Phosphate Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Phosphate Market is Segmented By Type (Ammonium Phosphate, Calcium Phosphate, Phosphoric Acid, Potassium Phosphate, Sodium Tripolyphosphate, Others), By Application (Fertilizers, Food & Beverages, Detergents, Water Treatment Chemicals, Metal Finishing, Others), By Resource (Sedimentary Marine Deposits, Igneous & Weathered, Biogenic, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The Global Phosphate Market size was worth US$ 16.79 billion in 2023 and is estimated to reach US$ 20.25 billion by 2031, growing at a CAGR of 2.37% during the forecast period (2024-2031). 

The phosphorus is contained in phosphate, a charged particle (ion). Phosphorus is required by the body to develop and repair bones and teeth and aid nerve activity and muscle contraction. Most phosphorus in phosphate is found in bones (nearly 85 percent). The remainder is stored in tissues all across the body. The kidneys aid in the regulation of phosphate levels in the blood. 

Extra phosphate is filtered out of the kidneys and excreted in the urine. Kidney disease is frequently the source of a high phosphate level in the blood. Phosphate is a chemical derivative of phosphoric acid and the fertilizer manufacturing businesses in the booming agriculture sector absorb most of its global production. 

The phosphate market benefited from several industrial application prospects due to flexibility, softness, crack resistance and water resistance. According to United Nations ' Food and Agriculture Organization (FAO), total fertilizer nutrient demand is expected to reach 201.66 million tons by 2020. Phosphate nutrient fertilizer demand is anticipated to reach 45,858 tons, making it the second most demanded fertilizer nutrient after nitrogen.

Market Scope

Market Dynamics

Over the projection period, rising fertilizer demand is expected to drive up demand for phosphate rock. The demand for grains and cereals is likely to rise in the future years as the world population grows and the food industry expands. However, pollution caused by phosphate overfertilization is projected to limit market expansion.

Rising demand for phosphates from various end-use industries 

Owing to its flexibility, softness, crack resistance and water resistance, phosphate has various industrial applications, including carbonated beverages, animal protein, toothpaste, leavening agents, washing agents, pesticides, metal coatings and water softeners. Food security is a crucial worry impacting the phosphate market growth due to the growing worldwide population, driving the demand for rapid agricultural productivity.

As the worldwide area of arable lands diminishes year after year, massive fertilizer application is the only way to balance global agricultural supply with emerging demand. According to the FAO, animal husbandry accounts for about 40% of the worldwide agricultural economy. Apart from a thriving fertilizer business, increased global meat consumption boosts the phosphate market, adding to meat protein.

Increasing demand for phosphates from the agricultural sector

The rise of the agriculture sector worldwide has increased phosphate market trends. Furthermore, market trends and global investments are being influenced by the growing demand for phosphate in the global market. Furthermore, there has been a growth in health awareness and physical fitness concerns among the target consumers, which will raise the demand for healthy food products.

During the forecast period, the appearance of the fact immediately results in the expansion of the phosphate market. Low availability of arable land and increased crop production levels are also assisting the market in gaining significant market momentum throughout the predicted period.

Pollution and overfertilization

Phosphate fertilizer overfertilization is a big and widespread issue. Many gardeners wrongly apply phosphate fertilizers to phosphorus-deficient soils, although nitrogen deficits are a considerably more familiar source of nutrient deficiency symptoms in plants. In many circumstances, an excess of phosphorus in the soil not only fails to cure the nutrient deficiency problem but can also exacerbate it by inducing leaf chlorosis and killing soil-dwelling beneficial microbes.

Another significant drawback of phosphate fertilizer is the increased risk of water pollution. Phosphorus that enters the soil via phosphate fertilizers and becomes securely bound to soil particles is unlikely to escape. Excess phosphorus can readily find its way into water systems via storm drains and plumbing if too much phosphate fertilizer is applied to the soil.

Market Segment Analysis

By application, the phosphate market is segmented into fertilizers, food & beverages, detergents, water treatment chemicals, metal finishing and others.

Stringent regulations regarding fertilizers to make the dominant application 

The segment is expected to rise in the coming years due to increased demand from the agriculture industry due to the world's growing population. According to the Food and Agriculture Organization, global demand for phosphorous as P2O5 in fertilizers is expected to rise.

Meat and dairy products are the most important protein sources for feeding the world's ever-increasing population. The processed phosphoric acid and limestone are mixed in a high-speed mixer to produce a homogeneous product, subsequently dried and packaged for end-users. Monocalcium phosphate (MCP), dicalcium phosphate (DCP) and other feed phosphates are the most common. Phosphate feeds are more nutritious as it provides bone strength and fertility in animals.

