Southeast Asia’s Fertilizer Landscape in 2025

Securing Food Through Innovation and Access

Agricultural Backbone & Fertilizer Needs

Southeast Asia’s agricultural sector accounts for a significant portion of GDP and employment in most countries. Major crops such as rice, corn, palm oil, sugarcane, rubber, and coffee dominate regional production.



Key Fertilizer Demands:

Fertilizer Trade & Supply Challenges

As domestic fertilizer production remains limited, Southeast Asia imports much of its fertilizers from China, the Middle East, Iran, and Russia. However, the region faces several challenges:

• Freight delays and high CIF prices due to volatile fuel markets
• China’s export restrictions, particularly on phosphate-based fertilizers
• Port congestion in countries like Indonesia and the Philippines
• Currency fluctuations, affecting fertilizer affordability
  
  

Despite these challenges, the region’s import demand remains strong due to growing consumption and government support.

Fertilizer Innovation at the Edge of Science

In 2025, Southeast Asia is also becoming a testbed for fertilizer innovation:

• Enhanced Efficiency Fertilizers (EEFs): Vietnam and Malaysia are piloting slow-release urea to minimize leaching and nitrogen loss in paddy soils.
• Biofertilizers & Organic Blends: Indonesia’s government has launched programs to replace 25% of chemical fertilizers with organic alternatives by 2030.
• Drone-based nutrient application is expanding in Thailand and Vietnam, improving fertilizer use efficiency and reducing labor.
• Climate-smart fertilizer recommendations using AI and soil sensors are being tested in rice-growing belts.
  
  

Example: Vietnam’s “Smart Rice” initiative is deploying sensor-aided fertilizer scheduling to optimize nitrogen application across key rice-producing provinces.

Policy Support & Subsidy Programs

Governments across Southeast Asia continue to back farmers with fertilizer subsidy schemes and infrastructure development:

• Indonesia’s e-voucher system ensures farmers are given transparent fertilizer distribution.
• Thailand’s Green Agriculture Plan promotes low-emission fertilizer use.
• Vietnam’s public-private partnerships focus on innovative fertilizer distribution in the Mekong Delta.
• The Philippines’ National Rice Program allocates annual budgets for urea and NPK import subsidies.
  
  

These efforts aim to stabilize market prices, improve nutrient application efficiency, and protect smallholder incomes.

Outlook: Growing Demand and Digital Integration

Southeast Asia’s fertilizer market is expected to grow at 4–5% annually through 2028, led by:

• Expanding food demand due to rising incomes and urbanization
• Intensification of farming in limited arable land
• Stronger international collaboration with fertilizer producers and R&D institutions
• Transition to sustainable and precision-based farming practices
  
  

Southeast Asia is poised to be a significant growth driver for climate-aligned fertilizer trade. The region's commitment to sustainable agriculture offers substantial opportunities for exporters who provide CBAM-compliant, eco-certified, and regionally customized fertilizers. This potential growth in climate-aligned fertilizer trade further underscores the region's future role in driving sustainable agriculture.

References

• FAO – Southeast Asia Regional Agriculture Reports
• Vietnam Ministry of Agriculture – Smart Rice Program
• Indonesia Ministry of Agriculture – Fertilizer Subsidy e-Voucher
• ASEAN Sustainable Agriculture Strategy
• International Fertilizer Association – Southeast Asia Fertilizer Trends