Phosphate Fertilizer Market

Market Overview

The global phosphate fertilizer market size was valued at USD 61.54 billion in 2021, and it is anticipated to reach USD 101.18 billion by 2030 at a CAGR of 5.68%. Factors such as global population growth and increasing food demand are driving the phosphate fertilizers market demand by 2030.

Phosphorus is an essential macronutrient that must be present for optimal crop productivity in terms of fertilizer application. There are three primary sources of phosphorus: bone meal, fertilizer, and rock superphosphate. Most commercial phosphate fertilizers on the market are made with rock phosphate as their primary source of raw material input. Phosphorus is essential for healthy root development and assists plants in withstanding the effects of environmental conditions such as drought. The nutrient in question is necessary for the growth and development of plants, including the maturation of seeds and fruits, as was just described.

Phosphatic fertilizers, such as diammonium phosphate (DAP) and monoammonium phosphate (MOP), are applied to soils in a variety of forms in order to make up for the lack of the specific phosphorus component in such soils. The development of new technologies for manufacturing ammonia, such as green ammonia, is anticipated to drive growth in the global phosphatic fertilizer market. DAP and MAP both include significant amounts of this substance. For example, in August of 2018, The OCP Group declared its intention to produce green ammonia as a sustainable raw material that may be used in producing fertilizers. OCP is one of the most significant exporters of phosphate fertilizers, and ammonia is an essential component of many of the finished fertilizer products that OCP manufactures, including DAP and MAP. OCP also has a solid commitment to sustainable development and is a leader in the industry in this regard. The corporation has been investigating sustainable ammonia supply chains as part of this commitment.

Market Dynamics

Global Phosphate Fertilizer Market Drivers

Limited accessibility to cultivable land

One of the main factors driving up demand for phosphorus fertilizers is the decline in the amount of arable land per person in several nations, including India, China, the United States, and others. Phosphorus fertilizers help to increase yield. Since there is less arable land per person and more people, agricultural yields must rise to fulfill the demand for food production. Farmers use crop protection as a vital tactic to meet the world's food demand. It is also a tried-and-true technology to use phosphorus fertilizers on crops to fulfill the rising demand for food goods. Future agricultural land expansion is unlikely due to rapid industrialization and urbanization. The need for phosphorus fertilizers may rise in response to rising meat and other food product demand and population growth. In the upcoming years, there should be plenty of opportunities for the phosphate fertilizer industry to grow significantly due to the potential for expansion in the Asia-Pacific and Latin American regions.

Global population growth and rising food demand are driving demand for phosphoric fertilizers in the market.

The ever-increasing size of the world's population is driving up the demand for efficient agricultural products and machinery so that more people can be fed despite the growing number of people on the planet. The world's agricultural production area and arable land are both shrinking significantly, further driving up the demand for high-quality fertilizers such as phosphatic compound fertilizers (DAP/MAP or NPK). It is anticipated that rising innovation in agricultural and irrigation technologies and rising utilization of sprinkler or drip irrigation will help in the phosphate fertilizer market growth of phosphatic fertilizers throughout the forthcoming years.

In addition, the amount of phosphorus taken out of the soil with each harvest is more significant than what is naturally provided by the soil; as a result, it is essential to supplement the soil with additional phosphorus fertilizers in an appropriate amount. Maintaining and restoring soil nutrients like nitrogen and phosphate are essential for increasing crop yield and growth. Other examples of soil nutrients include potassium and magnesium. Phosphorus used in commercial fertilizers is made especially soluble, making it more straightforward for plants to absorb and use the nutrient. It is essential to have effective phosphorous fertilizer management to cultivate healthy plants, achieve a high yield, and run a successful farming operation.

Global Phosphate Fertilizer Market Restraints

Strict Regulations and Environmental Constraints

Due to the lack of market and free trade regulations governing the supply and demand of phosphate rock, the structure and operation of the worldwide phosphorus fertilizers market have been continually changing. Government regulations and state-owned company tactics are used to manage and control them. As a result, more government intervention in reaction to material changes in the phosphorus fertilizers market globally harms both the market and the supply of phosphate rock. The P2O5 grade of phosphorus, cadmium pollution because of its adverse effects on human health and the environment, and raising awareness of inefficient phosphate usage and loss, particularly in light of urbanization, are some of the issues affecting the phosphate fertilizers market.

Regional Analysis

According to region, the market share is divided into North America, Europe, Asia-Pacific, Central & South America, and the Middle East & Africa. Asia-Pacific dominated the market in 2021.

In 2021, the Asia-Pacific region had the most significant revenue share, accounting for more than 61% of total revenue. This can be linked to the expanding food output and the growing demand for food products such as rice and vegetables from import-reliant nations in the Asia Pacific region. In addition, the agricultural sector is the backbone of the Indian economy because it employs over 50% of the workforce and contributes approximately 18% to the overall gross domestic product of the country. Wheat, rice, pulses, spices, and spice products make up most of India's crop production, respectively. One of the countries with the most robust demand for products derived from agricultural sources is India. Because of this, it is anticipated that there will be a rise in demand for the market during the forecast period.

Europe was the second-largest in terms of revenue in 2020. This is a result of the agricultural output of the countries located in the region; Germany is among the fourth largest agricultural producers in the region, and France is the sixth-largest producer. Together, these two countries are responsible for almost one-third of all the agricultural land within the European Union.

Segmental Analysis

The global phosphate fertilizer market is divided into three parts based on product, application and region.

Further, based on the product, the market is divided into Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP), Single Superphosphate (SSP), and Triple Superphosphate (TSP), and Others. In 2021, the monoammonium phosphate category had the highest revenue share. This is explained by the low cost of MAP and the substantial amount of phosphorus it contains. MAP is the most significant phosphate fertilizer since it is a crucial supplier of phosphorus and nitrogen. It has historically served as an effective granular fertilizer in agricultural applications. Due to its water solubility, it is employed directly or as a raw material to produce several complex fertilizers, including nitrogen phosphate and nitrogen-phosphate-potassium.

In 2021, triple superphosphate ranked as the second-largest product category. Diphosphorus pentoxide makes up about 46% of this highly concentrated phosphorus fertilizer. During the projected period, the TSP sector of the market is expected to develop significantly due to the rising demand for TSP from the worldwide agriculture industry.

The market is divided into Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables and Others based on application. In terms of revenue share in 2021, the cereals and grains application led the market. The increase in phosphorous fertilizer demand across all developed and emerging agricultural nations is attributable to the rising global demand for main cereals & grains due to the expanding global population.

The second-largest market share was held by the oilseeds and pulses sector. This is related to the rising demand for numerous agricultural goods in these areas, including items like soybean, peanut, sesame, and sunflower, among others. The substance encourages plant growth and is particularly beneficial for growing a variety of oilseeds and pulses.

According to region, the market is divided into North America, Europe, Asia-Pacific, Central & South America, and the Middle East & Africa. Asia-Pacific dominated the market in 2021.

Recent Developments

• In February 2022, EuroChem Group (hereafter referred to as "EuroChem" or "the Group"), a leading global producer of fertilizer, recently announced that it had completed the acquisition of the Serra do Salitre phosphate project in Brazil.
• In May 2022, Coromandel International, a fertilizer manufacturer, plans to buy a 45% stake in Baobab Mining and Chemicals Corporation (BMCC), a rock phosphate mining firm based in Senegal Africa, for $19.6 million (approximately $150 crore).
• In May 2022, Indian Potash Ltd signed a five-year agreement with Israel Chemical Ltd to import 0.6-0.65 million tonnes of potash muriate annually.