Monocalcium Phosphate Market Size, Share & Trends Analysis Report By Physical Forms (Powder, Liquid), By Applications (Fertilizers, Food Production, Beverages, Animal Feed, Bakery, Other), By Functional Use (Additive, Leavening agent, Acid component) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global monocalcium phosphate market size was valued at USD 1.7 billion in 2022 and is projected to reach USD 2.4 billion by 2031, registering a CAGR of 4.9% during the forecast period 2023-2031. Agriculture and animal feed drive the majority of the demand for monocalcium phosphate.

Monocalcium phosphate (MCP) is a chemical molecule with a Ca(H2PO4)2 formula. Because of its important qualities and applications, it is widely employed in various industries, including agriculture, food production, and pharmaceuticals.

Monocalcium phosphate aids in the strengthening of livestock and poultry teeth, bones, and weight gain. Factors driving the monocalcium phosphate market include the rising need for dietary supplements, various uses such as bakery products and agriculture, and rising demand for canned food. Furthermore, the health benefits of monocalcium phosphate attract a large consumer base, and the Food and Drug Administration's approval of it as a safe additive permits businesses to use it in industrial processes, boosting the global market. Given its health benefits in human and animal food consumption, the monocalcium phosphate market share is predicted to expand at a substantial CAGR during the forecast period.

Market Dynamics

Market Drivers

Growing Population and Food Demand

The world's population continues to grow, increasing the demand for food goods. To address this expanding demand, monocalcium phosphate is frequently utilized as a food additive to improve the nutritional content of numerous items such as baked goods and beverages. The world's population is steadily increasing. The global population is expected to reach 8 billion people in 2023. According to the United Nations, the world's population is expected to reach 9.7 billion by 2050 and 10.9 billion by 2100. This population growth significantly strains food production systems to ensure an appropriate and nutritious food supply. As the world's population grows, so does the demand for food goods.

Monocalcium phosphate is frequently used as a leavening agent, mineral supplement, and pH regulator in the food and beverage industries. The global monocalcium phosphate market trend benefits from continued population growth and the rising need for nutritious and safe food items. Monocalcium phosphate, as a fundamental ingredient in food production, plays a critical part in meeting these demands, and its use is likely to increase as the global population grows.

Market Restraints

Regulatory hallenges

The usage of monocalcium phosphate in the food and beverage industry is mostly concerned with food safety requirements. Food additive rules are continuously updated and revised by regulatory authorities such as the United States Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA). In the United States, the FDA maintains a list of approved food additives, including monocalcium phosphate, usage instructions, and maximum permissible amounts. Any modifications to these standards may influence the formulations and labeling of monocalcium phosphate-containing food products. Due to health concerns, the European Union (EU) established new restrictions 2017 banning phosphates in certain processed beef products.

Phosphates were prohibited from being used in goods such as kebabs and doner meat under these laws. As monocalcium phosphate is a source of phosphates frequently utilized in food, regulatory changes can directly impact demand. Manufacturers were required to modify their formulas to comply with the new requirements, which could decrease demand for monocalcium phosphate in specific applications. As a result, these issues are projected to stifle global market growth.

Market Opportunity

Rising Demand for Animal Protein

Rising incomes and rapid urbanization in emerging economies have increased meat and dairy product consumption. People in these areas consume more animal protein because they have more disposable income. Because of its increasing middle class, China, for example, has seen a significant growth in meat consumption over the years. The Food and Agriculture Organization (FAO) reports that China's per capita meat consumption more than doubled between the 1990s and the early 2010s. The poultry sector is a major user of monocalcium phosphate in animal feed. Because of the popularity of chicken meat and eggs, global poultry production, including broilers and layers, has increased. The growing global need for animal protein, driven by urbanization, income growth, and changing dietary choices, represents a huge potential for the monocalcium phosphate industry. Suppliers may capitalize on this trend by offering high-quality, nutritionally balanced goods to serve the expanding livestock industry and assure animal health and productivity.

Regional Analysis

The global monocalcium phosphate market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant contributor and is expected to grow at a healthy CAGR during the forecast period. The Asia-Pacific Monocalcium Phosphate market has the highest market share and is expected to have the highest revenue share during the projected period. The increase in demand for bio-fertilizers from the agriculture sector is one of the key factors expected to drive the monocalcium phosphate market growth in Asia-Pacific during the forecast period. Furthermore, the growing demand for healthy food products is expected to boost the growth of the calcium phosphate market. As the number of animals in the Asia-Pacific region grows, so will the demand for animal feed. Due to its huge client base, particularly in China and India, the Asia-Pacific animal feed industry is expected to hold a high market share. The Chinese market for complex feeds is expanding rapidly. According to an Alltech evaluation, China recorded the greatest increase in feed production by tonnage last year (2022), with the country's feed output increasing rapidly. China is the world's leading feed producer, producing 261.42 million metric tonnes. In 2021, the United States ranks second with 231.54 million metric tonnes, followed by Brazil (80.09 million) and India (44.05 million metric tonnes).

