Phosphate Fertilizer Market Trends

Global Phosphate Fertilizer Market Overview

Phosphate Fertilizer Market Size was valued at USD 62.1 billion in 2022. The phosphate fertilizer market is projected to grow from USD 65.8 billion in 2023 to USD 104.02 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.90% during the forecast period (2023 - 2032). One of the main market driver propelling the growth of the Phosphate Fertilizer Market is the rapid increase in population, which has an impact on food demand; rising global conflict, which has increased food insecurity and led to increasing food inflation; rising demand for higher agricultural productivity to address food insecurity; rising demand for a vegan diet and meat alternatives; and rising government initiatives to support the use of nitrogen, phosphorus, and potassium (NPK).

Phosphate Fertilizer Market Trends

Rising number of global population is driving the market growth

The demand for efficient agricultural production tools and equipment is increasing as the world's population keeps growing and needs more food to feed itself. The demand for high-quality fertilizers like compound phosphatic fertilizers (DAP/MAP or NPK) is increasing as a result of a significant loss in the world's agricultural production area and arable land. In the upcoming years, rising innovation in farming and irrigation technologies and rising sprinkler or drip irrigation use are predicted to support the market CAGR of phosphatic fertilizers. Furthermore, more phosphorus is removed with each harvest than the soil can naturally supply, so it is crucial to add additional phosphorus fertilizers to the soil in an appropriate quantity. For boosting agricultural output and crop growth, it is crucial to maintain and replenish soil minerals like nitrogen and phosphate. Commercial fertilizers contain phosphorus that is especially soluble for simple plant uptake and assimilation. In order to cultivate healthy plants, produce strong yields, and run a successful farm company, effective phosphorous fertilizer management is essential.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The company's margin should improve and its profit should experience strong development as a result of the expanding vertical integration efforts. Companies can lessen their reliance on suppliers and other stakeholders by integrating vertically. One of the largest costs for phosphatic fertilizer production enterprises is the price associated with acquiring raw materials. In order to cut costs and their reliance on suppliers, phosphatic fertilizer producers are choosing backward integration, which allows them to independently create raw materials like phosphoric acid. To reduce the cost of raw materials and further support margin expansion, Coromandel International Limited, for instance, finished the Backward Integration projects in 2019. As part of its backward integration strategy, the company will increase the capacity of its phosphoric acid factory by the end of 2020. The majority of the phosphoric acid needed for phosphatic fertilizers is imported. The facility expansion is expected to decrease imports, lower production costs, and increase margins. Thus, driving the phosphate fertilizer market revenue.

Phosphate fertilizer Market Segment Insights

Phosphate Fertilizer Product Insights

The Phosphate Fertilizer Market segmentation, based on product includes Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP), Single Superphosphate (SSP), Triple Superphosphate (TSP) and Others. The diammonium phosphate (DAP) segment dominated the market. The most popular phosphatic fertilizer is diammonium phosphate, which has good physical characteristics and is very soluble. Due to its high solubility, diammonium phosphate dissolves quickly in soil and releases phosphate and ammonium that are readily available to plants. DAP is widely used to promote root growth, colour development, and flower bud expansion in the production of barley, wheat, fruits, and vegetables.

Phosphate Fertilizer Application Insights

The Phosphate Fertilizer Market segmentation, based on application, includes Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables and Others. The cereals & grains category generated the most income. The growing global population is pushing up demand for commodities, particularly grains, which are staple foods consumed all across the world. The use of phosphatic fertilizers in this market is anticipated to be driven by the significant use of these fertilizers to increase the quality of cereal crops.

Figure 1: Phosphate Fertilizer Market, by Application, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Phosphate Fertilizer Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific phosphate fertilizer market area will dominate this market. The growth of this region is mostly fueled by the expansion of agriculture in nations like China, India, South Korea, and Pakistan. Due to their rapidly growing populations and great growth potential, emerging nations like China and India are putting a lot of effort into improving the crop production and efficiency of agricultural lands in rural areas. This has led to an increase in the demand for phosphate fertilizer. India is currently the world's second-largest consumer of fertilizer, behind China. In 2019, the Indian government bought 10.61 lakh tonnes of fertilizer, and that number increased to 19.15 lakh tonnes in 2021.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: PHOSPHATE FERTILIZER MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe phosphate fertilizer market accounts for the second-largest market share. The region's nations are heavily reliant on fertilizer imports. Over two-thirds of all NPK is used as nitrogen, which is primarily used in large quantities throughout many European nations. Potassium and phosphate are also utilised on agricultural land, albeit their combined volumetric share of total use is less than 20%. The usage of phosphate fertilizer, which increased agricultural productivity in the second half of the 20th century, has also increased the concentration of phosphate in many countries' soils, particularly in Western Europe. Further, the German phosphate fertilizer market held the largest market share, and the UK phosphate fertilizer market was the fastest growing market in the European region

