Phosphate Rock Market is forecast to reach $29.7 billion by 2025, after growing at a CAGR of 6.8% during 2020-2025. In the future, the global phosphate rock market is projected to rise dramatically, largely due to the rising world population and related food production, which is increasing the demand for phosphate fertilizers. For optimum crop production, phosphate fertilizers are required. It is projected that the global population will reach 9.6 billion by 2050, placing pressure on farmers to grow more to feed this huge population. Another big factor of the phosphate rock demand growth is the increase in per capita income in developed countries that will influence dietary preferences, i.e. the change from a predominantly vegetarian diet to a higher amount of meat and Dairy products diet. In exchange, this would increase crop demand. Food demand needs to rise by 70 percent by 2050 in order to feed such a vast number of people, according to the Food and Agriculture Organization’s projections. This required crop production growth will require additional land for cultivation along with agricultural intensification, both of which will lead to increased demand for phosphate fertilizers.
Phosphate Rock Market Segment Analysis – By Application
Fertilizers sector has dominated the market for Phosphate Rock Market in 2019, by growing at a CAGR of 6.6%. The increasing use of fertilizers in agriculture to provide the soil with adequate nutrients is projected to fuel demand growth in the coming years. In fertilizers, phosphate rock is used as a raw material. It is the only source of phosphorous used in the manufacture of fertilizers for phosphorus, phosphorous and potassium (NPK). To boost safe plant growth, NPK nutrients are mixed and used as a fertilizer. Development is driven by the growing use of fertilizers in the cultivation of crops to satisfy the increasing demand for food. In addition, to boost consumer growth, growing demand for the commodity as an antioxidant and preservative to increase the flavor and shelf life of packaged food is expected.
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Phosphate Rock Market Segment Analysis – Geography
APAC dominated the Phosphate Rock Market share with more than 42.3%, followed by Europe and North America. In emerging and heavily populated countries such as China and India, the rise is supported by diversified food needs. Increasing demand for food in the area is projected to boost fertilizer use to improve crop production quality. China and India accounted for 18.8 percent and 9.2 percent of world crop production, respectively, in 2018, according to the Organization for Economic Co-operation and Development. Efforts have been made by farmers in the area to improve yield and soil quality by experimenting with the use of many soil nutrients, which in turn, have had a favorable effect on market development.
Phosphate Rock Market Drivers
High demand in the Fertilizer and Animal Feed Industry
For the development of fertilizers used in the agricultural sector to improve plant protection, phosphoric acid is necessary. In a large scale, phosphate is also used in animal feeds. Both of these markets are likely to offer high growth prospects for the phosphate rock industry to expand. After 2012, the fertilizer industry has shown expanded usage of phosphorous, dominating the global market by application of market percent. It is projected that this pattern will expand and continue until the end of the forecast period. Phosphorus is used primarily as monocalcium phosphate (MCP) and calcium phosphate (MCP) in feed (DCP). In animals, it increases bone resilience, metabolism, and stimulates fertility. In the coming years, the rising demand for dairy goods and meat is projected to fuel the growth of the industry.
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Phosphate Rock Market Challenges
Availability of substitutes
In terms of rising commodity demand, market growth is likely to be slowed due to the availability of alternatives. For instance, due to its low cost, phytase is favored over feed phosphate in the animal feed industry. The product has related characteristics, such as enhancing the resilience of the bone, metabolism and energy enhancement. Phytase also encourages high feed consumption, thereby aiding in livestock physical growth. Over the next few years, the effects of phytase are predicted to adversely affect the development of the phosphate rock industry.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Phosphate Rock Market. In 2019, the market of phosphate rock has been consolidated by the top five players accounting for xx% of the share. Major players in the Phosphate Rock Market are Potash Corp, MBAC Fertilizer Corp, Grange Resources, Phosphate Resources Limited, The Mosaic Company, WENGFU Group, Vale, AgriumInc, Anglo American, Shaw River Manganese Ltd, and Sterling Group Ventures Inc., and among others.
Due to customer desire for instant and on-the-go food items, the availability of numerous fast-food chains and retail outlets is expected to fuel the market for refined & packaged food products. In exchange, this is expected to accelerate the growth of the industry over the coming years. In addition, in the manufacturing of detergents, pesticides, metal coatings, toothpaste, matches, and water softeners, phosphate-based chemicals are used.
Rapid urbanization and the establishment of various fast-serve restaurants are driving the market for processed food & beverages. Around 68 percent of the global population is anticipated to remain in urban areas by 2050, according to the United Nations Department of Economic and Social Affairs. In the coming years, this is expected to drive the demand for processed food, thereby propelling the development of the phosphate rock industry.
However, the end use industries are being significantly affected due to the COVID-19 pandemic, as most of the countries have issued “stay at home guidance” i.e., lockdown. This factor is limiting the market growth in current situation.
Related Reports :
A. Phosphate Market
B. Fertilizer Additives Market
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