Phosphoric Acid Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Phosphoric Acid market is segmented by End-user Industry (Fertilizer, Food and Beverages, Chemicals, Medicine, Metallurgy, and Other End-user Industries) and Geography (Asia-Pacific, North America, Europe, South America, and the Middle East and Africa). The market size and forecasts for phosphoric acid are provided in terms of volume (tons) for all the above segments.

Phosphoric Acid Market Size

Phosphoric Acid Market Summary
Study Period 2019 - 2029
Market Volume (2024) 92.98 Million tons
Market Volume (2029) 114.39 Million tons
CAGR (2024 - 2029) 4.23 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific

Major Players

Phosphoric Acid Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Phosphoric Acid Market Analysis

The Phosphoric Acid Market size is estimated at 92.98 Million tons in 2024, and is expected to reach 114.39 Million tons by 2029, growing at a CAGR of 4.23% during the forecast period (2024-2029).

The market was negatively impacted by the COVID-19 pandemic as it disrupted the main supply and manufacturing lines, leading to acute shortages. The main use of phosphoric acid is for producing fertilizers. The pandemic also led to a decrease in crop production, accompanied by a shortage of food and other essentials among people. After the pandemic, the market picked up speed, and the demand grew as major industries got back to work.

  • Since most phosphoric acid is used to make fertilizer, the rising demand from the fertilizer industry and increasing usage in the food and beverage industry are expected to drive market demand.
  • Health hazards caused by phosphoric acid and the high price of fertilizers are expected to hinder the market's growth.
  • Nevertheless, the recovery of rare earth elements from phosphoric acid and the commercialization of chiral phosphoric acid as a catalyst are expected to offer lucrative opportunities to the market.
  • Asia-Pacific accounted for the highest market share, and the region is likely to dominate the market during the forecast period.

Phosphoric Acid Market Trends

Fertilizer Industry to Dominate the Market

  • Phosphoric acid is basically an intermediate used 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 equipment from lime precipitation. It is a rich source of phosphorus for plants.
  • Phosphorus fertilizers are extremely important for the plant and provide better activities than organic fertilizers. Phosphorus accelerates the maturation of the plant and also provides the development of the roots. This is particularly important for dry areas.
  • According to the Essential Chemical Industry, annually, more than 43 million metric tons of phosphoric acid are produced worldwide, of which about 90% are used to make fertilizers.
  • According to the USDA Foreign Agricultural Service, China, Russia, the United States, India, and Canada produce more than 60% of the world’s fertilizer nutrients combined. Russia and the United States each produce less than 10% of global fertilizers, while China produces approximately 25%.
  • In September 2022, the US government announced programs worth USD 500 million to boost domestic fertilizer production, and the European Union is being urged to take similar action. Canada, already the world's largest supplier of potash fertilizers, announced in November 2022 that it will boost its fertilizer exports by 20% annually, filling a gap left by blocked shipments from other countries.
  • According to the International Fertilizer Association (IFA), China is the largest user of fertilizer, consuming nearly one-quarter of global fertilizer supplies. In 2022, a total of 55.7 million tons of NPK fertilizer was produced in China. This was 55.44 million tons in 2021 and 54.96 million tons in 2020.
  • Therefore, considering the growth trends and production of fertilizers in different regions worldwide, the fertilizer industry is likely to dominate the market, which, in turn, is expected to enhance the demand for phosphoric acid during the forecast period.
Phosphoric Acid Market: NPK Fertilizer Consumption Change (%), Global, 2019 - 2027

