Phosphoric Acid Market - By Concentration (75%, 85%, 92%), By Grade (Technical, Food), By Application (Fertilizer, Metal Treatment, Catalyst, Food Additive), By End-User (Energy, Construction, Beverage, Processed foods, Dairy products), Forecast, 2023 – 2032

Phosphoric Acid Market Size

Phosphoric Acid Market size reached USD 58 billion in 2022 and is anticipated to witness around 5.5% CAGR between 2023 and 2032, on account of the high intake of cheese and dairy products.
 

Phosphoric acid is utilized as a key ingredient in many foods and beverages. The dairy sector gained significant consumer interest, especially during the coronavirus pandemic. The development of phosphoric acid for dairy products including cheese is therefore likely to rise, as the consumption of these products to control pH levels increases. Furthermore, the growing awareness about the role of food additives in preservation will escalate product usage in the manufacturing of packaged foods and cold drinks.
 

Phosphoric acid can prevent the growth of bacteria and mold in sugary foods, thereby increasing their shelf life and improving affordability. The mounting consumption of convenience snacks and beverages will thus create lucrative growth prospects for phosphoric acid producers. However, regulatory pressure and environmental concerns may limit product adoption to some extent. Lawmakers have been implementing regulations for plant and product certifications, fertilizers, and tailing management.
 

Phosphoric Acid Market Analysis

Phosphoric acid market value from the technical grade segment exceeds USD 2 billion by 2032, given the escalating construction spending. As per statistics from the New York Building Congress, in 2021, construction spending reached an all-time high of USD 86 billion in New York. These factors will accelerate the use of colorless and transparent phosphoric acid in construction applications such as metal finishing. Additionally, this technical grade acid is a non-volatile liquid in 75% to 85% liquid solution concentration, making it suitable for several industrial and commercial purposes.
 

The 75% concentration segment held approximately 78% of the phosphoric acid market share by 2032. This growth is a result of the widespread product acceptance in foods and beverages as an etching, sanitizing, chelating, and flavoring agent, pH modifier, and rust inhibitor. Phosphoric acid 75% is also gaining traction in a range of industry applications including detergents and fertilizers. The rise in government agricultural spending is also set to accelerate the production of phosphoric acid 75%, especially in developing economies.
 

Phosphoric acid market from fertilizer segment is likely to attain 5.5% CAGR up to 2032, on account of the introduction of funding programs to support the agricultural sector. For example, the USDA announced substantial funding to support projects that allow underserved producers to access capital, land, and markets, and train the diverse generation of agricultural professionals. Since 80%-90% of phosphoric acid is utilized in fertilizer development, this trend will contribute to industry expansion.
 

Asia Pacific phosphoric acid market size is set to surpass USD 46 billion by 2032, on account of the strong focus on wastewater treatment. In August 2022, a China-funded green sewage treatment plant was introduced in South Asia to minimize human impacts on natural environments. Such initiatives will fuel product consumption to prevent the after-effects of groundwater exposure to manganese and iron. Likewise, the growing acceptance of phosphoric acid in fertilizer manufacturing across countries adopting more agricultural practices, including China, will complement the regional market outlook.
 

Phosphoric Acid Market Share

Some of the key players operating in the phosphoric acid industry include:

• ICL Group Ltd.
• Gujarat Alkalies and Chemicals Limited
• Prayon
• Shifang Sundia Chemical Industry
•  Univar Solutions Inc.
• ArrMaz Products, Inc.
• Chuanlin Chemical
• Nutrien
• Haifa Group
• Aditya Birla Chemicals
• Hydrite Chemical Co
• Chuandong Chemical Co., Ltd.
• and Innophos

These firms are focusing on new product development, mergers & acquisitions, and business expansions to solidity their presence in the global market.
 

Impact of inflation on phosphoric acid market dynamics

Global inflation has created a major challenge for the construction sector, mainly due to an upsurge in the price of building materials, machinery hiring rates, and other inputs to projects. These factors have led to a delay in construction project completion and a reduced profit margin. The increase in price or extension of the project completion timeline may also create a burden for clients, thereby limiting the use of phosphoric acid in metal treatment and other construction applications.
 

Phosphoric acid market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD Million from 2018 to 2032 for the following segments:

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By Concentration

• 75%
• 85%
• 92%
• Others

By Application

• Fertilizer
• Metal Treatment
• Cleaning & Sanitizing agent
• Catalyst
• Food Additive
  • pH regulator
  • Cleaners
  • Additive
  • Emulsifying agent
  • Others
• Others

By Grade

• Food grade
• Technical grade

By End-Use

• Agriculture
• Energy
• Industrial Cleaning
• General Industrial
• Construction
• Water Treatment
• Beverage
  • Carbonated beverages
  • Sports Drinks
  • Juices
  • Others
• Nutritional supplement
• Processed foods
• Dairy products
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Thailand
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE