Growing demand for phosphate rock as an animal feed additive is a significant factor driving the phosphate rock market demand, says a new report by the New York-based market intelligence and strategic consulting firm Reports and Data, adding that the global phosphate rock market size is forecast to reach USD 43.82 Billion by 2027.
Phosphate rock finds wide application in fertilizers, feed additives, and chemical industries. The expansion of these industries and the demand for high crop yield would be driving factors for the phosphate rock market. Population across the globe is presently growing at a rate of about 1.05% per year. The existing average increase in population is anticipated to be 81 million people each year. The global population has increased from 3 billion in 1959 to 6 billion in 1999. It is projected that it will take another approximately 40 years to grow by another 50% to reach 9 billion by the year 2037. This trend indicates a growing demand for food products worldwide. Food demand is likely to increase in the range of 59.0% to 98.0% by 2050. One of the ways this demand could be met is by improving productivity on existing agricultural lands by the use of phosphate-based fertilizers and fungicides.
The report also reminds us that the COVID-19 pandemic is having a significant impact on the phosphate rock industry. Demand for phosphate rock is suffering as various end-use markets and global supply chains have been upended, and the competitive order of manufacturers has witnessed a change. The shortage of demand has pushed the global chemical sector into an oversupply situation. Hindrance to the free movement of the labor force required for the application of fertilizers in the agricultural fields has deterred the growth of the market during the COVID-19 pandemic. Movement restrictions are immediately affecting the industry, and once the compulsory social distancing ends, it is hoped that things would get back to normal conditions.
