Phosphate Rock Market

Phosphate Rock Market Outlook (2024 to 2034)

The global phosphate rock market size is poised to reach a size of US$ 26.29 billion in 2024. Phosphate rock sales are projected to ascend at a CAGR of 3.3% and reach US$ 36.37 billion by 2034.

Demand for phosphate rock is growing due to its high concentration of phosphate minerals. These naturally occurring rocks come in various forms including calcium phosphate, apatite, fluorapatite, and chlorapatite, and have varying features and qualities. This prompts end users to invest in their mining, thus contributing to the expansion of the phosphate rock market size.

In the agriculture industry, farmers are always on the lookout for pieces of land that are fertilized enough to cultivate their crops. However, it is entirely possible to not find one. Thus, such farmers instead look for effective and efficient fertilizers in the market to have a good harvest and maximize their profits. After years of analysis, phosphate rock has been proven to be beneficial for farmers as a fertilizer.

Dried-up phosphate is used in the manufacturing of fertilizers. This is done by reacting the phosphate rock with sulfuric acid to produce phosphoric acid. The resultant phosphoric acid is then reacted with ammonia to produce the ammoniated phosphate. The resulting acid possesses quick dissolution capability, leaving no residue of ammonia. This quality enables it to dissolve in the land rapidly, making the soil fertile for farmers to grow their crops.

There are abundant phosphate reserves across many countries worldwide. North America stands out as one of the leading producers of phosphate rock, attracting key players in the phosphate market to the region. This has established North America as a major player in the phosphate market, with various industries capitalizing on these reserves for lucrative gains.

• The North American market is projected to expand at a CAGR of 3.5% through 2034.

Manufacturers are also striving to expand their reach into other lucrative markets, aiming to maximize profits from every region. Key players are also exploring ways to enhance their production processes to reduce costs and supply rapidly to end users ahead of competitors. This contributes to phosphate rock market growth.

Report Attributes	Details
Phosphate Rock Market Size (2024E)	US$ 26.29 Billion
Forecasted Market Value (2034F)	US$ 36.37 Billion
Global Market Growth Rate (2024 to 2034)	3.3% CAGR
Canada Market Growth Rate (2024 to 2034)	3.8% CAGR
China Market Value (2034F)	US$ 8 Billion
North America Market Share (2024E)	28.6%
East Asia Market Share (2034F)	38.4%
Key Companies Profiled	The Mosaic Company Misr Phosphate Hubei Xingfa Chemicals Phos Agro Potash Corp. Grange Resources Agrium Inc. Anglo American Shaw River Manganese Ltd. Sterling Group Ventures Inc.

Why are Phosphate Rock Sales Gaining Momentum Worldwide?

“Extensive Use of Phosphate Rock in Water Treatment”

Public water systems use phosphates to prevent the release of metals in drinking water. Orthophosphate is the most common choice for lead and copper control. Polyphosphates effectively sequester iron and manganese to prevent water discoloration.

Phosphate rock also promotes the growth of plankton and aquatic plants, which act as food sources for fish. This significantly benefits the aquarium industry, leading to an increase in the fish population and enhanced water quality.

Application of phosphates in water treatment is one of the key phosphate rock market trends, particularly in regions with limited access to potable water. Governments have consistently prioritized awareness campaigns about clean water, and technological advancements benefitted industry players by offering increased revenue streams.

“Cost-effectiveness Associated with Use of Phosphorus in Steel Manufacturing”

Phosphorus is one of the most effective solid solution strengtheners of ferrite. Phosphorus significantly enhances the strength of low-carbon sheet steel at a low cost. While phosphorus strengthens steel, it also leads to a reduction in ductility and formability.

When developing high-strength formable steels, a careful balance between strength and formability must be maintained. The objective of the phosphate procedure is to chemically alter a part's surface to impart resistance to corrosion. This treatment involves a chemical reaction that generates a new material on the metal surface.

Corrosion-resistant properties of phosphorus have made it highly sought-after in the stainless steel industry, where suppliers strive to enhance the rust resistance of their products. Manufacturers in the market have formed partnerships with other industry players to ensure continuous supply of the product to establish their presence in the market.