Climate change, natural disasters and decreased land fertility threats to soil-based farming. Hydroponics, which includes growing plants in nutrient solutions, can be advantageous in such situations. In the coming years, countries such as Canada, U.S., France, UK, Israel, Netherlands and France are likely to offer chances in hydroponics.

Market Geographical Share

The rapidly growing agricultural industry in Asia-Pacific

Asia-Pacific is the most profitable, with strong phosphate demand from India and China, with large agriculture economies. The uptake of food and beverage, pharmaceuticals, fertilizers and personal care items have increased throughout Asia-Pacific due to the rising population and rapid industrialization in China and India. Because phosphate is used in all of the above verticals, Asia-Pacific accounted for over half of worldwide phosphate consumption in 2018. In Asia-Pacific, agricultural fertilizers are the primary source of phosphate demand. 

According to the Fertiliser Association of India (FAI), the modern Indian agriculture sector provided roughly 17% of India's GDP in recent years. Furthermore, as per the Organization for Economic Co-operation and Development, China is home to 21% of the world's population and 9% of all arable land. As a result, phosphate imports dominate the market in Asia-Pacific, where agriculture is a key component of the economy.

With 27.5% of global imports of natural calcium phosphates and natural aluminum calcium phosphates in recent years, India was the leading region. Due to the hospitality, laundry and textile industries, increased detergent usage could drive up product demand in the region. Phosphate rock demand is mostly determined by population growth, government efforts, prices and production in Asia-Pacific.

Market Competitive Landscape 

Major global phosphate market companies include The Mosaic Company, S.A. OCP, Potash Corporation of Saskatchewan Inc., Agrium Inc., Eurochem, Innophos Holdings, Inc., Israel Chemical Ltd. (ICL), Jordan Phosphate Mines Company PLC., PJSC Phosagro AG and Saudi Arabian Mining Company.

COVID-19 Impact Analysis

The new coronavirus pandemic impacted the worldwide phosphate market share during the forecast period. Due to limits, healthcare difficulties and emergencies, people were compelled to close their enterprises or suffered loss in the worldwide market.

The lockdown affected the manufacturing units' ability to operate, resulting in a decrease in sales revenue globally. The market's production and manufacturing capabilities were also hampered by a lack of resources, investment and skilled labor, which is nothing short of a test phase for the industry over the projected period. The market is likely to benefit from the increased investments.

Russia-Ukraine War Impact

The Russian invasion of Ukraine in 2022 caused substantial disruptions in global fertilizer markets, with phosphate prices rising sharply due to the war's impact on trade routes and economic penalties. Fertilizer prices were already high prior to the invasion due to increased demand and rising expenses for natural gas and coal, all of which are required for production. 

The conflict worsened these concerns by increasing uncertainty about fertilizer supplies from Russia and Belarus, which are significant suppliers in the worldwide market. The disruption resulted in higher phosphate prices as countries depending on these supplies sought alternate sources. As the war reached its second year, global fertilizer markets faced ongoing issues. 

While international food costs have fallen down, domestic fertilizer prices in many low- and middle-income nations remain high, indicating that the conflict is still having an impact. Because many nations rely heavily on imports from a few major suppliers, the fertilizer industry is especially vulnerable to geopolitical shocks, which have had long-term consequences for agricultural production and food security around the world. 

By Type 

• Ammonium Phosphate
• Calcium Phosphate
• Phosphoric Acid
• Potassium Phosphate
• Sodium Tripolyphosphate
• Others

By Application

• Fertilizers
• Food & Beverages
• Detergents
• Water Treatment Chemicals
• Metal Finishing
• Others

By Resource

• Sedimentary Marine Deposits
• Igneous & Weathered
• Biogenic
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • 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

• In 2023, Mosaic Company announced intentions to increase its phosphate production capacity in U.S. by restarting a dormant mine and building a new beneficiation facility. The project aimed to address increased demand for phosphate-based fertilizers while also capitalizing on favorable market conditions.
• In 2022, ICL Group, a global specialized minerals and chemicals corporation, announced the acquisition of Fosbrasil, a major Brazilian manufacturer of phosphoric acid and phosphate-based products. The strategic move was intended to increase ICL's position in the phosphates industry and expand its line of specialty phosphate products.

Why Purchase the Report?

• Visualize the composition of the phosphate market segmentation by type, application, resource and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the phosphate market by analyzing trends and co-development deals. 
• Excel data sheet with thousands of phosphate market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study. 
• Product mapping in excel for the key product of all major market players

The global phosphate market report would provide access to an approx. 61 market data tables, 59 figures and 208 pages. 

Target Audience 2024

• Phosphate Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Phosphate Manufacturers

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