Global Phosphoric Acid Market Report, Industry Analysis and Forecast to 2029

Phosphoric Acid   Market Overview:

A colorless, odorless, water-soluble mineral acid with the formula H3PO4. Phosphoric acid is a weak acid and is used in commercial soft drinks as an acidulant. It also has many industrial uses, including the production of phosphate fertilizers. Phosphoric Acid Market is estimated to reach $65.30 billion by 2030, growing at a CAGR of 4.3% from 2023-2030. There are several regulations by different government regulatory bodies for the wide use and production of phosphoric acid. Augmenting usage of phosphoric acid in medical applications is fostering the growth of the global phosphoric acid market. Besides, use of phosphoric acid in food and beverages industry as an additive is also propelling the market demand.

Significant innovation and new product launches have propelled the demand of the market. However, volatility in prices of raw material and stringent government regulations for phosphoric acid have decreased the demand of the market.

Market Snapshot: 

Phosphoric Acid Market - Report Coverage:

The “Phosphoric Acid Market Report - Forecast (2023-2030)” by Marketlook Consulting, covers an in-depth analysis of the following segments in the Phosphoric Acid   Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic has had a significant impact on the global phosphoric acid market. Phosphoric acid is primarily used in the production of fertilizers, which are essential for agriculture. With the pandemic disrupting global supply chains and causing economic slowdowns, the demand for fertilizers has been impacted. The pandemic also caused a disruption in global trade, which affected the supply of raw materials needed for the production of phosphoric acid. This, coupled with the lockdowns and restrictions on movement, led to a decline in production and slowed down the growth of the phosphoric acid market.
• Furthermore, the pandemic also impacted the demand for phosphoric acid in other industries such as food and beverages, pharmaceuticals, and water treatment. The closure of restaurants, hotels, and other food service establishments led to a decline in the demand for soft drinks and other beverages that use phosphoric acid as an ingredient.

Key Takeaways:

Asia Pacific Region Dominates the Market

Geographically, in the global Phosphoric Acid market share, Asia Pacific is analyzed to grow with the highest CAGR of XX% during the forecast period 2023-2030. Asia Pacific is anticipated to dominate the market for Phosphoric Acid as this region is the largest producer and consumer of fertilizer in China. In countries like China, India, and South-East Asian nations, the demand for phosphoric acid has been increasing continuously. China accounted for more than 40% of the region’s share. The region is a major fertilizer production center. During the forecast period, the growth in the end use industries would boost the demand in China.

Fertilizer Segment to Register the Fastest Growth

In the Phosphoric Acid Market analysis, based on the product type the fertilizer segment is estimated to grow with the highest CAGR of XX% during the forecast period. Phosphoric acid is basically an intermediate to produce fertilizers. Fertilizers like Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP) and Trisodium Phosphate (TSP) are produced from phosphoric acid. Phosphoric acid forms a key component for many fertilizers as it is a multi-function agent, used for plant nutrition, pH adjustment and cleansing irrigation kit from lime precipitation. It is a rich source of phosphorus for plants.

Wet Segment is Witnessing a High Demand

Wet Segment captured the highest market share in 2022 owing to its less cost of wet process as heating and insulation are not required in storage or during shipment. Furthermore, impurities in wet-process acid promote super cooling and minimize the tendency for crystallization.

Industrial Grade Are Notably Driving Market Growth

Industrial-grade phosphoric acid is leading in this segment outpacing food and agricultural segment. Phosphoric acid is used in various industries, such as food additives, fertilizers, animal feed, detergents (liquid laundry detergent), etc. And it is produced by the wet process or thermal process. Industrial grade phosphoric acid contains less than 85% phosphorus pentoxide and has a lower concentration of impurities than reagent grade phosphoric acid.

Price Volatility is the Major Restraining Factor for the Market

The price of phosphoric acid is subject to fluctuations due to changes in supply and demand, as well as the cost of raw materials and energy. This can make it difficult for manufacturers to predict pricing and may lead to profit margins being squeezed.

Phosphoric Acid   Market Share (%) By Region, 2022

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Phosphoric Acid   Market. The top 10 companies in this industry are listed below:

1. Solvay S.A.
2. Arkema
3. The Mosaic Company
4. EuroChem Group
5. Nutrien Ltd.
6. Lanxess
7. Yara
8. Clariant
9. CF Holdings
10. OCP Group S.A.

Scope of Report: