In 2018, the global phosphatic fertilizers market was valued at USD 62.24 billion. It is projected to grow at a compound annual growth rate (CAGR) of 3.80% and reach USD 83.28 billion by 2026. North America held a 12.11% market share in 2018, making it the leading region. By 2032, the U.S. alone is expected to generate approximately USD 8.47 billion, driven by the rising need for phosphorus-enriched nutrients, higher food production, and the adoption of modern agricultural technologies to boost crop yields.
Phosphorus plays a critical role in plant growth, aiding in root development, improving drought tolerance, and supporting seed and fruit production. To manage phosphorus-deficient soils, fertilizers such as diammonium phosphate (DAP) and monoammonium phosphate (MAP) are extensively used due to their high ammonia content. The growing use of green ammonia as a sustainable raw material is expected to further stimulate the market. For example, in August 2018, OCP Group announced new investments in green ammonia production, reinforcing its commitment to eco-friendly fertilizer solutions. As one of the largest global exporters of phosphate fertilizers, OCP relies heavily on ammonia for DAP and MAP manufacturing and is shifting toward cleaner alternatives.
Information Source: https://www.fortunebusinessinsights.com/phosphatic-fertilizers-market-102583
Key Market Drivers
The market outlook remains favorable due to increasing demand for sustainable fertilizers, the expansion of agricultural industries, and continuous product innovation. Eco-friendly options, such as bio-based and slow-release fertilizers, are helping to minimize environmental damage while improving nutrient absorption. Growing agricultural investments in Asia-Pacific and Latin America, especially in high-value crops, are also boosting fertilizer usage. In addition, the introduction of innovative technologies like nano-fertilizers and controlled-release products is enhancing efficiency and driving growth.
Innovation as a Growth Factor
Technological advancements are playing a vital role in shaping the market. For instance, in September 2016, ICL introduced its “E-Max Release Technology,” a controlled-release system that delivers nutrients such as phosphate and nitrogen more effectively. Such innovations are strengthening competitive positions and advancing industry development.
Market Challenges
Despite positive growth trends, the sector faces key obstacles. Rising costs of phosphate rock, particularly in countries like Morocco, China, and the U.S., pose a significant challenge. Environmental concerns related to fertilizer overuse—such as runoff and water pollution—have prompted stricter regulations, particularly in Europe. Additionally, fluctuating supply chains, volatile pricing, and regulatory pressures are likely to affect market stability and investor confidence.
Regional Insights: North America Leads, Asia-Pacific Gains Momentum
The market is segmented across North America, Asia-Pacific, Latin America, and the Middle East & Africa. North America generated USD 7.54 billion in 2018 and has maintained a steady growth trajectory. Meanwhile, Asia-Pacific is expected to experience the fastest growth, fueled by large-scale farming practices and the widespread adoption of advanced agricultural techniques.
Key Market Participants
Major companies operating in the phosphatic fertilizers market include:
- Yara International ASA
- Israel Chemical Ltd.
- The Mosaic Company
- CF Industries Holdings, Inc.
- Coromandel International Limited
- The OCP Group
- PhosAgro PJSC
- Sociedad Química y Minera de Chile S.A.
- Nutrien Ltd.
- Koch Industries, Inc.
Recent Updates
- February 2019: ICL launched two phosphatic fertilizers, Renovator and Turf Starter, developed with Pearl Technology to enhance nutrient delivery and overall performance.
