Malaysia Fertilizer Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Malaysia Fertilizer Market Size

The Malaysian fertilizers market will be worth US$ 1,325.58 billion in 2033, increasing from US$ 901.26 billion in 2024, and registering a CAGR of 4.38% during the period 2025-2033. Incentives from the government for green farming, enhanced agricultural activities, and rising demand for high-yielding crops drive growth. Developments in technology in the manufacture of fertilizers and the use of green alternatives also aid growth in the market.

Malaysia Fertilizer Market Forecast Report by Type (Nitrogen Fertilizers, Phosphate Fertilizers, Potash Fertilizers), Nitrogen Fertilizers (Ammonia (N), Ammonium Nitrate (N), Ammonium Phosphate (N), Ammonium Sulphate (N), Calcium Ammonium Nitrate (N), Potassium Nitrate (N), Urea (N), Urea Ammonium Nitrate (N), NK (N), NPK (N), NP (N), Others), Category (Organic, Inorganic), Form (Dry, Liquid), Application (Agriculture, Horticulture, Gardening, Others), Crop (Grassland, Vegetables, Fruits/Treenuts, Roots/Tubers, Sugar Crops, Fibre Crops, Other Oil Crops, Oil Palm, Soybeans, Other Cereals, Maize, Rice, Wheat, Others), and Company Analysis 2025-2033.

Malaysia Fertilizer Market Outlooks

Fertilizers are key agricultural inputs that provide crops with the necessary nutrients for best growth and yield. They exist in different forms, such as chemical, organic, and bio-based fertilizers, each having a particular soil and crop requirement. In Malaysia, fertilizers are important for maintaining the agricultural industry of the country, such as palm oil, rubber, rice, and fruit plantations.

The application of fertilizers in Malaysia assists in improving soil fertility, increasing crop production, and ensuring food security. Farmers use nitrogen, phosphorus, and potassium fertilizers to increase the health and productivity of plants. Organic fertilizers are increasingly becoming popular because they have environmental advantages and assist in sustainable agriculture. With Malaysia's increasing emphasis on precision agriculture, fertilizers are now more customized to suit particular soil conditions and crop needs, facilitating effective nutrient uptake and minimizing environmental degradation. The Malaysian government also encourages the adoption of fertilizers through subsidies and programs for balanced fertilization practices.

Growth Drivers in the Malaysia Fertilizer Market

Increased Agricultural Activities and Demand for High-Yield Crops

Malaysia's agricultural sector is growing as a result of the growing demand for food and cash crops like palm oil, rubber, and rice. Farmers are using fertilizers to enhance soil fertility and increase yield per hectare. With the growing population and increasing food consumption, demand for fertilizers is on the rise. Government support in the form of subsidies on fertilizers and incentives to farmers also increases the market. The drive to adopt modern methods of farming such as precision agriculture and controlled-release fertilizers improves nutrient efficiency and encourages fertilizer uptake. Malaysia has 34.1 million people as of 2024 versus 33.4 million in 2023, an increase of 1.9 percent.

Government Support and Policies

The government of Malaysia lends active support to the farming industry in the form of policies encouraging sustainable agriculture and improved productivity. Initiatives like the National Agro-Food Policy (NAP) and fertilizer subsidies enable farmers to pay for necessary inputs. Agricultural research and development (R&D) are also promoted, resulting in new fertilizer formulation innovations. Prioritizing rice and other staple crop self-sufficiency and bio-fertilizer development supports the nation's sustainability objectives. These efforts secure steady fertilizer demand and offer long-term industry growth prospects. Aug 2024, The National Agrofood Policy 2021-2030 (NAP 2.0) will develop a sustainable, high-tech agrofood industry that drives economic growth, enhances the well-being of the people, and provides food and nutrition security. Oct 2023, The government is setting aside RM2.6 billion to subsidise and provide incentives to paddy farmers and fishermen under Budget 2024.

Expansion of Oil Palm Plantations

Malaysia is a top palm oil producer in the world, and the growth of oil palm plantations is one of the main drivers of fertilizer use. Palm oil trees demand high levels of nitrogen, phosphorus, and potassium to grow and produce optimally. Fertilizers support soil fertility and plantation sustainability. With increasing global demand for palm oil, plantation owners and smallholder farmers spend a lot of money on fertilizers in order to increase yield, escalating the market growth further. Feb 2025, Malaysia does not plan to increase palm oil's biodiesel mix to 20% from a current 10%, since the associated infrastructure building would require money that is neither available from the government nor the industry. The Malaysian government has reaffirmed its support for mainstream palm oil sustainability by embracing United Nation Sustainable Development Goals (SDGs) in full, as outlined in the 12th Malaysian Plan (2021-2025). In Malaysia, the plantation had increased by 12% from 2005 to 2015, which proved to be a good investment as the industry revenue reached USD 16.1 billion in 2019.

Challenges in the Malaysia Fertilizer Market

Volatility in Raw Material Prices

The Malaysian fertilizer industry is greatly reliant on imported raw materials such as potash, phosphate, and nitrogen compounds. Global price fluctuations of these materials have a great influence on fertilizer prices. Disruptions in supply chains, geopolitical tensions, and exchange rates also add to price volatility, which makes it challenging for farmers to obtain fertilizers at reasonable prices. Increased prices can result in lower fertilizer consumption, which adversely impacts agricultural production and overall market growth.

Environmental Issues and Regulatory Compliances

Excessive use of chemical fertilizers has drawn concerns regarding soil erosion, water contamination, and carbon emissions. The Malaysian government is imposing more stringent regulations in support of environmentally friendly fertilizer adoption and promoting bio- and organically based fertilizer options. Tougher environmental legislation can raise compliance expenses for fertilizer companies and curb the adoption of synthetic fertilizers. Farmers need to implement best management practices for minimizing environmental pressures, creating additional complexity in the market.

Malaysia Nitrogen Fertilizer Industry

Nitrogen fertilizers are extensively utilized in Malaysia due to the fact that they play a pivotal role in enhancing plant growth and crop yield. The most widely used nitrogen fertilizers include urea, ammonium nitrate, and ammonium sulfate. The rice, palm oil, and vegetable crops are the leading industries in the nation that demand them. Though, fear of high nitrogen application causing acidification of the soil and water pollution has spawned greater interest in controlled-release and environmentally friendly nitrogen fertilizers. The emphasis from the government of Malaysia regarding balanced fertilization policies directs market forces to promote more sustainable use of nitrogen fertilizers.

Malaysia Ammonium Nitrate (N) Fertilizer Market

Ammonium nitrate is an important nitrogen fertilizer applied in Malaysia to enhance crop yields. It offers a quick-acting source of nitrogen, thus making it a crop of choice for plants that need rapid nutrient absorption. The oil palm industry is among the main users of ammonium nitrate because of its high nitrogen content. Nonetheless, the product's explosive nature has resulted in stringent regulatory procedures controlling its manufacturing, storage, and supply. As long as demand is high, producers have to adhere to strict safety standards, which can affect supply and price dynamics in the market.

Malaysia Ammonium Phosphate (N) Fertilizer Market

Ammonium phosphate fertilizers such as monoammonium phosphate (MAP) and diammonium phosphate (DAP) are commonly applied in Malaysia to supply necessary nitrogen and phosphorus nutrients. The fertilizers promote root growth and plant development, hence being essential for rice and vegetable farming. The demand is driven by soil nutrient imbalances and agronomists' requirements for balanced fertilization regimes. As awareness of soil fertility and nutrient supply increases, usage of ammonium phosphate fertilizers will grow, especially in precision agriculture.

Malaysia Organic Fertilizer Market

Malaysian organic fertilizer market growth is also being driven by growing environmental concern and the development of sustainable agriculture. Organic fertilizers, which are plant and animal waste-based, enhance soil health and microbial function and decrease dependence on chemical fertilizers. Incentives by the government to promote organic farming and demand for chemical-free vegetables are major growth promoters. Compost, manure, and bio-fertilizers are popular organic farming materials. Limited supply and higher prices than synthetic fertilizers are constraints to large-scale usage.

Malaysia Dry Fertilizer Market

Dry fertilizers, such as granular and powders, are commonly applied in Malaysia because of their convenience to store and their shelf life. Dry fertilizers are favored in big-scale farming practices, especially for palm oil and rice. Dry fertilizers provide slow release of nutrients, which enhances efficiency and reduces losses in nutrients. Some of the problems, including inconsistent application and reliance on rainwater to activate, can undermine effectiveness. Demand for dry fertilizers will continue to be constant, influenced by their affordability and ready availability.

Malaysia Agriculture Fertilizer Market

The Malaysian fertilizer market for agriculture includes a range of products serving different crop requirements. Fertilizers play a vital role in increasing agricultural productivity, food security, and supporting the export-oriented crops of the country, such as palm oil. Government policies, technological innovation, and growing use of precision farming methods propel the market. Price volatility, regulatory restrictions, and soil health issues are challenges that influence market dynamics. The transition towards sustainable fertilizers and integrated soil fertility management will drive future growth.

Malaysia Vegetables Fertilizer Market

Fertilizers play a critical role in vegetable cultivation in Malaysia for improving yields and quality. Nitrogen, phosphorus, and potassium fertilizers are frequently applied to promote leafy greens, tomatoes, chilies, and other vegetables. The increased demand for fresh and organic vegetables has promoted the application of bio-fertilizers and controlled-release fertilizers. Price sensitivity by small-scale farmers and the requirement for effective fertilizer management practices continue to be issues. Government schemes for developing sustainable vegetable farming will propel the market over the forecast period.

Malaysia Soybeans Fertilizer Market

Soybean production in Malaysia is scanty but gaining ground as people opt for protein-based foods as well as feeds. Phosphorus- and potassium-rich fertilizers are responsible for increasing yields of soybean crops. Soybeans are augmented using nitrogen-fixing bacteria, along with the usage of bio-fertilizers for improving fertility levels in soils, minimizing usage of synthetic-based fertilizers. But soybean cultivation is held back by insufficient land supply and competition from foreign-origin soybeans. The implementation of sustainable fertilization methods and subsidy by the government for domestically produced soybeans can support market expansion.

Malaysia Rice Fertilizer Market

Rice is Malaysia's major staple crop, and fertilizer use is essential to provide high yields. Urea, ammonium sulfate, and phosphoric fertilizer are widely applied to enhance productivity in paddy fields. Subsidies on rice fertilizers provided by the government assist small-scale farmers in ensuring affordability and access. Excessive fertilizer use can contribute to environmental and soil problems, though. There is increased emphasis on precision fertilization and integrated nutrient management, which promotes sustainable rice cultivation without compromising the fertility of the soil. Progress in new-farm technologies will also influence future rice fertilization practice in Malaysia.

Malaysia Fertilizer Market Segments

Type

1. Nitrogen Fertilizers

2. Phosphate Fertilizers

3. Potash Fertilizers

Nitrogen Fertilizers

1. Ammonia (N)

2. Ammonium Nitrate (N)

3. Ammonium Phosphate (N)

4. Ammonium Sulphate (N)

5. Calcium Ammonium Nitrate (N)

6. Potassium Nitrate (N)

7. Urea (N)

8. Urea Ammonium Nitrate (N)

9. NK (N)

10. NPK (N)

11. NP (N)

12. Others

Category

1. Organic

2. Inorganic

Form

1. Dry

2. Liquid

Application

1. Agriculture

2. Horticulture

3. Gardening

4. Others

Crop

1. Grassland

2. Vegetables

3. Fruits/Treenuts

4. Roots/Tubers

5. Sugar Crops

6. Fibre Crops

7. Other Oil Crops

8. Oil Palm

9. Soybeans

10. Other Cereals

11. Maize

12. Rice

13. Wheat

14. Others

All the Key players have been covered from 4 Viewpoints:

• Overview
• Recent Development & Strategies
• Product Portfolio
• Financial Insights

Key Players Analysis

1. Yara International ASA

2. k+s ag

3. CF Industries Holdings

4. GrupaAzoty S.A

5. ICL Group

6. OCI NV

7. Sociedad Quimica y Minera de Chile SA

8. BASF SA

9. PhosAgro