Phosphate Fertilizers Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI283
Phosphate Fertilizers Market is continuously expanding as feeding the increasing world population remains a major challenge. UN predicts the global population to exceed 9.7 billion by 2050, indicating a significant need to improve agricultural yield. Rapid urbanization and the declining availability of arable land will also play a major role in augmenting phosphate fertilizer demand over 2021-2027.
Currently, a shift from traditional fertilizers to smart fertilizers is being witnessed in the agriculture sector. As a result, phosphate-enriched fertilizers with secondary nutrients and micronutrients are in demand. Many farmers are also adopting precision farming techniques such as controlled-release technology to make fertilizers more efficient.
Phosphorus, alongside potassium and nitrogen, is one of the three key nutrients that plants require and the main ingredient in phosphate fertilizers. The nutrient is essential for metabolic functions in plants such as growth, photosynthesis, starch utilization, cell division, and nucleus formation. With each harvest, the amount of phosphorus removed is higher than that naturally present in the soil. Hence it is essential to supplement the soil with phosphorus-rich fertilizers which help in the restoration and maintenance of soil nutrients and promote healthier crop growth and yield.
MAP, DAP, and superphosphates are among the major types of phosphate fertilizers. Among these, the demand for DAP fertilizer is expected to rise substantially through 2027. DAP, or di-ammonium phosphate, is a widely preferred fertilizer globally as it is rich in both phosphorus and nitrogen. The need for enhanced agricultural production will boost DAP fertilizer demand in the coming years.
Asia Pacific is likely to emerge as a lucrative market for phosphate fertilizers by the end of 2027. The region accounts for over half of the global population and is one of the leading agricultural producers in the world. Adoption of new smart farming techniques such as precision agriculture is likely to augment the regional phosphate fertilizer consumption in the forthcoming years.
Agrium, Mosaic, Coromandel International, CF Industries Holdings Yara International, Potash Corp. of Saskatchewan, ICL, OCP, Eurochem, and Phosagro are some of the leading phosphate fertilizer suppliers in the world. Constantly enhancing fertilizer production volumes and improving operating performance are key objectives of long-term development strategies among these companies.
In April 2021, PhosAgro had announced an expansion at its Volkhov, Russia based phosphate fertilizer production plant, which once completed could produce more than 900 thousand tonnes of MAP per year.
Phosphate fertilizer market trends during COVID-19
The widescale impacts of COVID-19 have resulted in severe and widespread food insecurity worldwide. These impacts are expected to persist in the next couple of years as well, creating a need for improved crop yields globally.
However, ramping up production hasn’t been easy for fertilizer manufacturers due to fluctuating prices of raw materials, disrupted logistics and supply chains, shortage of workforce, as well as increasing operational costs for complying with government enforced precautionary regulations.
Government restrictions and lockdown measures are being gradually lifted globally and manufacturers are likely to boost production capacities to meet the ever-increasing global food demand. Despite the numerous impacts of the pandemic, phosphate fertilizers market is expected to bounce back strongly and gain a lucrative growth momentum over 2021-2027.
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