Phosphate Sales to Surpass 51,331 KT by 2021 as Phosphate Fertilizers Gain Tract

Posted by FMI on September 27th, 2021

The global phosphates market is projected to grow at 2.4% CAGR over the forecast period, driven by increasing demand for phosphates in agrochemical applications. Future Market Insights (FMI) states that, phosphates market will generate revenue reaching US$ 16.1 Bn in 2021.

 Agricultural sector grew many folds over the past few years owing to high demand for cash crops and food along with rapid population growth in developing and developed economies. To cater to the rising food requirements, demand for fertilizers to boost the yield of arable land skyrocketed, thus boosting phosphate consumption.

Increasing demand for diammonium phosphate (DAP), monoammonium phosphate (MAP), single superphosphate (SSP) and triple superphosphate (TSP) fertilizers to counter the deteriorating nutritional value of the cultivating soil is predicted to boost the sales of phosphates in upcoming years.

Proactive steps from government to boost agricultural yield and promote the use and production of harmless fertilizers will positively influence the phosphate market growth in coming years.

The Indian government is investing increasingly to revive the agricultural sector and provide funding for crop protection and subsidized fertilizers to farmers. As overall gross domestic product (GDP) of India is highly dependent on agricultural sector, the demand for phosphates is expected to increase in the near future.

COVID-19 pandemic hindered the logistics and transport activities leading to sluggish trade and disrupted supply-chain network. With easing of strict lockdown restriction, the market is expected to recover in the next couple of years.

The market however enjoyed significant growth during the pandemic owing to increase in demand for food and beverages and rise in agricultural activities. The demand for animal feed and fertilizers also contributed towards the growth registered amid the pandemic.

\"Rising industrialization and contracting agricultural land will considerable increase the sales of phosphate fertilizers during the forecast period. The rising demand for animal feed and population growth will create attractive opportunities for growth in the forthcoming years,\" says the FMI analyst.

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Key Takeaways

• The U.S. phosphate market exhibited steady recovery post pandemic with 2.4% year-on-year growth in 2021. Sales uptick can be attributed to presence of large reserves of phosphate rocks in the country and increasing demand for phosphate based fertilizers among farmers in U.S.
• Increasing population and increasing demand of fertilizers for production of animal fodder will drive the demand for phosphates in India. The market is expected to grow at 3.2% in 2021.
• China accounts for more than 52% of global phosphate market in Asia Pacific region. Thriving agriculture sector and surge in food consumption to feed the growing Chinese population will drive the market growth in the country.
• Morocco is one of the leading producer and exporter of phosphate rocks in the world. Morocco account for 14% of global market share in 2021. Availability of low cost labor and favorable government policies in chemical industry has created a conducive environment for market growth in the country.
• Extensive use of ammonium phosphate in chemical fertilizers and decreasing fertility of soil will drive the ammonium phosphate market growth in China. Food and feed grade will emerge as a key segment showcasing highest growth rate due to increasing demand of phosphates in food and beverage industries.
• The Mosaic Company, OCP Group, PhosAgro, Ma\'aden-Saudi Arabian Mining Company, and EuroChem cumulatively account for 52.4% of the global market in 2021.

Competitive Landscape

Phosphate market is highly competitive with top five companies accounting for more than 50% of global market in 2021. To cater to rising demands, market players are investing towards expanding their production capacities and set-up new production plants in emerging countries of Asia Pacific region.

For instance, Ma\'aden commissioned its US$ 900 million fertilizer plant in Ras Al-Khair in June 2021. This new project is a part of US$ 6.4 billion \'Phosphates 3\' expansion plan of Ma\'aden\'s phosphates fertilizer portfolio covering everything in mine-to-market development process of phosphates fertilizers.

Strategic merger and acquisition is on the cards, to expand their market foothold and increase their annual turnover.  Backwards integration to optimize productivity is emerging as a key area of focus among market players.

For instance,

• Mosaic received the final U.S. Army Corps of Engineers 404 permit in January 2019, for Ona phosphate mining project in Florida and secured the rights to mine 160.2 million tons of phosphate rocks through mining.
• Merger between PotashCorp and Agrium Inc. took place in 2017, leading to formation of Nutrien Ltd. This merger is considered as the greatest collaboration in the history of agricultural industry.

Some of the leading companies operating in the phosphates market are:

• Nutrien Ltd.
• The Mosaic Company
• YARA International
• EuroChem
• Prayon SA
• Ma\'aden-Saudi Arabian Mining Company
• PhosAgro
• Jordan Phosphates Mines Company (PLC)
• Aditya Birla Chemicals
• Israel Chemicals
• KazPhosphates LLC
• Sulux Phosphates Limited
• Zimbabwe Phosphates Industries Limited
• OCP Group
• Innophos Holdings, Inc.
• Chemische Fabrik Budenheim KG
• Haifa Chemicals Ltd.
• URALCHEM JSC
• Solvay SA
• OCI Company Ltd.
• Cabot Microelectronics Corporation
• Asia Union Electronic Chemical Corp.
• Hubei Xingfa Chemicals Group Co., Ltd.
• Yichang Municipal Pacific Chemicals Co., Ltd (YMPCC)
• Sichuan Blue Sword Chemical (Group) Co., Ltd.
  • Foskor (Pty) Ltd.