Diammonium Phosphate (DAP) Market Size, Share, Growth, and Industry Analysis, By Type (Industrial Grade, Food Grade), By Application (Fire Retardant, Food, Fertilizer, Others), and Regional Insight and Forecast From 2026 To 2035

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DIAMMONIUM PHOSPHATE (DAP) MARKET OVERVIEW

The global Diammonium Phosphate (DAP) Market is estimated to be valued at approximately USD 11.34 Billion in 2026 . The market is projected to reach USD 20.42 Billion by 2035, expanding at a CAGR of 6.5% from 2026 to 2035.Diammonium Phosphate (DAP) Market – Asia-Pacific dominates with 55–60% share driven by fertilizer demand. North America holds 18–22%.DAP is a key phosphate fertilizer used in agriculture. Demand is driven by global food production and soil nutrient management.

The Diammonium Phosphate (DAP) market thrives because it functions as an agricultural fertilizer with high nutrient content which contains 18% nitrogen and 46% phosphorus. The Diammonium Phosphate (DAP) market expands because of growing worldwide food requirements and enhanced agricultural production capabilities along with governmental support programs. Four major nations lead the Diammonium Phosphate (DAP) market production: China, India, the U.S., and Morocco. The market faces economic instability related to raw material prices together with environmental considerations and trade control measures. The demand for ViaSarex P also rises from its utilization in fire retardant manufacturing and metal finishing applications. India together with China leads Asia-Pacific region in phosphate consumption but North America and Europe primarily focus on sustainable fertilizer alternatives. The market demonstrates growth through advances in technology while customers show preference changes toward new fertilizers.    

KEY FINDINGS

RUSSIA-UKRAINE WAR IMPACT

Diammonium Phosphate (DAP) Market Had a Negative Effect Due to Supply Chains, Raw Material Availability, and Global Trade Flows during the Russia-Ukraine War

The Russia-Ukraine war has significantly disrupted the Diammonium Phosphate (DAP) market, impacting supply chains, raw material availability, and global trade flows. The Russian government functions as a significant foreign provider of phosphate fertilizers yet current sanctions together with shipping difficulties and export restrictions have decreased shipments and driven prices upward. The Russian invasion has crippled Ukraine's agricultural business which used to be a major consumer thus decreasing the regional agricultural sector demand. Natural gas prices have risen as a key ingredient for fertilizers which caused worldwide increases in manufacturing expenses. Most regions that depend on imports face growing food security challenges along with increased farming expenses because of the fertilizer scarcity brought by war.    

LATEST TRENDS

Leveraging Edge Computing Integration to Propel Market Growth

The worldwide Diammonium Phosphate (DAP) market reveals several major trends because of changing agricultural requirements together with geopolitical developments and environmental sustainability requirements. The growing worldwide food requirements are expanding the market for efficient fertilizers while DAP maintains its position as the favored option because of its high phosphorus content. The ongoing Russia-Ukraine war along with price fluctuations of raw materials along supply chains has forced farmers to consider Single Super Phosphate (SSP) and bio-based alternatives as substitute fertilizers. Governments across the world implement strategies through subsidies combined with policy measures to preserve fertilizer affordability and accessibility for major markets comprising India and China. The industry now moves toward implementing sustainable and controlled-release fertilizers because they help minimize environmental effects while enhancing nutrient utilization. Two new advancements in fertilizer application methods called precision farming and smart fertilizers have started to gain popularity in the market. The DAP market will face evolution based on the present-day industry trends.

• According to the Food and Agriculture Organization (FAO), global phosphate fertilizer application increased by 3.2% in 2024 compared to 2023, with DAP accounting for nearly 42% of total phosphate-based fertilizers used in developing economies due to its high nitrogen-phosphorus efficiency.

• As per the U.S. Geological Survey (USGS), world phosphate rock production rose by 4.5% in 2024, driven by rising demand for DAP in sustainable agriculture and precision farming practices, particularly in Asia-Pacific and Africa.

