Albany, NY -- (SBWIRE) -- 09/19/2014 -- According to a new market report published by Transparency Market Research "- Global Industry Analysis, Size, Share, Growth and Forecast, 2012 - 2018," the demand for Potassium Chloride Market products was over 2,600 million units in 2011, and is expected to grow at a CAGR of 3.7% from 2012 to 2018. In terms of revenue, the market was valued at approximately USD 81 billion in 2011 and is expected to reach USD 130 billion by 2018.
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Potassium Chloride is used extensively in the agriculture sector as potash fertilizer and it is also used in the food processing industry, pharmaceuticals and chemicals. Potassium chloride is a mineral which is naturally formed by the dehydration of sea beds. The compound of potassium chloride is made up of potassium and chlorine and it is also called “Muriate of Potash”, having a colorless crystalline appearance. Potassium chloride is essentially a metal halide salt which is odorless and is available in different colors like white, pink and red. Soluble potash, also known as white potash is incorporated in liquid starter fertilizers.
The demand for potash is due to its extensive use in the agriculture industry which is driven by rising demand for food grains as a consequence of increasing population all across the globe. Potassium chloride is of great use in food processing, pharmaceuticals and chemical industries and is also used as an electrolyte replenisher and in hypokalemia treatment. Due to rising demand for biofertilizers in agriculture, potash is being used extensively as potash mobilizing biofertilizers for better and healthy plant growth. And potassium is a necessary nutrient for plant growth.
Trends and Demand Drivers in the Global Potassium Chloride Market
The significant factor that drives the potassium chloride market is the fertilizer industry. Due to surging demand for phosphate and potassium in developing economies of the Asia Pacific, the global fertilizer industry has been experiencing positive growth. However, farmers are facing high degree of uncertainty due to unsteady prices of raw materials and crops which are a result of fluctuating prices of potassium chloride. This is a major hindrance in the growth of the potassium chloride market. A new potential opportunity that exists in this market is the growing demand for biofertilizers.
In the year 2012, the potassium chloride market was worth $18.71 billion due to highest demand for potassium chloride from the fertilizer industry. Even in the forthcoming years, the rapidly growing application segment will be the fertilizer industry. Due to rising population growth worldwide, there is a surge in the demand for food grains which fuels the demand for fertilizers, thereby giving a boost to the global potassium chloride market.
Potassium chloride is extensively used even in the industrial applications segment in certain water treatment processes to ensure consumption of clean and safe water.
The high demand for potassium chloride from the Asia Pacific economies can be owed to factors like modernization of agriculture processes and better agriculture productivity regulated and supervised by regulatory organizations. It is thus inferred that the Asia Pacific region will most probably experience highest growth rate of 5.2% CAGR between 2013 and 2019. Two significant factors that have contributed to the growth of this market in emerging economies like India and China are increased minimum prices for key goods and raise in farmer subsidies.
Key Players in the Global Potassium Chloride Market
Due to advanced and better farming technologies, North America has the highest share in the global potassium chloride market. The potassium chloride market is highly fragmented because it is characterized by the presence of many medium and large manufacturers at the regional and the global levels.
According to the findings of the International Fertilizer Industry Association (IFA), between 2013 and 2017, manufacturers have planned about thirty potash expansion projects worldwide.
Some of the prominent players in the global chloride market include Sinofert Holdings, Israel Chemicals Ltd., Potash Corporation of Saskatchewan Inc., Sociedad Química y Minerade Chile (SQM), Agrium Inc., Joint Stock Company (JSC) Belaruskali, K+S Aktiengesellschaft, Arab Potash Company (APC), Israel Chemicals Ltd. and The Mosaic Company.
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