Increased Popularity for Meat Substitutes to Fuel Growth of Phosphate Fertilizer Market
Food demand is rising globally with no slowing down in sight. Especially in China, and other fast-growing economies, more demand for meat, and dairy means more demand for fertilizers, while human body only needs around 0.4 kg of P each year. 22.5 kg of phosphate rocks are mined to meet the requirement of phosphate for each person’s diet. Soils has an eminent reserve of total P but a negligible amount is available to the plants to support their growth to fulfil the requirement, continuous application of phosphate fertilizers is essential for increasing crop yield. This is likely to fuel the growth of global phosphate fertilizer market.
With the increased health hazards linked with animal intake, vegan goods are becoming more popular as a source of protein. Consumers are increasingly turning to agricultural products According to the report, 54 percent of Gen Zs are now avoiding meat and animal-based products, compared to only 34 percent of baby boomers like soybeans, lentils, and plant-based protein alternatives. According to a new survey, the rise of vegan and vegetarian meals around the world is being fuelled by a global rise in flexitarians. Researchers expect huge food conglomerates, and smaller firms alike to continue to broaden their plant-based products and enter new product categories, with more than two-fifths of global consumers actively lowering their meat intake, many of whom are Gen Zs.
Moreover, a movement in consumer preference toward vegan and organic products has occurred as a result of the major health benefits and fewer health issues associated with a vegan diet, and meat alternatives. Furthermore, the rise in health hazards linked with meat consumption has aided in the adoption of vegan products as a meat substitute. This is predicted to boost demand for agricultural products, including phosphate fertilizers. This us thus projected to underpin the progress of phosphate fertilizer market. The findings of the International Agency for Research on Cancer (IARC) suggest that red meat consumption is carcinogenic to humans. These findings were based on the presence of colorectal cancer. This is projected to promote agricultural output by increasing demand for various agricultural goods and motivating farmers to invest in soil health, and judicious fertilizer adoption. This will offer a strong impetus to phosphate fertilizer market.
Growing Demand for Cereals & Grains to Drive Growth of Phosphate Fertilizer Market
Cereals & grains are expected to be the fastest-growing segment of the phosphate fertilizer market over the forecast period. The increase is linked to rising global demand for key cereals and grains as a result of the world's growing population, which has resulted in a strong need for phosphorous fertilizers in all developed and emerging agrarian nations. The growing global population is boosting demand for crops, particularly grains, which are basic foods in many regions of the world. The widespread use of phosphatic fertilizers to increase cereal crop quality is projected to drive phosphatic fertilizer adoption in this market. Consumer preference for healthy and nutritious foods has risen in recent years, which is predicted to enhance the demand for phosphatic fertilizers in the production of fruits, and vegetables. The increased cultivation of high-value crops is likely to boost phosphate fertilizer market expansion.
The global expansion in cereal and grain trade and commerce, the total percentage of cereals is predicted to climb to 18 percent in 2030, according to the OECD-FAO Agricultural Outlook 2021-2030 report. The rapid growth of the world's population has resulted in a considerable increase in demand for cereals and grains, which is predicted to raise the demand for higher yields and agricultural productivity. The presence of phosphorus in soil aids in the germination of seeds, supports healthy root development, and aids in the absorption of necessary nutrients. This is predicted to boost demand for phosphate fertilizers like DAP and, as a result, the segment's growth.
Increased Agriculture activities to Drive Growth of Asia Pacific Phosphate Fertilizer Market
Asia Pacific is projected to witness high growth in the phosphate fertilizer market in the coming years. This can be linked to rising agricultural output and rising demand for food products such as rice and vegetables from Asia Pacific import-dependent countries. Increased agricultural operations in countries like China, India, South Korea, and Pakistan are driving this region's growth. Due to their rapidly growing populations and great growth potential, emerging countries such as India and China are focusing heavily on improving crop yield and efficiency of agricultural lands in rural areas, resulting in increased demand for phosphate fertilizer. India is currently the world's second-largest fertilizer consumer, trailing only China.
In 2020, the Indian government purchased 10.61 lakh tonnes of fertilizers, which is expected to rise to 19.15 lakh tonnes by 2021. India's government has made significant investments in order to incorporate digitalisation and provide fertilizer subsidies. For example, under the Direct Benefit Transfer (DBT) System, the Indian government gives a 100 percent subsidy on fertilizers, which is granted to fertilizer manufacturers based on actual sales to beneficiaries by retailers. PoS devices are used to offer subsidized fertilizers to beneficiaries at retailer shop sales. Various identifying credentials, like the Aadhaar Card, are used to identify the recipients.
The agricultural industry is the backbone of the Indian economy, employing half of the workforce and contributing roughly 18 percent of the country's GDP. Wheat, rice, lentils, spices, and spice derivatives are the most common crops farmed in India. India is one of the agro-based sectors' fastest-growing markets. As a result, the growth of phosphate fertilizer market is predicted to rise over the forecast period.
Global Phosphate Fertilizer Market: Competitive Landscape
In February 2022, The Serra do Salitre phosphate project in Brazil has been acquired by EuroChem Group AG, a significant worldwide fertilizer producer. It has taken over a mine and facility in Minas Gerais that is in advanced stages of development. The project includes phosphoric and sulfuric acid facilities, as well as a urea and potassium chloride storage facility. The processing plant and mine are both operational, with a phosphate rock production of roughly 500 KMT. The deal is intended to help the corporation gain access to markets in South America. On the other hand, in April 2021, PhosAgro announced an expansion of its phosphate fertilizer production plant in Volkhov, Russia, which, if completed, will be able to manufacture more than 900,000 tonnes of MAP each year.
A few of the players in the phosphate fertilizer market include Israel Chemicals Ltd., Eurochem Group AG, Agrium Inc., Potash Corp. of Saskatchewan Inc., Coromandel International Ltd., Yara International ASA, CF Industries Holdings Inc., The Mosaic Co., S.A. OCP, PJSC PhosAgro).
Global Phosphate Fertilizer Market is Segmented as Below:
Key Elements Included In The Study: Global Phosphate Fertilizer Market
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