Indonesia Amino Acid Fertilizer Market Size, Share, Industry, Forecast and outlook (2023-2030)

Indonesia Amino Acid Fertilizer Market is segmented By Type(Liquid Formulated Fertilizers, Dry Formulated Fertilizers), By Application(Horticulture, Crops, Others), By Distribution Channel(Online, Offline) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Indonesia Amino Acid Fertilizer Market Overview

Indonesia Amino Acid Fertilizer Market reached USD 450.2 million in 2022 and is expected to reach USD 625.7 million by 2030, growing with a CAGR of 4.2% during the forecast period 2023-2030. Advances in manufacturing processes and technologies have made amino acid fertilizers more accessible and cost-effective. Improved production techniques and formulations have led to higher-quality amino acid fertilizers with better efficacy.

Technological advancements have contributed to the growth of the Indonesian amino acid fertilizer market by improving product availability and affordability.

The persistently high prices of chemical fertilizers due to stagnating production and high cost of components is likely to accelerate the shift towards amino acid fertilizers. Local producers are already increasing production in anticipation of growing demand. In January 2023, the production of amino acid fertilizer was increased in the Jorong Nagari Tanjung Gadang in Aceh region in response to increasing demand from Aceh and West Sumatra regions. 

Indonesia Amino Acid Fertilizer Market Scope

Indonesia Amino Acid Fertilizer Market Dynamics

Rising Demand For High-Value Crops

Indonesia has witnessed significant economic development over the previous.It has led to profound socio-economic changes, rising income levels and have also altered the Indonesian people’s food preferences. High-value crops such as exotic fruits and vegetables are being adopted by Indonesian farmers to raise  their incomes, since many farmers have suffered stagnating incomes over the years due to cultivation of conventional crops.

The demand for high-value crops in Indonesia’s domestic market and the regional export markets has grown significantly in recent years due to changing consumer preferences and increasing global trade. To remain competitive, Indonesian farmers need to produce crops of superior quality that meet market standards and demands.

The quality of high-value crops, including their appearance, taste, nutritional content and shelf life, greatly influences consumer preferences and market value. Amino acid fertilizers contribute to the improvement of crop quality attributes by promoting balanced nutrient uptake, enhancing photosynthesis and increasing stress tolerance in plants. Farmers cultivating high-value crops adopt amino acid fertilizers to enhance the market value and desirability of their produce.

Increase in Organic Farming Practices

A growing demand for organic produce in Indonesia has been observed in recent years as consumers become more conscious of health and environmental issues. The Indonesian government has been actively promoting organic farming practices through supportive policies, incentives and certification programs.

Organic farming relies on natural processes to maintain soil fertility. However, organic practices alone may not always provide sufficient nutrients to meet crop demands. Amino acid fertilizers are considered compatible with organic farming practices. Amino acid fertilizers serve as a valuable supplement to address nutrient deficiencies in organic systems.

Amino acid fertilizers have been found to enhance crop quality and yield in organic farming. The fertilizers provide essential amino acids and nutrients that are crucial for plant growth, development and stress tolerance. By ensuring optimal nutrition, amino acid fertilizers help produce higher-quality organic crops with improved nutritional content, flavor, color and shelf life.

High Price Sensitivity

Price sensitivity among farmers in Indonesia arises from concerns about affordability. Farmers typically operate with limited financial resources and tight budgets. The farmers carefully evaluate the cost-effectiveness of agricultural inputs, including fertilizers, before making purchasing decisions. The relatively higher price of amino acid fertilizers compared to conventional fertilizers makes them less attractive to price-sensitive farmers.

Amino acid fertilizers are often perceived as more expensive compared to conventional fertilizers in Indonesia. The perception stems from the additional processing and formulation required to produce amino acid fertilizers. Farmers may hesitate to invest in amino acid fertilizers due to concerns about their cost-effectiveness and return on investment. The perception of higher costs can restrain the adoption and demand for amino acid fertilizers in the Indonesian market.

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Indonesia Amino Acid Fertilizer Market Segment Analysis

The Indonesia amino acid fertilizer painting market is segmented based on type, application and distribution channel.

Ease of Usage Makes Liquid Formulated Fertilizers Most Preferred in the Indonesian Market

Liquid formulated fertilizers are more widely utilized, accounting for nearly three-quarters of the Indonesian market. Liquid formulated fertilizers are easier to handle and apply compared to dry formulated fertilizers. The fertilizers can be readily mixed with water and sprayed directly onto plants or applied through irrigation systems. The ease of application makes liquid fertilizers more convenient for farmers, especially those with smaller-scale operations who may not have advanced machinery or equipment for precise dry fertilizer application.

Furthermore, liquid fertilizers are absorbed more quickly by plants compared to dry fertilizers. The nutrients in liquid formulations are readily available in a soluble form, allowing for faster absorption through the plant's roots and foliage. The quick nutrient uptake enhances the efficiency of fertilization and enables plants to benefit from the nutrients more promptly.

Source: DataM Intelligence Analysis (2023)

Indonesia Amino Acid Fertilizer Market Companies 

The major global players include Acele, TAGROW CO., LTD, PT Agro Parkim Indonesia, IT CJ INDONESIA, PT Hanampi Sejahtera Indonesia, Hebei Monband Water Soluble Fertilizer Co.,Ltd, EuroChem Group, PT PUPUK KUJANG, PT Pupuk Kalimantan Timur and PT Pupuk Sriwidjaja Palembang.

COVID-19 Impact on Indonesia Amino Acid Fertilizer Market

COVID Impact Analysis

During the early stages of the COVID-19 pandemic, Indonesia implemented lockdowns and movement restrictions to contain the spread of the virus. The measures significantly impacted agricultural activities as farmers faced challenges in accessing markets, labor shortages and caused major disrupted to farming operations. The reduced agricultural activities led to a decrease in the demand for amino acid fertilizers.

Due to the uncertainties brought about by the pandemic, farmers in Indonesia prioritized essential crops and staple food production over other agricultural activities. The shift in farming priorities led to a decreased demand for specialized fertilizers, including amino acid fertilizers, which are commonly used for high-value crops and horticulture. The focus on essential food crops resulted in a temporary decline in the adoption of amino acid fertilizers.

Russia- Ukraine War Impact 

The Russia-Ukraine war has disrupted the export of agricultural commodities from Ukraine, mainly corn, wheat and sunflower cooking oil. Indonesia is a major importer of agricultural produce such as wheat, rice and soybean. The disruptions have caused a major increase in prices of foodstuffs, creating significant inflationary pressure on the Indonesian economy. 

The Indonesian government has partnered with local agricultural research institutes and non-governmental organizations to explore the domestic commercial cultivation of imported crops, including various high-value fruits and vegetables. The government’s import substitution policy is likely to augment demand for amino acid fertilizers over the medium and long-term. 

By Type

• Liquid Formulated Fertilizers
• Dry Formulated Fertilizers

By Application

• Horticulture
• Crops
• Others

By Distribution Channel

• Online
• Offline

Key Developments

• In March 2022, the Indonesian government opened a new amino acid production facility at the Kuto Rejo Kepahiang village in Indonesia. The new factory is expected to help reduce fertilizer prices for local farmers.
• In July 2022, PT Ajinomoto Indonesia, a local food processing conglomerate, launched AJIFOL, an amino acid fertilizer derived from the byproduct of the company’s food processing activities. 
• In February 2023, Indonesia’s Ministry of Agriculture published an information bulletin on its website advising farmers on how to make eco-friendly amino acid fertilizers as a substitute for chemical fertilizers.

Why Purchase the Report?

• To visualize the Indonesia amino acid fertilizer painting market segmentation based on type, application and distribution channel, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of Indonesia amino acid fertilizer market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Type mapping available as Excel consisting of key products of all the major players.

The Indonesia amino acid fertilizer painting market report would provide approximately 36 tables, 24 figures and 140 Pages.

Target Audience 2023

• Fertilizer Manufacturers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies