Phosphate Rock Market Analysis by Application (Phosphate Rock for Fertilizers, Food & Feed Additives, Industrial Applications) & Region - Global Forecast 2022-2032

Global Phosphate Rock Market Outlook (2022-2032)

The global phosphate rock market size was valued at US$ 21.41 Bn in 2021 and is expected to expand at a CAGR of 2.75% between 2022 and 2032. The market is expected to reach US$ 28.86 Bn worldwide by the end of 2032.

Demand for phosphate rock is expected to rise over the forecast period because fertilizers are expected to increase over the forecast period. In the coming years, the growing global population and the food industry are expected to increase the demand for grains and cereals.

The market is projected to gain a global market size of US$ 22 Bn at the end of 2022. Due to growing populations across the globe, there is expected to be an increase in demand for fertilizers in the years to come.

The largest volume share was accounted for by Asia Pacific, whose population and economic growth have diversified food needs. Over the coming years, the growing demand for food in the region is expected to fuel the use of fertilizers in order to increase crop efficiency. This is expected to boost the demand for phosphate rock.

Demand Analysis of Phosphate Rock, 2015-2021 vs. Market Outlook 2022-2032

According to Fact.MR, a market research and competitive intelligence provider, from 2015 to 2021, the global market for Phosphate Rock expanded at a CAGR rate of 6.5%.

As per Farm Bureau, in response to COVID-19 and the flurry of uncertainty that arose, forecasts for fertilizer demand became more pessimistic, with the demand projected to decline significantly during July 2020’ greatly affecting the phosphate rock market. The global fertilizer demand for the 2019/20 fiscal year declined from 190.5 MMT to 189.9 MMT, while demand for the 2020/21 fiscal year fell from 192.9 MMT to 184.4 MMT, a decrease of 4.5%. The latest forecast sets global fertilizer demand expectations at 189 MMT for the next fiscal year.

As the world population increases, there is an increase in food demand which is increasing demand for phosphate fertilizers. These factors are driving the growth of the global phosphate rock market in the coming years. The rise in per capita income in developing countries is another major driver of market growth for phosphate rock. This will affect dietary habits, such as a shift from a vegetarian diet to one with more meat and dairy products.

This in turn will increase demand for crops, which will lead to increased demand for phosphate fertilizers. In spite of these factors, there will still be challenges hindering the growth of the global phosphate rock market. The reasons include increased awareness about the use of bio-based, eco-friendly fertilizers. From 2022 to 2032, the market is forecast to expand 1.3x.

What are the specific drivers of the Phosphate Rock Market?

Increased food and feed production to boost the market

The Food and Agriculture Organization (FAO) estimates that global food production needs to increase by 69% by 2050 in order to meet global food demands. As a result, the market for fertilizers will likely grow over the next few years due to an increase in demand.

The demand for phosphate fertilizers is expected to increase due to an increase in food consumption and livestock feed production. One of the largest producers of cereals, grains, and oilseeds in the world is the United States. Over the forecast period, this is expected to drive the market.

Growing demand for quality meat will drive the market positively

In 2019, poultry and red meat consumption in the U.S. increased to 224.63 pounds per person, up from 224.10 pounds per person, according to National Agricultural Statistics Service Information.

In the coming years, it is likely that increasing demand for high-quality meat will boost the need for animal feeds that are high in nutrition, which will lead to a growth in the phosphate rock market.

The outbreak of foot and mouth disease as a threat to this market

A number of microbial outbreaks, including foot and mouth disease (FMD), highly pathogenic avian influenza (HPAI), and African Swine Fever (ASF), are threatening the animal feed industry and consequently, the market for phosphate rock too.

These diseases cause large and small outbreaks to affect world demand, resulting in a decline in production and consumption. The outbreak of these diseases will alter the dynamics of the market for phosphate rock.

Country-wise-Analysis

What will be the market outlook in North America?

North America accounted for a steady positive growth in this market

In the North American region, the surge in demand for phosphate rock is primarily due to the growing demand for phosphate-based fertilizers. The FAO reports that phosphate-based fertilizer consumption in the U.S. was 40 Mn tons in 2012, and it increased to 42.5 Mn tons in 2016. Fact.MR expects the region to accumulate 44% of global market revenue.

According to the United States Geological Survey (USGS), in 2020, five firms produced phosphate rock ore at ten mines in four states and processed it into 24 million tons of marketable products for a value of $1.7 billion, free on board (FOB).  Over 75% of the total domestic output was produced in Florida and North Carolina; the rest was produced in Idaho and Utah. 

How will the growth unfold in the APAC region during the forecast period?

44.5% global market share was occupied by the APAC region in 2021

The Asia Pacific region accounted for the largest share of volume of over 44.5% in 2021, primarily due to growing demand in rapidly developing nations with a growing population such as India and China. The same trend will be expected to go on during the forecast period too and is expected to grow with a CAGR rate of 4% during 2022- 2032. With the growing demand for food in the region, fertilizers will likely be utilized to increase crop productivity, which is expected to boost the demand for phosphate rock.

Population growth, government initiatives, prices, and production drive phosphate rock demand in Asia Pacific. The agriculture sector is expanding in APAC and domestic farming is the main source of livelihood for the region's population. Due to these factors, farmers are increasing land productivity through soil inputs, thereby driving the growth of the regional market.

Category-wise Insights

Will Fertilizer Comprise the Bulk of all Phosphate Rock Applications

Increasing Food Demand to Augment the Need for Phosphate based Fertilizers

With a revenue share of over 76.5% in 2021, fertilizers accounted for the largest share. Due to the growing population around the world, it is predicted that the segment will grow in the years to come, as demand for food continues to incline

In accordance with data published by the FAO, the global demand for phosphorus in fertilizers as P2O5 was estimated to be 48 million tons in 2020, an increase from 44 million tons in 2018.

Competitive Landscape

Companies involved in the phosphate rock value chain include mining companies, distributors, manufacturers, and end users. About 70% of the market players have vertically integrated operations and are involved in both mining and fertilizer production. In addition to lowering logistics costs, this scale of operations addresses supply chain challenges such as delivering products on time and reducing transport costs. Moreover, it assists in improving production quality and monitoring it more effectively.

• The Mosaic Company announced in January 2019 that it had signed a Memorandum of Understanding (MoU) with Sinochem Fertilizer Company Limited for the supply of phosphate rock and fertilizers.
• With the help of Indian Potash Ltd (IPL), IFFCO announced the acquisition of 37.0% interest in JPMC, the largest mining and chemical company in Jordan, for nearly Rs 900 crore in May 2018.
• The Centrex Metals Company newly started mining phosphate rock in Ardmore, Northwest Queensland, Australia in August 2021, and is expected to produce 800 kilotons of phosphate rock each year, which can be used to produce 600 kilotons of phosphate fertilizer.

Report Scope

Key Segments Covered in the Phosphate Rock Industry Survey

• By Application

  • Phosphate Rock for Fertilizers
  • Phosphate Rock for Food & Feed Additives
  • Phosphate Rock for Industrial Applications
  • Phosphate Rock for Other Applications