Increasing world population and surging needs for food across the globe is expected to augment the phosphate fertilizers market demand. Phosphate fertilizers are commonly employed in the agriculture sector as they are used for enhancing the growth of the plants by providing nutrients present in them. Phosphate fertilizers also enhance the soil effectiveness by modifying its water retention and aeration. They are prepared on a commercial scale from phosphate rocks. Phosphate is a crucial element required for the growth of different kinds of crops due to its ability to develop seeds & roots and maturing of plants and commercial crops.
Rising geriatric population has led to a significant rise in the food requirements across the globe. Surging demands from the agriculture industry is expected to boost the demand for phosphate fertilizers over the forecast period owing to their value-adding properties. Modern farming techniques are majorly employed using phosphate fertilizers due to their ability to maximize forage and grain production. Phosphate fertilizers include both phosphoric acid-based fertilizers and non-phosphoric acid-based fertilizers. Demand for the foods and agricultural industry are likely to increase over a period of next few years, owing to the rising disposable income, improved standards of living, and increasing food demands from various regions, particularly emerging economies of Asia Pacific including India and China.
Increasing consumption of protein based products including milk and meat has led to a considerable rise in the need for forage production, thereby increasing the demand for phosphate fertilizers market. These fertilizers are used in the agriculture sector in crop development and plant maturation. Rising population of the emerging economies including China, India Indonesia, Pakistan, and Bangladesh, is expected to increase the food demand, thus, augmenting the market growth over the next few years. Countries including Morocco and Brazil have brought about significant changes in their crop production techniques by adding up more of phosphoric acid based products. However, government regulations in the direction of using the less harmful and soil based fertilizers might hamper the market growth in the long run.
As per the statistics released by Food and Agriculture Organization of the United Nations (FAO), there is a significant rise in the global cereal supplies, owing to the improved production prospects in wheat crops and coarse grains in the European Union, the U.S. and India. A large number of major crop producing economies including Argentina, India, Pakistan, Brazil and Morocco are likely to harvest more of wheat, rice, coarse grains, and sugar, thus augmenting the market demand for phosphate fertilizers in the production. As per the sources from FAO, the fertilizers market in the agricultural sector is expected to witness a continuous growth of 1.8% per year and the phosphate fertilizers market demand is anticipated to reach approximately 46.00 billion tons by 2018. The significant rise can be attributed to various advantages provided by these fertilizers and their rising applications. Asian countries including India, China, Indonesia, Pakistan, and Bangladesh account for significant shares in the world phosphate fertilizer market.
Asia Pacific is expected to be the fastest growing phosphate fertilizer market, owing to the exponentially increasing population and a significant rise in food demands, thus augmenting the market growth. China and India are major producers of phosphate fertilizers in the region owing to the strong agricultural base and rising technological innovations. Asia Pacific accounts for over 57.0% of the phosphate fertilizer world consumption, thus becoming the dominant regional segment. Diammonium phosphate, a derivative of the phosphate fertilizers has emerged as one of the popular product segments in the past few years owing to their increased use in agricultural crops.
Europe is expected to continue as the second largest regional segment of the phosphate fertilizer market in the next few years owing to its surplus stock of phosphate fertilizers, particularly in the Eastern Europe and Central Asian parts. North America, on the other hand, is coping up with the economic crisis and making all the possible efforts to become self-sufficient by increasing the production capacities. The food grain production capacity increasing programs are also aided with substantial investments done in the region to augment the phosphate fertilizer industry growth. Many other emerging economies including India are focusing majorly on attaining sustainable agricultural development, thus leading to huge investments in improving the phosphate fertilizer industry.
Latin America and MEA are expected to provide an ocean of opportunity for phosphate fertilizers market growth owing to rising demand for phosphate fertilizers and availability of rock phosphates in this region over the forecast period.
Government initiatives including price control, distribution, and movement of fertilizers, especially in the advancing economies bring about a significant scope for enhanced productivity in the phosphate fertilizer market demand, thus impacting the market positively in the coming years. Prominently dominating companies include CF Industries holding Inc., Phosagro, Yara International ASA, Eurochem, Agrium, and ICL.
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