Global Phosphorus Fertilizers Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Diammonium Phosphate (DAP) , Monoammonium Phosphate (MAP) , Superphosphate and Others.By Application;
Grains & Oilseeds , Fruits & Vegetables and Cereals.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Phosphorus Fertilizers Market (USD Million), 2021 - 2031
In the year 2024, the Global Phosphorus Fertilizers Market was valued at USD 69,228.71 million. The size of this market is expected to increase to USD 98,063.01 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 5.1%.
The surge in demand for phosphorus fertilizers is closely tied to the agricultural sector's increasing need for fertilizers providing essential nutrients like nitrogen and potassium. Key application areas include various agricultural products such as fruits, vegetables, cereals, and pulses. The utilization of phosphorus fertilizers in diverse grains plays a pivotal role in promoting robust root growth, enhancing crop quality, and fortifying stalk strength. Globally, phosphorus rocks stand out as the primary sources of phosphorus, with the United States leading in both production and consumption of phosphate rocks crucial for fertilizer manufacturing.
The market's growth is significantly propelled by the escalating global demand for food, driven by the ever-growing world population. This rising demand for food is prompting an increased global demand for phosphates. However, the market faces challenges in terms of surging raw material costs, particularly due to heightened investments in expanding mine capacities. This trend is anticipated to persist, impacting global raw material costs for the foreseeable future.
Emerging economies, notably Brazil and India, are recognizing the importance of phosphorus fertilizers in agricultural production. Government support in these agrarian economies is encouraging farmers and local entrepreneurs to escalate the consumption of fertilizer-grade phosphate, further boosting market growth. Despite the positive trajectory, the industry witnessed disruptions during the COVID-19 pandemic. Given that many countries in the Asia Pacific heavily rely on agriculture, any slowdown or temporary halts in cross-border trade have substantial repercussions on agricultural operations and companies.
The pandemic led to supply restrictions and refinery curtailments, causing sharp increases in the prices of primary raw materials like ammonia and sulfur in 2020. In summary, while the Global Phosphorus Fertilizers Market experiences robust growth driven by agricultural demands and government support, it remains susceptible to external disruptions, as highlighted by the challenges posed by the COVID-19 pandemic and fluctuating raw material prices.
Global Phosphorus Fertilizers Market Recent Developments
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In July 2021, Fertoz Ltd., an Australia-based organic phosphate company, made strategic advancements by introducing three new products to complement their existing offerings. These include Phosul LLC, Nutrient Vigour Plus 2-4-4-2, and Humic Growth Solutions. Notably, Fertoz's product offerings have received approvals for use in countries like the USA and Canada, underlining their commitment to meeting global agricultural needs. This move reflects the company's dedication to providing innovative and effective solutions in the organic phosphate market.
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In June 2021, the Union government of India took significant steps to regulate nutrient-based subsidy rates on Phosphatic and Potassic Fertilizers products, as part of their agricultural policy. The adjustment involved a reduction in the nitrogen subsidy rate from Rs 18.90 per kg to Rs. 18.789 per kg. This decision was strategically made to shield farmers from potential price hikes in fertilizers, ensuring stability and affordability in the agricultural sector.
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In June 2021, the Competition Commission of India (CCI) approved the acquisition proposal of Pradeep Phosphate Limited to acquire the fertilizer manufacturing company Zuari Agrochemicals. This acquisition, valued at approximately $280 million, highlights the ongoing strategic realignments and consolidations within the fertilizer industry, with companies seeking to strengthen their market positions.
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In November 2020, Indorama India Private Limited took a substantial step by signing a definitive agreement with Grasim Industries to acquire their fertilizer business. With manufacturing capabilities to produce 1.2 million tons of urea, this acquisition, valued at around US$ 355 million, positions the company as the third-largest producer among private sector companies in India. This strategic move underscores the industry's trend of consolidation and expansion, allowing companies to enhance their production capacities and market presence.