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the phosphoric acid market in 2022 with a considerable volume share, and it is expected to maintain its dominance during the forecast period.
  • This is due to China being the world's largest producer and consumer of fertilizer. In countries like China, India, and Southeast Asian nations, the demand for phosphoric acid has been increasing continuously.
  • China accounts for approximately 7% of the overall agricultural acreage globally, thus feeding 22% of the world’s population. The country is the largest producer of various crops, including rice, cotton, potatoes, and others. Hence, the demand for phosphoric acid, which is used in fertilizers, is rapidly increasing owing to the large-scale agricultural activities in the country.
  • Phosphoric acid is also used extensively in the production of lithium-iron-phosphate batteries, and China is the dominant country in this field. In 2022, 44% of the total electric vehicles sold in China used LFP batteries, followed by 6% in Europe and 3% in the United States and Canada.
  • India, another large fertilizer producer, is the second largest user. Much of India’s usage is fueled by the Indian government’s heavy subsidization of fertilizers. In the financial year 2022, over 42 million metric tons of fertilizers were produced in India. Fertilizer production in India peaked in the financial year 2020 at over 46 million metric tons. During the last few years, there has been a favorable policy facilitating investments in the public, cooperative, and private sectors.
  • Phosphoric acid is also used in the food and beverage industries to acidify foods and beverages, such as various colas and jams, providing a tangy or sour taste. According to the US Department of Agriculture (USDA), the Indian food industry ranks as the third-largest food industry globally. The industry has been experiencing steady growth over the past several years, with India anticipated to become the largest food producer in the world. The country’s food and grocery (F&G) retail market is projected to surpass USD 850 billion in sales by 2025.
  • Hence, the reasons mentioned above are likely to fuel the growth of the phosphoric acid market in Asia-Pacific over the forecast period.
Phosphoric Acid Market - Growth Rate by Region

Phosphoric Acid Industry Overview

The phosphoric acid market is partially consolidated, with several companies operating on both global and regional levels. Some of the major players in the market (not in any particular order) include OCP Group, Mosaic, PhosAgro Group of Companies, Nutrien Ltd, and IFFCO, among others.

Phosphoric Acid Market Leaders

  1. OCP Group

  2. IFFCO

  3. Mosaic

  4. Nutrien Ltd

  5. PhosAgro Group of Companies

*Disclaimer: Major Players sorted in no particular order

Phosphoric Acid Market Concentration
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Phosphoric Acid Market News

  • May 2023: The OCP Group secured a 50% ownership share in GlobalFeed SL. This strategic acquisition enabled OCP to broaden its presence in the animal nutrition industry and enhance customers' accessibility to the company's phosphoric acid products.
  • July 2022: Nutrien Ltd acquired Brazilian company Casa do Adubo SA (Casa do Adubo). This acquisition included the transaction of 39 retail stores and ten distribution centers, which allows Nutrien to expand its reach to customers and is expected to generate a sales revenue of USD 400 million.
  • February 2022: EuroChem Group completed the acquisition of the Serra do Salitre phosphate project and took over the advanced-stage mine and plant in Minas Gerais. This complex comprises an open-pit phosphate mine with over 350 million metric tons (MMT) of reserves and a plant with a production capacity of 1 MMT of fertilizers per year.

Phosphoric Acid Market Report - Table of Contents

  1. 1. Introduction

    1. 1.1 Study Assumptions

    2. 1.2 Scope of Study

  2. 2. Research Methodology

  3. 3. Executive Summary

  4. 4. Market Dynamics

    1. 4.1 Market Drivers

      1. 4.1.1 High Demand for Fertilizer Industry

      2. 4.1.2 Increasing Usage in the Food and Beverage Industry

    2. 4.2 Market Restraints

      1. 4.2.1 Health Hazards Caused by Phosphoric Acid

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Industry Attractiveness - Porters Five Forces Analysis

      1. 4.4.1 Bargaining Power of Supplier

      2. 4.4.2 Bargaining Power of Buyer

      3. 4.4.3 Threat of New Entrant

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Price Trend Analysis of Phosphoric Acid (2018-2023)

    6. 4.6 Technological Snapshot

  5. 5. Market Segmentation (Market Size in Volume)