According to the Department of Animal Husbandry and Dairy India, India ranked first in cow and buffalo population growth rate last year (2022). It was the largest producer of milk and buffalo meat, ranking second in goat meat and third in poultry. In 2021, India will produce approximately 122.04 billion chicken eggs. According to global market insights, some factors driving demand for monocalcium phosphate include breed improvement, a limited market for organic feed, and increased dairy production.

North America is estimated to hold a significant market share with a 4.8% CAGR during the forecast. North America, which includes the United States, Canada, and Mexico, accounts for a sizable percentage of the worldwide global market. Significant industrialization, a well-established food and beverage sector, and a substantial agricultural and cattle economy distinguish the market in the region. Monocalcium phosphate increases the volume and texture of baked goods such as bread and cakes in the United States. This is standard procedure in the region's growing baking industry.

North America's agriculture industry is well-developed, providing many crops and cattle products. Monocalcium phosphate is important in animal feed formulations because it provides critical minerals for livestock growth and health. According to the USDA, total cash earnings from livestock and animal product sales in the United States will exceed USD 258.5 billion in 2022, demonstrating the importance of the livestock business. The area allows manufacturers to address the different needs of these businesses and consumers while navigating compliance and competition challenges.

The European monocalcium Phosphate Market is an important component of the global market, distinguished by its applications in various industries such as food and beverages, agriculture, and animal feed. Europe's food and beverage industry is highly developed and diverse, catering to various consumer interests. Furthermore, the European Union (EU) is a major agricultural producer. In 2019, the EU's total agricultural area was around 171 million hectares, with agricultural output valued at more than €418 billion. Additionally, firms have opportunities to innovate and develop specific monocalcium phosphate products that correspond with European customer preferences, such as clean-label additives and organic formulations.

The Latin American monocalcium Phosphate Market may experience hurdles due to different legislation and import/export limitations among the region's governments. Nonetheless, several Latin American countries are noted for agricultural exports such as coffee, soybeans, and meat. In agriculture, monocalcium phosphate is a mineral supplement for crops, improving soil health and crop productivity. Monocalcium phosphate may be used as a component of fertilizers in areas such as Brazil and Argentina to boost soil nutrient levels and agricultural production.

Segmental Analysis

The global monocalcium phosphate market is segmented based on Physical forms, applications, functional use, and region.

Physical forms are further segmented into Powder and liquid.

Powdered form holds the major share in the market and is expected to grow significantly during the forecast period. Monocalcium phosphate powder is simple to handle and store. When opposed to liquid forms, it has a longer shelf life. It enables precise measurement and regulated dosage, critical in applications requiring precision, such as food processing and animal feed formulation. Because powdered form is easily combined into dry substances during manufacturing, it is adaptable for various applications.

As liquid monocalcium phosphate is already dissolved, it simplifies the mixing process in several applications. Beverages can be fortified with calcium and phosphorus by adding liquid monocalcium phosphate. It's commonly found in sports drinks and fortified juices.

The segment can be bifurcated by application into Fertilizers, Food Production, Beverages, Animal Feed, and Bakery.

Fertilizers occupied the highest share in the market. Monocalcium phosphate is used in agricultural fertilizers as a source of vital nutrients, especially calcium (Ca) and phosphorus (P). Monocalcium phosphate fertilizers offer these necessary nutrients to plants, enabling healthy growth, root development, and flowering.

Monocalcium phosphate is used as a food additive in various food processing applications. It is widely used to increase the texture and rise of baked goods such as bread and cakes. It can also be used as a pH adjuster and mineral fortifier in canned and processed foods.

Based on Functional use, the market is sub-segmented into Additive, leavening agent, and acid component.

Additives are the most common functional use in the market. As an additive, monocalcium phosphate improves the properties of various items, including food, drinks, and medications. It improves various products' quality, texture, flavor, and nutritional content. Monocalcium phosphate, as an additive, can serve various functions, including functioning as a stabilizer, mineral fortifier, or pH regulator, depending on the application.

Monocalcium phosphate is used as a leavening agent in baking and food preparation. Leavening chemicals aid in the rise of dough and batter by releasing gases such as carbon dioxide, which produce air pockets and result in lighter, fluffier baked items.

Recent Developments

• August 2023- The Mosaic Company announced the launch of the Mosaic Biosciences platform, a global endeavor to bring cutting-edge research and innovation to the agriculture sector.
• August 2023- Yara Germany, the Bindewald and Gutting Milling Group, and Harry-Brot inked a decarbonize cereal agriculture in Germany.