Diammonium Hydrogen Phosphate Market

Diammonium Hydrogen Phosphate (DAP) Market is forecast to reach US$890.3 Million by 2027, after growing at a CAGR of 11% during 2022-2027 due to increasing consumption from various end-use industries such as agriculture, food & beverages, furniture, textile & paper, and others. Diammonium hydrogen phosphate has a high nutrient content which is required for crop nurture. DAP fertilizer is ammonium phosphate salt of phosphoric acid which is highly soluble in water and insoluble in alcohol. Additionally, it dissolves quickly in soil to release ammonium and phosphorus. Furthermore, DAP is used for fireproofing textile, wood, and papers also used as chemical additives, corrosion inhibitors, and fertilizer for crops. Thus, to increase crop production the consumption of DAP as fertilizer is increasing. According to the Organization for Economic Co-operation Development (OECD), in Unites States maize crop production increased by 4.13% to 360,252 thousand million tons in 2020 as compared to 345,962 thousand million tons in 2019. Therefore, the consumption of diammonium hydrogen phosphate is growing owing to the aforementioned factors.

Impact of COVID - 19

The tragedy of COVID-19, which is declared as a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. This has affected the demand and supply chain as well, thereby limiting the growth in 2022. Also, decreased crop production, owing to this pandemic, reduced the demand for diammonium hydrogen phosphate (DAP) which limited the consumption of fertilizer and hampered the market growth.

Report Coverage

The report “Diammonium Hydrogen Phosphate Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the diammonium hydrogen phosphate industry.

By Form: Powder, Granular, and Others

By Application: Fertilizer, Fire Retardant, Yeast Manufacturing, Water Treatment, Animal Feed, Enzymes Processing, Food Additives, Corrion Inhibitor, and Others

By End-Use Industry: Food & Beverages, Agriculture, Industrial, Chemical & Laboratory, Metal Fabrication, Textile & Paper, Furniture, Pharmaceutical, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

Asia Pacific dominates the market of diammonium hydrogen phosphate due to changing lifestyles with health concerns and rising crop production in Asian countries such as China, India, and Japan.

Diammonium hydrogen phosphate is used in plants for better yield by a chemical reaction between phosphoric acid and ammonia and also increase pH level of the soil which is estimated to increase consumption of DAP.

Additionally, DAP is used for various industrial processes such as wine manufacturing, enzyme processing, metal finishing, and many more which are estimated to boost the market size.

However, the availability of bio-based substitute for diammonium hydrogen phosphate may create hindrance for the market.

The powder form held the largest share in the global diammonium hydrogen phosphate (DAP) market in 2020. The powder DAP is an inorganic phosphate salt of phosphoric acid that is highly soluble in water. These can be easily supplied with minimum (20kg) to maximum quantity (above 50kg). These Powder daps can be stored at a cool, dry, and well-ventilated place. Thus, the powder form of DAP is expected to be widely used during the projected era.

The fertilizer segment has potential growth for the diammonium hydrogen phosphate market in 2020 and is growing at a CAGR of 7.6% during 2022-2027 due to the growing need for high-quality crops with a growing population. Diammonium hydrogen phosphate is an inorganic phosphate salt of phosphoric acid. It is soluble in water and manufactured by a chemical reaction between phosphoric acid and ammonia. Ammonium phosphate is used as a fertilizer to increase the pH (7.5-8) of the soil. Thus, DAP is used as fertilizers for various crop production such as Rey, soybean, wheat, sugar beet, potatoes, and others owning to which its consumption as fertilizers is increasing.

Agriculture has dominated the market for diammonium hydrogen phosphate market in 2020 due to increasing consumption for crop productivity, soil performance, and yield. Diammonium hydrogen phosphate contains 74% fertilizer elements which are used as a basic raw material for nitrogen, phosphorus, and potassium (NPK) compound fertilizer. Diammonium hydrogen phosphate belongs to water-soluble ammonium phosphate salts. When ammonia reacts with phosphoric acid, DAP is produced until the desired pH is obtained from the soil. Thus, increasing the agriculture sector is estimated to grow the demand for DAP. According to the National Bank for Agriculture and Rural Development in 2020, the Indian government plans to set up a subsidiary to provide guarantees for loans under agriculture and rural development. According to the National Bureau of Statistics, GDP from Agricultural in China increased to 77754.10 CNY hundred million (US$ 11,276.52 hundred million) in January 2022 from 70473.6 CNY hundred million (US$ 10,220.64 hundred million) in January 2020. Therefore, the increasing agriculture sector is expected to grow the market size during this era.

