Global Phosphoric Acid Market By Process Type(Wet Process, Thermal Process), By Application(Fertilizers, Diamonium Hydrogenphosphate (DAP), Monoammonium Dihydrogenphosphate (MAP), Triple Superphosphate (TSP), Others, Feed and Food Additives, Detergents, Water Treatment Chemicals, Metal Treatments, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The global Phosphoric Acid Market size is expected to be worth around USD 71.2 billion by 2033, from USD 46.3 billion in 2023, growing at a CAGR of 4.4% during the forecast period from 2023 to 2033.

The Phosphoric Acid Market encompasses the global production, distribution, and consumption of phosphoric acid, a colorless, odorless phosphorus-containing inorganic acid. This chemical is primarily used to make phosphate salts for fertilizers, making it crucial for the agricultural sector. It’s also utilized in food processing as a food additive, where it serves as an acidity regulator in beverages and processed foods.

Phosphoric acid is produced in two main grades: food grade and technical grade. The food-grade phosphoric acid is used in various food products, providing a tangy or sour taste, and is commonly found in colas and other soft drinks. Technical grade, which is less pure, is used predominantly in industrial applications, particularly in manufacturing fertilizers, where it is used to produce mono-ammonium phosphate and di-ammonium phosphate, crucial components for plant nutrition.

Additionally, phosphoric acid has applications in cleaning and refining processes. In the industrial sector, it is used as a rust remover and metal etchant. It is also employed in the production of soaps and detergents, where it helps in the synthesis of surfactants.

Environmental concerns and regulations can impact the market, as phosphoric acid production involves the use of sulfuric acid and can result in byproducts that must be managed to avoid environmental damage. Market dynamics are influenced by the fluctuating costs of raw materials and the regulatory frameworks governing their use and disposal.

The demand for phosphoric acid is anticipated to remain robust, driven by the agricultural sector’s need for high-quality fertilizers to improve crop yield and by the ongoing demand in food and industrial applications. The development of more sustainable production methods and the exploration of new applications in biodegradable products could provide further growth opportunities in this market.

Key Takeaways

• Market Growth: Expected to grow from USD 46.3 billion in 2023 to USD 71.2 billion by 2033, with a CAGR of 4.4%.
• Dominant Sector: Fertilizers dominated the market in 2023, holding a 48.6% share, primarily due to their critical role in agriculture.
• Production Methods: The Thermal Process dominated in 2023, capturing a 65.7% market share due to its ability to produce high-purity acid.
• Asia Pacific region secured a significant foothold in the global polyamide market, accounting for approximately 41.2%.

By Process Type

In 2023, Fertilizers held a dominant market position in the Phosphoric Acid market, capturing more than a 48.6% share. This substantial market share is driven by the critical role of phosphoric acid in producing various types of fertilizers, which are essential for enhancing soil fertility and boosting crop yield.

Among these, Diammonium Hydrogenphosphate (DAP) and Monoammonium Dihydrogenphosphate (MAP) are particularly significant. DAP is the most widely used phosphate fertilizer due to its high nutrient content and efficiency in application, while MAP is preferred for its lower ammonia content and suitability for various soil types.

Triple Superphosphate (TSP), another key fertilizer derived from phosphoric acid, is utilized for its high phosphorus content, making it ideal for stimulating root development in crops.

Beyond fertilizers, phosphoric acid finds important uses in other sectors. In the food and feed industry, it is used as an additive to maintain freshness and ensure safety in food products. The detergent industry also relies on phosphoric acid for manufacturing household cleaning products that require effective stain removal and grease-cutting capabilities.

Water treatment chemicals and metal treatments represent additional significant applications. In water treatment, phosphoric acid is used to prevent the formation of rust and scale in pipes and boilers. For metal treatments, it is crucial in processes like electropolishing and rust-proofing to enhance the durability and longevity of metal products.

By Application

In 2023, the Thermal Process held a dominant market position in the Phosphoric Acid market, capturing more than a 65.7% share. This process, also known as the thermal acid process, involves the combustion of elemental phosphorus to produce phosphoric acid and is highly valued for producing high-purity acid, which is essential in applications where product quality is critical. This method is particularly preferred in industries requiring precise acid specifications, such as the electronics industry for cleaning and etching operations.

Conversely, the Wet Process, which involves the treatment of phosphate rock with sulfuric acid, is widely used due to its cost-effectiveness and lower energy requirements. This process is primarily employed in the production of fertilizers, where the purity of phosphoric acid is less critical than in other applications. Despite its lower share in the market, the Wet Process is crucial for meeting the global agricultural demand for phosphate fertilizers, underscoring its importance in the phosphoric acid industry.

Key Market Segments

By Process Type

• Wet Process
• Thermal Process

By Application

• Fertilizers
• Diamonium Hydrogenphosphate (DAP)
• Monoammonium Dihydrogenphosphate (MAP)
• Triple Superphosphate (TSP)
• Others
• Feed and Food Additives
• Detergents
• Water Treatment Chemicals
• Metal Treatments
• Others

Drivers

Global Demand for Fertilizers

A significant driver for the phosphoric acid market is the escalating global demand for fertilizers, particularly phosphate-based fertilizers such as diammonium phosphate (DAP) and monoammonium phosphate (MAP). Phosphoric acid is a key ingredient in the production of these fertilizers, which are crucial for enhancing crop yields and improving food production efficiencies. This demand is driven by the need to support an increasing global population, which is projected to reach nearly 10 billion by 2050, necessitating a substantial increase in agricultural productivity.

The growing emphasis on food security worldwide, coupled with the expansion of arable land in emerging economies, further stimulates the demand for efficient fertilizers. As countries strive to boost their agricultural output to meet local consumption needs and increase export capacities, the role of phosphoric acid in agriculture becomes increasingly critical. The effectiveness of phosphoric acid-based fertilizers in providing essential nutrients that enhance soil fertility and crop growth makes them a staple in modern agricultural practices.

Additionally, the trend towards precision agriculture, which involves customized nutrient management practices, supports the use of phosphoric acid as it allows for the formulation of specific fertilizer blends that meet precise crop and soil requirements. This approach helps in maximizing crop productivity while minimizing environmental impact, aligning with the global shift towards sustainable farming practices.

Furthermore, technological advancements in fertilizer production processes also propel the demand for phosphoric acid. Innovations in manufacturing techniques have led to more efficient and environmentally friendly production methods, which not only increase the market’s capacity to meet rising fertilizer demands but also reduce the ecological footprint of phosphoric acid production.

Economic development in emerging markets also plays a crucial role in driving phosphoric acid consumption. As these economies grow, there is a corresponding increase in dietary preferences for diversified and protein-rich foods, which in turn boosts the need for enhanced agricultural productivity and, consequently, for high-quality fertilizers.

Restraints

Environmental Regulations and Phosphate Resource Depletion

A significant restraint impacting the phosphoric acid market is the stringent environmental regulations concerning phosphate mining and phosphoric acid production. These regulations are driven by the environmental impact associated with phosphate rock extraction, which often leads to habitat destruction, water pollution, and soil degradation. Such environmental concerns have led to stricter controls and higher compliance costs for producers, which can restrict market growth.

Phosphoric acid is primarily derived from phosphate rock, a non-renewable resource. The depletion of high-quality phosphate rock reserves is becoming a pressing issue, as the remaining deposits are either lower in quality or located in geopolitically unstable regions. This scarcity raises concerns about the long-term sustainability of phosphoric acid supply chains and increases the costs associated with extracting and processing the mineral.

Furthermore, the production of phosphoric acid involves the use of sulfuric acid and can result in the release of gases like fluorine and carbon dioxide, contributing to air pollution and climate change. The waste by-product, phosphogypsum, is another environmental concern, containing hazardous substances such as radium, which pose disposal challenges. The management of these environmental issues requires significant investment in pollution control technologies and waste management practices, adding to the operational costs.

These environmental and regulatory challenges are compounded by growing public and governmental pressure for sustainable practices. There is an increasing demand for the phosphoric acid industry to develop greener alternatives and more sustainable extraction and production methods. This shift is necessary not only to comply with environmental standards but also to meet the changing preferences of consumers and industries that are increasingly seeking environmentally friendly products.

In response to these challenges, companies in the phosphoric acid market are investing in research and development to find more sustainable ways to produce phosphoric acid, including recycling phosphoric acid from agricultural runoff or industrial waste. There is also a push towards exploring alternative sources of phosphorus that do not involve traditional mining, such as bio-based phosphorus recovery from agricultural and animal waste.

Opportunity

Expansion in Food and Pharmaceutical Industries

A significant opportunity for growth in the phosphoric acid market is its expanding use in the food and pharmaceutical industries. As a food additive, phosphoric acid is prized for its role in acidifying foods and beverages, such as in colas and other soft drinks, where it provides a tangy flavor and acts as a preservative to inhibit the growth of molds and bacteria.

The global food and beverage industry is witnessing robust growth, driven by increasing consumer spending and the rising demand for processed and convenience foods. This trend presents a considerable opportunity for phosphoric acid manufacturers to increase their market share in the food additives sector.

Moreover, the pharmaceutical industry offers another lucrative avenue for phosphoric acid applications. In pharmaceuticals, phosphoric acid is used as an intermediate in synthesizing active ingredients and as an excipient in dental products, such as teeth whiteners and oral hygiene products. Its role in dental products is particularly critical, as it helps to etch teeth and prepare them for bonding in orthodontic treatments, underlining its utility in medical applications.

