Feed Phosphate Market

Feed Phosphate Ingredients Market Outlook (2023 to 2033)

The global feed phosphate ingredients market expanded at 4.2% CAGR between 2018 and 2022 and ended up with a valuation of US$ 1,803.9 million in 2023. As per this study by Persistence Market Research, the sales of feed phosphate ingredients across the world are expected to increase at 4.1% CAGR to reach a market size of US$ 2,696.1 million by the end of 2033.

Phosphorous is a micronutrient that is needed by almost all life forms for the optimal growth and development of the organism within an adequate time frame. This phosphorous is provided to animals through animal feed in the form of feed phosphates. Feed phosphates are the inorganic salts of phosphoric acid. Phosphates are mined from rocks, and inorganic phosphates are then synthesized artificially and are much more bioavailable for animals than the natural sources they can be derived through. This virtue of higher bioavailability is the prominent factor as to why feed phosphates are chosen over natural feed elements for the optimal growth, fertility, and bone development of an animal.

Feed phosphates are of multiple types, and used for different animal types to achieve optimal growth. Depending upon the mineral used and processes utilized, feed phosphates can be of multiple varieties. The most prominently used feed phosphates throughout the world are calcium-based feed phosphates. Dicalcium phosphate is the most commonly used feed phosphate, followed by monocalcium phosphate, since these feed phosphates are the most proven sources of phosphorous for animals, and the most bioavailable sources. There are other miscellaneous types of feed phosphates as well, such as ammonium phosphate and magnesium phosphate, but the amount that they’re used in feed preparation is significantly low as compared to calcium feed phosphates.

What are the Key Trends Driving the Demand for Feed Phosphate Ingredients?

“Increasing Meat Production, Worldwide, and the Pressure to Keep Up with the Consumer Demand for Meat Products are Surging the Demand for Feed Phosphates”

With a growing population, the demand for meat and meat products has also increased. Owing to this constant increase in the demand for meat products, livestock rearing has increased, and with it, the demand for animal feed has increased as well.

• According to the Food and Agricultural Organization of the United States, the growth in the number of major livestock has been on a constant rise since 1998.

Increase in meat production demands increased nutritional requirements for animals, since the number of animals cannot be drastically increased, but through better nutrition, maximum output can be achieved. Specifically, feed phosphates help animals achieve the proper growth, bone development, fertility, and body mass that is required in a shorter time frame. This correlates directly to the increased demand for feed phosphates, worldwide.

“Increased Demand for High-Quality Meat Products, which is in Line with Increased GDP and Improved Expectations of Consumers, Creating More Demand for Feed Phosphates”

The demand for feed phosphates has further increased due to the recent trend of an increase in the demand for high-quality meat products. The upkeep of animals to produce high-quality meat products is dependent upon proper nutrition, which will drive the demand for feed phosphates even higher. Apart from food preferences, the dairy and natural animal-derived fiber industry is also hugely dependent upon the proper development of animals to obtain good quality products. Hence, feed phosphates play an important role in the dairy and natural fiber markets as well. The increased demand for poultry products such as high protein eggs and white meat has also paved the way for the increased demand for feed phosphates. Tricalcium phosphates are especially required along with dicalcium phosphate and monocalcium phosphate for the optimal development of poultry. This allows the poultry to attain the desired weight and physical attributes faster and easier.

“Monocalcium Feed Phosphate Trumping dicalcium Feed Phosphate in Demand, Soon to Become the Preferred Feed Phosphate for Animal Nutrition”

With better manufacturing technologies, better feed phosphate formulations are made available for consumers. Such is the case with monocalcium phosphate. With better bioavailability and increased uptake by animals, monocalcium phosphate is proving to be the feed phosphate of choice for many consumers. Multiple manufacturers are now focusing on the manufacturing of monocalcium feed phosphate, since it provides better opportunities for growth in the market. North America, especially, has displayed a pattern of low production of dicalcium feed phosphate, and higher production of monocalcium phosphate. China, on the other hand, has displayed a continued pattern of high production of all types of feed phosphates.