Asia Pacific dominated the global diammonium hydrogen phosphate market with a share of 40% in 2020 due to the growing agriculture sector in Asian countries such as India, China, and Japan. Diammonium hydrogen phosphate (DAP) is used as fertilizer in crops such as Rey, soybean, rapeseeds, and others for better productivity which is also estimated to grow the consumption of DAP. India is the second-largest country in the agriculture sector. According to the India Brand Equity Foundation (IBEF), horticulture crop production in India was recorded at 320.48 million metric tonnes (MMT) in FY20. Additionally, India’s organic food segment is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025. Furthermore, the Government of India is targeting food grain production of 298 MT in 2020-2022. According to the India Brand Equity Foundation (IBEF), the production of wheat was recorded 98.61 MT in 2017-2018 as compared to 98.51 MT in 2016-2017. Furthermore, cereals output was also recorded 44.87 MT in 2017-2018 as compared to 43.77 MT during 2016-17. According to the Organization for Economic Co-operation Development (OECD), in Japan and China, soybean production increased by 1.692 tons/hectare to 1.726 tons/hectare and 1.975 tons/hectare to 2.047 tons/hectare, respectively during 2022-2025. Thus, increasing crops production is reflecting the demand for diammonium hydrogen phosphate.

Diammonium Hydrogen Phosphate Market Drivers

Increasing Demand from Brewery Industry

Diammonium phosphate is the main source of added nitrogen in wine fermentations which provides the necessary nutrients for yeast to make basic amino acids and helps to complete the fermentation of high gravity beers. Hence, the rising alcohol consumption, increasing disposable incomes, increasing party culture in urban areas around the world, and the proliferation of clubs, lounges, and bars have given the alcohol industry an impetus. According to the Indian Made Foreign Liquor (IMFL) India accounts for 0.8% of total Asia’s wine consumption. Additionally, according to EUROSTAT, wine from grapes increased by 105.80 points in June of 2022 compared to 104.9 points in May 2022 in the Czech Republic. Hence, the growing wine production is estimated to grow the demand for fermentation of diammonium hydrogen alcohols.

Growing Crop Production is Increasing Consumption of Diammonium Hydrogen Phosphate

Di-ammonium hydrogen phosphate (DAP) fertilizer is a series of ammonium phosphate salts that are highly soluble in water. This fertilizer can be produced by reacting ammonia and phosphoric acid until the desired pH of the soil is obtained. Thus, it is used to temporarily increase the soil pH and high effective non-chloride N, P compound fertilizer for crop productivity. Thus, increasing crop production is estimated to grow the consumption of DAP. According to the Indian Council for Agricultural Research (ICAR), the foodgrain demand is expected to increase by 345 million tonnes by 2030. Additionally, according to the U.S. Department of Agriculture, fruit and nuts production is projected to increase by 27% in 2022. Furthermore, Burma (Myanmar) is expected to reach rise exportation by 4.0 million tons and 1.65 million tons in Cambodia by 2028-2029. Apart from this, according to the Organization for Economic Co-operation Development (OECD), Mexico's wheat production was increased from 3 290.3 thousand tons in 2019 to 3 355.8 thousand tons in 2020. Thus, increasing crop production in various countries is estimated to increase the consumption of diammonium hydrogen phosphate in upcoming years.

Diammonium Hydrogen Phosphate Market Challenges

Availability of Bio-based Substitute

Phosphate-rich organic manure (PROM) is a substitute for a di-ammonium phosphate (DAP) which is a 100% bio-based fertilizer that improves the soil texture by increasing the organic carbon, phosphate content of the soil. Thus, PROM used to increase crop production and yield, improves soil health, fertility, structure, creates favorable conditions for healthier plant growth & development, and reduce the usage of chemical fertilizers which makes them a better and cheaper substitute for DAP. Additionally, organic phosphate is also an available substitute for DAP as it is easily and readily absorbed by all crops/plants. Thus, the availability of bio-based substitutes may limit the consumption of diammonium hydrogen phosphate.

Diammonium Hydrogen Phosphate Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Diammonium Hydrogen Phosphate Market. Major players in the Diammonium Hydrogen Phosphate Market include:

• China Blue Chemicals Ltd.
• Sichuan Chuanxi Xingda Chemical Co.
• Bunge
• PhosAgro AG
• SABIC
• Mosaic Co.
• JR Simplot
• Gujarat Narmada Velly
• Koch Fertilizer LLC
• Potash Corporation
• Shalinbhadra Dyechem Private Limited, and among others.

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