Global Sulphate of Potash (SOP) Market is segmented By Grade (Standard SOP, Granular SOP, Soluble SOP), By Application (Agricultural, Food & beverages, Industrial, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Sulphate of Potash Market Overview
Sulphate of Potash (SOP) Market is expected to grow at a CAGR of 2% during the forecast period 2024-2031
Sulphate of potash (SOP) is a white inorganic water-soluble solid compound which consists of both potassium and sulphur insoluble forms. It is commonly used in food and beverages industries to improve the appearance and taste of foods such as bakery products, soft drinks and other beverages. Further SOP in agriculture has been added as fertilizer to improve the crops yield and quality of plants growing in soils that lack an adequate supply of essential nutrients. It is suitable for applications such as grapevines, tree crops, fruits and vegetables.
Sulphate of potash (SOP) is substantially used in end-user industries such as food & beverages, agricultural and industrial sector and among others.
Sulphate of Potash (SOP) Market Summary
|
Metrics |
Details |
|
Market CAGR |
2% |
|
Segments Covered |
By Grade, By Application and By Region |
|
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
|
Fastest Growing Region |
Asia Pacific |
|
Largest Market Share |
North America |
To Get a Free Sample Click here
Sulphate of Potash (SOP) Market Dynamics
The global sulphate of potash (SOP) is driven by the rising demand for fertilizers to improve crop yields due to rising food consumption with the surge in global population demand. Further increasing demand in the food and beverages industries with the surge in consumption of processed foods around the globe have propelled the sulphate of potash market. It is used as an additive that creates the carbon dioxide properties that characterizes popular carbonated beverages.
Rising demand for fertilizers to improve the crop yields due to rising food consumption with the surge in global population demand
As SOP is an excellent source of nutrition for plants which helps to improve crop yields. For instance, (FAO) in 2016 published a report on “World Fertilizer Trends and Outlook to 2020” which states that global fertilizers consumption of the three main fertilizers nitrogen (N), phosphorus expressed as phosphate (P2O5) and potassium expressed as potash (K2O) reached 186.67 million tons globally and its consumption is increasing at a rapid pace to enhance the ability of soil and increase the crop yields.
For instance, as per our world data organization in 2019, the global population reached 7.7 billion and is projected to reach 8.5 billion in 2030, 9.7 billion by 2050. It created a massive demand for the sulphate of potash market.
Growing sale and consumption of processed food and beverages with the surge in the global population demand have propelled the SOPs market
Further growing demand, sale and consumption of processed food and beverages such as carbonated drinks, packaged snacks, bakery products etc around the globe have propelled the sulphate of potash market. For instance, it is used as an additive in the food and beverages industry. As per the Food & Drink Federation Organization in the United Kingdom, the food and drink industry manufacturing sector contributed US$ 41 billion to the economy annually. It created a massive demand for this market.
Rising demand and consumption of organic foods as well as a surge in the environmental concerns as well as several harmful effects of the SOP and strict rules and regulations for its use may hamper the growth of the SOP market
Rising demand for organic foods due to surge in strict rules and regulations due to its harmful effects of the SOP. As per the soil association organization in 2019, the organic food market, growing at 4.5% in 2019 to reach a record US$ 2.2 billion. Further organic agricultural land reached an all-time high with 69.8 million hectares around the globe. It hampers the growth of the sulphate of the potash market.
COVID-19 Impact Analysis on Sulphate of Potash (SOP) Market
The global sulphate of potash (SOP) market has shown immense declination due to the Covid-19 pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. Further, the growth of, Automotives was also declined due to low demand in June 2020.
However, the demand for sulphate potash (SOP) is slightly increased in August 2020, as several leading manufacturers started production of the fertilizers. Due to the low demand for fertilizers around the globe, the fertilizer prices declined by 8.5% in May 2020 as lower input costs and weak seasonal demand with a gradual easing of supply bottlenecks.
Further prices were relatively resilient during March to June 2020 at stages of the COVID-19 pandemic the World Bank Fertilizer Price Index (see June 2020 monthly prices) was 4% higher in April than at the start of 2020 reflecting production curtailments and supply chain disruptions. The overall fertilizer prices declined by 10% in 2020 relative to 2019. However, this outlook is subject to considerable uncertainty and is projected to increase as soon as the pandemic will over.
Sulphate of Potash (SOP) Market Segmentation Analysis
The global Sulphate of Potash (SOP) is segmented based on grade, application and region.
