Phosphate Fertilizer Market Expected to Reach $35.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Phosphate Fertilizer Market," The phosphate fertilizer market was valued at $24.0 billion in 2021, and is estimated to reach $35.6 billion by 2031, growing at a CAGR of 4.1% from 2022 to 2031.

Phosphate is an essential plant nutrient that helps in seed development, plant maturation, and plant development thus enhancing plant productivity. Phosphate-based fertilizers are diammonium phosphate (DAP), mono ammonium phosphate (MAP), NPKs,  and SSP. These phosphate-based fertilizer possess various physical and water solubility properties due to which it is extensively used on crops. Phosphate fertilizers are obtained by adding acid to pulverized phosphate rock.                                                

The rapid growth of population, a significant rise in need for various agricultural foods, and a surge in demand for fertilizer & crop protection products have enhanced the performance of the agriculture sector. Phosphate-based fertilizers are widely used to improve plant resilience against diseases and help strengthen the plant for winter. These factors are anticipated drive the growth of the phosphate fertilizer market during the forecast period.

However, the rise in prices of raw materials of phosphate-based fertilizer is expected to restrain the market growth. Furthermore, the high consumption of phosphate-based fertilizer in soil slows down the growth of plants by blocking the absorption of both iron and zinc due to which several farmers use organic fertilizers. These factors are anticipated disturbing the overall potential sales of the phosphate fertilizer market during the forecast period.

Moreover, rise in awareness about healthy lifestyles and growth in concern about organic and low-calorie supplements among youngsters have enhanced the overall performance of the organic farming market where phosphate fertilizer is used to enhance plant productivity. For instance, SSP-based phosphate fertilizer is used on fruits and vegetable plants for enhancing their plant growth due to which several key manufacturers have enhanced their production capacities for phosphate-based fertilizer.

The phosphate fertilizer market is segmented by type, application, and region. By type, it is classified into single superphosphate (SSP), triple superphosphate (TSP), monoammonium phosphate (MAP), di-ammonium phosphate (DSP), and others. On the basis of application, it is divided into cereals & grains, fruits & vegetables, oil seeds, and pulses. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

By type, the market is categorized into single superphosphate (SSP), triple superphosphate (TSP), monoammonium phosphate (MAP), di-ammonium phosphate (DSP), and others. The di-ammonium  (DSP) segment dominated the global market, in terms of total market share in 2021. The rise in disposable income, and improvement in standard of living has surged the demand for flowering plants where DAP-based fertilizer on flowering plants provides an excellent effect on overall plant growth, encourages the growth of shoots/leaves, and improves the quality and shelf life of the produce. Superior quality, rich in all essential plant nutrients.

For instance, according to an article published by ComfyLiving in January 2022, the floral industry will reach over $49,000 million by 2028, with a CAGR of 4.04%. This factor is projected to drive the demand for phosphate fertilizer during the forecast period.

By application, the market is divided into cereals & grains, fruits & vegetables, and oil seeds & pulses. The cereals and grains segment dominated the global market, in terms of revenue in 2021 with 40% share in the global market. The cereals and grains market are witnessing high growth as they are a rich source of vitamins and minerals and are used in large amounts in animal feed owing to these factors manufacturer have put more emphasis on the production of phosphate fertilizer products such as SSP, DAP, TSP, MAP, and others that will help in cereal production. These factors are propelling the growth of phosphate fertilizer in the market; thus, creating remunerative opportunities for the phosphate fertilizer.

Region wise, the phosphate fertilizers market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region accounted for a major market share in 2021 and is projected to grow at the highest CAGR during the forecast period. Agriculture, horticulture, and gardening has accounted for growing sector in India and Japan. This is attributed to the fact that, increase in the population, rising urban & rural income, and increase in the import and export trade is driving the demand for phosphate fertilizer market.

Furthermore, agriculture industry is the backbone of India where wide range of cereals, pulses, vegetables, fruits, and other crops. According to an article published by India Times in September 2022, India has consumed about 500 LMT of fertilizer over the last ten years. Farmers prefer to use an excessive amount of urea as non-urea varieties such as MoP, DAP, and complex are expensive. India is a major buyer of Diammonium Phosphate (DAP). These factors together escalating the demand for phosphate fertilizer market; thus, creating lucrative opportunities for the future.

Key players operating in the global phosphate fertilizers market include Nutrien Ltd., Green Agri Solution, Gayatri Fertiplants International Pvt. Ltd, Rama Phosphates Ltd. APEX AGRO INDUSTRIES, OCP, Indorama Corporation, Silverline, ICL, and PhosAgro Group.

Key Findings:

• On the basis of type, the Di-Ammonium Phosphate (DSP) segment is expected to grow at a CAGR of 4.2%, in terms of revenue, during the forecast period.
• Depending on application, the cereals and grains segment is expected to grow at a CAGR of 3.8%, in terms of revenue, during the forecast period.
• Region wise, Asia-Pacific garnered a more than half of the market share in 2021, in terms of revenue.