Yellow Phosphorus & Derivatives Market
Yellow Phosphorus & Derivatives Market by Derivative (Thermal Phosphoric Acid, Phosphorus Trichloride, Phosphorous Pentoxide, Red Phosphorus), End Use (Agriculture, Chemicals, Pharmaceutical, Lithium-ion Batteries), Region - Global Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The global yellow phosphorus & derivatives market is projected to grow from USD 5.65 billion in 2025 to USD 6.91 billion by 2030, at a CAGR of 4.1%. The demand in fertilizers, flame retardants, specialty chemicals, and batteries. As a key industrial chemical, yellow phosphorus is processed into thermal phosphoric acid and phosphorus pentoxide, with derivatives supporting agriculture, agrochemicals, food, plastics, and animal nutrition. Its flexibility in supply forms and broad usage in sectors such as agriculture, chemicals, energy storage, and pharmaceuticals underscore its importance. Market growth is fueled by rising food needs, phosphate fertilizer dependence, advanced material innovation, and expanding chemical and energy storage applications.
KEY TAKEAWAYS
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The yellow phosphorus & derivatives market, by derivative has been segmented into thermal phosphoric acid, phosphorus trichloride, phosphorus pentoxide, phosphorus sulfides, red phosphorus, and other derivatives. The thermal phosphoric acid segment is witnessing growth due to the increasing demand for high-purity acids in food, beverages, pharmaceuticals, and specialty chemicals, where contamination-free quality is essential. Phosphorus sulfides are gaining traction because of their importance in flame retardants and related chemical applications. The increasing focus on fire safety across industries has reinforced their role within the chemicals industry.
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The yellow phosphorus & derivatives market, by form has been segmented into solid, liquid, and slurry. These forms determine how phosphorus is handled, processed, and used in various applications. Solid yellow phosphorus is commonly used in making fertilizers, pesticides, and flame retardants because it is easy to store and transport. Liquid forms are typically used in chemical processing where controlled reactions and high reactivity are needed, while slurry forms are used in specific industrial processes where dispersing in liquid media is beneficial.
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The yellow phosphorus & derivatives market, by application has been segmented into fertilizers, pesticides, flame retardants, animal feed additives, and other applications. Yellow phosphorus is a key raw material for fertilizers and pesticides that are essential to modern farming, helping improve soil health and protect crops. It is also used in making flame retardants, where phosphorus-based compounds improve fire safety in construction materials, electronics, and consumer products.
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The yellow phosphorus & derivatives market, by end use has been segmented into agriculture, chemicals, food & beverage, pharmaceuticals, lithium-ion batteries, and other end uses. The chemicals segment is expanding as yellow phosphorus and its derivatives are increasingly required to produce intermediates used in flame retardants, water treatment solutions, and other industrial chemicals, strengthening market growth. The pharmaceuticals segment is witnessing growth because yellow phosphorus derivatives are critical for producing active pharmaceutical ingredients, specialty drugs, and intermediates, which supports increasing demand in this segment.
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The yellow phosphorus & derivatives market covers Europe, North America, Asia Pacific, and Rest of the World. The market in Asia Pacific is expanding as rapid urbanization and population growth create strong demand for fertilizers, while the region’s well-established chemical and industrial base drives the use of derivatives. Rising pharmaceutical production, increasing food processing activities, and significant investments in electric vehicles and energy storage technologies further strengthen demand for yellow phosphorus and its applications in the region.
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Hubei Xingfa Chemicals Group Co., Ltd. (China), NDFZ LLP (Kazakhstan), Sichuan Chuantou Chemical Industry Group Co., Ltd. (China), Bayer AG (Germany), and JIANGSU CHENGXING PHOSPHCHEMICALS CO., LTD. (China) are the leading manufacturers of yellow phosphorus & derivatives. They focus on expanding their geographic reach to meet consumer demand. These companies have adopted acquisitions and agreements to acquire new projects, strengthen their product & service portfolios, and tap into untapped markets.
The global yellow phosphorus & derivatives market is projected to witness steady growth during the forecast period, supported by strong demand in fertilizers, flame retardants, specialty chemicals, and battery applications. As a critical industrial chemical, yellow phosphorus is converted into thermal phosphoric acid and phosphorus pentoxide, with its derivatives serving key roles in agriculture, agrochemicals, food processing, plastics, and animal nutrition. Its adaptability across supply forms and widespread use in agriculture, chemicals, energy storage, and pharmaceuticals highlight its significance. Growth is further driven by increasing global food requirements, reliance on phosphate-based fertilizers, innovations in advanced materials, and the expanding applications of chemicals and energy storage solutions.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The impact on consumers' business emerges from customer trends or disruptions. The yellow phosphorus & derivatives market is undergoing rapid expansion, driven by the rising industrialization and demand for yellow phosphorus derivatives in various applications. The growth of end-use industries, such as agriculture, chemicals, food & beverage, pharmaceuticals, and lithium-ion batteries, contributes to the increasing demand for yellow phosphorus & derivatives. At the same time, the demand for flame retardants and plastic additives, and their rising demand in the food & beverage industry, is further reinforcing market growth.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Growth in demand from the EV battery industry
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Constant demand for phosphorus-based agrochemicals and intermediates
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Stringent environmental and safety regulations regarding hazardous materials
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Complex handling requirements and health and safety risks
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Growing demand for flame retardants and plastic additives
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Rising demand in food & beverage industry
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Supply chain reliability due to geopolitical uncertainties
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Volatility in raw material prices
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Sustained demand for phosphorus-based agrochemicals and intermediates
The persistent demand for phosphorus agrochemicals, coupled with the increasing utilization of yellow phosphorus in advanced battery technologies, represents two of the most significant drivers shaping this market. Phosphorus derivatives, including thermal phosphoric acid, phosphorus trichloride, and phosphorus sulfides, serve as vital intermediates for fertilizers and pesticides, which remain indispensable in contemporary agriculture. As the global population continues to grow and the pressing need to enhance crop yields persists, the demand for phosphate fertilizers and crop protection agents is not only stable but is experiencing a consistent upward trend. This reliance on yellow phosphorus-based agrochemicals ensures a sustained demand for yellow phosphorus as a fundamental feedstock in the agricultural sector.
Restraints: Stringent environmental and safety regulations
The expansion of the yellow phosphorus and its derivatives market is considerably hindered by stringent environmental and safety regulations, as well as the complex handling requirements associated with this substance. Yellow phosphorus is reactive, flammable, and toxic; therefore, its production, transportation, storage, and usage must be meticulously regulated in accordance with health and safety standards. Regulatory authorities impose rigorous guidelines concerning emissions, waste management, and workplace safety, as any failure in handling can lead to substantial environmental pollution and pose significant risks to human lives. Complying with these regulatory mandates often necessitates substantial investments in specialized refrigeration, advanced warehousing, protective packaging, and real-time monitoring systems, all of which contribute to the overall operational costs for producers.
Opportunity: Growth in demand for flame retardants
The market for yellow phosphorus & derivatives is experiencing significant growth opportunities that are largely being driven by increasing demand for flame retardants. Flame retardants based on yellow phosphorus, and more specifically red phosphorus, are growing in popularity as industries seek safer and more environmentally friendly alternatives to halogenated flame retardants. The demand for fire safety products translates into stable and consistent consumption of yellow phosphorus-based flame retardants, driven by increasing consumption of products and components used in electronics, automotive parts, textiles, and building materials. These opportunities reflect a shift in demand towards more specialized high-margin applications and industries, positioning the yellow phosphorus & derivatives sector to take full advantage of these growing needs in the long term.
