Diammonium Phosphate Market

The article discusses the increasing demand for diammonium phosphate worldwide, with forecasts of continued growth in consumption and market performance. The market is expected to expand with anticipated CAGR rates for both volume and value. The article also highlights key statistics such as consumption patterns, production trends, import and export figures, and key market players. It provides insights into the major consuming and producing countries, as well as trends in per capita consumption. Overall, the article offers a comprehensive overview of the global diammonium phosphate market and its future outlook.

Market Forecast

Driven by increasing demand for diammonium phosphate worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +1.7% for the period from 2022 to 2030, which is projected to bring the market volume to 43M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +2.0% for the period from 2022 to 2030, which is projected to bring the market value to $25.6B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Diammonium Phosphate (DAP)

In 2022, after two years of growth, there was decline in consumption of diammonium phosphate, when its volume decreased by -3.3% to 38M tons. Overall, consumption, however, showed a relatively flat trend pattern. Global consumption peaked at 39M tons in 2021, and then dropped in the following year.

The global diammonium phosphate market size rose significantly to $21.8B in 2022, increasing by 7.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.6% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Global consumption peaked in 2022 and is likely to see steady growth in years to come.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were India (11M tons), China (10M tons) and the United States (1.4M tons), together comprising 60% of global consumption. Pakistan, Bangladesh, Nigeria, Russia, Mexico and Turkey lagged somewhat behind, together comprising a further 16%.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by Bangladesh (with a CAGR of +10.6%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest diammonium phosphate markets worldwide were India ($7.6B), China ($4.7B) and Bangladesh ($868M), with a combined 61% share of the global market.

In terms of the main consuming countries, Bangladesh, with a CAGR of +14.1%, saw the highest rates of growth with regard to market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of diammonium phosphate per capita consumption in 2022 were India (7.6 kg per person), Russia (7.3 kg per person) and China (7.3 kg per person).

From 2012 to 2022, the biggest increases were recorded for Bangladesh (with a CAGR of +9.5%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Diammonium Phosphate (DAP)

In 2022, production of diammonium phosphate was finally on the rise to reach 39M tons for the first time since 2018, thus ending a three-year declining trend. Over the period under review, production continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 when the production volume increased by 9.9% against the previous year. Global production peaked in 2022 and is expected to retain growth in the immediate term.

In value terms, diammonium phosphate production contracted markedly to $16.6B in 2022 estimated in export price. Overall, production, however, continues to indicate a slight curtailment. The most prominent rate of growth was recorded in 2021 with an increase of 52%. As a result, production reached the peak level of $20.3B, and then dropped significantly in the following year.

Production By Country

The country with the largest volume of diammonium phosphate production was China (14M tons), comprising approx. 36% of total volume. Moreover, diammonium phosphate production in China exceeded the figures recorded by the second-largest producer, Morocco (4.9M tons), threefold. India (3.8M tons) ranked third in terms of total production with a 9.8% share.

In China, diammonium phosphate production increased at an average annual rate of +3.4% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: Morocco (+8.1% per year) and India (+0.4% per year).

Imports

World Imports of Diammonium Phosphate (DAP)

In 2022, global imports of diammonium phosphate dropped to 14M tons, waning by -12% on the previous year. In general, imports saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 with an increase of 19% against the previous year. Global imports peaked at 17M tons in 2018; however, from 2019 to 2022, imports failed to regain momentum.

In value terms, diammonium phosphate imports surged to $12.2B in 2022. Over the period under review, total imports indicated pronounced growth from 2012 to 2022: its value increased at an average annual rate of +3.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +104.1% against 2020 indices. The most prominent rate of growth was recorded in 2021 with an increase of 59%. Global imports peaked in 2022 and are expected to retain growth in the near future.

Imports By Country

India was the largest importing country with an import of around 6.9M tons, which recorded 48% of total imports. It was distantly followed by Bangladesh (1.1M tons), mixing up a 7.6% share of total imports. Pakistan (636K tons), the United States (519K tons), Japan (429K tons), Vietnam (377K tons), Argentina (257K tons), Tanzania (249K tons), Romania (246K tons), Turkey (237K tons), Brazil (234K tons) and Indonesia (229K tons) followed a long way behind the leaders.

Imports into India increased at an average annual rate of +1.9% from 2012 to 2022. At the same time, Tanzania (+37.5%), the United States (+18.9%), Bangladesh (+11.0%), Romania (+7.2%) and Japan (+3.5%) displayed positive paces of growth. Moreover, Tanzania emerged as the fastest-growing importer imported in the world, with a CAGR of +37.5% from 2012-2022. Pakistan, Indonesia and Argentina experienced a relatively flat trend pattern. By contrast, Turkey (-4.9%), Vietnam (-6.8%) and Brazil (-8.6%) illustrated a downward trend over the same period. From 2012 to 2022, the share of India, Bangladesh, the United States and Tanzania increased by +8.6, +5, +3 and +1.7 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, India ($6B) constitutes the largest market for imported diammonium phosphate worldwide, comprising 49% of global imports. The second position in the ranking was taken by Bangladesh ($968M), with an 8% share of global imports. It was followed by Pakistan, with a 3.8% share.

In India, diammonium phosphate imports expanded at an average annual rate of +5.8% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: Bangladesh (+16.1% per year) and Pakistan (+2.2% per year).

Import Prices By Country

The average diammonium phosphate import price stood at $848 per ton in 2022, rising by 46% against the previous year. Overall, the import price posted measured growth. The pace of growth appeared the most rapid in 2021 an increase of 66% against the previous year. Global import price peaked in 2022 and is likely to see steady growth in the near future.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Argentina ($1,021 per ton), while Tanzania ($544 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Argentina (+5.9%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Diammonium Phosphate (DAP)

In 2022, overseas shipments of diammonium phosphate increased by 2.3% to 15M tons for the first time since 2018, thus ending a three-year declining trend. Over the period under review, exports, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 with an increase of 28% against the previous year. The global exports peaked at 18M tons in 2018; however, from 2019 to 2022, the exports failed to regain momentum.

In value terms, diammonium phosphate exports soared to $12.3B in 2022. Overall, total exports indicated measured growth from 2012 to 2022: its value increased at an average annual rate of +3.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +111.3% against 2020 indices. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

Exports By Country

Morocco (4.7M tons), China (3.6M tons) and Saudi Arabia (2.9M tons) represented roughly 72% of total exports in 2022. Russia (1.5M tons) held the next position in the ranking, followed by the United States (1M tons). All these countries together held approx. 16% share of total exports. Australia (488K tons) and Tunisia (367K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Morocco (with a CAGR of +8.5%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest diammonium phosphate supplying countries worldwide were Morocco ($3.4B), China ($3B) and Saudi Arabia ($2.6B), with a combined 73% share of global exports.

Saudi Arabia, with a CAGR of +13.0%, recorded the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average diammonium phosphate export price amounted to $797 per ton, rising by 43% against the previous year. Over the period under review, the export price continues to indicate perceptible growth. The pace of growth appeared the most rapid in 2021 an increase of 63%. Over the period under review, the average export prices reached the peak figure in 2022 and is expected to retain growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Saudi Arabia ($880 per ton), while the United States ($548 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Saudi Arabia (+6.2%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform