DAP (Diammonium Phosphate) Market Size, Share, By Production Method (Wet-Process and Dry-Process), By Grade (Industrial Grade, Food Grade, and Fertilizer Grade), By Application (Fertilizers, Food Additives, Metal Finishing, Fire Retardants, and Others), and By Region - Trends, Analysis and Forecast till 2034

DAP (Diammonium Phosphate) market size was valued at USD 70.91 Billion in 2024 and is expected to reach USD 119.53 Billion by 2034, growing at a CAGR of 5.9%.

Diammonium phosphate, known also as DAP, is an inorganic chemical compound with the formula (NH4)2HPO4. This salt is widely used in agriculture as a fertilizer and finds other uses in various industrial processes. The compound contains two ammonium cations and one hydrogen phosphate anion, making it a white, water-soluble crystalline powder. The Diammonium phosphate application allows plants to receive two great nutrients: nitrogen and phosphorus. The nitrogen content of approximately 18% promotes good leaf growth and overall plant development, while a phosphorus content of about 46% as P2O5 supports root growth, flowering, and fruit production. The high nutrient content in DAP and its balanced NPK ratio ensure that the fertilizer is efficient and economically viable for farmers worldwide.

Apart from its agricultural applications, DAP finds several industrial uses. It has been used as a fire retardant in wood and fabrics, a yeast nutrient in wine-making and brewing, and a buffering agent in various chemical reactions. DAP also is used to manufacture purified phosphoric acid and as an active constituent of some dental cement. The chemical release of ammonia has promoted the use of the compound in cleaning products and as a flux in metal processing. While it is useful, proper handling and application of DAP are rather critical because excessive use leads to soil acidification and may result in possible environmental hazards. In DAP manufacture, phosphoric acid reacts with ammonia; the process needs great control to ensure product quality and safety. In general, the multi-functionality and efficiency of Diammonium phosphate in so many diverse fields underline its importance for modern agriculture and industry.

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Key Drivers of Target Market:

Increasing Demand for Agricultural Products

• The world's population is growing at a speedy rate. This has increased food demand. In essence, farmers are growing crops in greater numbers, which has led to increased use of fertilizers to improve the yield. DAP, having a high content of the two most essential nutrients for plant life-nitrogen and phosphorus-becomes an attractive option. Also, with rising affluence amongst the population worldwide, demand for better quality and more varieties of food products continues to increase. Therefore, much more intensive agriculture is involved, and much larger fertilizer inputs are required.

Rising Awareness of Nutrient Management

• Increasing awareness about proper nutrient management amongst farmers on the right way to boost their yield without harming the environment furthers the growth of this market. When applied efficiently, DAP can potentially optimize the uptake of nutrient elements by plants, hence increasing the efficiency of nutrients and reducing waste. Such practices may include soil testing by farmers, whereby they determine nutrient requirements for crops to apply DAP based on such actual needs, hence avoiding over-application and reducing runoff nutrients to water bodies. Precision agriculture practices can also include variable-rate application to apply DAP in a much more focused manner according to the varying soil fertility and crop requirements of different areas in fields. Targeted application further enhances efficiency by reducing fertilizer waste.

Restrains:

Fluctuations in Raw Material Prices

• It takes phosphoric acid and ammonia to manufacture DAP; the prices for these raw materials fluctuate based on various factors. For example, price volatility in phosphoric acid could also greatly depend on global supply-demand mismatches. Where demand exceeds supply, prices tend to shoot upwards. In case of excess supply over demand, there would be a price drop. Ammonia price fluctuations could also be a function of energy cost, natural gas availability, and geopolitical events. For instance, any disturbance in the production or transportation of natural gas upsets ammonia supply and increases price.
• Furthermore, there are factors such as geopolitical tensions or conflicts in key regions of ammonia production; these all impact supply and price. These wide fluctuations in the prices of raw materials can make all the difference in the profitability of DAP manufacturers. Therefore, the rise in the prices of raw materials means that manufacturing companies may consider increasing the selling price to keep profit margins intact.

Opportunities:

Precision Agriculture and Nutrient Management

• Advances in technology, such as precision agriculture techniques and nutrient sensing, offer opportunities to optimize DAP application and reduce waste. Farmers can apply DAP more precisely by using data-driven approaches, improving efficiency and reducing environmental impact. For example, soil sensors can monitor nutrient levels in real time, allowing farmers to apply DAP only when and where it is needed. This targeted application reduces fertilizer waste and helps protect the environment by minimizing nutrient runoff into water bodies. Additionally, precision agriculture techniques, such as variable-rate application, enable farmers to apply different rates of DAP to other areas of their fields based on soil fertility and crop needs. This tailored approach further enhances efficiency and reduces fertilizer waste.

