Phosphorus is an important element for plants growth as it aids in root development, seed development, and plant maturation. Farmers and gardeners apply phosphate-based fertilizer to soil and plants to boost local phosphorus levels. Young plants are especially vulnerable to deficient phosphorus levels, however almost every plant needs it to maintain healthy growth. Modern farming is fully dependent on inorganic fertilizers containing phosphorus so as to maximize the production of forage and grains. The phosphate fertilizers market is driven by growing meat consumption and limited availability of arable land.
On the basis of type, the phosphate fertilizers market is categorized into monoammonium phosphate (MAP), diammonium phosphate (DAP) and superphosphate. DAP fertilizers are a major type as it is a key source of nitrogen and phosphorus. It is widely used for a range of crops in cereals, sugarcane, broad-acre farming, sowing pastures, dairy pastures, fodder crops, and horticultural crops. Also, DAP is a cost-effective source of phosphorus for crops.
Based on application, the phosphate fertilizers market is fragmented into fruits and vegetables, cereals and grains, oilseeds, and others. Cereals and grains formed the largest application area and this trend is anticipated to continue over the forecast period. growing population are expected to fuel demand for cereals and grains in order to cater to the increasing food demand in the region. This, in turn, will fuel the demand for phosphate fertilizers over the forecast period.
The major growth drivers identified in the phosphate fertilizers market are rise in population and diversified food demand. Rising energy demands with increase in population challenged the farmers to increase crop output from the limited available land. Use of fertilizers in agriculture is one of the major practices that increases crop yield and soil fertility. As a critical component of ‘green revolution’, phosphate fertilizers have contributed significantly in reducing hunger worldwide and raising agricultural productivity. Hence, farmers treat their lands with phosphorus fertilizers to increase the yield of their crops. All these aforementioned factors drive the market growth.
Pricing volatility and government policies regarding use of phosphate-based fertilizers are some of the factors restraining the growth of the phosphate fertilizers market. Fluctuating energy prices are the key cause of price volatility in these fertilizers. Transportation costs, exchange rates, policy decisions, and other uncontrollable factors are other key factors affecting trading of fertilizer products worldwide. All these factors are expected to restrain the market growth in coming years.
Various initiatives by government are expected to create lucrative opportunities for the industry players in the phosphate fertilizers market. For instance, India’s subsidy policy aimed at improving the purchasing power of fertilizers would intensify the overall consumption of these fertilizers in the country through 2026. Improving global economy and better living standards have promoted the demand for more sophisticated food products, improved industrial products, and production technologies. These factors are further expected to serves as lucrative opportunities for the market.
Insights by geography
Regionally, Asia-Pacific is the leading region for the phosphate fertilizers market. Presence of large population in countries such as China and India are increasing demand for diversified food such as fruits and vegetables, cereals and grains, and oilseeds, which is eventually expected to boost demand for the fertilizers over the forecast period. India is the second largest consumer and largest importer of DAP fertilizer. All these factors are propelling the regional market growth.
The global phosphate fertilizers market competition is highly intensive and relatively integrated, with the presence of limited key players capturing a major revenue share. Some of the major players operating in the market are Agrium Inc., Israel Chemicals Limited, CF Industries Holdings Inc., Coromandel International Ltd., Nutrien Ltd.., PhosAgro, OCP S.A., Yara International ASA, EuroChem Group AG, and The Mosaic Company.