LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global phosphoric acid market to grow at a CAGR of over 2% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global phosphoric acid market for 2017-2021. Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The global phosphoric acid market is expected to maintain its growth trajectory during the forecast period, albeit at a slow pace. The growth of the market can be primarily attributed to the high demand for fertilizers around the world. It is an undeniable fact that the global population is increasing at a faster rate and there is a gradual decline in the total cultivable land available across the globe.
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Technavio analysts highlight the following three factors that are contributing to the growth of the global phosphoric acid market:
- Subsidies for sale of fertilizers in developing economies
- High demand for phosphate fertilizers
- Shortage of cultivable land due to rapid urbanization
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Subsidies for sale of fertilizers in developing economies
In most of the countries in sub-Saharan Africa and Southeast Asia, the market prices of fertilizers are strictly regulated by import duties and subsidies. Agrarian economies, for instance, India and Bangladesh are deficient in potash reserves and phosphate rocks. Therefore, these countries import fertilizers and feedstocks.
Ajay Adhikari, a lead specialty chemicals research analyst at Technavio, says, “Liberalization of the fertilizer production industry and the presence of a large number of free markets can be beneficial for the industry in the long term. However, it might not be beneficial for the under-developed and developing nations as they are vulnerable to high price distortions. The absence of government interventions and price fluctuations in global markets can affect food security.”
High demand for phosphate fertilizers
Phosphorus is one of the vital components required by plants. Arable lands naturally contain these vital components, and the proportion of the content varies. A variety of phosphate fertilizers helps rectify the phosphorous deficiency in the soil. These fertilizers offer essential nutrients required for plant growth.
“Phosphoric acid produced from phosphate rocks is used in the production of phosphate fertilizers. It is combined with ammonia and is granulated to produce fertilizers such as MAP and DAP. After evaporating, it transforms into merchant grade acid. On further evaporation, it becomes super phosphoric acid that is used to make liquid fertilizers,” adds Ajay.
Shortage of cultivable land due to rapid urbanization
The availability of cultivable land is decreasing around the world because of fast-paced urban development. Rising industrialization, population growth, and high demand for energy have led to a gradual decline in arable land. The global production of food should increase by more than 50% of the current production to feed 9 billion people by 2050.
Efficient fertilizers can be used to increase cultivation on the available cultivable land. Fertilizers that are made from phosphoric acid provide essential nutrients to crops. Phosphate fertilizers, such as MAP, DAP, and TSP, are used across the globe to improve agricultural productivity. Thus, the shortage of cultivable land has increased the demand for phosphate fertilizers to increase agricultural production.
Top vendors:
- The Mosaic Company
- OCP
- PhosAgro
- PotashCorp
- Sinofert Holdings
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