Segment Analysis
The phosphate fertilizers market is segmented by type into diammonium phosphate (DAP), monoammonium phosphate (MAP), superphosphate, and others, each serving specific agricultural needs. DAP is widely used for its high nutrient content and compatibility with a variety of crops, making it a preferred choice for large-scale farming. MAP, with its balanced nitrogen and phosphorus composition, is particularly effective in soil with lower pH levels, offering flexibility for targeted crop applications. Superphosphate, rich in phosphorus, is commonly used to address soil deficiencies and support root development, ensuring healthy plant growth.
By application, phosphate fertilizers are essential for cultivating grains and oilseeds, fruits and vegetables, and cereals. Grains and oilseeds, which dominate global agricultural production, benefit from the consistent nutrient delivery provided by DAP and MAP, ensuring robust yields. Fruits and vegetables, which require precise nutrient management, often rely on superphosphate to promote flowering, fruiting, and overall plant health. For cereals, balanced fertilization is crucial to meet the high nutrient demands of these staple crops, making phosphate fertilizers a vital component of their cultivation.
The diverse types and applications of phosphate fertilizers highlight their importance in modern agriculture. Farmers increasingly rely on these fertilizers to address nutrient deficiencies, enhance crop productivity, and improve soil fertility. As global food demand continues to rise, the adoption of advanced fertilizer formulations, including phosphate-based options, plays a critical role in meeting the needs of sustainable farming practices and ensuring food security.
Global Phosphorus Fertilizers Segment Analysis
In this report, the Global Phosphorus Fertilizers Market has been segmented by Type, Application and Geography.
Global Phosphorus Fertilizers Market, Segmentation by Type
The Global Phosphorus Fertilizers Market has been segmented by Type into Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), Superphosphate and Others.
DAP represents a significant category within the market, known for its high phosphorus and nitrogen content. Its popularity stems from its versatility, making it a favored choice for various crops and soil types. The segment analysis explores the market dynamics specific to DAP, considering factors such as regional demand, application preferences, and industry trends.
MAP, another crucial type in the phosphorus fertilizers market, is characterized by a balanced ratio of nitrogen and phosphorus. This segment analysis scrutinizes the use of MAP in different crops and regions, highlighting its advantages and market trends. Understanding the unique attributes of MAP helps stakeholders tailor their strategies to meet specific agricultural needs.
Superphosphate, with its different formulations, represents a distinct category within phosphorus fertilizers. This segment analysis delves into the various subtypes of superphosphate, exploring their applications, regional demand patterns, and market dynamics. The examination of superphosphate provides insights into its role in addressing specific soil nutrient requirements.
Global Phosphorus Fertilizers Market, Segmentation by Application
The Global Phosphorus Fertilizers Market has been segmented by Application into Grains & Oilseeds, Fruits & Vegetables and Cereals.
The application segment for Grains & Oilseeds in the Global Phosphorus Fertilizers Market explores the specific needs of crops like wheat, corn, soybeans, and other oilseeds. Tailored phosphorus fertilizer formulations aim to enhance yield, quality, and nutritional value, addressing the unique requirements of these essential commodities.
Focusing on Fruits & Vegetables, the market analysis highlights phosphorus fertilizer applications in crops like tomatoes, apples, and leafy greens. Targeted formulations support healthy root development, flowering, and fruiting, contributing to improved crop quality, size, and overall marketability.
The Cereals application segment examines the use of phosphorus fertilizers in crops such as rice, barley, and oats. Emphasizing factors like grain development, nutrient uptake, and overall plant health, this analysis reveals the role of phosphorus fertilizers in optimizing cereal crop yields and ensuring sustainable agricultural practices.
Global Phosphorus Fertilizers Market, Segmentation by Geography
In this report, the Global Phosphorus Fertilizers Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Phosphorus Fertilizers Market Share (%), by Geographical Region, 2023
The North America region, particularly the U.S. and Mexico, faces challenges related to declining arable land. This trend is expected to drive demand for phosphatic fertilizers as farmers seek solutions to optimize crop yield in the limited available land. Increased awareness and adoption of crop nutrition products among North American farmers contribute to the market's growth, fostering the production of high-quality crops.