The North America Phosphate fertilizer Market is expected to grow at the fastest CAGR from 2023 to 2032. The need for food grains in this region is on the rise, and there are less food grains available, which are two major variables anticipated to support market revenue growth. Additionally, the growing popularity of vegan and organic foods has increased demand for agricultural goods like fruits, vegetables, cereals, and other foods. Additionally, the United States produces a lot of corn, soybeans, and wheat, all of which require a sizable amount of fertilizers for higher productivity. Moreover, US phosphate fertilizer market held the largest market share, and the Canada phosphate fertilizer market was the fastest growing market in the Asia-Pacific region.

Phosphate Fertilizer Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the phosphate fertilizer market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, phosphate fertilizer industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global phosphate fertilizer industry to benefit clients and increase the market sector. In recent years, the phosphate fertilizer industry has offered some of the most significant advantages to medicine. Major players in the phosphate fertilizer market attempting to increase market demand by investing in research and development operations include Eurochem Group AG; Agrium Inc.; Potash Corp. of Saskatchewan Inc.; Yara International ASA; CF Industries Holdings Inc.; Israel Chemicals Ltd.; Coromandel International Ltd.; The Mosaic Co.; S.A OCP; and PJSC PhosAgro.

Swiss fertilizer manufacturer EuroChem Group AG. With its own capacity for nitrogen, phosphates, and potash, it is a fertilizer factory. Zug, Switzerland serves as its headquarters. Agriculture-related chemicals are produced and sold by it. It makes fertilizers that are high in nitrogen, phosphate, and NPK, as well as providing feed phosphates, industrial acids, and mineral raw materials. The company provides services to clients all over the world. In March 2022, the Brazilian distributor Fertilizantes Heringer SA's shareholding control has been acquired by EuroChem Group, with 51.48% of the shares, further enhancing its production and distribution capabilities there.

Phosagro manufactures fertilizer that contains phosphate. Fertilizers, feed phosphates, phosphate rock, industrial phosphates, and industrial goods such oleum, ammonia solution, ammonia, nitric acid, sodium silicofluoride, and sulfuric acid are all part of the company's product line. Its products are used to refine petroleum products, as well as to produce acids, sulphates, explosives, chemical fibres, spirits, ethers, colourants, mineral pigments, fertilizers, molasses, and glucose. In February 2022, PhosAgro declares the opening of PhosAgro-Sibir, a brand-new regional business. The business, which is a division of PhosAgro, sells a wide range of mineral fertilizers directly to farmers in the Siberian and Far Eastern Federal Districts.

• Eurochem Group AG


• Agrium Inc.


• Potash Corp. of Saskatchewan Inc.


• Yara International ASA


• CF Industries Holdings Inc.


• Israel Chemicals Ltd.


• Coromandel International Ltd.


• The Mosaic Co.


• A OCP


• PJSC PhosAgro

Phosphate Fertilizer Industry Developments

February 2022 Brazilian phosphate project Serra do Salitre was purchased by EuroChem Group AG, a major worldwide fertilizer manufacturer. The advanced mine and factory in Minas Gerais have been taken over by it. The project includes phosphoric acid and sulfuric acid manufacturing facilities, as well as a urea and potassium chloride storage facility. A 500 KMT per year of phosphate rock is produced by the mine and processing facility, which are both in use. The corporation hopes the acquisition would open up markets in South America.

December 2020 An agreement for collaboration between PhosAgro-Region and Exact Farming has been struck on the creation of digital services for Russian users of PhosAgro's mineral fertilizers. The businesses want to work together to create applications for remote monitoring, assessing and enhancing the performance of mineral feeding systems based on PhosAgro products, and creating and disseminating agronomic knowledge.

Phosphate Fertilizer Market Segmentation

Phosphate Fertilizer Product Outlook (USD Billion, 2018-2032)

• Monoammonium Phosphate (MAP)


• Diammonium Phosphate (DAP)


• Single Superphosphate (SSP)


• Triple Superphosphate (TSP)


• Others

Phosphate Fertilizer Application Outlook (USD Billion, 2018-2032)

• Cereals & Grains


• Oilseeds & Pulses


• Fruits & Vegetables


• Others

Phosphate Fertilizer Regional Outlook (USD Billion, 2018-2032)

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America