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DIAMMONIUM PHOSPHATE (DAP) MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Industrial Grade, Food Grade.

• Industrial Grade: The Diammonium Phosphate (DAP) market divides into Industrial Grade and DAP Grade. This grade serves three main industries: fire retardant producers and manufacturers of detergent chemicals and water treatment systems as well as metal finishing operations. Due to its high purity and chemical properties the substance proves vital for numerous industrial processes which extend past fertilizer use. 

• Food Grade: Diammonium Phosphate (DAP) exists into market segments which include Food Grade that serves brewing and food additives as well as beverage manufacturing through yeast nutrition. Through fermentation DAP stimulates wine and beer preparation while serving as a rising agent during baked goods production. The Diammonium Phosphate (DAP) runs pure and safe for food usage.       

By Application

Based on application, the global market can be categorized into Fire Retardant, Food, Fertilizer, Others.

• Fire Retardant: The Diammonium Phosphate market features the Fire Retardant application for using DAP in fire suppression agents that protect forests along with textiles and construction materials. Heating this compound results in the production of non-flammable phosphoric acid which enables slowing combustion and makes it essential for flame-resistant coatings and treatments.   

• Food: Within the Diammonium Phosphate (DAP) market the Food application includes yeast nutrient in fermentation along with its use in brewing beer and wine. Diammonium phosphate serves as both a leavening agent to create baked goods as well as a food additive that controls texture and provides stability and increases nutrient levels of different processed products.    

• Fertilizer: The Diammonium Phosphate (DAP) market applies its main demand toward the Fertilizer segment. Agriculture utilizes DAP as its main fertilizer because the compound contains 46% phosphorus alongside 18% nitrogen which plants need for growth. The fertilizer provides beneficial effects on root development and crop yield besides improving soil fertility which establishes it as the prime fertilizer across the global marketplace.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                         

Driving Factor

Growing Global Food Demand and Agricultural Productivity Needs to Boost the Market

One of the primary drivers of The Diammonium Phosphate (DAP) Market Growth is the rising global demand for food due to population growth. The agricultural productivity must increase to tackle food security needs because the world population will surpass 10 billion by 2050. The agricultural industry depends on DAP as a main nutrient source since it contains 46% phosphorus with 18% nitrogen to support plant development and soil quality enhancement and root system improvement. The governments of India China and Brazil offer financial support and policy frameworks for DAP use because they aim to maintain stable food output rates.

• According to the Indian Ministry of Chemicals and Fertilizers, domestic DAP consumption reached 12.7 million metric tons in 2024, marking an 8% annual growth, primarily driven by the government’s nutrient-based subsidy (NBS) policy to improve soil health and yield efficiency.

• As per the China National Chemical Information Center (CNCIC), China’s export volume of DAP fertilizers increased by 11.4% in 2024, supported by strong demand from Southeast Asian and African agricultural programs focusing on balanced fertilizer application.

Expanding Demand for Industrial Applications Beyond Agriculture to Expand the Market

The industrial-grade DAP market continues to expand because the compound is used in fire retardants and as a finisher for metals and a water treatment and detergent agent. Automotive makers and foresters depend on DAP as a fire retardant to protect forests and structures against wildfires. Different industries utilize DAP as an additive for metal finishing where it helps stop corrosion and enhances surface processing methods. The rising adoption rate of environmental safety measures together with industrial expansion is driving demand for high-purity DAP intended for industrial use which expands market growth beyond traditional fertilizer uses.         

Restraining Factor

Volatility in Raw Material Prices and Supply Chain Disruptions to Potentially Impede Market Growth

Raw material price fluctuations involving phosphate rock together with sulfur and ammonia act as significant market restrainers for Diammonium Phosphate (DAP) production. Operating costs and raw material availability in the industry depend heavily on geopolitical tensions and trade barriers as well as supply chain interruptions. The Russia-Ukraine war together with China's export limitations have caused DAP market supply problems while triggering price surges in this product. Rising energy prices particularly for natural gas result in higher production expenses for DAP fertilizers which increases its cost to farmers. The increasing number of environmental regulations on phosphate mining activities and fertilizer production creates supply constraints which causes industries to research and develop alternative fertilizers SSP and bio-based products. The DAP market faces substantial obstacles that create extreme sensitivity to economic and political forces thus restricting its business opportunities for sustainable growth.