The North America phosphatic fertilizers market is further buoyed by the presence of key industry players like Nutrien Ltd., Israel Chemicals Ltd., and Yara International ASA. These companies play a pivotal role in influencing market dynamics and promoting the use of phosphatic fertilizers within the region. Their expertise and market influence contribute positively to the growth trajectory of the phosphatic fertilizer market in North America.
In the Asia-Pacific (APAC) region, countries such as India and China exhibit significant potential for phosphatic fertilizer market growth. With vast expanses of arable land, a high rural population, and favorable climate conditions, these nations are poised to witness increased utilization of phosphatic fertilizers. Additionally, subsidy offerings on crop nutrition products in the APAC region are expected to further drive market demand, with China standing out as a major producer of phosphatic fertilizers.
The Middle East and Africa represent untapped growth potential in the phosphate fertilizers market. Rapid population growth and evolving dietary patterns contribute to increased demand for food products, subsequently driving the need for phosphate fertilizers. The region's agricultural landscape holds promise for the expansion of the phosphatic fertilizer market over the forecast period.
South America is anticipated to experience the fastest growth in the phosphatic fertilizers market. This growth is attributed to the high production of oilseeds, such as soybean and rapeseed, in countries like Brazil. The flourishing agricultural sector in South America makes it a key player in the global phosphatic fertilizer market, signaling opportunities for industry players and stakeholders in the coming years.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Phosphorus Fertilizers Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Essential Nutrient for Plant Growth
- Increased Global Food Demand
- Balanced Plant Nutrition (NPK Fertilizers)
- Government Support and Subsidies
- Awareness of Soil Health and Fertility- The growing awareness of soil health and fertility plays a pivotal role in shaping the dynamics of the Global Phosphorus Fertilizers Market. Farmers and agricultural stakeholders worldwide are increasingly recognizing the importance of maintaining optimal soil conditions for sustainable and productive crop cultivation. This heightened awareness is driving the demand for phosphorus fertilizers, as these nutrients are essential for promoting robust plant growth, improving root development, and enhancing overall crop yield. As concerns about food security and the need for efficient resource utilization intensify, the emphasis on soil health becomes even more critical. Phosphorus is a key component in the development of plant cell structure, energy transfer, and the formation of DNA and RNA. Farmers are acknowledging the role of phosphorus fertilizers in replenishing soil nutrients, addressing deficiencies, and ensuring a nutrient-rich environment for crops. Moreover, the awareness of sustainable agricultural practices is fostering a shift towards precision farming techniques. Farmers are adopting advanced soil testing methods to assess nutrient levels accurately, enabling them to tailor their fertilizer applications to meet specific soil requirements. This targeted approach not only optimizes crop productivity but also minimizes environmental impact by reducing excessive fertilizer use. In the context of the Global Phosphorus Fertilizers Market, the awareness of soil health and fertility is influencing product innovation and market trends. Manufacturers are developing phosphorus fertilizer formulations that cater to the specific needs of different soil types and crops. Additionally, educational initiatives, government programs, and collaborations within the agricultural sector are contributing to the dissemination of knowledge about the role of phosphorus fertilizers in sustaining healthy soils and ensuring global food security.
Restraints:
- Volatility in Phosphorus Prices
- Overuse and Mismanagement
- Regulatory Challenges and Compliance
- Dependency on Agriculture Sector
- Limited Global Phosphorus Reserves - The Global Phosphorus Fertilizers Market faces a significant challenge stemming from limited global phosphorus reserves. Phosphorus, a crucial element in fertilizer production, is predominantly sourced from finite phosphate rock deposits. Concerns about the depletion of these reserves pose a threat to the long-term sustainability of phosphorus fertilizer production and availability. The majority of the world's phosphate rock reserves are concentrated in a few countries, such as China, Morocco, and Western Sahara. This geographic concentration raises concerns about the vulnerability of the phosphorus supply chain, as geopolitical factors and trade restrictions can impact the accessibility of these reserves. As demand for phosphorus fertilizers continues to rise due to global population growth and increasing food requirements, there is a pressing need to address the sustainability of phosphorus resource utilization. Efforts are underway to explore alternative sources of phosphorus, such as recycling and recovery from agricultural and wastewater residues. Recycling initiatives aim to extract and reuse phosphorus from organic waste and sewage, reducing dependence on traditional phosphate rock reserves. However, widespread adoption of these practices requires technological advancements, regulatory support, and increased awareness within the agricultural community. Furthermore, the limited availability of phosphorus reserves has implications for the pricing and economic feasibility of phosphorus fertilizers. As concerns about supply security persist, there is a growing need for sustainable phosphorus management practices, including efficient fertilizer use, soil conservation, and precision agriculture, to mitigate the impact of constrained phosphorus resources on global food production.
