered highest market share in 2019 in terms of volume. It has garnered 95.0% share in terms of volume. The market for fertilizers in crop-based applications will continue to grow at steady pace, owing to the factors such as growing population, pressure on arable lands to grow more produce, and cost-effectiveness.
On the basis of nutrient content method, the inorganic fertilizer segment garnered highest share in 2019 in terms of volume. Inorganic fertilizers are fundamental sources of essential nutrient such as nitrogen, phosphorus, and potassium. They release the nutrients and have high amount of nutrient content. The availability of such fertilizers in large quantity and ease in use drives the market growth.
Based on region, Southern Vietnam garnered highest share in terms of volume as well as revenue in 2019. This is owing to factors such as majority of rice production in the region, ideal weather condition for cultivation or agriculture activities as compared to Northern Vietnam.
The Vietnam fertilizer market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the Vietnam fertilizer market include Agricultural Products and Materials Joint Stock Company, Baconco, DUC GiangChemicals Group, General Materials and Biochemical Fertilizer Joint Stock Company, Japan Vietnam Fertilizer Company (JVF), SongGianhCorporation. (SongGianh), Vietnam National Chemical Group (Vinachem), Vedan Vietnam Enterprise Corp.,Ltd, Vietnam Oil and Gas Group (PetroVietnam or PVN), and Yara Vietnam.
Other players in the value chain of the Vietnam fertilizer market are Five Star International Group, Que Lam Group, Ha Bac Nitrogen Fertilizers and Chemical Company, and others.
Key Findings Of The Study
- The Vietnam fertilizer market is analyzed from 2019 to 2027
- On the basis of region, the North Vietnam fertilizer market gained a share of 24.7% in terms of revenue in 2019
- The crop-based application garnered a share of 95.0% in terms of volume in 2019
- On the basis of type, the inorganic segment gained a share of 90.0% in terms of volume of the share in 2019
- On the basis of form, the dry segment gained 19.2% share,in terms of volume in 2019
- A comprehensive analysis of the factors that drive and restrain the market growth is provided in the report
- The qualitative data in this report aims at the market dynamics, Vietnam fertilizer market trends, and developments in the industry
- The Vietnam fertilizer market size in provided in terms of volume and revenue
Impact Of Covid-19 On The Vietnam Fertilizer Market
- The outbreak of COVID-19 affected the farm product exports, which hindered the farmers income, consequently decreasing the demand for fertilizers.
- Vietnam farm products export reduced from the U.S., Europe, and others
- The exports were hampered due to the outbreak of COVID-19 in primary export markets.