Challenge: Supply chain reliability due to geopolitical uncertainty
The major challenge in the growth of the yellow phosphorus & derivatives market is concern over supply chain reliability, mainly due to geopolitical uncertainties. A large share of global yellow phosphorus production is centered in China, making many countries highly reliant on the Chinese supply. This dependence creates vulnerability, as any disruption in China’s production or export policies can cause shortages and price swings worldwide. Ongoing tariff disputes, especially between China and the US, further complicate trade flows, raising costs and creating uncertainty for downstream industries. Additionally, escalating geopolitical tensions between major economies have increased the risks of supply interruptions, sanctions, or trade restrictions. Such instability hampers smooth cross-border trade and discourages long-term investments in phosphorus-dependent sectors. With limited diversification of supply sources outside China, the market remains susceptible to geopolitical disruptions. These factors collectively pose a serious challenge to the stability and sustained growth of the yellow phosphorus & derivatives market, as buyers and industries face heightened risks of unreliable supply.
Yellow Phosphorus & Derivatives Market: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Production of yellow phosphorus and derivatives for fertilizers, food additives, and electronics | Integrated supply chain, high export quality, support for agriculture and electronic sectors |
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Large-scale yellow phosphorus supply for industrial chemicals, flame retardants, and batteries | Secures reliable feedstock for multiple critical industries, energy-efficient operations |
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Manufacture of agrochemical and industrial phosphorus intermediates using yellow phosphorus | Global reach, support for crop yield and protection, reliable input for industrial chemicals |
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Yellow phosphorus is used in agrochemicals, detergents, and flame-retardant additives | Focus on green manufacturing, broad customer base, industry certifications |
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Production of yellow phosphorus and derivatives for fertilizers, flame retardants, food additives, and industrial chemicals | Stable supply from integrated mining and production | Cost competitive due to low energy/raw material sourcing | Diverse high-quality product portfolio supporting multiple sectors |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The yellow phosphorus & derivatives market ecosystem consists of raw material suppliers (OCP, Nutries, Devdhar Chemicals), manufacturers (Bayer, Yunphos, DGC), and end users (FOSFA, Nippon Chemical Industrial). Yellow phosphorus is primarily processed into derivatives such as thermal phosphoric acid, phosphorus trichloride, and phosphorus pentoxide, which serve as critical building blocks for downstream industries. These derivatives are used to produce fertilizers that boost agricultural productivity, flame retardants for plastics and electronics, specialty chemicals for industrial processes, and additives in animal nutrition and food processing. Manufacturers innovate to deliver advanced phosphorus derivatives suited for a variety of applications. Collaboration throughout the value chain is crucial for maintaining quality, ensuring regulatory compliance, and supporting continuous market growth in agriculture, electronics, chemicals, and specialty sectors.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Yellow Phosphorus Market, by Derivative
Thermal phosphoric acid is projected to be the largest derivative of yellow phosphorus due to its importance in high-demand industries. As a key intermediate for phosphate-based fertilizers, it plays a crucial role in maintaining agricultural production amidst rising global populations and food security concerns. The demand for fertilizers will drive persistent consumption of thermal phosphoric acid. Additionally, it is widely used in the food and beverage industry as an acidifier and preservative, benefiting from the growth in processed food consumption. The industrial sector relies on it for water processing, metal cleaning, and specialty chemicals. Moreover, thermal phosphoric acid is gaining traction in energy storage and lithium-ion battery technologies, making it one of the fastest-growing derivatives in the market.
Yellow Phosphorus Market, by End Use
The lithium-ion batteries segment is projected to witness the highest growth in the yellow phosphorus & derivatives market, driven by the global shift toward clean energy and electric mobility. A key derivative, thermal phosphoric acid, is vital for producing lithium iron phosphate (LFP) cathode materials, favored for their safety, thermal stability, long lifespan, and affordability. This demand propels the electric vehicle industry forward, while governments and manufacturers aim for broader electrification and renewable integration. Beyond electric vehicles, lithium-ion batteries are used in residential energy storage, portable electronics, and industrial applications, further expanding demand. Investments in gigafactories and energy infrastructure will enhance this trend, making lithium-ion batteries a crucial player in the yellow phosphorus market and the transition away from fossil fuels.
