The global phosphate rock market size is anticipated to reach USD 39.3 billion by 2025, denoting a CAGR of 7.1% over the forecast period, according to a new report by Grand View Research, Inc. The market is majorly driven by the increasing use of fertilizers in the agriculture industry to enhance plant growth.
In the agriculture sector, phosphate rock is used in the form of phosphorus-based fertilizers. Fertilizers are sprayed on agricultural and arable land to provide soil nutrients essential for healthy plant growth. The growing global population has facilitated the use of fertilizers to increase the efficiency of crop production to supply sufficient food products. This is likely to increase the utilization of the product over the coming years.
Changing consumer food preferences, such as increasing consumption of packaged & processed food and meat products, are likely to fuel the demand for phosphate rock. It is used as an additive in processed food and as a feed phosphate in animal feed industry. Feed phosphates ensure healthy livestock as they help improve digestion and bone strength of animals.
Phosphorous is used as a preservative in packaged food & beverages. Rising disposable income and increasing working population are likely to drive the demand for packaged food products. Consumers opt for packaged food & beverages such as yogurt, buttermilk, and salads owing to their hectic routine schedule. This is projected to fuel the utilization of the product over the forecast period.
Major players in the market such as Itafos, Nutrien Ltd., and The Mosaic Company are adopting acquisition as the major strategy to enhance their technological capabilities, expand their businesses at the global level, and widen the product portfolios. For instance, The Mosaic Company, in August 2018, acquired Vale Fertilizantes, a fertilizer company in Brazil, for USD 2.5 billion to improve its business and enhance its presence in the Brazilian agriculture sector.
In February 2018, Itafos acquired all issued and outstanding common shares of GB Minerals Ltd., a mining, exploration, and development company. Itafos owns 31.3% interest in GB Minerals Ltd., which makes the latter an indirect wholly-owned subsidiary of the former. The acquisition has also enabled Itafos own Farim Phosphate Project, previously owned by GB Minerals.
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Further key findings from the report suggest:
- The fertilizers application segment is anticipated to register a CAGR of 5.2%, in terms of volume, over the forecast period
- The phosphate rock market in North America is expected to progress at a low CAGR of 2.8%, in terms of volume, from 2019 to 2025 owing to the increasing consumption of meat
- The Middle East & Africa is expected to witness a CAGR of 4.0%, in terms of revenue, due to high phosphate fertilizer exports from the region
- Major players are adopting strategies such as acquisitions to increase their production capacities and to cater to the growing demand for phosphate rock.