Rising demand for fertilizers for agricultural crop yeilding around the globe have propelled the granule SOP segmental growth for this market
In terms of grade, the global sulphate of potash (SOP) is bifurcated into Standard SOP, Granular SOP and Soluble SOP. Among these, HALS has the highest market share in 2019, owing to rising demand for enhancing the crop yield and increasing the quality of food being grown. For instance, the fertilizer due to growing huge population demand of the food grain in developing countries.
For instance, as per the assessment by the National Academy of Agricultural Sciences (NAAS), food grain demand in India increased to around 300 million tons per annum. Thus to fulfil such huge requirements of the food, sulphate of potash (SOP) plays a vital role in enhancing the crop yields around the globe.
Similarly, standard SOP and soluble SOP segments are also growing at a faster pace owing to the surge in the global food and beverages demand with the surge in the global population and consumer spending. The soluble SOP is widely used in the beverages industry as it is used as an additive to enhance dissolution of the carbonated drinks.
Further demand is driven by increasing investment by the leading players to enhance the production of sugary drinks due to the surge in consumption around the globe. For instance, on 28th July 2019, PepsiCo planned to invest around US$ 70 million to set up a food manufacturing plant in Uttar Pradesh, India by partnering with local bottling plant Varun beverages.
The increasing rising for food and beverages with the surge in global population demand has propelled the SOP market growth
Based on the application, the global sulphate of potash (SOP) market is divided into agricultural industrial, food & beverages and others. Among this agriculture segment has the highest market share in 2019, this is primarily due to the surge in demand for the food with the growing global population.
For instance, SOP helps to enhance crop yielding by supplementing essential nutrients to the plants. SOP is used on high-value crops such as vegetables, fruits, tea, nuts, coffee and tobacco. SOP is used to enhance the tea production capacity in the agricultural land in Asia and African countries. For instance, the global tea supply growth surpassed approximately 200,000 tons of production in 2017 increasing at the rate of 4.3% annually with the surge in demand around the globe due to rising tea consumption.
Global Sulphate of Potash (SOP) Market Geographical Analysis
Asia-Pacific region holds the largest market share global sulphate of potash (SOP) market
Asia-Pacific region is dominating the global sulphate of potash (sop) market accounted for the largest market share of more than half of the world’s market in 2019, due to the presence of huge agricultural land and rising food and beverages industry demand in this region. Similarly, North America is also growing at the fastest speed owing to the production of the SOP for the agricultural and industrial sectors.
Further as of 2019, the global demand for the SOP increased to around 7 million tons per year especially in the well-established agricultural industry in China, United States followed by Europe. Further, as per the recent news on 2nd July 2020, Canada is the world’s leading global potash producer which reached 13.3 million tons (MT) of the annual output followed by Russia at 6.8 million MT. It created a massive demand for the sulphate potash market in this region.
Sulphate of Potash (SOP) Market Companies and Competitive Landscape
The Sulphate of Potash (SOP) Market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Migao, Qinghai Bindi Potash Co., Ltd, Jiangsu kolod food ingredients Co., Ltd, Hubei Xingyin Chemical Co., Ltd, Ching Shiang Chemical Industrial Co, Tessenderlo Group, K+S Aktiengesellschaft, Shanghai jinjinle Industry Co., Ltd, Ji'nan Huifeng Da Chemical Co., Ltd, Shandong Yuxiang Lin Chemical Co., Ltd, SQM S.A., ICL Group, Compass Minerals, Nutrien Limited, The Mosaic Company, JSC Belaruskali, Uralkali, Intrepid Potash, Zhengzhou Yuhe Food Additive Co., Ltd. and among others.
The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, which are contributing to the growth of the Sulphate of Potash (SOP) Market globally. For instance, on 15th June 2020 Danakali planned to develop the Colluli sulphate of potash (SoP) project, in Eritrea, East Africa with an investment of around US$ 439 million. SOP price in this country varies from US$450 to US$ 600 per tons depending upon the quality.
Uralkali:
Overview: Uralkali was founded in 2012 and headquartered in Danbury, Connecticut, United States. Uralkali is one of the leading Russian potash fertilizer producers which have 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk. Uralkali The Company has employed about 12,000 people. The Company’s production volume in the first quarter of 2020 reached 5.2 million tons of potassium chloride.
Product Portfolio: The Company has a product portfolio of the Sulphate of Potash (SOP) includes Potassium sulphate (SOP) for NPK fertilizers, including water-soluble fertilizers.
Key Development: On 6th March 2015, Uralkali planned to invest around US$4.5 billion in the expansion of the potash and planned to complete the expansion by 2020. It will increase the capacity to mine potassium chloride to around 14.4 million tons whereas Uralkali increased the mining capacity to 10.2 million tons in 2015.
