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Ammonium Phosphates Market share is projected to grow at a substantial CAGR during 2023-2032. Increasing fertilizer demand across agriculture-driven economies to enhance crop yield will be a pivotal factor driving this growth.
Food demand continues to rise across the globe due to consistent population growth, creating a need to increase agricultural production. The Food and Agriculture Organization (FAO) estimates that feeding a global population of more than 9 billion in 2050 would require increasing overall food production by about 70%. Consequently, continuous government investments in the agriculture sector to modernize farming and cultivation practices will boost product consumption.
Speaking of the rising food demand, the ammonium phosphates market will also witness lucrative opportunities across the food & beverage sector, where it finds extensive usage as a food additive and an emulsifier. The product is also used as a leavening agent during the baking process. The flame-retardant properties of ammonium phosphate also make it an exceptional ingredient for dry chemical extinguishers.
However, a number of factors, including trade barriers caused by the ongoing Russia-Ukraine crisis and skyrocketing inflation, have been severely impacting market performance. According to a recent World Bank report, prices of potash and phosphates are inching closer to 2008 levels when they reached their apex. This has caused a noticeable hike in fertilizer costs, limiting product uptake. Besides, the declining economic landscape and the crashing agricultural sector in Ukraine are further expected to hamper industry progression in the coming years.
The ammonium phosphates market from the mono-ammonium phosphate (MAP) segment is projected to amass a decent share by 2032. Due to its superior water solubility and pH regulation, mono-ammonium phosphate is used in soils with high pH levels. Besides, the growing product usage in a range of granular and suspension fertilizers for sustained and healthy plant growth will drive segment growth during the projection timeframe.
The ammonium phosphates market is expected to generate significant revenue from the food additives segment by 2032, attributable to the remarkable rise in the consumption of packaged and ready-to-eat food items. The recent COVID-19 pandemic has provided a significant boost to this trend. In the U.S., it was observed in 2020 that packaged food consumption continued to increase even though many states had lifted restrictions on restaurants and social distancing. Convenience is a major factor behind the increasing popularity of packaged products. This, in turn, is augmenting the demand for high-quality food additives to ensure optimum food quality and longer life.
North America ammonium phosphates market will grow substantially between 2023 and 2032. The increasing product consumption across the food & beverage sector as an additive and an emulsifier is driving the regional product demand. Due to shifting consumer lifestyle trends, eating patterns are changing as well. Consumption of packaged and processed foods is one of the most notable trends observed in the region in recent years, especially since the outbreak of COVID-19. Food brands, including Kraft Heinz, Smucker, Tyson Foods, and Hormel Foods, were seen ramping up production capacities in the U.S. post lockdowns to keep up with the increased demand. The subsequent rise in food additives demand has created a strong outlook for regional suppliers.
Global ammonium phosphates market key players includes OCP Group, Nutrien Ltd, Yara International, Jordan Phosphate Mines Company (Jordan Phosphate Mines Co.), Haifa Chemicals (Haifa group), Yunnan Yuntianhua International Chemical (Yunnan Yuntianhua International Chemical Co., Ltd.), Coromandel International, Vinipul Inorganics Pvt ltd., Maaden-Saudi Arabian Mining Company (Ma'aden), Forbes Pharmaceuticals, Innophos, Inc. (Innophos Holdings, Inc.), Chemische Fabrik Budenheim (Budenheim KG), Yidu Xingfa Chemical Co, Prayon, and Eurochem.