REGION
Asia Pacific is to be fastest-growing region in The yellow phosphorus and derivatives market during forecast period
The yellow phosphorus and derivatives market in Asia Pacific is projected to grow at the highest CAGR due to its strong industrial base, booming agriculture sector, and rapid technological advancements. The region is a key hub for phosphate-based fertilizers, vital for meeting the food demands of a large population. This results in steady demand for yellow phosphorus and its derivatives. Additionally, Asia Pacific is pivotal in the electric vehicle revolution, with China leading in lithium-ion battery production and gigafactory investments. The market benefits from both traditional high-volume applications and emerging technologies, including flame retardants and specialty chemicals, supported by strong government initiatives. Asia Pacific represents the fastest-growing market for yellow phosphorus and its derivatives.
Yellow Phosphorus & Derivatives Market: COMPANY EVALUATION MATRIX
In the yellow phosphorus & derivatives market matrix, Hubei Xingfa stands out as a star performer, securing its competitive edge through strong vertical integration in the yellow phosphorus market. The company’s operations cover the entire value chain, from raw material mining to the final production of yellow phosphorus. This self-sufficient approach offers significant benefits in controlling costs, ensuring a steady supply of raw materials, and maintaining high product quality. Yuntianhua Co., Ltd., identified as an emerging leader, specializes in phosphate-based chemical manufacturing and resource development. Its main business areas include fertilizer production, phosphate mining and beneficiation, fine chemicals, new energy materials, commerce and logistics, and international trade. The company also produces key downstream products, such as yellow phosphorus, 100,000 tons per year.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
MARKET SCOPE
| REPORT METRIC | DETAILS |
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| Market Size, 2024 (Value) | USD 5.07 Billion |
| Market Forecast, 2030 (value) | USD 6.91 Billion |
| Growth Rate | CAGR of 4.1% from 2025 to 2030 |
| Years Considered | 2020–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Million/Billion), Volume (Kiloton) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Regions Covered | North America, Asia Pacific, Europe, Rest of the World |
WHAT IS IN IT FOR YOU: Yellow Phosphorus & Derivatives Market REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
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| Leading Fertilizer Producer |
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| Industrial Chemical Maker |
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RECENT DEVELOPMENTS
- July 2023 : Duc Giang Chemicals Group Joint Stock Company acquired Phosphorus 6 Joint Stock Company. Duc Giang Chemicals said that the acquisition of Phosphorus 6 would create a deep processing product chain for 3PO4 products, Sodium Tripoly Phosphate - STPP (Na5P3O10), while also exporting Phosphorus and increasing revenue for the group.
- April 2023 : Duc Giang Chemicals Group Joint Stock Company agreed to acquire Phosphorus 6 Joint Stock Company on April 12, 2023. The board of directors of Duc Giang Chemicals Group Joint Stock Company approved the transaction, expected to be completed in the second quarter of 2023. Phosphorus 6 Joint Stock Company’s facilities included a yellow phosphorus furnace with a capacity of 9,800 tons/year.
Table of Contents
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Methodology
The research encompassed four primary actions in assessing the present market size of yellow phosphorus & derivatives. Comprehensive secondary research was conducted to gather information on the market, the peer market, and the parent market. The subsequent stage involved corroborating these findings, assumptions, and dimensions with industry specialists throughout the yellow phosphorus & derivatives value chain via primary research. The total market size is ascertained with both top-down and bottom-up methodologies. Subsequently, market segmentation analysis and data triangulation were employed to ascertain the dimensions of the market segments and sub-segments.
Secondary Research
The research approach employed to assess and project the access control market initiates with the collection of revenue data from prominent suppliers using secondary research. In the course of the secondary research, many secondary sources, such as Hoovers, Bloomberg BusinessWeek, Factiva, the World Bank, and industry magazines, were utilized to identify and compile information for this study. The secondary sources comprised annual reports, press releases, and investor presentations from corporations; white papers; accredited periodicals; writings by esteemed authors; announcements from regulatory agencies; trade directories; and databases. Vendor offerings have been considered to ascertain market segmentation.
Primary Research
The yellow phosphorus & derivatives market comprises several stakeholders, such as manufacturers, suppliers, traders, associations, and regulatory organizations, in the supply chain. The demand side of this market is characterized by the development of fertilizers, chemical manufacturing industry, fertilizers, flame retardants, animal feed additives, and other applications. Advancements in technology characterize the supply side. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of interviews with experts:
The following is a breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the yellow phosphorus & derivatives market. These methods were also used extensively to determine the size of various sub-segments in the market. The research methodology used to estimate the market size included the following:
- The key players were identified through extensive primary and secondary research.
