Feed Phosphates Market

[271 Pages Report] The market for feed phosphates is estimated at USD 2.6 billion in 2023; it is projected to grow at a CAGR of 4.0% to reach USD 3.2 billion by 2028.

The feed phosphates market is experiencing growth due to several factors, including the increasing global demand for animal protein, expansion of livestock production, improved feed efficiency, emphasis on animal health, regulatory backing, technological advancements, rising awareness of animal nutrition, adoption of sustainable farming practices, and ongoing research and development endeavors. As the world's population continues to grow, the demand for animal-based products is expected to rise further, driving the feed phosphates market's expansion in the future.

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Feed Phosphates Market Dynamics

Driver: Rise in consumption of meat and dairy products

The demand for meat, eggs, and dairy products in developing countries has also increased significantly over the past few years. According to Organisation for Economic Co-operation and Development (OECD), in 2021, global milk production, comprising approximately 81% cow milk, 15% buffalo milk, and 4% from goats, sheep, and camels combined, increased by 1.1% to reach approximately 887 million metric tonnes (Mt). This growth was primarily fueled by increased output in India and Pakistan, attributed to the expansion of dairy herds and improved availability of fodder, aided by favorable monsoon rains. According to OECD 2021, the per capita consumption of dairy products is projected to rise by 0.4% per year to reach 21.9 kg (milk solids equivalent) by 2031 in high-income countries. According to the same source, in comparison, low-middle-income countries are expected to experience an annual increase of 2.0% to reach 21.2 kg, while low-income countries are anticipated to see a 1.5% annual increase to reach 5.4 kg. Utilizing feed phosphates in dairy cattle diets can lead to improved feed efficiency. The presence of adequate phosphorus and other essential minerals in the feed enhances nutrient absorption and utilization in the rumen and digestive tract. As a result, dairy cows can convert feed into milk more efficiently, reducing wastage and enhancing overall feed efficiency.

Restraint: Fluctuating prices of phosphate

According to the World Bank, phosphate rock prices are forecasted to increase from USD 91 per MT in 2017 to USD 125 per MT by 2030. As phosphate reserves are depleting, this leads to supply shortages and price volatility, creating challenges for feed phosphate producers to secure stable and sufficient raw materials. Higher production costs are incurred due to the increased expense of extracting and processing the remaining phosphate rock, which are passed on to end-users. The industry has a need to explore alternative phosphate sources and substitutes to mitigate the reliance on traditional reserves. This search for alternatives adds complexity and uncertainty to the market.

Any disruption in the supply chain or production capacity of phosphate rock can lead to price volatility. Geopolitical factors, such as export restrictions, trade disputes, and national policies of countries possessing significant phosphate reserves, can influence global phosphate supply and prices.

Opportunity: Innovation in technology, new raw materials, and production process

Advancements in technology have the power to revolutionize the feed phosphates industry. New extraction techniques, refining processes, and quality control systems can optimize production efficiency, reduce costs, and enhance the overall quality of feed phosphates. For example, innovative technologies such as nanotechnology, microencapsulation, automation, and advanced analytics improves the production yields, increase consistency, and streamline operations.

With advanced technology and improved understanding of animal nutrition, feed manufacturers are developing specialized feed phosphate products for different livestock sectors. This approach optimizes feed efficiency, supports targeted nutrient delivery, and promotes optimal animal health and growth. Innovations in production processes and raw materials help in meeting the evolving regulatory requirements. Compliance with stringent regulations related to quality, safety, and sustainability is crucial for market access and consumer trust. By adopting innovative practices and materials that align with regulatory standards, feed phosphate manufacturers are anticipated to differentiate themselves in the market.

Challenge: Toxicity of feed phosphates

Feed phosphates are a concentrated source of phosphorus, an essential nutrient for animal growth and metabolism. However, excessive intake of phosphorus can disrupt the delicate balance of minerals in an animal's body, particularly the calcium-phosphorus ratio. When the ratio is imbalanced, it is likely lead to health issues such as skeletal abnormalities, mineral deficiencies, or impaired bone development. This highlights the importance of proper formulation and dosage of feed phosphates to prevent phosphorus overdosing. Toxicity also results from mineral imbalances caused by an excessive intake of phosphorus relative to other minerals like calcium, magnesium, and zinc. These minerals play crucial roles in various physiological processes, and disturbances in their balance affect animal health and performance. For example, high phosphorus levels in the diet inhibits calcium absorption and utilization, leading to conditions like metabolic bone disorders or urinary calculi. Contamination of feed phosphates with heavy metals, such as lead, cadmium, mercury, or arsenic, is another concern. These contaminants originate from the phosphate rock used in the production of feed phosphates or from other sources during the manufacturing process. Phosphorus metabolism generates reactive oxygen species (ROS), which, if not properly managed by the animal's antioxidant defenses, leads to oxidative damage to cells and tissues. Prolonged oxidative stress results in inflammation, weakened immune response, and increased susceptibility to diseases. The interactions between feed phosphates and other nutrients in animal diets also influence their potential toxicity. For instance, high levels of dietary phytate, a form of phosphorus found in plant-based feed ingredients, reduces the availability of phosphorus for absorption. This results in phosphorus deficiency and compromised animal health, despite adequate levels of feed phosphates in the diet.

Feed Phosphates Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of feed phosphates market. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Mosiac (US), Nutrien Ltd (Canada), OCP (Morocco), Rotem (Turkey), Eurochem Group (Switzerland), Phosagro (Russia), Fosfitalia Group (Italy), Phosphea (France), YARA (Norway), and J. R. Simplot Company (US).

Based on type, dicalcium phosphate is estimated to account for the largest market share of the feed phosphates market

Based on type, dicalcium phosphate (DCP) segment is estimated to account for the largest market share. A proper calcium-to-phosphorus ratio is essential for animal nutrition. DCP provides an ideal balance of these minerals, ensuring that animals receive the right nutrients to support their growth and health. Compared to other feed phosphates, DCP is relatively cost-effective, making it an attractive option for farmers seeking affordable yet high-quality mineral supplements for their animals.

Poultry segment of the feed phosphates market by livestock is projected to witness the highest CAGR during the forecast period.

Based on livestock, the poultry segment estimated to register the highest growth rate between 2023-2028. Feed phosphates, including DCP and MCP, have gained regulatory approval and are widely accepted as safe and effective feed additives for poultry. Compliance with food safety regulations and guidelines encourages the use of feed phosphates in the poultry industry.

Based on form, powder segment is projected to witness the highest CAGR during the forecast period.

Powdered feed phosphates allow for the creation of homogeneous feed formulations. This uniformity is vital for ensuring that all animals in the herd or flock receive the same levels of essential minerals, contributing to uniform and steady development of animals. The use of powdered feed phosphates leads to improved efficiency in feed mills. The ease of mixing and uniform distribution reduces processing time and minimizes losses during manufacturing, contributing to cost savings for feed producers.

The South American market is projected to register a significant CAGR for the feed phosphates market.

The livestock sector of South America has also been witnessing exponential growth over the years owing to the steady demand brought on by the rise in meat consumption and poultry products.

According to OECD-FAO Agricultural Outlook 2021-2030, the export of meat is concentrated, and it is expected that the three leading meat-exporting countries - Brazil, the European Union, and the United States - will maintain a stable combined share of approximately 60% in the global meat exports over the forecast period. In 2021, Brazil, the top poultry meat exporter, is projected to become the largest beef exporter, holding a 22% market share. This rise in meat consumption and growth of the domestic livestock sector are expected to contribute to the growth of the feed phosphates industry.

Key Market Players

The key players in this include Mosiac (US), Nutrien Ltd. (Canada), OCP (Morocco), Rotem (Turkey), Eurochem Group (Switzerland), Phosagro (Russia), Fosfitalia Group (Italy), Phosphea (France), YARA (Norway), and J. R. Simplot Company (US).

These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

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Scope of the Report

This research report categorizes the feed phosphates market based on by type, livestock, form, and region

Based on type, the feed phosphates market has been segmented as follows:

• Dicalcium phosphate     
• Monocalcium phosphate             
• Mono-dicalcium phosphate        
• Defluorinated phosphate            
• Tricalcium phosphate   
• Others

Based on livestock, the feed phosphates market has been segmented as follows:

• Poultry
• Swine
• Ruminants
• Aquaculture
• Others

Based on the form, the the feed phosphates market has been segmented as follows:Solid

• Powder
• Granule

Based on the region, the feed phosphates market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In 2023, OCP Group, a prominent global provider of phosphate-based plant and animal nutrition solutions, and Fertinagro Biotech S.L., a major Spanish fertilizer producer, are delighted to announce the successful completion of OCP's acquisition of Global Feed S.L on May 17th, 2023. This acquisition reinforces OCP's dedication to establishing a strong position in the animal nutrition sector, further solidifying its role as a leading player in the industry.
• In 2020, Nutrien Ltd. entered into a definitive agreement to acquire the entire equity of the Tec Agro Group. Tec Agro, a prominent agricultural retailer operating in the state of Goiás, (Brazil) brings nearly 25 years of dedicated service to farmers and operates through eight retail branches. This acquisition of Tec Agro represents a significant advancement in establishing a robust presence within the vital and expanding Brazilian agricultural market.
• In 2018, Mosaic Company acquired the Vale Fertilizantes (a Brazilian fertilizer company that has five phosphate mines), thereby enhancing the company’s market access in the Brazilian feed phosphate market.

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