Magnesium sulphate is being used as one of the most basic ingredients for many industries including agriculture, pharmaceutical, food, personal care and others. Magnesium sulphate serves different purposes in these industries and with these industries witnessing an upward trend, the market for magnesium sulphate is also expected to witness a significant growth over the long term forecast. The major applications of magnesium sulphate include pharmaceuticals, agriculture and food & feedstock. According to a report published by the World Health Organization (WHO), the global kilocalories (kcal) per capita per day is set to reach 3050 Kcal by 2030, which was measured to be 2940 Kcal in 2015.
In addition, the global population is projected to surpass 9 billion by 2050. Therefore, the agricultural output needs to be increased all over the world. To stimulate global agricultural production, greater emphasis is being laid on adopting more efficient agricultural methods and chemicals such as fertilizers, herbicides etc. Hence, to maintain the balance of agricultural output and increasing food demand, the adoption of magnesium sulphate based fertilizers would increase, creating lucrative opportunities for the magnesium sulphate market. Food shortage remains a major global issue; one of the primary reasons behind it is the use of conventional methods which in turn results in a reduced crop yield. Thus, the demand for agriculture grade magnesium sulphate as a fertilizer has increased the demand for magnesium sulphate globally.
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Moreover, the global pharmaceutical industry is also on a rise and that creates favorable opportunities for the growth of the magnesium sulphate market. The global pharmaceutical R&D spending from 2007 to 2016 was recorded to be around US$ 1.36 trillion which is forecasted to increase with an annual investment of US$ 181 Billion by the end of 2022, according to The Association of the British Pharmaceutical Industry (ABPI). Furthermore, owing to the increasing global demand for effective medicines, drug makers are producing pharmaceuticals that are effective for rare diseases. Magnesium sulphate has been developed as a drug for various clinical uses. It is on the World Health Organization’s medicine list since 1996 and is considered as the most effective, safe and low-cost compound. The ever-growing pharmaceutical industry and increasing geriatric population in the world are likely to provide an impetus to the growth of the global magnesium sulphate market over the long term forecast (2018-2027), as magnesium sulphate is considered as the most effective, safe, and low-cost compound in various drug formulations.
Nutraceuticals to Bring About a Paradigm Shift in the Global Magnesium Sulphate Market
As per Fact.MR estimates, the global nutraceutical market is expected to rise two folds the growth of the global GDP up till 2027. Rising focus on the advantages of nutraceuticals, increasing instances of chronic diseases coupled with rapid technological advancements in the nutraceuticals sector by the key players are some of the major factors propelling the nutraceuticals market over the long term forecast. Furthermore, nutraceuticals are consumed exclusively or as a part of food additives or functional foods. Increasing incidences of chronic diseases and adverse health effects of conventional medicines have diverted consumer preference towards organic or natural products. Magnesium is a vital supplement for the human body and has been widely adopted in nutraceuticals. Moreover, the major global players such as Nestle S.A., Cargill, Incorporated, General Mills, Inc., Dean Foods etc. are extending their product offerings within the nutraceutical sector along with providing advanced food products. Thus, increasing demand for nutraceuticals opens greater avenues for the magnesium sulphate market.
Animal Feed to Offer Lucrative Growth Opportunities to the Magnesium Sulphate Market
The shift in food consumption patterns along with dietary trends in livestock products is driving the current day world food economy. In the last decade, the Asian region witnessed a trend of increased meat consumption, growing at a rapid rate of 4% per year. Other than meat consumption, the demand for milk along with other dairy products has witnessed a growth by 2-3% per year. Owing to the increase in demand, there have been notable effects on the aggregate agricultural output. There has been a rapid increase in livestock production, consequently affecting the crop sector that supplies the feed for animals, including cereals, oilseeds, and fisheries. The feed demand has been considered as a dynamic element conditioning the growth of the cereals sector, particularly in the developed regions. Magnesium sulphate helps animals in the reduction of auto-mutilation, cannibalism, sudden cardiac death, impaired quality of meat, and transport mortality. The growth in demand for animal feed and livestock itself has been raising the need for animal feed magnesium sulphate in the market to maintain the animal health devoid of side effects, thereby aiding the global magnesium sulphate market growth. Hence, with all the aforementioned factors, the animal feed magnesium sulphate market is expected to rise with over 4% CAGR over the forecast period (2018-2027).
