Phosphoric Acid Market Size was valued at USD 52,317.08 million in 2022. The Phosphoric Acid industry is projected to grow from USD 54,420.23 million in 2023 to USD 72,722.13 million by 2030, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2023 - 2030). The primary force behind the growth of the Phosphoric Acid market worldwide is the Increasing demand for dap phosphate fertilizers. Phosphoric acid (H3PO4), referred to as orthophosphoric acid, is an essential phosphoric oxygen acid used to produce phosphate salts for fertilizers. It is also used in dental cement, albumin derivatives preparation, and the sugar and textile industries. In food products, it acts as an acidic, fruit-like flavoring. High usage of phosphoric acid for the production of phosphate fertilizers, such as Mono-Ammonium Phosphate (MAP) and Diammonium Phosphate (DAP), is expected to drive the market over the forecast period.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Phosphoric acid is an intermediate substance used for the manufacturing of phosphate fertilizers of different kinds. Diammonium phosphate (DAP), Monoammonium phosphate (MAP), NPKs, and SSP are the most widely used phosphatic fertilizers. The largest share of this demand was expressed by DAP, with MAP, SSP, and TSP accounting for much of the remainder. Using phosphate rock, commercial phosphate fertilizers are made. About two-thirds of the phosphate supplies in the world are produced from deposits of sedimentary and aquatic phosphate rocks. In the past, ground rock phosphate was used for soils as a source of phosphorus. However, the use of rock phosphate in agriculture has declined dramatically due to the low phosphorus content in this native fiber, high transport costs, and limited crop responses. The use of phosphorus-based fertilizers, on the other hand, has increased dramatically. DAP is one of the most commonly used phosphorus fertilizers in the world. Because of its moderately high nutrient content and exceptional physical properties, it is a commonly used fertilizer. For plant feeding, DAP is a significant source of phosphorus and nitrogen. The farming of grains such as barley, fruits, wheat, and vegetables supplies the right proportion of phosphorus and nitrogen. The use of DAP soil fertilizer increases the soil's fertility and thus the crop's production. It improves the consistency of fruit and vegetable crops. Developed countries and regions are increasingly using DAP fertilizers to increase crop yields. These fertilizers are used to make up for the soil's lack of phosphate. The strong demand for food, driven by the surging population and increasing consumer buying power, is anticipated to support the growth of the phosphoric acid industry over the projected era.
The Phosphoric Acid Market segmentation, based on source has been segmented as wet process and thermal process. Among these, the wet process is projected to dominate the Phosphoric Acid Market revenue through the projected period. The "wet" process involves using sulfuric acid to decompose the phosphate source, resulting in the extraction of P2O5. The resulting acid is called wet process phosphoric acid. Wet process-made phosphoric acid is impure but can be utilized directly in fertilizer production, driven by the high demand for fertilizers. The growth is supported by low operating costs, short processing time, low temperatures, and ease of operation. The wet process can even use low phosphorous content rock as source. However, the limited supply of rock phosphate is a significant concern for the phosphoric acid market. It's crucial to take measures to secure future phosphate supply, as there is no substitute for it.
September 2020, Clariant AG has launched a new and innovative phosphate ester offering outstanding performance and superior sustainability in metal working fluid formulations. This product launch has helped the company to widen its product portfolio.
The Phosphoric Acid Market segmentation, based on application, the market is segmented as fertilizers, feed & food additives, detergents, water treatment chemicals and others. Out of which the fertilizers segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Phosphoric acid is a key raw material in the production of phosphate fertilizers, which are used to enhance the growth and yield of crops. Phosphate fertilizers are essential for agriculture and help to increase food production by providing essential nutrients to the soil. Phosphoric acid is a crucial ingredient in the production of fertilizers such as Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP), and Trisodium Phosphate (TSP). As a multi-functional agent, it serves as a source of phosphorus for plants and helps with pH adjustment and cleaning irrigation equipment from lime buildup. Due to the increasing population and the need for increased food production, the demand for fertilizers is growing. With an estimated 2.7 billion hectares of land suitable for crop production in regions such as Asia-Pacific, South and Central America, and Sub-Saharan Africa, the global population, which is currently growing at a rate of around 1.05% per year, is expected to drive the growth of the fertilizer industry.
August 2020, OCP has launched the building of a new plant for the production of purified phosphoric acid, through their subsidiary Euro Maroc Phosphore (EMAPHOS). This launch has helped the company to increase the production capacity of the company.
By Region, the study segments the Phosphoric Acid market into North America, Europe, Asia-Pacific, Middle East & Africa and Latin America. The sizable phosphoric acid industry in Asia-Pacific is likely to make the region the largest expanding global market for phosphoric acid. Asia Pacific was the largest market for phosphoric acid, in terms of value, in 2021 due to the strong presence of key fertilizer manufacturers and the high demand for processed food in the region. The high fertilizer consumption in China, India, and Indonesia supports this growth. The phosphoric acid market in Asia Pacific is projected to register the highest CAGR, in terms of value and volume, during the forecast period. Increasing disposable income of the middle-class population and spending on processed food are supporting the markets growth in the region. The increasing demand for processed food in emerging countries such as India and China also support market growth. During the forecast period, the region dominated the global market and is likely to retain its position, highly driven by government, the chemical industry, agriculture and consumer spending, all of which are core components of GDP. It is also certain that the increasing agricultural industry will push the regional market. In 2021, China accounted for a more than 40% share of the Asia Pacific market. The nation is a major fertilizer production center. During the forecast period, the growth of end-use industries is anticipated to boost the demand in China. India has a vast number of chemical manufacturing bases that will, in turn, propel the country’s economy..