The market is segmented based on Production Method, Grade, Application, and Region.

Production Method Insights:

• Wet-Process: This is the reaction of phosphate rock with sulfuric acid to give phosphoric acid, which is further neutralized with ammonia to produce DAP. This route is the most utilized because of its efficiency and low costs. Wet-process DAP is used broadly in agriculture as a fertilizer, providing high levels of phosphorus and nitrogen. Indeed, its prevalence can be explained by the cost benefits associated with this approach and the significant volume production capability.
• Dry-Process: Under this process, ammonia gas directly acts with solid phosphoric acid to yield dry granular DAP. It is used where small quantities or other exceptional grades are involved, giving better purity and complete control over the finished product. Though rare, the dry-process method finds favor in industries requiring high-purity DAP for food-grade or industrial applications.

Grade Insights:

• Industrial Grade: The industrial-grade DAP applies in many areas, including metal finishing, fire retardants, and general detergents. It exhibits a superior class of purity and usually represents specifications for nonagricultural uses. This grade is preferred in industrial applications because of its chemical stability, solubility, and ability to act as a buffering agent in various chemical reactions.
• Food Grade: The food-grade DAP is used as a food additive and as nutrition for yeasts during fermentation, which generally happens in the manufacturing process of wine and other beverages. This grade of DAP requires very stringent quality control because the component needs to be safe for human consumption. The resultant high purity and perfect observance of regulations provide usability in industries for food processing, where nutrient content supports the growth of yeast and enhances the quality of the product.
• Fertilizer Grade: Fertilizer-grade DAP is the most essential form and meets the minimum amount of phosphorus and nitrogen required in crops. It is thus widely applied in agriculture due to its high nutrient concentration, which enhances soil fertility and plant development. This type is much more important for crops that have a very high demand for phosphorus, like grains and cereals, and is preferred because of its effectiveness in soil for longer periods.

Application Insights:

• Fertilizers: DAP is a widely used phosphate fertilizer due to its high nitrogen and phosphorus content, which plays a vital role in plant development. It is highly utilized in farming to improve the soil's fertility in terms of root development and high yields. The prevalence of agriculture, especially globally, has been directly influenced by increased demands for food, especially on lands with phosphate-deficient soil.
• Food Additives: DAP is used in the food industry as a food additive. Its major uses are as a leavening agent and a yeast nutrient for bread and other fermentation processes. DAP helps stabilize dough, improving the quality of bakery products. The use of DAP in food additives is on the rise due to the high demand for baked products and beverages worldwide.
• Metal Finishing: DAP in metal finishing acts as a corrosion inhibitor and an ingredient of metal cleaning solutions. Through its phosphate coating, it provides protection against the disintegration that results from rust and wear on the surface of metals. Thus, demand for metal finishing would be sustained by its use to prolong the life span of industrial machinery, tools, and parts.
• Fire Retardants: DAP is used in the manufacture of fire retardants, especially in the forestry industry, to prevent or control the spread of wildfires. Properties contribute to fire suppression by creating a shield that prevents the diffraction of flames. Because of the higher incidences of wildfires worldwide, DAP is increasingly being demanded within fire-retardant formulations.
• Others: Other uses include DAP in water treatment, whereby it precipitates impurities, thus purifying water. Due to its highly soluble and reactive nature, DAP is also used in many chemical processes, as a buffering agent, and in soaps and detergents, making it a versatile chemical compound in many industries.

Regional Insights

• North America: The large agricultural industry in the United States and Canada makes the region a vital market for DAP. Demand for high-quality fertilizers, and North America is also one of the major producers of DAP, stands quite strong. The region follows advanced agricultural methods and technologies, which has ensured sustained demand for fertilizer-grade DAP.
• Asia Pacific: The Asia-Pacific region is the largest market for DAP due to the massive agricultural demand from countries such as China, India, and most Southeast Asian countries. Rapid population growth coupled with expansion in agricultural activities drives consumption for fertilizer-grade DAP. Besides, industrial applications are growing in this region due to expanding industries.
• Europe: As the second-largest market, Europe emphasizes sustainable agriculture. Food safety and increasing crop yields with limited arable land support fertilizer demand in the region. The industrial and food-grade DAP segments will also develop due to the high bar set by regulations in the region regarding food safety and industrial uses.
• Latin America: Countries like Brazil and Argentina are the major markets for DAP in the region, mainly because of their huge agricultural activities. Greater demand also widened due to agricultural exports, particularly for soybeans and corn, which kept on increasing. Latin America is also gradually increasing its investment in industrial-type DAP for use in different fields.
• Middle East and Africa: The Middle East and Africa are emerging markets for DAP, with growing agricultural and industrial sectors. The region is increasingly investing in improving food security by enhancing agricultural productivity, which is increasing demand for fertilizers, including DAP. There is also an industrial application that is just about taking off as the region diversifies its economies.

DAP (Diammonium Phosphate) Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Production Method, Grade, Application, and Region.

Segmentation:

By Production Method:

• Wet-Process
• Dry-Process

By Grade:

• Industrial Grade
• Food Grade
• Fertilizer Grade

By Application:

• Fertilizers
• Food Additives
• Metal Finishing
• Fire Retardants
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the DAP (Diammonium Phosphate) Market include The Mosaic Company, OCP Group, Nutrien Ltd., PhosAgro, EuroChem Group, CF Industries Holdings, Inc., Yara International ASA, Israel Chemicals Ltd. (ICL), Coromandel International Limited, Ma'aden (Saudi Arabian Mining Company), Innophos Holdings, Inc., Sinochem Group, SABIC (Saudi Basic Industries Corporation), Wengfu Group, Hubei Xingfa Chemicals Group Co., Ltd.

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• In July 2024, OCP Group announced plans to expand its DAP production capacity by constructing a new plant in Morocco. This expansion aims to meet the growing global demand for phosphate-based fertilizers, particularly in Africa and Asia, where agricultural productivity is rising. The new facility is expected to enhance OCP's position as a leading supplier of DAP worldwide.
• In May 2024, The Mosaic Company introduced new sustainability measures to reduce its carbon footprint in DAP production. This includes investing in renewable energy sources for manufacturing plants and optimizing resource usage to decrease greenhouse gas emissions. Mosaic's initiative reflects the growing industry trend toward more sustainable and environmentally friendly practices.
• In March 2024, Nutrien Ltd. completed the acquisition of a significant agricultural retailer in Brazil, expanding its distribution network for DAP and other fertilizers in Latin America. This acquisition allows Nutrien to strengthen its presence in one of the fastest-growing agricultural markets and meet the increasing demand for fertilizer products across the region.

• The Mosaic Company*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• OCP Group
• Nutrien Ltd.
• PhosAgro
• EuroChem Group
• CF Industries Holdings, Inc.
• Yara International ASA
• Israel Chemicals Ltd. (ICL)
• Coromandel International Limited
• Ma'aden (Saudi Arabian Mining Company)
• Innophos Holdings, Inc.
• Sinochem Group
• SABIC (Saudi Basic Industries Corporation)
• Wengfu Group
• Hubei Xingfa Chemicals Group Co., Ltd.

“*” marked represents similar segmentation in other categories in the respective section.

Research Objective and Assumption

• Research Objectives
• Assumptions
• Abbreviations

Market Preview

• Report Description
  • Market Definition and Scope
• Executive Summary
  • Market Snippet, By Production Method
  • Market Snippet, By Grade
  • Market Snippet, By Application
  • Market Snippet, By Region
• Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

• Market Dynamics
  • Drivers
  • Restraints
  • Market Opportunities
• Market Trends
• Product Launch
• Merger and Acquisitions
• Impact Analysis
• PEST Analysis
• Porter’s Analysis

Market Segmentation, By Production Method, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Wet-Process
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Dry-Process
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Grade, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Industrial Grade
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Food Grade
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Fertilizer Grade
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Application, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Fertilizers
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Food Additives
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Metal Finishing
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Fire Retardants
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Others
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (USD Bn), By Production Method, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Grade, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • U.S
    • Canada
• Asia Pacific
  • Market Size and Forecast (USD Bn), By Production Method, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Grade, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Europe
  • Market Size and Forecast (USD Bn), By Production Method, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Grade, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Rest of Europe
• Latin America
  • Market Size and Forecast (USD Bn), By Production Method, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Grade, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • Brazil
    • Mexico
    • Rest of Latin America
• Middle East and Africa
  • Market Size and Forecast (USD Bn), By Production Method, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Grade, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East and Africa

Competitive Landscape

• Heat Map Analysis
• Company Profiles

• The Mosaic Company
• OCP Group
• Nutrien Ltd.
• PhosAgro
• EuroChem Group
• CF Industries Holdings, Inc.
• Yara International ASA
• Israel Chemicals Ltd. (ICL)
• Coromandel International Limited
• Ma'aden (Saudi Arabian Mining Company)
• Innophos Holdings, Inc.
• Sinochem Group
• SABIC (Saudi Basic Industries Corporation)
• Wengfu Group
• Hubei Xingfa Chemicals Group Co., Ltd.

The Last Word

• Future Impact
• About Us
• Contact