In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Diammonium phosphate (DAP) is one of the most broadly utilized phosphorus (P) fertilizer around the globe. It is produced with the help of two essential elements in the fertilizer industry i.e. ammonia and phosphoric acid. It is famous for its moderately high supplement substance and excellent physical properties. It is a granulated fertilizer with the granules that can be gray, black and white in color. It is mainly utilized as composts that can be used for vegetables and in plantations. It finds its applications in numerous additives and industries such as chemical manufacturing industries, sugar purification, wine and mead-making.
It should be stored in dry and clean areas with proper ventilation and should always be shipped with proper transportation that can protect it from direct sunlight, water, moisture and other forms of damage. In case of any irritation to skin, eyes or accidental ingestion while using it, consulting a doctor is recommended.
Various factors such as increase in income coupled with changing weather and soil conditions and increasing dependence on fertilizers owing to the shrinking cultivable land and requirement for higher production of crops for the ever-growing population is anticipated to aid the growth of the market. Furthermore, increasing demand for firefighting products owing to numerous policies aimed at maintaining environment, health & safety in the commercial, industrial and residential buildings and surroundings is estimated to boost the market revenue in upcoming years.
The diammonium phosphate market is anticipated to grow at a significant CAGR during the forecast period i.e. 2019-2027. The market is segmented by application, end use industry and by region. The end use industry segment is further bifurcated into agriculture, food industry, chemical industries and others, out of which, the agriculture segment is anticipated to witness significant growth on account of growing demand for fertilizers in the agriculture sector.
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There is an increasing demand for diammonium phosphate in the agriculture industry. Manufacturers are giving more preference to artificial agents as compared to organic in food and agriculture industry in order to attain cost efficiency. Additionally, there is an increase in investment for food and agriculture activities in the developing countries which is expected to boost the growth of the diammonium phosphate market.
Diammonium phosphate has wide range of applications in food and agriculture industry where it is used for food coloring, and flavoring. There are many developing countries whose economies are more dependent on agricultural activities in order to generate income, further resulting in raising the demand for fertilizers. Additionally, increase in income and changing environmental factors impacting soil conditions are some of the factors that are anticipated to boost the growth of the diammonium phosphate market.
Diammonium phosphate comes with a limited lifespan as it should be utilized within 2 years of manufacturing. Additionally, the fluctuating prices of fertilizers are adversely affecting the demand for diammonium phosphate, further hampering the growth of the market. Moreover, growing environmental concerns are driving many countries to focus on producing bio-based and eco-friendly fertilizers. Collectively, these factors are anticipated to restrain the growth of the market during the forecast period.
Our in-depth analysis of the diammonium phosphate market includes the following segments:
On the basis of regional analysis, the diammonium phosphate market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Growing number of initiatives and authoritative policies to hone improvements in the agricultural activities is anticipated to drive notable demand for diammonium phosphate in the Middle East & Africa region. With leading shares in the diammonium phosphate market, North America is followed by Europe and Asia Pacific. Rising rate of population is increasing the demand for food in developing countries such as China and India. These factors are anticipated to contribute to the growth of the market in Asia Pacific region.
The diammonium phosphate market is further classified on the basis of region as follows: