Global Ammonium Phosphate Market Size, Share, Development, Growth and Demand Forecast to 2022 - Industry Insights by Type (Monoammonium Phosphate, Diammonium Phosphate, Ammonium Polyphosphate) and by Application (Fertilizer, Flame Retardant, Water Treatment Chemicals, Food and Beverages and Others)

Market Overview

Ammonium phosphate is the salt of phosphoric acid and ammonium. Upon reaction between phosphoric acid and ammonium, ortho (solid) form and polyphosphate (fluid) form are produced. The solid form is the dominant type. Ammonium phosphate is a highly unstable compound and is manufactured in long chain molecules to increase the stability. Ammonium phosphate is used as an additive in animal feed and finds application in several industries such as fertilizer, water treatment chemicals, food and beverages and flame retardant.

 

GLOBAL AMMONIUM PHOSPHATE MARKET BY REGION KILOTONS 2012-2022

The global ammonium phosphate market is categorized into monoammonium phosphate (MAP), diammonium phosphate (DAP) and ammonium polyphosphate. MAP is used for the manufacturing of phosphorous and nitrogen. Equal ratio of ammonia and phosphoric acid is made to react with each other to produce MAP. It is widely used in agricultural sector. It is water soluble and dissolves rapidly in soil if adequate moisture is present.

DAP is used as phosphate fertilizer. It is manufactured by reacting phosphoric acid and ammonia. In alkaline soil conditions, one of the ammonia molecules in DAP will revert to ammonia, making it an excellent fit for low pH or alkaline soil. Besides its applications in the agricultural sector, DAP is used to impregnate matches as a flame-retardant.

Ammonium polyphosphate is an inorganic salt of polyphosphoric acid and ammonia, containing both chains and possibly branching. Ammonium polyphosphate is used as a food additive emulsifier and as a fertilizer. Additionally, ammonium polyphosphate is used as a flame retardant in many applications such as paints and coatings and various polymers, where ammonium polyphosphate is a part of intumescent systems.

Market Dynamics

The global ammonium phosphate market is expected to grow significantly during the forecast period (2016-2022) owing to the growing agricultural industry in emerging economies and increasing demand for water treatment. Based on type, the MAP segment held the largest share in the global ammonium phosphate market in 2015 and is expected to witness highest growth during the forecast period. Based on application, the fertilizer segment held the largest share in the global market for ammonium phosphate in 2015 and is expected to grow significantly, in terms of value during the forecast period.

Trends

The key trend observed in the global ammonium phosphate market is the major investment shift towards Asia-Pacific region which is expected to propel the growth of the global market during the forecast period. The significant industrialization, especially in the industries such as agriculture and food and beverages, is boosting the demand for ammonium phosphate in the Asia-Pacific region. Additionally, constant investment in these industrial sectors is expected to fuel the demand for ammonium phosphate in the Asia-Pacific region.

Growth Drivers

Ammonium phosphate is used as a source for nitrogen and phosphorus for proper growth of the crops. Ammonium phosphate helps deliver nitrogen and phosphorus nutrient to the soil in an absorbable form for the plant roots. The increasing investment by significant farming driven economies such as India and Brazil is expected to bring about a considerable demand for ammonium phosphate during the forecast period. Moreover, increasing promotion of foreign direct investment (FDI) in the agricultural industry is expected to result in advocating the use of new technologies by enhancing knowledge of farmers regarding better utilization of fertilizers. These factors are expected to boost the demand of global ammonium phosphate market during the forecast period.

Owing to the increase in population, the demand for water treatment is expected to increase significantly. The government has set up standards and regulations for maintaining water quality and water treatment for municipalities thus, propelling the growth of the market for ammonium phosphate.

The ammonium phosphate market is expected to grow significantly in the Asia-Pacific region owing to the increasing demand for fertilizers and increasing investment in agricultural industry in India and China. The high production growth of animal feed products in Asian countries such as India, China and South Korea is expected to provide significant opportunities for the growth of ammonium phosphate in the region. Additionally, the increasing concern of governments in developing countries to provide safe drinking water to their citizens is expected to drive the growth of the water treatment chemicals market, which in turn is expected to propel the growth of the ammonium phosphate market.

Increasing demand for organic products is expected to hamper the growth of the global ammonium phosphate market during the forecast period. The consumers around the globe are becoming highly health conscious, which is resulting in change in their preferences and tastes thereby, propelling the growth of the global market for ammonium phosphate. An increasing number of consumers are moving towards organic food consumption in place of conventional food to avoid health effects due to chemical preservatives thereby, increasing the demand for ammonium phosphate across the globe.

Restraints

The growing demand for organic products is expected to negatively impact the global market growth for ammonium phosphate. The organic food sales have grown worldwide and the growth of the organic industry share is expected to increase in major countries such as the U.S. during the forecast period. Increasing awareness of the consumers towards the toxicity of inorganic chemicals has led to the demand for organic products. With organic products becoming more accessible, the organic food market is expected to experience significant growth during the forecast period, which would hinder the growth of the global market of ammonium phosphate.

Competitive Landscape

Some of the major competitors operating in the global market for ammonium phosphate include Lanxess AG, Jordan Phosphate Mines Co. Plc, EuroChem Group AG, Solvay S.A., Saudi Arabian Mining Company (Ma’aden), Prayon SA, Italmatch Chemicals S.p.A, Israel Chemicals Ltd., United Phosphorus Limited and Potash Corp. of Saskatchewan Inc.

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