Phosphatic Fertilizers Market Size, Share & Industry Analysis, By Type (Diammonium Phosphate, Monoammonium Phosphate, Single Superphosphate, Triple Superphosphate, and Others), By Crop Type (Cereals, Pulses & Oilseeds, Fruits & Vegetables, and Others), and Regional Forecast, 2024-2032

The global phosphatic fertilizers market size was USD 62.24 billion in 2018 and is projected to reach USD 83.28 billion by 2026, exhibiting a CAGR of 3.80% during the forecast period. North America dominated the phosphatic fertilizers market with a market share of 12.11% in 2018.

Phosphorus is vital for adequate root development and helps the plant resist drought weather conditions. The aforementioned nutrient is essential for plant growth and development, such as the ripening of seed and fruit. Phosphatic fertilizers are used in various forms, such as diammonium phosphate (DAP) and mono ammonium phosphate (MOP), to overcome the specific phosphorus nutrient deficiency in soils. DAP and MAP contain ample amounts of ammonia, and the technological advancement in ammonia production, such as green ammonia, is expected to expand the global phosphatic fertilizers market. For instance, in August 2018, The OCP Group announced the plans to develop green ammonia as a sustainable raw material for use in fertilizer production. OCP is one of the largest exporters of phosphate fertilizers and ammonia is an important input to OCP’s finished fertilizer products such as DAP and MAP. OCP also has a deep, industry-leading commitment to sustainable development, and it has been investigating potential supply chains for sustainable ammonia.

PHOSPHATIC FERTILIZERS MARKET TRENDS

Shifting Preferences of Farmers from Traditional Fertilizers to Smart Fertilizers

The shift from traditional fertilizers to smart fertilizers is projected to propel the global phosphatic fertilizers market growth during the forecast period. The increasing utilization of phosphate-based fortified fertilizers, enriched with secondary nutrients and micronutrients, is anticipated to leverage the global phosphate fertilizers market positively. Furthermore, controlled-release technology makes fertilizers more efficient as a result of which they are widely used in precision farming. The growing adoption of controlled-release phosphatic fertilizers among farmers to ensure the higher yields with less fertilizer usage is acting as a fueling agent for the growth of the market.

PHOSPHATIC FERTILIZERS MARKET GROWTH FACTORS

Increasing Demand for Food due to Rising Global Population is Triggering the Demand for Phosphatic Fertilizers in the Global Marketplace

Proliferating global population is stimulating the demand for effective crop production products and equipment to grow more food to feed the enlarging population size. Considerable decline in global crop production area/arable land is further contributing in escalating the demand for high quality fertilizers such as compound phosphatic fertilizers (DAP/MAP or NPK). Rising innovation in farming and irrigation technologies and increasing adoption of sprinkler or drip irrigation is projected to aid the market growth of phosphatic fertilizers during the foreseeable years.

Furthermore, the amount of phosphorus removed with each harvest is higher than the soil that naturally provide and hence, it is essential to supplement the soil with additional phosphorus fertilizers in an appropriate amount. The maintenance and restoration of soil nutrients such as nitrogen and phosphate are essential for increasing crop yield and crop growth. The phosphorus used in commercial fertilizers is particularly soluble for easy uptake and assimilation by the plant The proper phosphorous fertilizer management is critical for growing healthy plants, good yield, and profitable farm business.

Increasing Interest of Phosphatic Fertilizers Manufacturers Towards Vertical Integration

The increasing vertical integration activities are expected to improve the company’s margin and post robust growth in profit. Vertical integration helps companies to reduce the dependency on suppliers and other stakeholders. The cost linked with raw material procurement is one of the major expenses for the phosphatic fertilizer manufacturing companies. Thus, phosphatic fertilizer manufacturers are opting for backward integration to produce raw material such as phosphoric acid by themselves, which helps them reduce cost as well as their dependence on suppliers. For instance, in 2019, Coromandel International Limited completed the Backward Integration projects to lower raw material costs and further aid margin expansion. The company will expand its phosphoric acid plant capacity before the end of 2020 as a part of the backward integration strategy. Phosphoric acid is a significant raw material for phosphatic fertilizers, and most of the requirement is imported. The plant expansion is anticipated to reduce the imports, thereby bringing down the cost of production and will lead to margin expansion.

RESTRAINING FACTORS

Stringent Government Policies Regarding the Use of Phosphate-Based Fertilizers

The most commonly used phosphatic fertilizers in high rainfall are expected to leached into the groundwater and washed into waterways, resulting in severe environmental and economic damage. To control this damage, governments of developed economies as well as some developing economies have increased the stringency on the use of phosphatic fertilizers, which is expected to act as a restraint for the phosphate fertilizers market growth. The fluctuating prices of the product due to the volatility in energy prices is projected to limit the market growth in the coming years.

SEGMENTATION

By Type Analysis

Diammonium Phosphate is Expected to dominate in the Global Marketplace

The high phosphate content of diammonium phosphate (46%) is projected to drive the demand for diammonium phosphate in the agriculture industry. Diammonium phosphate is the most widely used phosphatic fertilizer because of its excellent physical properties and highly soluble properties. The diammonium phosphate is highly soluble and thus dissolves quickly in soil to release plant-available phosphate and ammonium. DAP is extensively used for the production of barley, wheat, fruits, and vegetables and to enhance root growth, color development, flower bud growth.

The increasing demand for ammonium phosphate is accredited to its low ammonia toxicity compared to diammonium phosphate. For instance, when DAP and ADP are applied at the same rate, DAP is more likely than MAP to reduce germination and restrict the plant growth through ammonia toxicity due to its high potential to reduce free ammonia.

Triple superphosphate is suitable for all types of crops and soils, and it contains 46% of phosphate. Triple superphosphate is one of the low-cost sources of phosphorous and can be utilized as a top dressing, base fertilizer, and seeding fertilizer. The strong soil adaptability of triple superphosphate is projected to drive the demand for triple superphosphate among farmers. Other phosphorus-based fertilizers are utilized during the initial stage of plant development for root establishment, and later, for the deep color of flowers. Increasing adoption of sprinkler and drip irrigation is projected to increase the demand for triple phosphate fertilizers during the forecast period.

By Crop Type Analysis

Cereals Segment is Expected to Dominate the Global Market

The rising world population is driving the demand for crops, especially cereals, as they are consumed as staples across various parts of the world. The substantial use of phosphatic fertilizers to improve cereal crop quality is expected to drive the utilization of phosphatic fertilizers in this segment. In recent years, consumer inclination towards healthy and nutritious food consumption has increased which is expected to boost the demand for phosphatic fertilizers in the production of fruits and vegetables. The increasing cultivation of high-value crop is further expected to fuel the market growth of phosphatic fertilizers.

REGIONAL ANALYSIS

The phosphatic fertilizers market size in North America stood at USD 7.54 billion in 2018. The gradually declining arable land within countries such as the U.S. and Mexico is anticipated to boost the demand for phosphatic fertilizers within this region. Rising awareness and adoption of crop nutrition products by farmers within the region to produce quality crops are predicted to aid the growth of the North America phosphatic fertilizers market. The presence of market players such as Nutrien Ltd., Israel Chemicals Ltd., and Yara International ASA will positively influence the growth of the phosphatic fertilizer market within North America.

Asian countries such as India, China, and others have a large area accessible for crop cultivation, substantially high rural population, and favorable climate conditions for crop growth. These factors are anticipated to boost the utilization of phosphatic fertilizers in the region. Additionally, several subsidy offerings on crop nutrition products within this region is projected to propel the market demand for phosphatic fertilizers in the APAC. China is one of the major producers of phosphatic fertilizers and presence of a number of market players within the country is expected to positively influence the growth of the market within the region. The Middle East and Africa has immense growth potential in the phosphate fertilizers market. The rising population and changing dietary patterns have fueled the demand for food products in the region, which in turn, is predictable to drive the demand for phosphate fertilizers over the forecast period. South America is projected to witness the fastest growth during the upcoming years attributed by high oilseeds production such as soybean and rapeseed in the economies such as Brazil.

KEY INDUSTRY PLAYERS

Focused Merger and Acquisition Strategies to Lead to the further Consolidation of the Global Phosphatic Fertilizers Industry  

Dominant market players in the industry, such as Nutrien Ltd., OCP Group, and others are relying on collaboration strategies and product development, to gain a leading position in the global marketplace. Moreover, prominent companies operating in the market are focused on mergers & acquisitions to strengthen their market position. For instance, in 2017,  the Agrium and PothshCrop came together to combine their talent and best practices to build a new company Nutrien Ltd. that is stronger and better equipped to create value for all their stakeholders. The phosphatic fertilizer manufacturers are intensively capitalizing on reinforcing the distribution network, implementation of cost reduction techniques, and placement of varied phosphatic fertilizer products in the global marketplace.

LIST OF KEY COMPANIES PROFILED:

• Yara International ASA


• Israel Chemical Ltd.


• The Mosaic Company


• CF Industries Holdings, Inc.


• Coromandel International Limited


• The OCP Group


• PhosAgro PJSC


• Sociedad Química y Minera de Chile S.A.


• Nutrien Ltd.


• Koch Industries, Inc.

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Fertoz Ltd., an Australia-based organic phosphate company, announced three new offerings to complement their product offerings. These products include Phosul LLC, Nutrient Vigour Plus 2-4-4-2, and Humic Growth Solutions. The product offerings of Fertoz are approved for use in countries such USA and Canada.


• In June 2021, the Union government of India approved the proposal for the fixation of nutrient-based subsidy rates on Phosphatic and Potassic Fertilizers products. As a part of the program, the rate of nitrogen subsidy was reduced from Rs 18.90 per kg to Rs. 18.789 per kg. This decision was aimed to protect the farmers from a price hike in fertilizers.


• In June 2021, the proposal of Pradeep Phosphate limited to acquire fertilizer manufacturing company Zuari Agrochemicals was approved by the Competition Commission of India(CCI). The entire acquisition is estimated to be around $280 million.


• In November 2020, Indorama India Private Limited signed a definitive agreement with Grasim Industries to acquire their fertilizer business. The company has manufacturing capabilities to produce 1.2 million tons of urea. This acquisition is estimated to be around US$ 355 million, and post-acquisition, the company will become the 3^rd largest producer among the private sector companies in India.

REPORT COVERAGE

The phosphatic fertilizers market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product.

Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation