Monoammonium Phosphate Market

Monoammonium Phosphate Market Synopsis

Monoammonium Phosphate Market Size Was Valued at USD 6.35 Billion in 2023, and is Projected to Reach USD 8.42 Billion by 2032, Growing at a CAGR of 3.18% From 2024-2032.

In agriculture Monoammonium Phosphate (MAP) is an inorganic compound which is often used as nutrient dense fertilizer. This compound is an inorganic water soluble salt with an ammonium phosphate formula, NH₄H₂PO₄. MAP supplies both nitrogen and phosphorus, micro nutrients that enhance plant growth and productivity of crops. They pointed out that it is widely used on different kinds of crops to improve the fertility of the soil and the yield and it can also be used in Industry including fire extinguishers because of its properties. The drive behind the Monoammonium Phosphate (MAP) is majorly brought about by the increased need for fertilizers in the agricultural segment in which MAP brings change into farming. NP is one of the most common MAP which is used as a fertilizer and is consisted of nutrients nitrogen and phosphorus. Global populations are rising and require greater food production, meaning MAP’s demand grows along with the necessity for better yields in farming. There is also the issue of forward and better farming practices including precision agriculture – the use of inputs that meet the required demands for production.

They add that apart from serving as an animal feed supplement, MAP is also in high demand in various industrial fields as a fire retardant. Fertilizers in particular have experienced significant increase in sales especially in Asia-Pacific which constitute the emerging markets. However, the industry has problems concerning the cost of raw materials and the emission standards. Also, certain changes in the agricultural products prices and unpredictable changes in the number of regulations can affect the usage and production of MAP.

MCPA’s market is forecast to increase in the future years due to innovations in fertilizer products and the formation of new formulations for particular crops and further improvement of productivity. Regulatory standards concerning the environment sustainability practices together with the encouragement of the organic farming practices will also shape the growth path, particularly the shift to natural sustainable ancillary to chemical fertilizer. All in all, overall there are opportunities in the future provided that there is growth in the major end-using industries and there isno undue pressure exercised in the form of unfavorable regulations.

Monoammonium Phosphate Market Outlook, 2023 and 2032: Future Outlook

Monoammonium Phosphate Market Trend Analysis

Trend: Increased Use of Fertilizer Blends

There also appears to be a shift towards the MAP-fertilizer blends in the market from a global perspective. MAP is used in fertilizer blends with other types of fertilizer in order to offer a wider number of nutrients to the plants for a better health and growth. This has been boosted by the need for precision agriculture, as the right nutrient application is crucial is order to achieve maximal yields with minimal wastage. This makes the fertilizers more effective as well as having benefits to the environment when mixed with potash or micronutrients the MAP is blended to meet specific soil nutrient needs.

It is thought that adoption of nutrient management and the movements in fertilizer blends that are currently in progress will further increase as more farmers and agricultural enterprises get involved. It is found that production of fertilizer blends depends with the type of crops and the quality of soil in order to meet precise requirements. This trend is also underpinned by innovation in fertilizer formulation andapplication, with a focus on efficient slow release fertilizer. The growing demand for fertilizer blends can be explained by the trend towards more rational consumption of inputs to maintain and enhance crop productivity, with a focus on sustainable iniciatives.

Opportunity: Expansion in Emerging Markets

An important emerging opportunity in the global Monoammonium Phosphate industry is the increasing practice of agriculture in developing countries, especially in the Asia Pacific, South America and Africa. MAP fertilizer for instance is called for as these region’s population turns to food production and so as the population moves towards urban areas then there is a need to feed the people hence leading to a higher demand for the agricultural produce hence the need for fertilizer. Further, the governments of these regions are bearing incentives, subsidies and are investing in shift towards modern and progressed styles of agriculture. This fosters the growth of the MAP applications in those emerging markets successfully.

There is thus the creation of middle class, and increased per capita incomes, resulting into higher purchasing power for food; thus encouraging farmers to adopt increased yields. This awareness of health of the soil and the need to use better fertilizers that increase crop yields has enhanced the adoption of better quality fertilizers such as MAP. Firms and companies needed to be strategic in penetrating these emerging markets with low cost, right product value proposition and farmer education programs. Therefore, the uptake of MAP is believed to increase significantly in these regions.

Driver: Rising Demand for Fertilizers in Agriculture

Therefore the key factor that propels the demand for Monoammonium Phosphate is rapid increase of fertilizer consumption from the agriculture industry. Others are used for soil nutrient requirement that greatly affects growth of crops especially with increasing population in the world. Because MAP offers nitrogen and phosphorus to the plants this nutrient resource is very efficient in supporting plant growth. Since farmers aim at producing more crops to help feed the increasing global population, the use of fertilizers such as MAP has become norm. The concern expressed by the agricultural sector to increase yield out of scarce land also boosts the need for better fertilizers.

Not surprisingly, the rise of post-industrial farming methods like precision farming, and Controlled Environment Agriculture (CEA) have also contributed to an uptick in the use of fertilizers. MAP’s way of fertilizing crops at the required rate is the key that makes precision agriculture use this method to achieve maximum yields with minimal wastage. Since the increasing demand for food is being observed all over the worldMAP has remained to be significant and crucial factor in agricultural practices thereby fueling the market for MAP market. Moreover, increasing concerns for organic farming and demand for advanced fertilizers should provide tailwind to this market in future.

Restrints: Volatility in Raw Material Prices

Some of the factors that has check the growth of the Monoammonium Phosphate market are fluctuations in the prices of raw material especially ammonia and phosphoric acid used in the manufacturing of MAP. The prices of these raw materials go up and down this affects the cost of producing the MAPs for the company. Ammonia which is obtained from natural gas, is sensitive to changes in the geopolitical climate, supply chain vulnerability, and the prices of energy. Similarly, phosphoric acid, which is produced from phosphate rock, depends on the world mining action and political climate, and the prices of phosphoric acid also varies.

These fluctuations make it difficult to set standardized MAP in the market, which in one way or the other affects both the manufacturers and consumers . MAP producers and suppliers can not always maintain optimistic profit margins, and the farmers who use MAP may be forced to buy the product at increased prices, due to high input costs. Another major risk observed in the evaluation of MAP producers is unstable prices of raw material that renders the producers incapable of forecasting or controlling the change in prices which in turn can hamper their strategic plan involved in production and pricing of final MAPs. Therefore, control of these prices continues to be an unenviable task for companies in the MAP market.

Monoammonium Phosphate Market Segment Analysis

Monoammonium Phosphate Market Segmented on the basis of form, application and end user.

By Form

o   Granular

o   Powder

By Application

o   Fertilizers

o   Animal Feed

o   Industrial Applications

o   Others

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Form, Granular segment is expected to dominate the market during the forecast period

The Monoammonium Phosphate market considered in this report can be broadly classified into two main forms namely; granular and powder forms of Monoammonium Phosphate, both of which are used for different purposes in Agriculture and industries. The most used form of granular MAP is the one that is most popular in the fertilizer industry. It yields easy to handle, and store and apply because; it can be effectively applied on large areas using common fertilizing machinery. MAP also allows the gradual and slow release of nutrients , and this is desirable in plant growth throughout a longer period. This form is preferred most especially by farmers for vast commercial farming practices, due to its increased effectiveness and convenience to use.

Illustration 2: Comparative use of powdered MAP While the powdered MAP used less frequently, it offers its utility in specific industries and in some of the formula for fertilizer. This fine powder is more soluble in water than the large grains that are ideal for hydroponics farming and other extra careful agricultures. Powdered MAP is also applied in the formulation of animal feed supplements, which combined with other products. The decision whether to use granular or powdered MAP is influenced by the application and preferences of the end consumer though currently the granular MAP controls a larger share of the market since it finds its use in agricultural industries.

By Application, Fertilizers segment expected to held the largest share 

The global Monoammonium Phosphate market is led by the fertilizer segment, and therefore, its usage in fertilizer products is the main driver of the Monoammonium Phosphate market. MAP is commonly applied in related agricultural field as a super-phosphate that acts as a potent source of Nitrogen and phosphate nutrients that supports plant growth. It is most useful in stimulating root formation and enhancing studies flowering as well as fruiting in different plants. WS head has a solid track record, particularly so as the global demand for food rises while the sector remains dependent on high performing fertilizers such as MAP.

MAP is also used extensively in animal feeds as well. So it is used in the feeding of animals especially in the production of phospherous that are used in the production of bones and teeth in livestock. Further, MAP is employed in several industrial applications, including as a flame suppressant in fire retardants manufacturing. MAP has other quite diverse uses in water treatments and as a water soluble compound in some of the chemical products. Thus the wide usable besides fertilizers helps to counter balance the weaker markets and has potential for growth in many connected industries.

Monoammonium Phosphate Market Regional Insights

North America is Expected to Dominate the Market Over the Forecast period 

The largest region in the Monoammonium Phosphate market as of now is North America location. The United States and Canada are developed countries which have developed agricultural industry and MAP is one of the most commonly used fertilizer to ensure optimum productivity of soil. There is an increase in profit from advanced farming techniques in North America and adoption of technology such as MAP. Further, the area is well equipped with the production and distribution of the fertilizers that would enable it to feed the growing agriculture needs.

Additionally, North America has strict rules on modern farming which supports the use of effective and friendly nutrients like MAP. The market is underpinned by sustaining investment in RD in agriculture especially on the efficiency of fertilizers and effects on the environment. An increased knowledge of food safety, more environmentally friendly farming practices, as well as support from the authorities for advancing farming technologies also increase the need for MAP in the region.

Monoammonium Phosphate Market Share, by Geography, 2023 (%)

Active Key Players in the Monoammonium Phosphate Market

o   The Mosaic Company (USA)

o   Nutrien Ltd. (Canada)

o   Yara International (Norway)

o   Haifa Group (Israel)

o   PhosAgro (Russia)

o   OCP Group (Morocco)

o   Israel Chemicals Ltd. (Israel)

o   Sinofert Holdings Limited (China)

o   Gujarat State Fertilizers and Chemicals Ltd. (India)

o   Coromandel International Ltd. (India)

o   PotashCorp (USA)

o   EuroChem Group (Switzerland)

o   Other key Players

Global Monoammonium Phosphate Market Scope