Diammonium hydrogen phosphate (DAP) is a type of water-soluble chemical salt that releases ammonia and phosphoric acid and thus acts as a source of nitrogen and phosphates. This ammonia and phosphate released on reaction with water can temporarily increase the pH and make the solution alkaline. Due to this property and the release of nitrogen and phosphates, DAP finds utility in the fertilizers industry. These released chemicals are also the additives that provide necessary nutrients to yeast for its sustained fermentation. Therefore, DAP is also an important additive in the wine making and brewing industry. However, a majority of the demand arises from the fertilizer sector.
DAP as a chemical salt is used in many industries and the market for DAP can be segmented according to its applications into fertilizers, wine making or brewing, fire retardant, metal industry (as flux), and in the food industry (yeast nutrient). However, the most important one of all these applications is in the fertilizers industry which forms the major chunk of the phosphate fertilizers market.
DAP fertilizer is mostly used for cotton, paddy, peanut, broomcorn, and vegetable crops; hence, the demand is dependent on the production of these crops. The next major application is seen in the wine industry and yeast industry. DAP is required in small amounts along with yeast, however, the volume of wine production globally and its increasing demand make the application significant. Africa is the largest producer of wine; however, France is the biggest consumer and the top 10 countries account for 85% of the production.
According to geography, the DAP fertilizer industry can be segmented into East Asia, North America, Latin America, South Asia, Europe and Central Asia, Africa, and the Rest of the World. DAP fertilizer production is highest in the East Asian region due to high growth of agricultural and allied sectors in China. It is followed by North America, South Asia, and Africa. Exports are also in line with the production. However, demand is high in the South Asian region and hence they are the major importers. The global market for DAP fertilizers is driven by high consumption in developing countries of South Asia and Latin America, such as, India, Sri Lanka, Brazil, and Mexico due to greater food requirements.
The consumption is declining in North America and other developed regions due to the development of ecologically better substitutes and agricultural practices. However, leading importer countries are seeking to cut down their import and increase local capacities. Nevertheless, South Asia and Latin America represent potentially the most attractive markets driven by a high development rate in China, India, Vietnam, Sri Lanka, and Brazil. Similarly, the wine market will also see growth during the period driven by increasing consumption owing to rising purchasing power of middle class and health benefit considerations. However, specific government regulations on alcoholic manufacture or trade may potentially pose a challenge to the growth in the region.
Some of the major players in this industry are: Bunge Ltd., Saudi Basic industries, corporation, China Blue Chemicals Ltd., CJSC PhosAgro AG, and Chuanxi Xingda Chemical Co. Ltd. while the wine making market leaders include E&J Gallo winery, Concha y Toro, Casella Wines, and Constellation Wines among others.
This research report analyzes this market depending on its market segments, major geographies, and current market trends. Geographies analyzed under this research report include
- North America
- Asia Pacific
- Rest of the World
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