Procurement research report on the phosphoric acid market provides procurement professionals with up-to-date information about market shifts and potential risks, as well as in-depth knowledge of products and services. This report provides a detailed analysis of the supply market, procurement challenges, and procurement best practices which can help in planning and executing category management activities. It also focuses on the cost-saving aspects of procurement and on providing insights that can lead to optimization of category spend.
Covered in this report
According to procurement analysts, the increasing use of phosphoric acid as feedstock to produce phosphate-based fertilizers, such as DAP and MAP, is driving the overall market’s growth. The decline in the volumes of arable land and increasing demand for food over the past decade due to rapid urbanization and growing populations have resulted in the higher use of fertilizers by farmers to increase their crop yields. Moreover, the increasing use of crops such as sugarcane, sugar beets, and corn to produce biofuels such as industrial ethanol is also contributing to the greater use of fertilizers, as phosphate is a crucial nutrient, especially for corn.
One of the procurement best practices for buyers is to enter into strategic alliances with suppliers. Phosphoric acid is the primary feedstock that is used to produce fertilizers. The cost of phosphoric acid accounts for a significant portion of the overall raw material cost. Moreover, ensuring consistency in the supply of phosphoric acid is essential for the continuous production of fertilizers. Hence, strategic alliance with suppliers will help buyers procure phosphoric acid at lower prices than the prevalent market price. Moreover, it will ensure consistency in supply as a buyer becomes a preferred client for suppliers. Buyers can also create strategic alliances using JVs and long-term agreements.
Solutions can be categorized into:
- Food grade: Used in the food and beverages industry (generally 85% phosphoric acid by concentration)
- Technical grade: Used in the chemical industry (generally 75% phosphoric acid by concentration)
- Pharmacopoeia grade: Used in the pharmaceutical industry (generally 85% phosphoric acid by concentration)
- TAKEAWAY 01 - Market Overview
- TAKEAWAY 02 - Demand and Supply Snapshot
- TAKEAWAY 03 - Key Market Dynamics
- TAKEAWAY 04 - Supply Market Highlights
- TAKEAWAY 05 - Pricing Insights
- TAKEAWAY 06 - Procurement Insights
- Category Definition
- Research Methodology
- Category Spend Analysis
- Category Maturity by Regions
- Demand-Supply Shifts
- Regional Demand-Supply Snapshot
- Global Phosphoric Acid Production Hubs
- Market Developments
- Regional Impact of Trends
- Key Category Growth Drivers and Corresponding Regional Impacts
- Major Category Growth Constraints and Corresponding Regional Impacts
- Key Current Technological Innovations
- Major Regulatory Frameworks
- Strategic Sustainability Practices
- Porter’s Five Forces
- PESTLE Analysis
- Supplier Operational Capability Matrix
- Other Prominent Suppliers by Region: Operational Capability Matrix
- Supplier Functional Capability Matrix
- Other Prominent Suppliers by Region: Functional Capability Matrix
- Key Clients/Partners
- Supplier Cost Breakup
- Supplier Positioning Matrix
- Pricing Models Snapshot
- Pricing Models - Pros and Cons
- Indicative Pricing
- Major Category Requirements
- Major Procurement Pain Points
- Category Sourcing Evolution Matrix
- Procurement Best Practices
- Cost-saving Opportunities
- Supplier Selection Criteria
- Category Negotiation Strategies
- SLA Terms
- Supplier Evaluation Criteria
- Category Risk Analysis
- Koch Industries
- Key Notes
The author of the report recognizes the following companies as the key suppliers in the Global Phosphoric Acid - Procurement Market Intelligence Report: OCP, Agrium, PotashCorp, Koch Industries, EuroChem.
Commenting on the report, an analyst from the research team said: “One of the procurement best practices for buyers is to enter into strategic alliances with suppliers.”
According to the report, one of the key growth contributors for the Global Phosphoric Acid Market is the growth of anti-corrosion coatings industry.
Further, the report states that major procurement challenge experienced by the buyers is the lack of availability of phosphoric acid in open market.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains actionable insights to improve source-to-contract cycle performance in addition to a PESTLE analysis.