Get instant access to this report sample and gain complimentary access to our procurement research platform.
Phosphate Market Analysis
The spend growth in the phosphate market has the potential to reach a value of over USD 10 billion with a spend momentum accelerating at a CAGR of over 3% through 2024. This spend growth will be primarily attributed to the high demand for food-grade phosphates that are used as preservatives in the food industry. The phosphate market is witnessing a substantial demand in the laundry detergent market as phosphate is used as an essential ingredient in the composition of detergents, personal hygiene products, pharmaceutical drugs, anti-corrosion coating, and construction materials. These factors will have cumulative impacts on the spend growth of the global phosphate market.
Top Spending Regions in the Phosphate Market
The growth of the pork and poultry business and the augmentation in crop production are some of the factors that will drive the spend momentum of the phosphate market across regions.
Consumers in most of the countries are exhibiting their growing fondness towards pork which is resulting in the recent surge in the export of pork from the US to Canada, China, and Mexico. This is offering a major boost to the pork and poultry business in this region, which, in turn, is favoring the demand growth of phosphate suppliers in this region. The preference for organic chicken products, which are the second most consumed meat in the US, is further contributing towards the spend growth in the phosphate market.
Cultivators are taking initiatives to augment their crop production with Brazil and Argentina extensively cultivating soybean. This is creating substantial requirements of phosphate fertilizers to enhance the crop yield. Also, Brazil has planned to expand its soybean cultivation area to approximately 36 million hectares by 2020. Thus, increasing soy cultivation in the region will drive the category demand from the manufacturers of phosphate fertilizers such as DAP and MAP during the forecast period.
Subscribe to our free web-based procurement platform to get instant and regular insights on the factors that are changing the dynamics of the phosphate market across regions.
According to the phosphate price trends, procurement expenses borne by buyers will increase at a substantial rate primarily due to the predicted volatility in raw materials prices and the widening gap between the demand and supply of phosphates. These factors will pose as major hindrances for buyers in determining their TCO in the phosphate market. This will impact the stability in their pricing strategies which will ultimately ramify into excess procurement spend in the phosphate market.
Phosphate Price Trends:
Download the free sample of this report to know what the key category management objectives that you must adopt to address price dynamism in the phosphate market.
While it is evident that supplier's increasing OPEX will drive the buyer's procurement spend, there are no immediate strategies that will stabilize such the OPEX. However, keeping the market dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the phosphate market.
Engage with phosphate suppliers that provide intermodal transportation
For buyers, whose operation is highly dependent on a steady supply of phosphate, it is prudent of them to evaluate suppliers based on their networking with vendors who provide multiple modes of transportation. Buyers must ensure that the vendors with whom the phosphate suppliers are engaging have technologically advanced tools to track end-to-end delivery and take effective actions in case of any natural calamity. Engagement with such suppliers who provide intermodal can guarantee the buyers with a high supply assurance during geopolitical or meteorological.
The phosphate market is prone to lawsuits because of mining activities. The mining industry is also subject to strict scrutiny regarding environmental and EHS emissions. To ensure smooth business operations, it is essential for buyers to prefer phosphate suppliers with limited pending litigations.
Criteria to select suppliers in this dynamic phosphate market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing phosphate suppliers selection criteria.
Insights Offered in this Phosphate Market Report
PART 01: EXECUTIVE SUMMARY
PART 02: MARKET INSIGHTS
PART 03: CATEGORY PRICING INSIGHTS
PART 04: COST-SAVING OPPORTUNITIES
PART 05: BEST PRACTICES
PART 06: CATEGORY ECOSYSTEM
PART 07: CATEGORY MANAGEMENT STRATEGY
PART 08: CATEGORY MANAGEMENT ENABLERS
PART 09: SUPPLIERS SELECTION
PART 10: SUPPLIERS UNDER COVERAGE
PART 11: US MARKET INSIGHTS
PART 12: CATEGORY DEFINITION
PART 13: APPENDIX
SpendEdge presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.