A recent research analysis by Transparency Market Research (TMR) projects a moderate expansion for the global phosphoric acid market during the forecast period, 2017 to 2022. Revenues from global sales of phosphoric acid are estimated to exceed US$ 30,000 Mn by 2022-end.
Rising Number of Joint Ventures and Increasing Foreign Investments to Augment Market Growth
The latest trends gaining momentum in the global phosphoric acid market are rising number of joint ventures and increasing foreign investments. Leading players enter joint ventures and attract foreign investments to remain competitive in the market. These joint ventures assist vendors in procuring raw materials. Several economies are concentrating on scaling up their investment in phosphate-based fertilizer production plants and phosphate mining. Governments of various nations are collaborating with vendors across various regions for setting up plants for production of fertilizers, or for acquiring supplies of phosphate rocks for phosphoric acid production, as phosphoric acid is an intermediate product between phosphate fertilizers and phosphate rocks.
Emergence of Organic Phosphate Fertilizers – A Key Trend in Global Phosphoric Acid Market
Another key trend gaining huge traction in the global phosphoric acid market is emergence of organic phosphate fertilizers. These organic phosphate fertilizers prevent production of by-products, as they exclude the use of chemicals during their manufacturing process. Acting as soil conditioners, organic phosphate fertilizers help in maintaining the soil health and the quality of soil through retention of the soil’s organic content without deteriorating it.
Demand for phosphoric acid might however be restrained owing to rising availability of the genetically modified (GM) seeds. These super variant seeds do not require fertilizers and pesticides, are pest resistant, and produce high yield. The arable lands using GM seeds are witnessing a significant rise across the globe.
Fertilizers to Remain Largest Application of Phosphoric Acid
Phosphoric acid is tremendously utilized for production of fertilizers, with increasing demand in crops for essential nutrients such as potassium, phosphorous and nitrogen. In addition, demand for phosphoric acid is likely to witness a rise owing to increasing demand for feedstock, which in turn require fertilizers for cultivation. Fertilizers are expected to remain the largest application of phosphoric acid, with revenues estimated to account for nearly nine-tenth share of the market in 2017. Non-fertilizers application of phosphoric acid will continue to witness a sluggish expansion through 2022.
On the basis of end use, industrial uses and food additives are anticipated to account for approximately similar revenue share of the global phosphoric acid market in 2017. However these two end uses of phosphoric acid will account for smallest revenue shares of the market during 2017 to 2022. In contrast, DAP and MAP end uses of phosphoric acid are projected to account for largest revenue shares of the market throughout the forecast period, with DAP being relatively more lucrative than MAP. In addition, sales of phosphoric acid for end use in MAP will record the fastest expansion through 2022.
APEJ to Retain its Dominance in Global Phosphoric Acid Market
With production hubs such as China and India consistently extending the requirements, Asia-Pacific excluding Japan (APEJ) is expected to retain its dominance in the global phosphoric acid market. Phosphoric acid is used extensively in animal feed production, and in food additives that are likely to witness an upsurge in demand in India and China on the back of changing food consumption pattern and increasing purchasing power of consumers.
In terms of revenues, Middle East and Africa (MEA) will remain second most lucrative market for phosphoric acid, although expanding at a sluggish CAGR through 2022. North America will also remain a lucrative region for growth of the phosphoric acid market over the forecast period.
Key players profiled by TMR’s report on the global phosphoric acid market include The Mosaic Co., OCP S.A., Yunnan Yuntianhua Co., Ltd., PhosAgro PJSC, Potash Corp. of Saskatchewan, Inc., Wengfu Group Co., Ltd., Ma’aden Phosphate Company, Eurochem Group AG, Agrium, Inc., and J.R. Simplot Co.