Global Phosphorus Fertilizers Market - 2022-2029

Global Phosphorus Fertilizers Market - 2022-2029

Market Overview

Phosphorus (P) is one of the key essential elements in modern agriculture. Due to the loss of phosphorus in crop and hay-producing soils, phosphorus use has increased during the past few decades. An important nutrient needed for the growth of plants is phosphorus. It aids in seed development, plant maturation, and root growth. The use of phosphorous fertilizers in various grains promotes root growth, improves crop quality, and enhances stalk strength. This can be attributed to the rise in demand from farmers for fertilizers that supplies essential elements like nitrogen and potassium.

The global phosphorus fertilizers market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Market Dynamics: Increasing application of phosphorus in agriculture

Fertilization of crops comprises the largest proportion of phosphorous used in agriculture. Phosphorous use has become increasingly prevalent during recent decades due to its depletion in soils used for crop and hay production. Furthermore, phosphorus has many important functions in plants, the primary one being the storage and transfer of energy through the plant. Adenosine diphosphate (ADP) and adenosine triphosphate (ATP) are high-energy phosphate compounds that control most processes in plants including photosynthesis, respiration, protein and nucleic acid synthesis, and nutrient transport through the plant’s cells. The value of employing the product in agricultural output is increasingly being recognised by emerging economies all over the world. The use of phosphate fertilizers to increase crop yields is encouraged by the governments of significant agrarian nations like Brazil and India. This has prompted local business owners and farmers in these nations to expand their consumption of phosphate suitable for fertilizer.

Market Segmentation: Monoammonium segment accounted for the highest share in global phosphorus fertilizers market

In 2021, the monoammonium phosphate segment had the highest revenue share, which was about XX percent. This is explained by the low cost of MAP and the substantial amount of phosphorus it contains. As a crucial supplier of both nitrogen and phosphorus, MAP is the most significant phosphate fertilizer. It has served as a significant granular fertilizer in agricultural applications. Due to its water solubility, it is employed directly or as a raw material for the production of several complex fertilizers, including nitrogen phosphate and nitrogen-phosphate-potassium.

The application for grains and cereals generated the most revenue in 2021, at about XX percent. The increase in phosphorous fertilizer demand across all developed and emerging agrarian nations of the world is attributable to the rising global demand for main cereals & grains as a result of the expanding global population.

Geographical Penetration: Asia-Pacific is the dominating region during the forecast period

In 2021, the Asia Pacific area had the highest revenue share. This is due to rising food output and rising demand for foodstuffs like rice and vegetables from Asia-Pacific import-dependent nations. Additionally, the agricultural sector, which employs 50% of the labour force and generates around 18% of the nation's GDP, is the foundation of the Indian economy. Wheat, rice, lentils, spices, and spice derivatives are the main crops farmed in India. India is one of the nations with the fastest-growing agro-based sectors. This will lead to an increase in market demand throughout the course of the projection period.

In terms of revenue, Europe was the second-largest geographical category in 2021 and is expected to grow at a CAGR of XX percent over the next several years. This is attributable to the agricultural output of the countries in the region, which accounts for over one-third of the agricultural land in the European Union. Germany is among the region's top four agricultural producers, and France is the sixth-largest producer.

Competitive Landscape:

Due to the existence of several fertilizer manufacturers, particularly in nations that rely heavily on agriculture, the market is highly fragmented. As the demand for agrochemicals rises across the globe, industry participants are concentrating on growing their manufacturing capacity. For instance, in August 2021, the EuroChem Group and Serra do Salitren, a Brazilian company, agreed to buy their respective phosphate projects. With this acquisition, the company should be better able to produce and distribute crop nutrients.

COVID-19 Impact: Negative impact on the global phosphorus fertilizers market

Numerous international companies that deal with the agriculture industry, agricultural inputs, fertilizers, etc. have been severely hit by the COVID-19 pandemic. Since the bulk of the Asia Pacific region's nations have agrarian economies, any slowdown in their agricultural activities or brief halts in their cross-border commerce have a substantial effect on the overall operations of agricultural businesses and farmers working in the region. In the end, this causes disruptions in the region's main countries' whole agricultural sectors. Production rates in China fell to around 20-30% of total capacity causing a significant impact not just on the supply of phosphate fertilizers but also on demand for raw materials such as sulphur and sulphuric acid. Due to supply limitations and refinery closures in 2020 during the COVID-19 pandemic, the cost of basic raw materials like sulphur and ammonia rose dramatically. Triple Superphosphate recorded the minimum price in January 2020 (239 USD/T) and DAP (Diammonium Phosphate) - in December 2019 (238 USD/T) (before the pandemic). PhosAgro (one of the world's largest producers of phosphate fertilizers) has announced sustainability of operations with good sales dynamic; revenue has slightly decreased.

The global phosphorus fertilizers market report would provide an access to approximately 53 market data tables, 44 figures and 170 pages