Fertilizer Accounts for Majority of Global Phosphoric Acid Use
Fertilizer represents around 90 percent of global phosphoric acid use. Solid fertilizers – DAP and MAP – are the most common phosphate products used by farmers and can be applied directly to soils or blended with nitrogen and potash fertilizer prior to application. Liquid phosphate, mainly used as a starter fertilizer in North America, is experiencing higher demand from farmers with reduced tillage operations. Phosphoric acid demand for fertilizer has slowed to around 1.5 percent annualized growth over the past decade impacted by recent fertilizer subsidy program changes in India.
Industrial phosphate products are used mainly in soft drinks, food additives, metal treatment, detergents and cleaners. Feed phosphate products are used primarily as a supplement in beef, poultry and pork rations and increasingly in the aquaculture industry.
Since fertilizer is the biggest consumer of phosphoric acid by a wide margin, fertilizer market fundamentals have a significant influence over the direction of the entire phosphoric acid market.