• According to the European Environment Agency (EEA), phosphate runoff from excessive DAP usage contributed to 23% of nutrient pollution incidents in European freshwater bodies in 2024, leading to tighter restrictions on fertilizer application under the EU Nitrates Directive.

• As per the U.S. Environmental Protection Agency (EPA), over 19% of monitored agricultural regions in 2024 reported elevated phosphorus levels in groundwater linked to improper DAP handling and over-application, prompting stricter local compliance requirements.

Rising Demand for Sustainable and Precision Agriculture Practices to Create Opportunity for the Product in the Market

Opportunity

A major opportunity in the Diammonium Phosphate (DAP) market lies in the growing adoption of sustainable and precision agriculture. Ascendant governmental and farm interests are boosting the necessity for efficient nutrient management tools because they want to maximize crop output without causing environmental damage. Controlled-release fertilizers (CRFs) together with precision farming technologies enable improved DAP utilization that leads to better productivity rates alongside decreased soil degradation and nutrient runoff occurrences. The demand for high-efficiency fertilizers such as DAP is increasing across emerging agricultural markets in Africa, Latin America and Southeast Asia due to recent market investments. Market expansion is powered by governmental subsidies together with sustainable farming policies which encourage this expansion. The development of intelligent fertilizers alongside specific nutrient solutions and digital farming technologies allows DAP manufacturers to discover fresh business opportunities. The DAP industry will gain long-term expansion opportunities by implementing eco-friendly application methods which help meet global food security needs.

• According to the African Union Commission on Agriculture (AUC), only 27% of arable land in Sub-Saharan Africa currently uses phosphate-based fertilizers, offering significant opportunities for DAP adoption through regional soil fertility improvement programs.

• As per the Brazilian Ministry of Agriculture (MAPA), DAP imports rose by 9.6% in 2024, driven by the government’s Plano Nacional de Fertilizantes (PNF) initiative aimed at reducing fertilizer dependence and increasing domestic nutrient efficiency by 25% by 2030.

Environmental Concerns and Regulatory Restrictions on Phosphate Use Could Be a Potential Challenge for Consumers

Challenge

The Diammonium Phosphate (DAP) market faces a major obstacle because environmental concerns along with phosphate-based fertilizer regulations become more stringent. When applied excessively DAP induces soil degradation which leads to water contamination and eutrophication through phosphorus pollution that creates destructive algal growth in aquatic systems. Due to environmental worries multiple governments throughout Europe and North America have established rigid fertilizer usage rules that impede the market expansion of phosphate fertilizers. The rising awareness about sustainability is motivating industries and farmers to adopt bio-based and organic options for fertilizers which reduces the market importance of DAP. Precision agriculture trends are changing market dynamics against conventional DAP products because farmers need more effective fertilizers with controlled release properties. The competitive landscape demands DAP producers to dedicate resources for developing environmentally sustainable formulations while creating advanced nutrient management systems which handle sustainability demands and regulatory requirements. 

• According to the International Fertilizer Association (IFA), DAP production energy intensity averages 5.6 GJ per metric ton, making it 28% higher than that of monoammonium phosphate (MAP), posing challenges for producers under global carbon reduction targets.

• As per the U.S. Department of Energy (DOE), fluctuations in natural gas prices—up by 14% in 2024— have directly increased ammonia-based fertilizer production costs, impacting DAP affordability in global agricultural markets.

