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The global diammonium hydrogen phosphate (DAP) market is foreseen to account for notable gains over the span of 2022-2028, driven by the product’s rising usage in fertilizers to increase the crop yield. The compound has a high nutrient content which is required for crop nurture. It is highly soluble in water and insoluble in alcohol. In addition, DAP dissolves quickly in soil to release phosphorus and ammonium.
Growing urbanization has necessitated the need for more produce, impelling the demand for fertilizers thus influencing the DAP market outlook over the forthcoming years. As per the FAO estimates, urbanization is anticipated to grow at an exponential pace, accounting for 70% of the world population by 2050 end.
However, the development of eco-friendly and bio-based fertilizers is projected to impede the growth of the DAP market during the analysis timeline. Nevertheless, elevating consumption of the wine, owing to the rising awareness among consumers regarding ample health benefits of wine and increasing purchase parity amongst the middle-class populace is likely to generate profitable prospects for the overall diammonium hydrogen phosphate industry. According to estimates, global wine consumption statistics of 2020 reveal that an estimated 23.4 billion litres of alcoholic beverages were consumed worldwide.
On the basis of type, powder DAP market is slated to record notable growth in the ensuing years. The powdered diammonium hydrogen phosphate is an inorganic phosphate salt of phosphoric acid which boasts the ability to be highly soluble in water. These DAPs can be stored in dry, cool, and well-ventilated areas.
One of the primary applications is its use as a fire retardant. This would imply that the growing cases of fire breakouts and wildfires worldwide would augment the market demand considerably. In 2020, nearly 58,950 wildfires burned 10.1 million acres of land. The compound is known to lower down the combustion temperature of the material, decreasing the maximum weight loss rates, and helps in increasing the production of char. Moreover, DAP is the largest component of some popular commercial firefighting products and is the ingredient in fire retardant cigarettes.
Considering the geographical landscape, Asia Pacific would emerge as a growth promoter for overall diammonium hydrogen phosphate market through 2028. This can be ascribed to the expanding agriculture sector across important Asian economies like India and China, along with the accessibility of large cultivable land. It has been reported that total agricultural land area of India is around 159.7 million hectares, second largest in the world followed by the United States. This calls in for larger demand for DAP fertilizers as they are used in crops to increase crop generation. Besides, rising prevalence of fire accidents and wildfires in the region would as well stimulate market growth in the forthcoming years.
Sichuan Chuanxi Xingda Chemical Co., China Blue Chemicals Ltd., Mosaic Co., Gujarat Narmada Valley, and PhosAgro AG, amongst others, are some of the prominent players functioning in the overall diammonium hydrogen phosphate industry. These notable leaders are striving to introduce novel innovations in the business space.
Analyzing COVID-19 impact on diammonium hydrogen phosphate market outlook
The chemical industry witnessed a downfall in business revenues and profitability during the coronavirus pandemic outbreak. This can be reasoned to the disruptions in the supply chain and fertilizer shortage due to unavailability of raw materials eventually negatively influencing the growth structure of diammonium hydrogen phosphate market. However, in order to keep the crop production high even during the crisis, various governmental steps to ensure a proper supply of fertilizers supported the growth in DAP market.