Phosphate Fertilizer Market Size, Share, Opportunities, And Trends By Type (Diammonium Phosphate (DAP), Single Superphosphate (SSP), Triple Superphosphate (TSP), Monoammonium Phosphate (MAP), Ammonium Polyphosphate Liquid), By Form (Dry, Liquid), And By Geography - Forecasts From 2023 To 2028

The phosphate fertilizer Market is anticipated to expand at a high CAGR over the forecast period.

Phosphorous Fertilizer Market Overview:

Phosphorus is essential for healthy root growth and aids in the plant's resistance to drought-like environmental conditions. To address the specific phosphorus nutrient deficiency in soils, phosphoric fertilizers in various forms, such as diammonium phosphate (DAP) and mono ammonium phosphate (MOP), are utilized. Due to its high solubility, DAP fertilizer is an excellent supplier of phosphorus and nitrogen. It breaks down swiftly in soil, releasing phosphate and ammonium. It has the ideal ratio of phosphorous to nitrogen for growing grains like wheat and barley and fruits and vegetables. Data from the Indian Ministry of Chemicals and Fertilizers show that between April and October 2022, sales of DAP climbed by 16.9%. Due to increased agricultural land use and the rising need for agricultural productivity, this segment is anticipated to have substantial revenue growth during the forecast period.

Phosphorous Fertilizer Market Drivers:

• Rapid population growth increases the demand for phosphate fertilizer for food production

Rapid population growth and urbanization have limited the amount of arable land available, drastically decreasing agricultural production. Additionally, a growing global population has contributed to a rise in food inflation and food insecurity. A new UN analysis shows that the world is becoming further away from its objective of ending hunger, food insecurity, and malnutrition, with the number of people afflicted by hunger reaching 828 million in the world in 2021, up around 46 million from 2020 and 150 million since the COVID-19 pandemic (Source: who.int). As a result, the market is anticipated to develop throughout the forecast period due to rising fertilizer demand.

• Growth in phosphate fertilizers will be fueled by innovation.

The fertilizer industry has a history of innovation, which helped create the contemporary industry that supports global food production. To increase efficiency sustainably, innovative technologies such as high-efficiency phosphate fertilizers are crucial. For instance, in preparation for the fall application season, Nutrien announced in July 2020 the release of Smart Nutrition MAP+MST fertilizer, the newest and most effective method of delivering sulfur and phosphate to crops. This product, which is the first of its type on the market, mixes phosphate with micronized sulfur to provide crops with constant nutrition throughout the growing season. In addition to helping to feed our expanding planet, products like this assist farmers in growing crops more profitably.

• Phosphorous Fertilizer Market Restraint:

Following an increase of 80% the previous year, fertilizer prices have increased by almost 30% since 2022 began (Source: blogs.worldbank.org). Several interrelated issues, such as rising material costs, supply interruptions brought on by sanctions, and export limitations, all contribute to pricing increases. Ammonia output was drastically reduced due to rising natural gas prices, particularly in Europe. Similarly, rising sulfur-added ammonia costs have increased the phosphate fertilizer cost. Additionally, phosphate rocks are mined for phosphorus. However, the Earth's crust has a finite supply of phosphate rocks. This is anticipated to increase the cost of phosphate fertilizers. These factors are anticipated to restrain the market growth throughout the anticipated period.

Phosphorous Fertilizer Key Developments:

• October 2022: To boost manufacturing of its Crystal Green line of highly effective, plant-available, granular phosphate fertilizers for agriculture, specialty, and turf sectors, Ostara announced that the company had raised US$70 million in Series C funding. Ostara will use the money to finish building its St. Louis manufacturing facility, enabling it to produce and distribute this distinctive fertilizer to more North American farmers who want to increase yield, practice sustainability, lower applied phosphate rates per acre, and cut costs.
• July 2022: Agtech business Phospholutions from the US raised $5.3 million to promote RhizoSorb, an additive, in the US row-crop market. The RhizoSorb addition from Phospholutions can be used in conjunction with phosphate fertilizers or added to them during production. According to the business, the additive can enable farmers to reduce phosphorus fertilizer use by 50% without sacrificing crop productivity.
• June 2022: The purchase of Zuari Agro Chemicals' fertilizer factory by Paradeep Phosphates is now complete. Di-ammonium phosphate (DAP) and NPK fertilizers are produced by Paradeep Phosphates, which is a subsidiary of the Adventz Group and produces non-urea fertilizers.

COVID 19 impact

DAP prices were lower due to lower raw material costs, particularly ammonia. As production rates in China's Hubei Province, where the COVID-19 outbreak started, plummeted to 20% to 30% of total capacity in January 2020, DAP prices began to reverse the continuous decline (Source: worldbank.org). Due to manpower shortages, the shutdown in Hubei, which produces more than a quarter of China's DAP capacity, severely disrupted the supply chain. The shutdown of phosphate fertilizer factories in January was followed by a production resumption in March and a return to mostly regular operations in April, which will eventually be able to satisfy the rise in demand.

The Phosphorous Fertilizer is segmented and analyzed as:

• By Type
  • Diammonium Phosphate (DAP)
  • Single superphosphate (SSP)
  • Triple superphosphate (TSP)
  • Monoammonium phosphate (MAP)
  • Ammonium polyphosphate liquid
• By Form
  • Dry
  • Liquid
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others