    1. 5.1 By End-user Industry

      1. 5.1.1 Fertilizer

      2. 5.1.2 Food and Beverages

      3. 5.1.3 Chemicals

      4. 5.1.4 Medicine

      5. 5.1.5 Metallurgy

      6. 5.1.6 Other End-user Industries

    2. 5.2 By Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Mexico

        3. 5.2.2.3 Canada

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle East and Africa

  6. 6. Competitive Landscape

    1. 6.1 Merger and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Aditya Birla Chemicals

      2. 6.4.2 Agropolychim

      3. 6.4.3 EuroChem Group

      4. 6.4.4 ICL

      5. 6.4.5 IFFCO

      6. 6.4.6 Innophos

      7. 6.4.7 J.R. Simplot Company

      8. 6.4.8 Mosaic

      9. 6.4.9 Nutrien Ltd

      10. 6.4.10 Phosagro

      11. 6.4.11 Sterlite Copper (A Unit of Vedanta Limited)

    5. *List Not Exhaustive
  7. 7. Market Opportunities and Future Trends

    1. 7.1 Recovery of Rare Earth Elements from Phosphoric Acid

    2. 7.2 Commercialization of Chiral Phosporic Acid as a Catalyst

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Phosphoric Acid Industry Segmentation

Phosphoric acid is a colorless, odorless phosphorus-containing solid, an inorganic compound with the chemical formula H3PO4. It is a component of fertilizers, detergents, and many household cleaning products.

The phosphoric acid market is segmented by end-user industry and geography. By end-user industry the market is segmented into Fertilizer, Food and Beverage, Chemicals, Medicine, Metallurgy, and Other End-user Industries. The report also covers the market size and forecasts for the market in 15 countries across the globe. The report offers market size and forecasts for the Phosphoric Acid market in volume (tons) for all the above segments.

By End-user Industry
Fertilizer
Food and Beverages
Chemicals
Medicine
Metallurgy
Other End-user Industries
By Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Mexico
Canada
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Phosphoric Acid Market Research FAQs

The Phosphoric Acid Market size is expected to reach 92.98 million tons in 2024 and grow at a CAGR of 4.23% to reach 114.39 million tons by 2029.

In 2024, the Phosphoric Acid Market size is expected to reach 92.98 million tons.

OCP Group, IFFCO, Mosaic, Nutrien Ltd and PhosAgro Group of Companies are the major companies operating in the Phosphoric Acid Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Phosphoric Acid Market.

In 2023, the Phosphoric Acid Market size was estimated at 89.21 million tons. The report covers the Phosphoric Acid Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Phosphoric Acid Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The elements driving the growth of the Phosphoric Acid market are a) Increased phosphate fertilizer output b) Increasing usage in the food and beverage industry c) Commercialization of chiral phosphoric acid as a catalyst

Based on the end-use Fertilizer segment holds the largest share of the Phosphoric Acid Market.

Phosphoric Acid Industry Report

The global phosphoric acid market is witnessing significant growth, driven by the increasing demand for chemical fertilizers derived from phosphoric acid, spurred by the global population rise. As a key component in phosphoric acid fertilizers, it plays a vital role in agriculture, while its versatility is showcased in applications ranging from food and beverage acidification to water treatment and metal polishing. The market sees robust demand in segments like the wet process for phosphoric acid production and industrial-grade phosphoric acid, particularly in the Asia-Pacific region due to its extensive agricultural activities. Despite challenges such as environmental concerns and the diminishing supply of phosphate, opportunities for market expansion exist through the recovery of rare earth elements and the commercialization of chiral phosphoric acid as a catalyst. The market landscape is marked by key players adopting strategic initiatives like new product development and mergers to boost their position, especially in the phosphoric acid fertilizer sector. For a comprehensive market forecast outlook and historical overview, access industry analysis and statistics on phosphoric acid market share, size, and revenue growth rate provided by Mordor Intelligence™ Industry Reports, available as a free report PDF download.

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Phosphoric Acid Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)