May 2021, Desmet Ballestra has signed an agreement to purchase Buss ChemTech AG. Buss ChemTech AG produces phosphoric acid for various end-use applications. Thereby, the acquisition will enhance the product portfolio of Desmet Ballestra Group and its business.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Phosphoric Acid Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Phosphoric Acid Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global phosphoric acid industry to benefit clients and expand the Phosphoric Acid market sector is partnerships and acquisitions. The market for Phosphoric Acid is recognized as being extremely competitive and fragmented. The market for Phosphoric Acid offers considerable potential opportunities for domestic and unorganized companies. Some of the key players operating in the Phosphoric Acid Market are ICL Group Ltd. (Israel), OCP Group S.A. (Morocco), The Mosaic Company (US), Nutrien Ltd. (Netherlands), Eurochem Group (Switzerland), IFFCO (India), Arkema (France), Solvay (Belgium), Ma’aden (Saudi Arabia), Phosagro Group of Companies (Russia). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.
Nutrien Ltd..: Nutrien Ltd. is a Canada-based company, which is a provider of crop inputs and services. The Company operates through four segments: Nutrien Ag Solutions (Retail), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seeds and merchandise, and it provides services directly to growers through a network of farm centers in North America, South America and Australia. Its Retail business includes Nutrien Ag Solutions and Landmark Retail businesses. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that it produces. The Company produces and distributes approximately 27 million tons of potash, nitrogen and phosphate products for agricultural, industrial and feed customers worldwide. The Company has offices in Canada and the United States. It operates approximately 2,000 retail locations in over seven countries.
Eurochem Group: Eurochem Group (Eurochem) is a manufacturer of nitrogen, phosphate, and potash fertilizers and also certain industrial and mining products. The company is engaged in activities spanning mining, logistic, fertilizer production, and distribution. The company not only manufactures phosphate fertilizers, and nitrogen fertilizers but also urea, ammonia, ammonium nitrate, urea ammonium nitrate, complex fertilizers, nitrate phosphate, and many more The company operates its manufacturing facilities in North America, Europe, Asia-Pacific, and Africa. And Russia, Belgium, Lithuania, and China are the countries that are engaged in producing nitrogen, phosphate, and potash fertilizers.
October 2021: Paradeep Phosphates Ltd. has raised capital by around INR 1,255 crore, such that to finance the planned expansion of its facility in Goa. The company's production capacity will increase to a combined 2.22 million tons per annum for fertilizers like Di-ammonium Phosphate (DAP) and Nitrogen, Phosphorous, Potassium (NPK), and Phosphoric acid. Specifically, the company is intending to put a new Phosphoric Acid production plant, such that to enhance production by 120 kilotons per annum and also planning to install a new evaporator to raise the annual production of strong Phosphoric Acid by 116 kilotons.Â
August 2021: EuroChem Group has signed an agreement to purchase the Serra do Salitre phosphates project based in Minas Gerais of Brazil from Norway's Yara. The project is scheduled to bring on stream a 1 million tons per year phosphates plant, producing MAP/NP, as well as SSP and TSP, in 2023. The project is likely to reach its target output in 2024. The project will also include a phosphoric acid plant and others. Such expansion will enhance the company's phosphoric acid business.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 52,317.08 million |
| Market Size 2023 | USD 54,420.23 million |
| Market Size 2030 | USD 72,722.13 million |
| Compound Annual Growth Rate (CAGR) | 4.20 % (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 to 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Application and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa and South America |
| Countries Covered | The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Saudi Arabia, UAE, Argentina, |
| Key Companies Profiled | ICL Group Ltd. (Israel), OCP Group S.A. (Morocco), The Mosaic Company (US), Nutrien Ltd. (Netherlands), Eurochem Group (Switzerland), IFFCO (India), Arkema (France), Solvay (Belgium), Ma’aden (Saudi Arabia), Phosagro Group of Companies (Russia) |
| Key Market Opportunities | Increasing demand for clean energy and technological advancements. |
| Key Market Drivers | Increasing demand for dap phosphate fertilizers. |
Phosphoric Acid Market Highlights:
Frequently Asked Questions (FAQ) :
Phosphoric Acid Market was US$ 52,317.08 Mn in 2022
The growth rate of the Phosphoric Acid Market was 4.20% in 2022.
Asia Pacific held the largest market share in the Phosphoric Acid Market
Key players in Phosphoric Acid Market included ICL Group Ltd. (Israel), OCP Group S.A. (Morocco), The Mosaic Company (US), Nutrien Ltd. (Netherlands), Eurochem Group (Switzerland), IFFCO (India), Arkema (France), Solvay (Belgium), Ma’aden (Saudi Arabia), Phosagro Group of Companies (Russia)
Wet Process led the Phosphoric Acid Market
Fertilizers had the largest market share in the Phosphoric Acid Market
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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