Product benefits such as water solubility and excellent nutrient content are expected to majorly push the global ammonium phosphates market outlook through 2028 – Global Market Insights Inc
With the global population depicting a meteoric rise, the need for food production is growing increasingly urgent, leading to a transformation in the agricultural industry. The usage of fertilizers to increase agricultural output is not new, as they help increase food production and overall agricultural productivity. Not only do fertilizers provide the essential nutrients and minerals for the strong and healthy growth of plants, but they help maintain the level of these nutritive components in soils to promote crop yield.
In this regard, one of the most valuable products revolutionizing the fertilizer industry are ammonium phosphates, which are water soluble with a slightly acidic pH. Like many other phosphate salts, ammonium phosphates, which are basically nitrogen-phosphorus products, are a source of great nutrients. Accessed in powdered, dry granular, and liquid formulations, these fertilizer enhancers are deemed valuable for their high analysis & water solubility, low production costs, and excellent physical characteristics.
Ammonium phosphates market is depicting substantial progress over the last few years on account of increasing product deployment to enhance the growth of plants, bacteria, and yeasts. The product also finds uses in dairy, fermentation, and dough improvers, in addition to being deployed in industrial fire safety as a common flame retardant and household fire extinguisher.
Rising number of industry-led and regulatory initiatives to increase ammonium phosphates market share
- OCP Group’s fertilizer distribution in Rwanda to reinforce agriculture in Africa
The prevailing drought seasons, the harsh ramifications caused by the COVID-19 pandemic, and the Ukrainian war made way for roadblocks in the global chain supply, leading to severe shortages of fertilizers worldwide. In light of these factors, in July 2022, Morocco-based phosphate and fertilizer giant, OCP Group donated nearly 15,000 tons of DAP (di-ammonium Phosphate) fertilizers to Rwanda to help increase farm productivity.
To further reaffirm its commitment to assisting small farmers in the country for a robust agricultural ecosystem, OCP Group has pledged to supply an additional 17,000 tons of DAP fertilizers. This initiative is a part of the company’s strategy to empower African farmers while ensuring food security across the region.
- Ma’aden forges ahead with first project for ammonium phosphate portfolio expansion
In line with its sustainability commitment, the well-known Saudi Arabian mining company, Ma’aden, marked a major milestone in its phosphate portfolio. In June 2021, the firm completed the utilities commissioning on a USD 900 million ammonia plant located in Ras Al-Khair industrial City.
The construction of the new ammonia plant will see completion in 4Q21, and its expansion is expected to add around 1 million tons to ammonia production, reaching 3.3 million tons.
- Eurochem’s acquisition of the Serra do Salitre Phosphate Project from Yara in Brazil
To cater to the scaling fertilizer requirement in Brazil, Eurochem, a Swiss-based mineral provider, acquired Serra do Salitre, an advanced-stage and integrated upstream phosphates project from Yara, a Norwegian chemical company, in March 2022. The deal was valued at nearly USD 452 million.
The project is inclusive of a phosphate mine as well as a fertilizer plant that is capable of generating around 1 MMT of fertilizers annually. The fertilizer production is anticipated to launch in 2024 and will reach full capacity in 2025.
Asia Pacific to emerge as a key revenue hub for ammonium phosphates market
Countries such as Bangladesh and India still rely majorly on the agricultural sector for economic prosperity, especially in the post-pandemic era, where improved food security has become more significant. In this regard, ammonium phosphates have gained importance across the APAC, in terms of continuous, stable as well as large-scale production. They have especially been of significance across the Russian territory with the increasing number of imports stemming from the region.
India has been witnessing huge consumption of diammonium phosphate fertilizers after urea, thanks to the increasing regulatory support. To illustrate this further, in October 2021, India signed a long-term MoU (Memorandum of understanding) with Russia for the supply of DAP fertilizers to stabilize their process and limit dependency on countries, like Morocco and Jordan. The significant strides in slurry mono ammonium phosphate technologies, mainly in China have also led to the development of novel fertilizer products, comprising industrial grade & water-soluble phosphates.
Final Thoughts
The ammonium phosphates market is gradually experiencing a shift with the influx of innovative technologies and processes as well as state-of-the-art plant establishments. The use of this compound, however, is not only confined to hydroponics and fertigation – it is used as a consolidating agent for carbonate stone materials in architecture applications as well. Most recently, the demand for ammonium phosphate is also soaring to new heights in the form of a food additive to improve the flavor and texture of food items.
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