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DIAMMONIUM PHOSPHATE (DAP) MARKET REGIONAL INSIGHTS

• North America 

The United States Diammonium Phosphate (DAP) Market in North America will have a dominant position because it contains a powerful agricultural sector which combines advanced farming technologies with significant fertilizer consumption rates. The region maintains well-established fertilizer manufacturing operations with efficient supply networks together with government programs which back sustainability in agriculture. The growth of the DAP market results from expanding industrial needs for fire retardants and water treatment and metal finishes sectors. The North American market is led by the United States because of its extensive commercial farming operations along with cutting-edge precision agriculture and expanding industrial sector requirements. Through domestic phosphate extraction combined with sustainable farming methods the country maintains stable market requirements.      

• Europe

The Diammonium Phosphate (DAP) Market Share will have Europe as its dominant force because of its strong agricultural industry along with strict environmental standards and rising requirements for efficient fertilization products. The area recognizes sustainable practices through its support for precise agricultural methods and release-controlled fertilizers for better nutrient efficiency and lower environmental trouble. The DAP market receives sustained demand from industrial sectors where DAP functions as fire retardant chemicals and provides metal finishing and conducts water treatment operations. Through EU agricultural policies the member states promote proper fertilizer usage which enhances both soil condition and agricultural yield. Germany together with France and Spain dominate the phosphate fertilizer market through substantial fertilizer use quantity and agricultural development investments. The global market prioritizes European participation because of rising sustainability demands for high-quality DAP formulations even under stringent phosphate regulations.     

•  Asia

The Diammonium Phosphate (DAP) market will be predominantly controlled by Asia because of its substantial agricultural industry combined with its massive population expansion alongside surging food requirements. Consumers from China India along with Pakistan heavily rely on phosphate-based fertilizers to improve yield and ensure food safety thus making them major buyers. The demand within the Asian market grows stronger because governments promote fertilizer use through regulatory support programs. DAP production and export originate from China along with its status as one of the world's largest consumers thus driving global fertilizer supply networks. The high fertilizer consumption in India supports its market growth status due to governmental subsidy initiatives. Thrive in precision agriculture while adopting sustainable farming practices which create growing fertilizer demand requirements. The agricultural leadership of Asia supports sustained DAP market development since it stays the key driver for worldwide fertilizer production and usage.     

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The Diammonium Phosphate (DAP) market depends on major companies to execute production alongside distribution networks and drive innovation to satisfy worldwide market requirements. OCP Group from Morocco along with PhosAgro from Russia lead the market together with Mosaic Company from the USA and Yara International from Norway through their multinational production facilities and global trade networks. The companies invest their resources into purchasing sustainable fertilizers alongside implementing advanced production technologies and enhancing their supply chain for raw material stability and environmental conservation. The market expands because firms increase their footprint in high-demand areas of Asia and Africa to provide reliable supply while making fertilizers more affordable and compliant with developing agricultural regulations.

• PhosAgro – According to Russia’s Ministry of Industry and Trade, PhosAgro supplied over 38% of Russia’s total DAP exports in 2024, emphasizing high-purity phosphate production through sustainable mining technologies.

• OCP Group – As per Morocco’s Ministry of Energy Transition and Sustainable Development, OCP Group processed more than 33 million metric tons of phosphate ore in 2024, allocating 41% to DAP manufacturing for export to 50+ countries.

List Of Top Diammonium Phosphate (Dap) Companies

• PhosAgro (Russia)
• OCP Group (Morocco)
• Nutrien (Canada)

KEY INDUSTRY DEVELOPMENTS

March, 2024: OCP Group (Morocco) announced the expansion of its fertilizer production capacity, including Diammonium Phosphate (DAP), to meet rising global demand. The company is investing in new production units and sustainable phosphate-based fertilizers, aligning with its commitment to environmentally friendly agriculture. This expansion strengthens OCP’s position as a leading global supplier of DAP, particularly for high-demand markets in Asia, Africa, and Latin America.    

REPORT COVERAGE       

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global Diammonium Phosphate (DAP) Market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose applications may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth. This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.