Asia to Capture a Huge Share in the Global Magnesium Sulphate Market
The global magnesium sulphate market report covers six major regions viz. North America, Latin America, Europe, East Asia, South Asia & Oceania and Middle East & Africa. Of these, East Asia along with South Asia & Oceania managed to capture around 40% of the global magnesium sulphate market in 2018 in terms of value. Presence of established key players offering variety of their products in the region tends to present a positive impact on the regional magnesium sulphate market. Mag Products India Private Limited (MPIPL), ZIBO JINXING CHEMICAL CO., LTD., Weifang Huakang Magnesium Sulphate Co., Ltd etc. are some of the major magnesium sulphate manufacturers in the region. In addition, Asia is a region very rich in magnesium production. China leads the global magnesium production as it produced around 18 million tonnes of magnesite.
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Moreover, high agricultural output, a positive government stance towards the agriculture industry, increased spending on personal care coupled with well-established paper & pulp industry tends to drive the East Asia, South Asia & Oceania magnesium sulphate market over the long term forecast period. For instance, as per Environmental Paper Network, 2019, Asia Pulp & Paper (APP) (Indonesia) is planning to set up a paper & pulp mill in Andhra Pradesh, India with an annual production capacity of 5 million tons. Moreover, with increasing medical tourism and focus towards patient centric trends, the pharmaceutical industry is expected to rise in the Asian region which further promotes the Asian magnesium sulphate market. Indonesia, Thailand and India are amongst the prominent medical tourism destinations for the patients from North America and Europe. Hence, owing to all the aforementioned factors, the markets in South Asia & Oceania along with East Asia are expected to rise with significant growth rates over 2018-2027.
Volatility in Pricing & Availability of High Grade Magnesium are significant Growth Deterrents for the Market
Among the major restraints identified in the magnesium sulphate market, volatility in pricing and availability of high grade magnesium are the major restraints that hamper the market growth. In the recent past, raw material prices have witnessed sharp fluctuations, along with energy costs, which in turn has been affecting the overall cost of magnesium sulphate compounds. Asia is one of the key regions taking into account the magnesium production. China is the leading producer of magnesium compounds and policy changes in China have affected the price and availability of magnesium in the global magnesium sulphate market. Prices for magnesium also surged in the year 2017 and remained at these higher than normal levels since then. Magnesium plant shutdown in China for environmental concerns affected the price and supply of magnesia. In addition, the Chinese Government also banned use of explosives and other equipment in magnesite mines that resulted in raw material shortages. Further, high-grade dead-burned magnesia prices in China also witnessed a hike as the demand was robust with supplies being limited. Environmental issues in China are continuously affecting high grade production and prices. Thus, volatility in prices and availability has tightened the supply of magnesium sulphate globally. Furthermore, as per a report by U.S. Geological Survey, 2019, the global magnesite mine production has also decreased by about 0.3% over 2017-2018.
Key Players Targeting Capacity Expansion to Strengthen Their Hold in the Global Magnesium Sulphate Market
The global magnesium sulphate market consists of well-diversified global and regional players with global manufacturers capturing only 30% of the global market. The prominent players of magnesium sulphate market include Giles Chemical, Jiangsu Kolod Food Ingredients Co., Ltd., K+S Group, Laizhou City Laiyu Chemical Co. Ltd., Mani Agro Chem Pvt. Ltd., PQ Corporation, Mag Products India Private Limited (MPIPL) and others. These key players are adopting various strategies such as capacity expansion, product launches, mergers & acquisitions, joint ventures etc. to strengthen their hold within the global magnesium sulphate market. Production capacity expansion along with technology upgrades have been identified as the prime strategies adopted by these players in the global magnesium sulphate market. For instance, Weifang Huakang Magnesium Sulphate Co., Ltd. is gradually increasing its magnesium sulfate production capacity from 20,000 tons/annum to 50,000 tons/annum. The company has purchased its production lines from Germany to meet the demand for magnesium sulfate. In addition, in 2019, the company expanded its production capacity of anhydrous magnesium sulphate at Wintershall site, Werra plant. Hence, such initiatives by the key players will continue to increase their footprint in the global magnesium sulphate market.
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