- The value chain and market size of the yellow phosphorus & derivatives market, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
Global Yellow Phosphorus & Derivatives Market Size: Bottom Up and Top Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakdown procedures were employed, wherever applicable. The market size was calculated globally by summing up the country-level and regional-level data.
Market Definition
Yellow phosphorus is a highly reactive allotrope of elemental phosphorus, primarily produced through the thermal reduction of phosphate rock in electric arc furnaces. It serves as a fundamental raw material for a broad range of derivatives. These include thermal phosphoric acid, which is essential in fertilizers, food processing, and industrial chemicals; phosphorus trichloride, which is widely applied in pesticides, flame retardants, and plastic additives; phosphorus pentoxide, which functions as a strong dehydrating agent and is used in the production of polyphosphoric acids; phosphorus sulfides, which find use in matches, pyrotechnics, and lubricant additives; and red phosphorus, which is valued in flame retardants, safety matches, and electronic components. Yellow phosphorus is supplied in different forms such as solid, liquid, and slurry, allowing it to be adapted to various handling and processing needs. Its applications extend across fertilizers, pesticides, flame retardants, animal feed additives, and other specialized uses. The demand for yellow phosphorus is supported by a wide set of end-use industries, including agriculture, chemicals, food and beverage, pharmaceuticals, lithium-ion batteries, and other industrial sectors. This makes yellow phosphorus a cornerstone intermediate that underpins diverse downstream chemical processes and industrial value chains.
Stakeholders
- Yellow Phosphorus & Derivatives Manufacturers
- Yellow Phosphorus & Derivatives Suppliers
- Yellow Phosphorus & Derivatives Traders, Distributors, and Suppliers
- Investment Banks and Private Equity Firms
- Raw Material Suppliers
- Government and Research Organizations
- Consulting Companies/Consultants in the Chemicals and Materials Sectors
- Industry Associations
- Contract Manufacturing Organizations (CMOs)
- NGOs, Governments, Investment Banks, Venture Capitalists, and Private Equity Firms
Report Objectives
- To define, describe, and forecast the size of the global yellow phosphorus & derivatives market in terms of volume and value
- To provide detailed information regarding the key factors, such as drivers, restraints, opportunities, and industry-specific challenges, influencing the growth of the global yellow phosphorus & derivatives market
- To analyze and forecast the size of various segments (derivative and end-use) of the yellow phosphorus & derivatives market based on five major regions—North America, Asia Pacific, Europe, CIS Countries, and Rest of World—along with key countries in each of these regions
- To analyze recent developments and competitive strategies, such as agreements, partnerships, product launches, and joint ventures, to draw the competitive landscape of the market
- To strategically profile the key players in the market and comprehensively analyze their core competencies
Key Questions Addressed by the Report
What is the critical driver for the yellow phosphorus & derivatives market?
The growth of the yellow phosphorus & derivatives market is attributed to sustained demand for phosphorus-based agrochemicals and intermediates.
Which region is expected to register the highest CAGR in the yellow phosphorus & derivatives market during the forecast period?
The yellow phosphorus & derivatives market in Asia Pacific is projected to register the highest CAGR during the forecast period.
What is the primary end-use industry of yellow phosphorus?
Agriculture is the major end-use industry for yellow phosphorus.
Who are the major players in the yellow phosphorus & derivatives market?
The key players include Hubei Xingfa Chemicals Group Co., Ltd. (China), Kazphosphate LLP (Kazakhstan), Sichuan Chuantou Chemical Industry Group Co., Ltd. (China), Bayer AG (Germany), and Jiangsu Chengxing Phosph-Chemicals Co., Ltd. (China).
What is expected to be the CAGR of the yellow phosphorus & derivatives market between 2025 and 2030?
The market is expected to record a CAGR of 4.1% between 2025 and 2030.
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