“Lower Feed Costs Allowing Consumers to Make More Liberal Purchase Decisions, Leading to Increased Demand for Feed Phosphates”

Global compound feed production stands at 1.03 Bn MT as of 2019. Employing proper manufacturing techniques and sustainable methods, feed costs have been lower for multiple animal types. This has made consumers more liberal with the purchase of additional nutritional resources for the animals. This includes feed additives such as vitamins, feed micronutrients, feed phosphates, etc. Especially in developing countries, where the budget for the agricultural community is tight, this is an opportunity for growth in the feed phosphate market. This sets East Asia, South Asia, and Latin America to be the regions with the most opportunities for growth in the feed phosphate market.

What are the Hindrances to the Adoption of Feed Phosphate Ingredients?

“Mining operations at the mercy of environmental conditions”

In North America, especially, natural calamities, most notably Hurricane Irma in 2017, affected the sulfate mining operations across the country, and multiple mines had to be closed down. However, overall sulfur costs were down in the year 2018, which helped keep feed phosphates afloat. This dependency on environmental conditions for mining operations might present some challenges for the feed phosphate market in the future.

Country-wise Insights

What Makes India a Lucrative Market for Manufacturers of Feed Phosphate Ingredients?

“Prominence of Feed Phosphate Ingredients in Poultry Industry”

India accounts for over 32% consumption of feed phosphate ingredients in the South Asia and Pacific region with the major share being contributed by the poultry application sector. However, the fastest growth is expected by dinocalcium phosphate based on the estimated value CAGR of 4.7%.

What is the Demand Outlook for Feed Phosphate Ingredients in the United States?

“High Consumption of Feed Phosphate Ingredients in the Country”

North America holds almost 21% of the market share in the global market whereas U.S. holds around 90% of the North American market.

Out of these, the maximum consumption is expected by the ruminants with a valuation of approximately US$ 101.0 million in 2022 and will continue to grow at a rate of roughly 3.8% CAGR.

Category-wise Insights

Feed Phosphate Ingredients of which Type are Being Widely Utilized?

“Monocalcium Phosphate Contributing to Market Growth”

Based on the type, monocalcium phosphate dominates the market with roughly 50% share in the market and is expected to grow at the fastest rate with a CAGR of 4.9%. Microbial further was valued at US$ 101.0 million in 2022.

Which Application Utilizes the Maximum Amount of Feed Phosphate Ingredients?

“Use of Feed Phosphate Ingredients in the Poultry Industry to Dominate the Market in the Forecast Duration”

The global feed phosphate ingredients market is categorized based on the various applications it finds use in including swine, ruminant, poultry, aqua, and pet animals. Among these, the poultry with a market value of approximately US$ 190.7 million dominates the market in 2022.

Competitive Dashboard

Global feed phosphate ingredients market is primarily characterized by a large number of regional players. Manufacturers are investing in integrating latest technologies along with the improvement in logistics and supply chain to bridge the gap between rising demand and supply. Other strategies involves mergers and acquisitions in order to increase their brand presence in different regions.

• In 2017, Yara International ASA took over the feed phosphate production complex of Elixir group, Serbia. The acquisition has strengthened the company’s presence in Central and Eastern Europe.
• J.R. Simplot Company announced in 2018 that it has executed a joint intellectual property licensing agreement with Corteva Agriscience, Agriculture Division of DowDuPont, and the Broad Institute of MIT and Harvard for advanced gene editing tools. The technology provides Simplot with another avenue to bring desirable traits forward in certain fruits, vegetables, and advance products to the market in the United States to benefit both farmers and consumers.
• EuroChem Group AG opened up a new fertilizer plant in Lithuania with an investment of US$ 16 Mn. The plant will produce approx. 25,000 metric tons of Urea-phosphate per year.
• Ecophos and Chanhen have signed a strategic 40/60 joint-venture contract for the construction of a Green Multi Resources Recycle Industrial Park. The investment, when completed, will be worth 747 million USD and will process annually 2.2 million tons of low grade phosphate rock into 400,000 tons of high-quality feed phosphate, 100,000 tons of food grade phosphoric acid, 300,000 tons of water soluble fertilizer and 1.5 million tons of high purity gypsum.

Feed Phosphate Ingredients Industry Report Scope

Feed Phosphate Ingredients Industry Research Segmentation

By Form:

• Dicalcium Phosphate
• Monocalcium Phosphate
• Tricalcium Phosphate
• Defluorinated Phosphate
• Others

By Species:

• Swine
• Ruminants
• Poultry
• Aquatic
• Pet Animals

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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