Opportunities:
- Precision Agriculture Technologies
- Recycling and Resource Recovery
- Customized Fertilizer Solutions
- Digital Platforms for Market Access
- Bio-Based and Organic Phosphorus Fertilizers - The Global Phosphorus Fertilizers Market is witnessing a growing interest in bio-based and organic phosphorus fertilizers, reflecting a shift towards sustainable and environmentally friendly agricultural practices. Bio-based phosphorus fertilizers are derived from organic sources, offering an alternative to traditional chemical fertilizers. This emerging segment addresses concerns about soil health, environmental impact, and the long-term sustainability of conventional phosphorus sources. Bio-based phosphorus fertilizers often include organic materials such as bone meal, fish meal, and other plant or animal by-products. These formulations not only provide essential phosphorus nutrients but also contribute to soil organic matter, improving soil structure and fertility. The adoption of bio-based phosphorus fertilizers aligns with the increasing demand for organic and eco-friendly farming practices, meeting the preferences of environmentally conscious consumers. Organic phosphorus fertilizers, derived from natural sources, promote sustainable agriculture by minimizing the use of synthetic chemicals. These fertilizers release phosphorus slowly, enhancing nutrient availability to plants over an extended period. This gradual release aligns with the natural growth patterns of crops, reducing the risk of nutrient leaching and minimizing environmental impact. The market for bio-based and organic phosphorus fertilizers is expected to expand as more farmers recognize the benefits of these alternatives. Regulatory support for sustainable agriculture, consumer demand for organic produce, and a heightened awareness of environmental concerns are driving the adoption of these eco-friendly fertilizers. Manufacturers are responding to this trend by developing innovative formulations that cater to the specific requirements of different crops and soil types.
Competitive Landscape Analysis
Key players in Global Phosphorus Fertilizers Market include:
- CF industries Holdings Inc
- Coromandel International Ltd
- Eurochem Group AG
- Guizhou Wengfu Group Co. Ltd
- Israel Chemicals Ltd
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Application
- Market Snapshot, By Region
- Global Phosphorus Fertilizers Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Essential Nutrient for Plant Growth
- Increased Global Food Demand
- Balanced Plant Nutrition (NPK Fertilizers)
- Government Support and Subsidies
- Awareness of Soil Health and Fertility
- Restraints
- Volatility in Phosphorus Prices
- Overuse and Mismanagement
- Regulatory Challenges and Compliance
- Dependency on Agriculture Sector
- Limited Global Phosphorus Reserves
- Opportunities
- Precision Agriculture Technologies
- Recycling and Resource Recovery
- Customized Fertilizer Solutions
- Digital Platforms for Market Access
- Bio-Based and Organic Phosphorus Fertilizers
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Phosphorus Fertilizers Market, By Type, 2021 - 2031 (USD Million)
- Diammonium Phosphate (DAP)
- Monoammonium Phosphate (MAP)
- Superphosphate
- Others
- Global Phosphorus Fertilizers Market, By Application, 2021 - 2031 (USD Million)
- Grains & Oilseeds
- Fruits & Vegetables
- Cereals
- Global Phosphorus Fertilizers Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Phosphorus Fertilizers Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- CF industries Holdings Inc
- Coromandel International Ltd
- Eurochem Group AG
- Guizhou Wengfu Group Co. Ltd
- Israel Chemicals Ltd
- Company Profiles
- Analyst Views
- Future Outlook of the Market