Market Research Report
Global Phosphoric Acid Market - 2021-2028
|Published by||DataM Intelligence||Product code||950570|
|Published||Content info||180 Pages
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|Global Phosphoric Acid Market - 2021-2028|
|Published: June 17, 2021||Content info: 180 Pages||
Phosphoric acid, also known as orthophosphoric acid, is a tribasic, weak, transparent and inorganic category of acid. It is the largest produced and consumed acid in terms of revenue, and the second largest in terms of volume, after sulfuric acid. It is a major component in the production process of phosphatic fertilizers, animal feeds, water treatment solutions, dental cement, albumin derivatives, sugar, textiles and, beverages. Phosphatic fertilizers are the largest application in the global phosphoric acid market, followed by detergents, metal treatment, and water treatment. The demand for phosphoric acid from these end-user industries propels Phosphoric Acid Market growth.
The market influencing factors include the demand for production of phosphate fertilizers, increase in the production of phosphate rocks, such as Mono-Ammonium Phosphate (MAP) and Diammonium Phosphate (DAP), and Retail Price Administration and Subsidies on Sales of Fertilizers.
Increase in the production of phosphate rocks
The global population is rapidly growing. To meet the crop demands many governments of developing countries are taking measures to enhance the production of phosphate rocks which produce phosphoric acid.
For instance, the IPL (Indian Potash Ltd) in 2018, acquired stocks of Jordan' s largest phosphate mining company named JPMC. This step will ensure phosphate reserve security to India, which is the largest imported of phosphate rocks. This deal will reduce the cost of production of phosphate fertilizers in turn decreasing the cost of inputs in agriculture.
Another instance is of a 50-year agreement between a Russian vendor and the Syrian government, in 2018, which allows the former to mine phosphate in the country and is expected to produce 2.2 million tonnes of phosphate every year.
Increase in the demand for phosphoric acid
Phosphoric acid can be divided into three forms based on the application - agricultural grade, industrial grade, and food grade. Agricultural grade and industrial grade accounts for 90% of production. It is used for the production of fertilizers in the agricultural industry. One of the uses of industrial grade phosphoric acid is in water treatment plants where it reduces the risk of corrosion in the pipeline, prevents the deposit of limescale, controls the pH of the water and, control red and black liquors.
Many developing countries in Asia and Africa still focus on conventional farming methods, including synthetic fertilizers instead of bio-based fertilizers. About 91% of the total phosphoric acid supply is consumed in the production of fertilizers. The rising demand for food because of the growing population in these regions has significantly increased fertilizers.
Trade barriers are a major factor in hindering the market growth. The stringent laws applied by various developing nations are a hindering factor in the growth of the market. Protectionism refers to regulating the trade between two geographies through the levy of tariffs on imports and exports
Covid -19 Impact Analysis
One of the major applications of phosphoric acid is in the fertilisers industry. Despite the fact most industries in the world have faced significant impact due to the Covid-19 virus, the fertilisers industry has shown economic immunity. In Nov 2020, IFA (International Fertilisers Association) estimated that the global fertilisers nutrient demand is about 190 million tonnes for 2019-2020. The immunity is due to the growth rate of population and the effectiveness of fertilisers without which it would be very difficult to meet the demand of food output.
The global crisis has, however, caused uncertainty about the future growth of the industry. It is because many regions of the world are facing 2nd and 3rd waves at different times, for instance India faced its 2nd wave during April- May of 2021 whereas Europe had already gone through its 2nd wave during Oct-Nov of 2020. This causes disruptions in the supply network as the fertilisers companies has to follow the regulations of their governments. Despite this, IFA predicts growth in the demand of about 194 million tonnes for 2020-2021 and 196 million tonnes for 2021-2022.
Phosphoric acid can be segmented into three major forms: fertilizers, animal feed, and food additives. The fertilizer segment accounted for around XX% of the total demand in 2021, while the food additives and animal feed segments accounted for XX% and XX%, respectively. The other segment constituted about XX% of the total demand.
The fertilisers segment dominates all the other segments because of its key role in world's agricultural output. According to the World Bank Brief, 2020, in the absence of mineral fertilisers, the farmers will be able to produce only half of the current food output. The fertilisers contain phosphorus which is an essential macronutrient for optimum crop production. One of the most important raw materials used for the production of phosphorous fertilisers is rock phosphate. Morocco, China, USA and Russia have the major deposits of rock phosphate. USA produces one-third of the total rock phosphate output. However, Morocco has the about 50% of the world reserves. With the rise in population the demand for fertilisers is expected to grow and since the fertile lands are limited, increasing the production of fertilisers may be the only option to meet the future demand.
Phosphoric acid, used as a food additive is commonly referred to as additive E338. It is used in the production of dairy products. Its salts are used to change the structure of certain proteins, thus modifying it, and to alter the pH level of a product to improve its quality. Examples of dairy products that contain phosphoric acid are milk, buttermilk, and cottage cheese. Additional uses of food-grade phosphoric acid are in baking powders, cereal bars, flavoured waters, bottled coffee beverages, and processed meats. The food consumption market has not taken a hit due to COVID-19, as much as the fertilizers market; hence it is driving the demand for phosphoric acid even the global economy is going through a slump.
Phosphorus acid's major application is in the fertilizers industry as it serves as an essential macronutrient for optimum crop production. Rock phosphate and sulfuric acid are the raw materials used for the production of commercial phosphatic fertilizers. Morocco is the major exporter of phosphate rock. A rise in demand for food increases the demand for phosphoric acid to manufacture phosphatic fertilizers.
Region-wise, the global Phosphoric Acid market is divided into North America, Asia-Pacific, Europe, South America, and the Middle East and Africa.
The US has many different fertilizer manufacturing companies and is one of the leading agrochemical industries of America. The global population is rapidly growing and there is a decline in the arable lands in the world. To face this issue, there will be a necessity for quick-growing chemicals in future. Therefore, the US and other agrochemical industry leaders will be key players in the fertilizers industry in the forthcoming years.
The population growth in countries like India, China, Indonesia, and Thailand is more than the global average. The region is thus, going to experience increasing demand for crops in the forthcoming years. Hence the demand for phosphoric acid-based fertilizers, food additives, and animal feed will also increase thus driving the phosphoric acid market. China is the largest producer of phosphate rock in the world. It has a substantial share of global phosphoric acid production. About 85% of the phosphate rock produced in the country is consumed for indigenous production of phosphoric acid, which is used to produce phosphatic fertilizers. India is the largest importer of phosphate rock in the world with a share of about 25%.
The key players who dominate and consolidate the global phosphoric acid market are The Mosaic Company, PJSC PhosAgro, Nutrien, IFFCO, EuroChem Group AG, Prayon Group, Israel Chemical Ltd., Yara International, OCP S.A. and, Aditya Birla Group. The market constantly witnesses mergers & acquisitions, joint ventures, and other alliances as the industry is rapidly growing owing to the growth of the agricultural industry. The companies have a diverse range of fertilizer products with integrated upstream capacities and rely upon their captive sources for raw materials. They have manufacturing locations across the world. Most of the phosphate value chain players either ensure proximity to the raw materials - sulfuric acid and phosphate rock - or easy access to the phosphate producing countries like China, the US, North African countries like Tunisia, Morocco, and Jordan.
Innovations and discoveries in the industry are the reason for the growth of the market. For instance, in June 2021 Minbos an Australia-based company submitted a patent for a new phosphate rock fertilizer blend that has the potential to produce 100% organic fertilizers.
Visualize the Global Phosphoric Acid Market segmentation by fertilisers, animal feeds and food additives
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