Phosphoric Acid Market Analysis

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.