The global ammonium phosphate market is expected to witness substantial growth over the forecast period owing to its increasing use in animal feed and industrial applications. Growing demand for fertilizers across agriculture-driven economies of the world including India is expected to have a positive impact on market growth. It is primarily used for manufacturing fertilizers. Global demand for fertilizers is expected to reach over 200 million tons in 2015 growing at a CAGR of 4.5%, which is expected to propel the product demand over the forecast period.
Rising investment by major agriculture-driven economies, such as India and Brazil, is expected to result in a substantial demand for the product over the forecast period. In addition, increasing promotion of FDI in the agricultural sector is expected to result in encouraging the use of the latest technologies by improving knowledge of farmers regarding effective utilization of fertilizers. These factors are likely to augment ammonium phosphate market demand over the forecast period.
Growing population coupled with increasing demand for food and food products is expected to boost agriculture industry growth, which in turn is expected to drive ammonium phosphate demand across the globe over the next seven years.
Ammonium phosphate is used as an additive to animal feed and finds use in various industries such as metal finishing chemicals, water treatment chemicals, food & beverage, and detergent & soaps. Growth of these end-use industries is expected to drive ammonium phosphate market growth.
Monoammonium phosphate (MAP) and diammonium phosphate (DAP) are the most commonly used products. DAP accounted for the majority market share in 2014 owing to its widespread use in fertilizers. It helps in regulating pH levels in soil, thereby improving the quality of the soil and enhancing crop yield. MAP is widely used in the food & beverage industry as a food additive and emulsifier.
Fertilizer, food & beverage, flame retardant, and water treatment chemicals are some of the major applications of ammonium phosphate. Fertilizer application accounted for the majority of the market share in 2014 as they are easily soluble and miscible. Addition of the chemical helps in meeting the requirements of phosphate and ammonia of soil. DAP, in particular, is 90% soluble which results in higher absorption by the crop plant.
Other applications including food & beverage and flame retardant accounted for a small volume percent of the overall market. However, these end-use segments are likely to witness significant gains over the forecast period on account of their increasing demand. Growing demand for flame retardants on account of rising awareness regarding safety as well as implementation of stringent regulations by regulatory bodies.
China accounted for the largest regional share for ammonium phosphate followed by India and Brazil. China was also the largest producer, accounting for over 50% of the global market in 2014. However, the government of India’s decision to lower fertilizer subsidy is expected to decline demand. As a result, fertilizer prices have increased, which is expected to hamper market growth.
North America demand is expected to increase on account of improved reforms by the government on the use of fertilizers in crops. However, growing demand for organic products in the region is expected to hamper market growth over the forecast period. Furthermore, stringent regulations against the use of chemical fertilizers are expected to negatively impact market growth in Europe. As a result, the demand is expected to decline over the forecast period.
MEA is likely to witness increasing ammonium phosphate demand owing to efforts related to boosting the agriculture sector. North African countries have carried out initiatives to concentrate on agriculture industry growth in order to lower imports and increase sustainability. Furthermore, demand from Saudi Arabia and UAE is expected to increase in light of initiatives by respective governments to promote organic farming in the region.
Key companies in the market include Lanxess AG, Solvay S.A., CF Industries Holdings, Inc., Ma’aden-Saudi Arabian Mining Company, OCP SA, Prayon SA, Yidu Xingfa Chemicals Company Limited, Jordan Phosphate Mines Company, Chemische Fabrik Budenheim KG, Yuntianhua Group Company Limited, Hubei Xingfa Chemicals Group Co., Ltd., Wengfu Group, Vale S.A., OJSC, EuroChem MCC, Innophos Holdings Inc., Italmatch Chemicals S.p.A., Yara International ASA, United Phosphorus Limited Potash Corp. of Saskatchewan Inc., and Israel Chemicals Ltd. (ICL).
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Demand across the organic chemicals sector shall register a slump in growth albeit increasing demand for certain chemicals that find end applications in healthcare and food. Furthermore, China, a major supplier of chemicals to the world, registered a considerable decline in manufacturing in the first quarter of 2020, following the trajectory unfolded by COVID-19's escalation to a pandemic. This has led to an imbalance in supply-demand dynamics, forcing manufacturers and customers alike to renegotiate supply agreements. The report will account for Covid19 as a key market contributor.