Country-wise Evaluation

Phosphate reserves are found worldwide. Phosphate suppliers analyze the geographical characteristics of each region to establish their enterprises in lucrative markets to maximize profits. According to Fact.MR, the South Korea market is projected to expand at a CAGR of 5.5% from 2024 to 2034.

Why are Suppliers of Phosphate Rock Investing in the United States?

“Increasing Need for Phosphorous-based Fertilizers”

Attribute	United States
Market Value (2024E)	US$ 5.39 Billion
Growth Rate (2024 to 2034)	3.7% CAGR
Projected Value (2034F)	US$ 7.78 Billion

Primary driver behind the increase in demand for phosphate rock in the North American region is the rising need for fertilizers containing phosphate.

• According to the United States Geological Survey (USGS), in 2020, five companies processed 24 million tons of marketable goods, valued at US$ 1.7 billion, free on board (FOB), derived from phosphate rock ore sourced from 10 mines across four states. Florida and North Carolina accounted for over 75% of the nation's total output, with the remaining 25% attributed to production in Idaho and Utah.

This significant production has caught the attention of phosphate suppliers, who are actively looking for new investment opportunities within the country.

What is the Demand Outlook for Phosphate Rock in China?

“Market Benefitting from Increased Crop Cultivation to Meet Growing Food Demand”

Attribute	China
Market Value (2024E)	US$ 5.46 Billion
Growth Rate (2024 to 2034)	3.9% CAGR
Projected Value (2034F)	US$ 8 Billion

China, with the world's second-largest population, generates significant demand for food to meet the needs of its vast populace. This is addressed through agricultural activities, with farmers increasingly cultivating crops to meet the growing food requirements. As a result, there is a rising need for fertile land, which in turn drives demand for phosphorus. Phosphorus plays a crucial role in enhancing soil fertility, thereby contributing to the overall food supply in the country. Phosphorus serves as a crucial feed supplement for livestock reared on farms.

Category-wise Insights

Phosphate rock is majorly used in the production of fertilizers and animal feed, as well as in the metallurgy, food & beverages, and consumer goods industries. According to Fact.MR, the fertilizer segment is forecasted to expand at a CAGR of 3.2% from 2024 to 2034.

How is the Animal Feed Industry Contributing to Market Growth?

“Rising Demand for Phosphorus in Animal Nutrition to Optimize Productivity on Farms”

Attribute	Animal Feed
Segment Value (2024E)	US$ 8.28 Billion
Growth Rate (2024 to 2034)	3.7% CAGR
Projected Value (2034F)	US$ 11.93 Billion

Phosphorus offers a range of health benefits, such as maintaining bone health, facilitating muscle function, and aiding in energy production. Because of these attributes, it is widely utilized as a feed supplement for animals by farmers. This enables farm animals to work longer in the field, thus enhancing agricultural activities. The animal feed segment thus occupies a significant phosphate rock market share.

Market Rivalry

The phosphate rock value chain encompasses enterprises involved in mining, distribution, manufacturing, and end-user applications. Key players in the phosphate rock market often operate vertically integrated businesses, which both produce fertilizers and mine minerals. This approach addresses supply chain challenges by ensuring timely product delivery, reducing transportation costs, and streamlining logistics expenditures.

Vertical integration helps enhance manufacturing quality and enables efficient monitoring. Companies are also exploring the applications of phosphate alternatives like sodium sulfate and dicalcium phosphate to diversify their offerings and expand their market presence.

• August 2021 saw the commencement of phosphate rock mining by the Centrex Metals Company in Ardmore, Northwest Queensland, Australia. Production of 800 kilotons of phosphate rock per year is anticipated, of which 600 kilotons may be converted into phosphate fertilizer.

Key Segments of Phosphate Rock Market Research

• By Source :

  • Marine Phosphate Deposits
  • Igneous Phosphate Deposits
  • Metamorphic Deposits
  • Biogenic Deposits
  • Weathered Deposits

• By Application :

  • Fertilizer Industry
  • Animal Feed
  • Metallurgy

• By Grade :

  • Fertilizer
  • Feed
  • Industrial

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa