Phosphate Industry Procurement Outlook
Phosphate is one of the most common elements mined primarily from phosphate rock. It is a chemical derivative of phosphoric acid and the majority of its global production is absorbed by fertilizer manufacturing industries in the booming agricultural sector. One metric ton of phosphate rock can produce more than 100 metric tons of phosphate granules. Phosphates can be segmented into the following categories:
Orthophosphates: These are found naturally in the environment and in water, but are also artificially added to fertilizers. In swimming pools, orthophosphates are the most prevalent of all types of phosphates.
Condensed phosphates: This type of phosphates contain salts, metals or minerals like calcium.
Organophosphates: These are organic phosphates (esters of phosphoric acid). Organophosphates are a key ingredient in more than 50% of all pesticides.
Inorganic phosphates: Inorganic phosphates are majorly deals with water treatment businesses.
Phosphate Industry Demand Outlook
The global phosphate market was valued at USD 72 billion in 2020 and it is expected to grow at a CAGR of 2% from 2020 to 2027 majorly due to the rising demand for ammonium phosphate, from the manufacturing market. APAC is leading the global phosphate market with more than 40% share followed by Europe and North America. As agriculture is a core constituent of the economy in APAC countries like India China, these countries are responsible for generating high demand for phosphate and related products for the last five years. For instance, India is one of the leading countries, with more than 25% of world imports for natural calcium phosphates and natural aluminum calcium phosphates. In terms of applications, the phosphate fertilizer segment is expected to have the highest growth rate in APAC countries due to increase in agricultural spending and growing demand.
Phosphate Industry Cost Drivers
Phosphate rock is the most important feedstock of phosphate production. It is the major cost driver of overall production cost. The cost of phosphate rock accounted for more than 50% of the one-unit phosphate production. In the last two years, the price of phosphate rock fluctuates significantly majorly due to supply-demand disruption during Covid-19. The price of phosphate rock has witnessed a gradual decrease over the last ten years. However, it is expected to increase moderately during the forecast period.
Grab your copy, or request for a free sample of the “Phosphate Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Add-on Services provided by Grand View Research Pipeline:
Should Cost Analysis – A should cost model is an all-important technique for deriving and forecasting the actual cost of a product/service over the forecasted period. It serves as a competitive edge for supplier negotiations by determining the actual price for the cost components. The outcome helps procurement leaders to understand detailed fact-based cost drivers for the category.
Rate Benchmarking – Every organization and its procurement team wants to negotiate the best deal while procuring a set of products or services. Rate benchmarking uses price/cost comparison of more than one set of products/services to analyze the most efficient combination that will help the procurement team to get the optimum rate.
Salary Benchmarking – Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.
Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
Sodium cyanide Industry Procurement Intelligence – The global sodium cyanide market was valued at ~1 million tons in 2020 and it is expected to grow at a CAGR of 6% from 2020 to 2027 owing to increasing demand from the mining industry.
Refrigerated Transport Industry Procurement Intelligence – The global refrigerated transport market was valued at USD 16 billion in 2020 and it is expected to grow at a CAGR of 6% from 2020 to 2027 due to the increasing trade of perishable commodities across the globe.
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