Diammonium Hydrogen Phosphate (DAP) Market Report

Diammonium Hydrogen Phosphate (DAP) Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies And Forecasts, 2014 To 2020

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  • Report ID: GVR1047
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Growing agriculture sector leading to increase in demand for fertilizers is expected to fuel the market for diammonium hydrogen phosphate (DAP) during the forecast period. Increasing dependence on fertilizers due to the shrinking cultivable land and requirement for higher production yield of crops for the ever-growing population is likely to aid market growth. Increasing demand for firefighting products due to numerous policies aimed at maintaining environment, health & safety in the commercial, industrial and residential buildings and surroundings are also expected to assist market growth. However, development of bio-based and eco-friendly fertilizers is expected to be a key restraining factor to the growth of the DAP market. Growth of the wine industry due to increasing awareness among consumers regarding the health benefits of wine consumption and increasing disposable incomes of the middle class is also expected to present growth opportunities for the DAP market. 

DAP is a salt which is soluble in water. DAP is manufactured by a chemical reaction between phosphoric acid and ammonia. It majorly finds utility in the agriculture sector as a fertilizer which temporarily increases the pH level of the soil. However, soil becomes more acidic at a later stage due to nitrification of ammonium. 

DAP majorly being used as a fertilizer, is also utilized as a nutrient for yeast in fermentation. This property makes it useful in mead brewing and wine industry. It also finds use in firefighting products as a fire retardant due to its characteristic of increasing char formation and lowering pyrolysis temperature. Apart from the abovementioned, it finds use in purification of sugar, in control of precipitation of acid-insoluble and alkali soluble colloidal dyes on wool, afterglow prevention in matches, in enhancing nicotine in cigarettes and as a soldering flux for zinc, copper, tin & brass. 

DAP demand was highest in Asia Pacific in 2013 and the region is expected to continue being a major market in the upcoming years due to the presence of a large agriculture sector in the region. India and China were the major consumers of DAP in the region. Latin American countries such as Brazil, Argentina and Mexico are also expected to witness substantial growth in the DAP market owing to increasing food requirements coupled with growth in agriculture and its allied sectors. U.S., Canada and the European Union are limiting the use of DAP due to its adverse impact on the soil. Moreover, these regions are focusing on developing eco-friendly alternatives, which is expected to hamper DAP market growth. Africa is expected to witness high demand for fertilizers owing to presence of large arable land in the region. 

The market for DAP is fragmented in nature, with good potential for growth in the emerging economies such as India, China and South Africa. Key players in the DAP market include China Blue Chemicals Ltd., Sichuan Chuanxi Xingda Chemical Co., Bunge, PhosAgro AG, SABIC, Mosaic Co., JR Simplot and Gujarat Narmada Valley.

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