Global Phosphates Market to Reach 73.9 Million Metric Tons by 2017, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on the Phosphates markets. The global market for Phosphates is forecast to reach 73.9 million metric tons by the year 2017. Major factors driving growth in the phosphates market include significant recovery in demand post-recession, especially from the developing countries that have less stringent regulations on the use of phosphates. Growth factors within these markets include burgeoning population, change in income and diets as well as limited arable land. Demand for greater crop production will lead to a spurt in the popularity of biofuels and phosphate fertilizers.

Phosphates: A Global Strategic Business Report

Follow us on LinkedIn – Growth in the global phosphates market is expected to stem largely from the developing countries of Asia-Pacific, Latin America, and the Middle East. Fertilizers makes up a major chunk of the global phosphate production. Feed phosphates and food and industrial usage account for the remaining share of the market. High usage of phosphates in fertilizers for agricultural purposes, and in detergents in these developing countries, is transforming these regions into the fast growing markets for phosphates. In the developed regions, use of phosphates in detergents has fallen drastically, over the years, due to environmental concerns such as eutrophication. Detergent builder market has been severely affected by the excess capacity and raw materials costs over the recent years. Phosphates form a vital component in detergent production, but due to the environmental concerns phosphate usage in laundry detergents is banned in several developed regions, including the US, and many European countries. Ban on phosphates compelled detergent manufacturers to opt for expensive substitutes, such as zeolites, and consequently many market players have either consolidated their businesses or moved out of the market.

Global market for phosphorous fertilizers is driven by high consumption levels in developing and large populous countries, such as India, China, Brazil, Indonesia, Mexico and Argentina due to greater food requirements. However, the consumption of phosphorous fertilizers is decreasing in developed nations, including the US, Europe, and Japan, due to increasing shift towards more ecologically friendly agricultural production practices and economic slowdown in some CIS countries. Fertilizers account for the highest share in the production as well as consumption of phosphates worldwide. Product wise, detergents represent the second largest end-use market for phosphates worldwide. However, phosphate consumption in detergents market is under severe pressure, largely attributed to the significant environmental risks it poses to the waterways. Consequently, these products began to face the wrath of regulations in the developed regional markets, such as North America and Europe. However, many developing regions such as Asia-Pacific, Latin America and other developing nations use phosphate-based detergents.

The high nutrient content and outstanding handling qualities make Diammonium Phosphate (DAP) the world’s most popular phosphate fertilizer. Major DAP importers include India, Vietnam, China and Pakistan. However, the leading DAP importers are increasingly cutting down on imports and concentrating on building local processing plants. As a result, the US is experiencing lower export sales, and thereby is leading to the closure of production facilities. Additionally, significant hike in production capacity in developing nations has outstripped demand and caused extreme price volatility in the DAP market.

Phosphorous, one of the key components used in fertilizers and a vital nutrient for both plants and animals, is crucial to the global food supply chain. The ever-increasing population, improvements in eating habits and rising demand for biofuels and food alike, are fueling the need for greater crop production. Consequently, the need for phosphorous fertilizers is also increasing. However, the global reserves for this mineral are fasting running out and the wide spread impact in the future could be severe. Although reserves of phosphate rock are found in many countries, recoverable resources are located only in China, US and Morocco. Judging by the current rates of extraction, reserves of phosphate rock in the US will deplete in the next 30 years, while global reserves will last only for a maximum period of 100 years. Phosphate extraction is projected to peak around the year 2030, at which time supply would be exceeded by demand. The fertilizer industry has of late become highly vulnerable owing to its direct supply link to biofuels. Initiatives for preventing complete exhaustion of phosphorous are the need of the hour.

Asia-Pacific represents the largest regional market for phosphates worldwide, as stated by the new market research report on Phosphates. Phosphate market in the region is being driven by markets such as China, India, Australia, Vietnam and Sri Lanka. Latin America represents the second largest regional market worldwide, followed by Europe and the US in second and third spots. Growth in the global phosphate market is expected to be spearheaded by the Asia-Pacific market, which is poised to display the highest CAGR of 4.9% during the analysis period. Segment wise, fertilizers represents the largest end-segment for phosphates. The segment is also projected to sail ahead at the fastest CAGR through 2017.

Key market participants in the report include Agrium Inc., CF Industries Inc., CJSC PhosAgro AG, EuroChem Mineral and Chemical Company, ICL Group Ltd, Innophos Inc, JSC Acron, Office Cherifien des Phosphates, PotashCorp, Prayon Group, Phosagro Group, Rhodia Novecare, Sichuan Chuanxi Xingda Chemical Co. Ltd, and The Mosaic Company.

The research report titled “Phosphates: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides comprehensive market overview, trends & issues, end-use market analysis, technological developments, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for the years 2009 through 2017, for major geographic markets, such as US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Market analytics are provided in terms of thousand metric tons for end-use segments including Fertilizers, Animal Nutrition and Others (detergents, food & beverages and flame retardants). The study also provides historic data for an insight into market evolution over the period 2003 through 2008.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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