The ongoing developments in both food technologies and pharmaceutical formulations are driving the demand for high-purity phosphoric acid. As consumers increasingly seek products with better taste, longer shelf life, and enhanced therapeutic properties, manufacturers are prompted to innovate and improve their offerings, making phosphoric acid an essential component of these industries.

Additionally, the rising health consciousness among consumers worldwide is pushing food producers to create safe products and provide health benefits, such as enhanced nutrition and lower sugar levels. Phosphoric acid, with its preservative qualities, supports these health-oriented innovations, especially in low-sugar beverages where it helps maintain flavor and freshness.

In the pharmaceutical sector, advancements in drug manufacturing techniques and the growing demand for effective dental treatments offer further growth prospects for phosphoric acid suppliers. The ability to meet stringent regulatory standards for pharmaceutical-grade products also allows phosphoric acid producers to differentiate themselves and capture premium markets.

Trends

Sustainable and Innovative Production Methods

A key trend in the phosphoric acid market is the shift towards sustainable and innovative production methods. As environmental concerns and regulatory pressures increase, the industry is moving towards more eco-friendly practices in the production of phosphoric acid. This trend is driven by the need to reduce the environmental impact associated with traditional phosphoric acid production, which typically involves the use of significant amounts of sulfuric acid and can result in byproducts such as gypsum and greenhouse gases.

One innovative approach gaining traction is the development of thermal processes that aim to produce phosphoric acid with lower energy consumption and fewer harmful emissions. These methods involve using heat and less sulfuric acid to extract phosphoric acid from phosphate rock, resulting in a cleaner production process. Additionally, companies are exploring the use of renewable energy sources to power production facilities, further reducing the carbon footprint of their operations.

Another aspect of this trend is the recycling of phosphoric acid from industrial waste streams. With advances in chemical recovery technologies, used phosphoric acid can be purified and reintroduced into the production cycle, reducing the need for raw materials and minimizing waste. This not only helps companies adhere to stricter environmental regulations but also improves their sustainability profiles and reduces production costs.

Furthermore, there is a growing emphasis on the development of bio-based phosphates, which are derived from organic waste materials rather than mined phosphate rock. This approach not only helps in managing agricultural and animal waste but also reduces dependency on non-renewable phosphate rock reserves. The use of bio-based phosphates is expected to expand, particularly in the agriculture and food industries, where there is a push for more sustainable and environmentally friendly products.

Regional Analysis

In 2023, the Asia Pacific region secured a leading position in the global phosphoric acid market, holding approximately 41.2% of the market share. This dominance is propelled by rapid urbanization, increased disposable incomes, and evolving consumer preferences across the region. The significant expansion of the chemical industry within Asia Pacific has positioned phosphoric acid as an essential component for numerous industrial applications.

The burgeoning middle-class population and continuous urbanization are primary drivers of this growth. Nations such as China, Taiwan, and Japan have become central hubs for the production and consumption of phosphoric acid, fulfilling both local needs and global demands.

Countries like Japan, China, and South Korea have noted a rise in demand for phosphoric acid, essential for producing a diverse range of products including fertilizers and food additives. The dense population in China and India provides a large consumer base for phosphoric acid and its derivatives.

There is also an increasing preference for innovative industrial solutions and the adoption of modern manufacturing technologies, which are further fueling the demand for phosphoric acid. With significant investments in chemical processing facilities and advancements in production technologies, Asia Pacific has emerged as a crucial area for phosphoric acid production, reflecting its dynamic economic landscape and pivotal role in the global supply chain for phosphoric acid.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

The global phosphoric acid market is characterized by the presence of several prominent players who significantly influence its dynamics. Companies like OCP Group and Mosaic Company are leading producers, leveraging vast phosphate rock resources to manufacture and supply phosphoric acid globally.

Market Key Players

• Arkema
• Eurochem Group AG
• OCP Group S.A.
• Phosagro Group of Companies
• ICL Group Ltd.
• Nutrien Ltd.
• IFFCO
• The Mosaic Company
• Solvay S.A.
• Aditya Birla Chemicals
• Agropolychim
• Innophos
• J.R. Simplot Company
• Sterlite Copper
• Tunisian Chemical Group

Recent Developments

In 2024, Arkema plans to leverage its sustainable solutions further and expects growth, especially in the second half of the year, due to the ramp-up of major projects and improvements in market conditions​.

In 2023 EuroChem has been actively expanding its operational capabilities and facilities, including launching a state-of-the-art phosphate fertilizer complex in Brazil in March 2024 and a new Phosphate R&D Center in December 2023.

Report Scope