According to the detailed report by Future Market Insights (FMI), the global phosphate fertilizer market recorded sales of USD 20,623.0 million in 2018. The market experienced a 30.0% year-on-year growth in 2022 and is anticipated to achieve revenues of USD 55,599.5 million in 2023.
Over the assessment period from 2023 to 2033, the global market is projected to expand at a compound annual growth rate (CAGR) of 5.1%, resulting in a market size of USD 92,110.8 million by 2033.
| Attributes | Details |
|---|---|
| Phosphate Fertilizer Market Value (2022A) | USD 53,258.6 million |
| Estimated Market Value (2023E) | USD 55,599.5 million |
| Projected Market Value (2033F) | USD 92,110.8 million |
| Value-based CAGR (2023 to 2033) | 5.1% |
| Collective Value Share: Top 3 Countries (2023) | 53.6% |
Phosphate rock is used for the production of commercial phosphate fertilizers. Approximately two-thirds of the phosphate resources are obtained from marine and sedimentary marine phosphate rock deposits. Initially, ground rock phosphate was used as a source of phosphate fertilizer.
Phosphate reserves are declining in quality and quantity throughout the world. Consumers are increasingly demanding agro-fuels as renewable fossil fuel substitutes, which is driving up the price of phosphate fertilizer.
Phosphorus is plentifully available on Earth. Food production is hampered by phosphorus deficiency in soils until the nutrient is provided through fertilizers. Consequently, sufficient phosphorus improves food production. Consumers prefer it since it assists in seed development, plant maturation, and root growth.
As a result, fertilizers based on phosphorus are necessary for modern agriculture.
Though, the use of rock phosphate in agriculture has significantly decreased recently. This is owing to the low concentration of phosphorous in rock phosphate, high transportation costs, and poor crop responses.
Hence, phosphorus in the form of fertilizer is used as a primary ingredient for crop production such as Diammonium phosphate (DAP), mono ammonium phosphate (MAP), and SSP.
As a result of increasing fertilizer demand in countries such as India, China, and Turkey, the world's primary source of phosphate, phosphate rock, is processed into fertilizers with phosphorus, which is continuously added to modern agricultural practices and is anticipated to continue to play a significant role in the industry.
Key Trends in Phosphate Fertilizer Market by Future Market Insights (FMI):
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Future Market Insights (FMI) mentions that the global phosphate fertilizer market was worth USD 20,623 million in 2018 and is expected to reach USD 53,258.6 million by 2022. The market is projected to register 4.4% year-on-year growth in 2023.
Demand for phosphate fertilizers has increased steadily over the years, primarily due to population growth and the need to surge agricultural productivity. As countries strive to meet their food needs, consumers find that the use of phosphate fertilizers has become essential to register high crop yields.
Historically, demand for phosphate fertilizers has been concentrated in regions with large agricultural sectors such as North America, Europe, and Asia.
Though, consumption patterns are changing as demand increases from emerging markets in regions such as Latin America, Africa, and Asia Pacific. This change is attributed to increased agricultural activity, increased disposable income, and government efforts to support agricultural development.
Phosphate fertilizer prices can fluctuate over time. Factors such as changes in production capacity, availability of phosphate reserves, geopolitical tensions, and market trends influence price volatility. The price of phosphate fertilizer is closely related to the price of the main raw material, rock phosphate.
Advances in fertilizer manufacturing technology have improved the efficiency and quality of phosphate fertilizers. For instance, consumers’ push for better efficiency led to the development of granulation technology and the introduction of specialty fertilizers.
Mono ammonium phosphate (MAP), diammonium phosphate (DAP), and other specialty fertilizers have facilitated the application and improved nutrient uptake by crops.
As a result of Russia's invasion of Ukraine in 2022, critical agricultural crop and fertilizer markets were disrupted globally, endangering global food security. Although high domestic price levels persist in many low- and middle-income countries, high international food prices have reduced as the war enters its second year.
The price of fertilizer had reached a historically high at the time of the Russian invasion. Prices rose as a result of rising costs for natural gas and coal, which are important feedstock and energy sources in the production of fertilizers, as well as some decreases in production capacity on the supply side.
Russia halted a large number of shipments in reaction to international economic sanctions. Although shipments of fertilizer were not specifically prohibited, Russia's Ministry of Industry and Trade advised its fertilizer producers to temporarily halt exports of their goods due to shipping concerns.
Amid international financial sanctions and security worries, shipping corporations as well as Western financing and vessel insurance firms avoided Russia. As a result, fertilizer prices both internationally and domestically shot up to all-time highs in March 2022.
The World Bank estimates that after an increase of 80% in 2021, fertilizer prices worldwide have increased by 30% by the beginning of 2022. Overall, governments and international organizations would be wise to strike a balance between short-term industry change and crisis-oriented remedies.
Principal Consultant
The global market is poised to experience a surge in demand, driven by a notable decrease in arable land per person in countries like India, China, the United States, and others. With diminishing land for cultivation and a growing population, there is an urgent need to boost agricultural yields to meet the ever-increasing demand for food production.
The possibilities for future expansion of agricultural land are becoming increasingly limited due to rapid industrialization and urbanization.
The importance of phosphorus fertilizers becomes even more critical for users in bridging the gap between food demand and the available cultivable land. Farmers rely on phosphorus fertilizers as an indispensable strategy to meet the rising demand for food products.
The growing global demand for meat and other food products further intensifies the necessity for phosphorus fertilizers. Livestock production requires substantial amounts of feed crops.
Consumers prefer phosphorus fertilizers for this purpose since play a crucial role in promoting the growth and nutritional value of these crops. This ensures a sustainable supply of animal feed.
Looking ahead, the phosphate fertilizer industry is poised for significant growth as it responds to the escalating demand for food production and the imperative of agricultural sustainability.
The Asia-Pacific and Latin American regions, in particular, present immense potential for market expansion. With their burgeoning population, increasing urbanization, and rising agricultural activities, these regions offer favorable conditions for the increased adoption of phosphorus fertilizers.
The finite nature of phosphorus reserves presents a significant restraint on the growth of the market. Phosphorus, a vital component of fertilizers, is a non-renewable resource that is primarily obtained through mining activities.
Though, accessible and high-quality phosphorus reserves are becoming increasingly limited and are depleting at a faster rate than they can be replenished.
The agriculture sector heavily relies on phosphorus-based fertilizers to enhance crop productivity and meet food production targets. The scarcity of phosphorus reserves poses a long-term challenge for the market.
The mining and extraction of phosphorus are complex processes that require significant investment and energy.
As accessible reserves diminish, the cost and difficulty of extraction are likely to increase, leading to higher prices of P-fertilizers. This can have implications for farmers' profitability and affordability, potentially reducing their demand for phosphate fertilizers.
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Increasing Agriculture Activities and Irrigation Policies in China to Spur Demand
Demand for products remains prominent in China and is expected to hold around 30.5% of the global market share in 2023.
The phosphorus-based fertilizer market in China holds the leading global market share. This can be attributed to factors such as increasing agricultural activities, new cropping methods, new irrigation policies, and enhanced marketing in China. These factors have been instrumental in driving the growth of the regional market.
China exports about ten million tonnes of phosphate annually, or about thirty percent of all worldwide trade, according to figures from Chinese customs. India, Bangladesh, and Pakistan are the prevalent purchasers of it.
China has produced one-fourth of the grain consumed globally and fed one-fifth of the world's population, which is a significant achievement in the global endeavor to secure food and nutrition security.
In terms of the production of cotton, cereals, vegetables, fruits meat, eggs, poultry, and fishery goods, China currently leads the globe. These trends have contributed to the rising demand for phosphate fertilizers in the country.
Rising Government Contribution to Propel Need for Phosphate Fertilizers in India
India is expected to dominate the South Asia Pacific as well as the global market. India has the largest agriculture sector in South Asia Pacific.
The Indian government has been offering guidance and support to Indian fertilizer companies as part of the Atma Nirbhar Bharat effort to encourage self-sufficiency in fertilizer production. The country's heavy reliance on raw materials like phosphoric acid and rock phosphate is expected to lend it a key position in the global phosphate fertilizer industry.
In the South Asia Pacific, India is a developing market where the agricultural sector significantly contributes to GDP growth. As a result, the government has launched several programs to encourage the expansion of the agricultural sector.
To increase production and maximize output, one such project provides subsidies on fertilizers, such as N, P, and K fertilizers. The integration of these multiple enhanced agriculture practices is pushing the sales of P-fertilizers in India.
Cereals and Pulses are the Leading Application of Phosphate Fertilizers
Based on application, the cereals and pulses segment accounted for a 44.8% market share in 2022. Agricultural production will need to increase at a faster pace to meet worldwide food demand.
A challenge in front of the agricultural industry is to ensure that nutrition-based crops are produced using environment-friendly agricultural methods.
According to the data published by Food and Agricultural Organization, demand for cereal and coarse grains is likely to rise owing to population growth. Rising animal feed, increasing ethanol demand, and production of food stocks for starches and sweeteners are only expected to further drive demand for resources.
For pulse crops, phosphorus is a crucial plant nutrient. Strong seedlings and large root systems are encouraged by phosphorus. To encourage healthy nodule development, it is crucial to promote vigorous root growth.
Phosphorus is important for the process of fixing nitrogen and encouraging an earlier, more uniform maturity. The availability of limited land and the increasing need for food production is expected to propel the demand for P-based fertilizers.
Diammonium Phosphate (DAP) Increases Soil pH to Propel Their Demand by 2033
In the global market, Diammonium Phosphate (DAP) is predicted to have a 43.6% value share in 2022.
The reaction between phosphoric acid and ammonia yields Diammonium phosphate (DAP). In comparison to MAP, DAP typically contains roughly 18% nitrogen (N) and 46% phosphorus pentoxide (P2O5).
Like MAP, users frequently employ DAP in agriculture for several crops and provides plants with easily accessible nutrients. It is especially helpful for crops that need a lot of phosphorus and nitrogen during the initial stages of growth.
An effective source of nitrogen, the ammonium in DAP is progressively transformed to nitrate by soil bacteria, which decreases the pH. As a result, the increase in soil pH caused by DAP granules is only a passing phenomenon.
The micro-site interactions of phosphate and soil organic matter may be impacted by this early elevation in soil pH near DAP.
Diammonium Phosphate functions as a fire retardant. For instance, to stop a forest from burning, DAP and other components can be spread ahead of a fire. After the fire threat has subsided, it subsequently turns into a source of nutrients.
DAP is also utilized in several industrial procedures, including metal finishing. It can also be commonly added to milk to create cheese cultures and wine to maintain yeast fermentation. The increasing utilization of DAP in the agriculture industry is expected to push the sales of P-based Fertilizers.
With continuous development and increasing investments in the agricultural sector for better products, the demand for the highest quality phosphate fertilizers is rising. The need for quality fertilizers is propelling the growth of the market and in turn, putting pressure on companies to boost the phosphate fertilizer supply that meets the ever-growing demand.
Owing to this, several companies are expanding their production facilities keeping in consideration the immense prospects of the phosphate fertilizer market. Prominent players are focusing on introducing innovative solutions and collaborating with small and medium size players in the market space
For Instance:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value and Tons for Volume |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia Pacific; and the Middle East and Africa |
| Key Countries Covered | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia and New Zealand, Gulf Co-operation Council countries, Türkiye, Northern Africa, and South Africa |
| Key Market Segments Covered | By Product Type, By Application, and By Region |
| Key Companies Profiled | Eurochem Group AG;Israel Chemicals Ltd.;Coromandel International Ltd.;Nutrien Ltd.;PJSC PhosAgro.;Yara International ASA;The OCP Group;JESA;MIRA Organics and Chemicals PVT LTD;Ma'aden;California Organic Fertilizers Inc;Hubei Xingfa Chemicals Group Co., Ltd.;Qatar fertilizer;Kazphosphate LLC;Jordan Phosphate Mines Co.;Haifa Group;J.R. Simplot Company;Gujarat State Fertilizers & Chemicals Ltd.;Itafos;The Mosaic Company |
The phosphate fertilizer market is valued at US$ 55,599.5 million in 2023.
The phosphate fertilizer market is projected to attain a value of US$ 92,110.8 million by 2033.
Phosphate fertilizer sales are anticipated to surge at a robust 5.1% CAGR through 2033.
China prominently showcases significant profit potential in the phosphate fertilizer market.
The diammonium phosphate fertilizer segment is poised to dominate the market, holding a 43.6% value share in 2022.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Global Market - Pricing Analysis 7. Global Market Demand (in Value or Size in US$ Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Product Type 9.1. Monoammonium Phosphate (MAP) 9.2. Diammonium Phosphate (DAP) 9.3. Single Superphosphate (SSP) 9.4. Triple Superphosphate (TSP) 9.5. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Application 10.1. Cereals and Grains 10.2. Oilseeds 10.3. Pulses and Legumes 10.4. Fruits and Vegetables 10.5. Others 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. Central Asia 11.6. Russia and Belarus 11.7. Balkan and Baltic Countries 11.8. Middle East and Africa 11.9. East Asia 11.10. South Asia and Pacific 12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. Central Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Russia and Belarus Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Balkan and Baltic Countries Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 20. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 21. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 22. Countries-wise Market Analysis 23. United Arab Emirates Market Analysis 24. Market Structure Analysis 25. Competition Analysis 25.1. The Mosaic Company 25.2. Eurochem Group AG 25.3. Israel Chemicals Ltd. 25.4. Coromandel International Ltd. 25.5. Nutrien Ltd 25.6. PJSC PhosAgro 25.7. Yara International ASA 25.8. The OCP Group 25.9. JESA 25.10. MIRA Organics and Chemicals PVT LTD 25.11. Ma'aden 25.12. California Organic Fertilizers Inc 25.13. Hubei Xingfa Chemicals Group Co., Ltd. 25.14. Qatar Fertilizer 25.15. Kazphosphate LLC 25.16. Jordan Phosphate Mines Co. 25.17. Haifa Group 25.18. J.R. Simplot Company 25.19. Gujarat State Fertilizers & Chemicals Ltd. 25.20. Itafos 26. Assumptions and Acronyms Used 27. Research Methodology
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Phosphate Fertilizer Market
