Phosphate Fertilizers Market Share Analysis, Demand, Trends, Growth, Value, Industry, Market Forecast (2024-2031)

Phosphate Fertilizers Market is segmented By Application (Cereals and grains, Oilseeds, Fruits and vegetables, and Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Phosphate Fertilizers Market Overview

The Global Phosphate Fertilizers Market reached USD 67.2 billion in 2022 and is expected to reach USD 103.1 billion by 2031 and is expected to grow with a CAGR of 5.5% during the forecast period 2024-2031. Phosphorous fertilizers play a crucial role in stimulating root growth, enhancing crop quality, and strengthening stalks in various grains. The primary global sources of phosphorus are phosphorus rocks, which are of significant importance in agriculture.

The utilization of phosphate fertilizers presents significant opportunities in the field of agriculture. Phosphate fertilizers contribute to increased crop yields, improved plant health, and enhanced nutrient uptake. They provide essential phosphorus to support root development, promote flowering and fruiting, and enhance overall plant growth. The demand for phosphate fertilizers is expected to rise due to the expanding global population and the need to achieve food security.

Furthermore, advancements in fertilizer technologies and sustainable farming practices offer opportunities for the development of more efficient and environmentally friendly phosphate fertilizers and create lucrative sales in the global phosphate fertilizer market revenue.

Phosphate Fertilizers Market Summary and Scope

Phosphate Fertilizers Market Dynamics and Trends

Changing Preferences of Farmers From Traditional Fertilizers to Smart Fertilizers.

The global phosphatic fertilizers market is expected to experience growth due to the shifting preferences of farmers from traditional fertilizers to smart fertilizers. This transition is projected to drive market expansion during the forecast period. The increasing use of phosphate-based fortified fertilizers, which contain secondary nutrients and micronutrients, is set to have a positive impact on the global phosphate fertilizers market. Moreover, the adoption of controlled-release technology in fertilizers enhances efficiency and is widely embraced in precision farming.

 Farmers are increasingly turning to controlled-release phosphatic fertilizers to achieve higher yields while minimizing fertilizer usage, which further fuels market growth. For instance, on January 23, 2023, Moroccan phosphates and fertilizers producers announced that they are supplying 1.7 million tonnes of phosphate-based fertilizers in 2023

The Increasing Interest of Phosphatic Fertilizer Producers Towards Vertical Integration.

Phosphatic fertilizer producers are showing a growing interest in vertical integration, a strategy that aims to enhance their profitability and drive the global phosphate fertilizers market growth. This strategic move is expected to improve profit margins and drive robust growth. By vertically integrating their operations, companies can reduce their reliance on suppliers and other stakeholders, particularly in terms of procuring raw materials. Raw material procurement costs constitute a significant expense for phosphatic fertilizer manufacturers. To address this, manufacturers are opting for backward integration, producing their own raw materials such as phosphoric acid. This not only helps reduce costs but also reduces their dependence on external suppliers.

The Strict Government Regulations Hamper Phosphate Fertilizers Market

Strict government policies have been implemented regarding the use of phosphate-based fertilizers, primarily due to concerns about environmental and economic damage caused by leaching into groundwater and waterways, especially in regions with high rainfall. This increased stringency on the use of phosphatic fertilizers acts as a restraint on the growth of the phosphate fertilizers market. Additionally, the market growth is projected to be limited by fluctuating prices of the product, which are influenced by the volatility in energy prices.

Phosphate Fertilizers Market Segmentation Analysis

The global phosphate fertilizers market is segmented based on type, crop type, application and region.

In the Global Market of Phosphate Fertilizers, the Diammonium phosphate (DAP) Segment Holds the Largest Market Share. 

Diammonium phosphate (DAP) holds a significant position as the leading phosphatic fertilizer on a global scale. It commanded a substantial market share of 45.0% in terms of total phosphatic fertilizer consumption. Furthermore, the market value of DAP stood at USD 17.76 billion in 2022. This popularity can be attributed to its high phosphate content of 46.0%, along with 18.0% ammonium content, which serves as a valuable source of nitrogen for plants. It is a highly soluble fertilizer that contains nitrogen and phosphorus, making it suitable for a wide range of crops. 

DAP is known for its ability to promote root development, enhance flowering, and increase crop yields. The nitrogen in DAP facilitates leaf and stem growth, while the phosphorus promotes root development and overall plant vigor. This balanced formulation makes DAP an effective choice for crops at various stages of growth.

Global Phosphate Fertilizers Market Geographical Share

North America Region Held the Largest Share in Phosphate Fertilizers Market

The North America region emerged as the dominant player, holding the largest share of the phosphate fertilizers market. This can be attributed to several factors, including the region's significant agricultural sector, advanced farming practices, and high demand for phosphatic fertilizers. North America boasts a robust and technologically advanced agricultural industry, with farmers adopting modern techniques and technologies to enhance crop productivity. 

Additionally, the region's focus on sustainable farming practices and increasing awareness about the importance of balanced nutrition in crop cultivation has driven the demand for phosphate fertilizers. With these factors, the North American market has witnessed substantial growth, solidifying its position as a key contributor to the global phosphate fertilizers market. For instance, according to International Fertilizers Association, the price of diammonium phosphate (DAP) reached $772 per metric ton in 2022. However, projections indicate that DAP prices will exhibit fluctuations in the forecast period. It is estimated that the price will increase to around $580 per metric ton in 2023, followed by a further increase to approximately $610 per metric ton in 2024.

Phosphate Fertilizers Companies and Competitive Landscape

The major global players in the market include Israel Chemicals Ltd., Coromandel International Ltd., The Mosaic Co., S.A OCP, PJSC PhosAgro., Eurochem Group AG, Agrium In, Potash Corp. of Saskatchewan Inc., Yara International ASA, and CF Industries Holdings Inc.

COVID-19 Impact on Phosphate Fertilizers Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

Covid-19 Impact:

The COVID-19 pandemic has presented significant challenges to the phosphate fertilizer industry, impacting various aspects of production, supply chains, and market dynamics. One of the key effects has been disruptions in the production and processing of phosphate rock, a crucial raw material for phosphate fertilizers. Lockdown measures, travel restrictions, and labor shortages have led to temporary closures or reduced operational capacities in mining and processing facilities, resulting in supply chain disruptions.

Furthermore, the pandemic's impact on demand has been notable. In the agricultural sector, where fertilizer is essential for maintaining food production, demand remained relatively stable or even increased as farmers sought to ensure food security. The need for fertilizers to support crop growth and yield became even more critical during the pandemic. However, in non-agricultural sectors such as construction and industrial applications, the economic downturn and restrictions on activities have resulted in decreased demand for phosphate fertilizers.

By Type

• Diammonium Phosphate (DAP)
• Monoammonium Phosphate (MAP)
• Single Superphosphate
• Triple Superphosphate
• Others

By Crop Type

• Cereals
• Pulses & Oilseeds
• Fruits & Vegetables
• Others

By Application

• Fertigation
• Foliar
• Soil

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On April 27, 2023, IFFCO launched nano-DAP in liquid form. Starting from the Kharif season of 2023, IFFCO will offer farmers a 500-ml bottle of nano-DAP at a price of Rs 600, which is significantly lower than half the cost of a 50-kg bag of conventional soil nutrient variety. This new offering aims to provide farmers with a cost-effective alternative that can enhance agricultural productivity.
• On May 13, 2023, The Fertiliser Association of India (FAI) organized a workshop for the SSP Industry (Single Super Phosphate) in New Delhi. In an effort to revitalize the SSP industries, a workshop was held to address the decline in farmer consumption and underutilization of manufacturing units. The industry is actively exploring opportunities to export SSP to neighboring countries such as Nepal, Bangladesh, Bhutan, and Sri Lanka. Attended by 80 participants from 50 SSP companies across India, the workshop aimed to foster collaboration and develop strategies for the growth and expansion of the industry.
• On October 28, 2022, Ostara Secured US$70 Million in Funding to Scale North American Production of Phosphate Fertilizer. With the funding received, Ostara successfully finalized the construction of its manufacturing facility in St. Louis. This state-of-the-art facility enabled the production and distribution of their distinctive fertilizer to a broader range of North American farmers.

Why Purchase the Report?

• To visualize the global phosphate fertilizers market segmentation based on type, crop type, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of phosphate fertilizers market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global phosphate fertilizers market report would provide approximately 93 tables, 109 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies