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Ammonium Phosphates Market share is projected grow at a substantial CAGR during the forecast period 2021-2027. 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 world due to growth in population, 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 the overall food production by about 70%. Consequently, continuous government investments in the agriculture sector to modernize farming and cultivation practices will boost the product consumption.
Speaking of the rising food demand, the ammonium phosphates industry will also witness lucrative opportunities across the food & beverage sector, where it finds use as a food additive and an emulsifier. The product also used as a leavening agent during baking process. The flame retardant properties of ammonium phosphate also make it a great ingredient for dry chemical extinguishers.
In terms of the applications, the ammonium phosphates market is expected to generate significant revenue from the food additives segment by 2027. This is attributable to the global increase in the consumption of packaged and ready-to-eat products. The recent COVID-19 pandemic has provided 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.
Considering the regional landscape, North America ammonium phosphates industry size will grow substantially over the next few years. Growing consumption in the food & beverage sector as an additive and an emulsifier is driving the regional product demand. Due to shifting consumer lifestyles trends, eating patterns are changing as well. The consumption of packaged and processed foods is one of most notable trends which has been 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. between March and May 2020 to keep up with the increased demand. The subsequent rise in food additives demand has created a strong outlook for the regional suppliers.
OCP Group, Nutrien Ltd, Yara International, Jordan Phosphate Mines Company, Haifa Chemicals, Yunnan Yuntianhua International Chemical, Coromandel International, Vinipul Inorganics Pvt ltd., Maaden-Saudi Arabian Mining Company, Forbes Pharmaceuticals, Innophos, Inc., Chemische Fabrik Budenheim, Yidu Xingfa Chemical Co, Prayon, and Eurochem Group are some of the notable suppliers of ammonium phosphate in the world.
What is the impact of COVID-19 on ammonium phosphates industry forecast?
Disruptions in the global supply chain along with strict government restrictions and labor shortages have created numerous challenges for the agriculture sector. Many regions witnessed a decline in agricultural practices, leading to a weakened fertilizer demand. However, the packaged food sector has experienced rapid growth since the outbreak, with numerous brands ramping up production capacity to cater to the increasing demand amid stay-at-home restrictions. Thus, the consistent demand for food additives will provide significant momentum to the global ammonium phosphates market over 2021-2027.