Phosphate Market Analysis

Phosphate Market Overview

The global phosphate market was valued at USD 12,696.0 million in 2021 and is projected to reach USD 18,727.6 million by 2030 at a CAGR of 4.59%.

Phosphate is a natural resource found under the earth’s surface, where it is exploited to use in multiple agricultural and industrial activities. The global phosphate market has been segmented into five types: ammonium/phosphoric acid, calcium, potassium, sodium, and others.

COVID-19 Impact on the Phosphate Market

The rapid spread of COVID-19 is causing significant disruption to a wide range of industries across the globe. Some of the major petrochemical end-users include the packaging, automotive & transportation, building & construction, and electrical & electronics industries. As these industries come under essential services, the impact of COVID-19 was not as worse as other industries.

The outbreak of COVID-19 has significantly impacted the chemicals & materials supply chains, mining operations, international trade, and manufacturing processes across the world. As a result of a lockdown across geographies, the production facilities have faced disruptions. The market players have had to shut production facilities or operate the facilities below the optimal production capacities to prevent the spread of COVID-19. Plastics, the most well-known group of petrochemical goods, have outperformed all other bulk materials in terms of demand (such as steel, aluminum, or cement). More than half of ammonia is turned to urea, which is primarily utilized as a fertilizer to raise agricultural yields and food production worldwide. The industry value pool fell in 2019 due to major capacity increases and slower demand growth. The pandemic, which began in 2020, has accelerated this decline. The crucial need for developing the effective treatment for COVID-19 during the year 2020 resulted in high demand for chromatographic techniques, thus, having a positive impact on the global market.

In contrast, polyethylene players (which make products such as plastic containers for milk, motor oil, and shampoos) remained robust. On the other hand, several chemical manufacturers modified their existing factories to satisfy the rising demand for isopropyl alcohol and ethanol.

Phosphate Market Dynamics

Drivers

• Growing demand for fertilizers: Almost all phosphate fertilizers are currently produced from naturally occurring phosphorus-containing minerals. Phosphorus (P) is an essential nutrient for living organisms that have long been used in agriculture. Phosphate in the form of the mineral apatite is not readily available to plants in phosphate rock. Phosphate rock must usually be treated to convert the phosphate to water-soluble or plant-available forms. Phosphate rock can be processed into fertilizers in a variety of ways. Furthermore, natural organic phosphates sources such as manure and guano, bone meal, and urban waste, among others, are of only minor commercial importance today. This is primarily due to the higher cost per unit of nutrients and the fact that the potential supply is a tiny fraction of the raw material required to produce the amount of phosphate-based fertilizers used globally.

Restraints

• Ban on the use of phosphate: Phosphorus is an essential nutrient for plant growth that is found in nature. Phosphorus, along with another essential nutrient, nitrogen, helps algae and aquatic plants grow, providing food and habitat for fish and other organisms in aquatic ecosystems. However, the high nutrient level can jeopardize water quality by fueling algal blooms, which can have serious consequences for the environment, human health, and our economy. Phosphates accumulate in waste systems and are difficult to break down by standard wastewater treatment systems. As they make their way into streams, lakes, and rivers, they promote algae growth, which reduces the oxygen required for healthy aquatic life and contributes to water pollution.

Opportunities

• Rising adoption of food-grade phosphate in food processing applications: Food-grade Phosphates are commonly utilized in food processing applications such as meat, poultry, fish, cereals, grains, dairy products, fruits, and vegetables. Some food-grade phosphates include monosodium phosphate, disodium phosphate, trisodium phosphate, monopotassium phosphate, dipotassium phosphate, tri-potassium phosphate, monocalcium phosphate, dicalcium phosphate, tricalcium phosphate, sodium acid pyrophosphate, tetrasodium pyrophosphate, and others.

Challenges

• Rising environmental concerns regarding phosphate mining: Phosphate rock mining pollutes the air, contaminates the water, and destroys valuable wildlife habitats. Strip mining for phosphate rock has a drastic impact on the environment, permanently altering the natural landscape. Mines displacing plants and animals and consuming thousands of acres of valuable habitat that is impossible to restore to its natural state are common occurrences. To reach the phosphate-ore-containing matrix 60 to 80 feet below the surface, most phosphate rock mining entails clearing large swaths of vegetation and digging up the soil beneath.

Phosphate Industry Segmentation

By Type

• Ammonium/Phosphoric acid


• Calcium


• Potassium


• Sodium


• Others

By Application

• Fertilizers


• Detergents


• Food and Beverges


• Water treatment chemicals


• Metal Treatment


• Cosmetic and Personal Care


• Pharmaceuticals


• Others

By Region

• North America


• Europe


• Asia-Pacific


• Latin America


• Middle East & Africa

Regional Analysis

The global phosphate market is studied across the five key regions, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

Asia-Pacific dominated the global market with a share in 2021 and is projected to register the highest CAGR by the end of 2030. This growth is driven by various factors, such as the rising demand for ammonium phosphate for manufacturing fertilizers in major economies like China, India, Indonesia, and Thailand.

Furthermore, Latin America held the second-largest market share due to the upsurge in demand for nutritious food products health-conscious people who have started adopting a healthy lifestyle. In the same line, growing health awareness and physical fitness concerns among buyers in this region are expected to boost the demand for nutritious food products, which will result in the growth of the regional market during the review period.

North America holds the third-largest share in the global phosphate market due to the escalating demand for ammonium phosphate in the food & beverages industry. The manufacturers present in North America are majorly focusing on investment and expansion activities to increase their share in the global market. Moreover, the European region is expected to show promising growth during the forecast period due to the increasing demand for phosphate in countries like Germany, Poland, and France, especially in the agricultural sector. Moreover, the growth of the soap and detergent industry in the European region is propelling the growth of the phosphate market.

Competitive Landscape

The competitive landscape offers an analysis of the key developments by the companies operating in the global market in the last three years. The global phosphate market is anticipated to register a healthy CAGR during the forecast period, owing to the growing demand for phosphate as fertilizers and in waste-water treatment.

List of the key companies operating in Phosphate market are

OCP Group (Morocco), The Mosaic Company (US), EuroChem Group (Switzerland), Nutrien Ltd (Canada), Jordan Phosphate Mines Co. (Jordan), ICL Group Ltd (Israel), PhosAgro (Russia), Ma’aden-Saudi Arabian Mining Company (Saudi Arabia), Yara International ASA (Norway), Innophos Holdings, Inc. (US), Yunnan Phosphate Haikou Co., Ltd. (YPH) (China).

Report Overview:

The Phosphate market is segmented by Type, application, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Phosphate emerging and fast-growing segments, regions, and countries.

Objectives of the Study

• To get a comprehensive overview of the global phosphate market


• To get wide-ranging information about the key factors driving the market and market opportunities


• To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments


• To gain insights about the key country/region in which the market is growing

Intended Audience

• Industrial sector


• Academics


• Pharmaceutical industries


• Agrochemical industries


• phosphate supply and demand