Global Food Grade Phosphoric Acid Market - 2023-2030

Market Overview

Food grade phosphoric acid is a colorless and odorless inorganic acid suitable for consumption. It is manufactured through wet, thermal, and dry kiln processes and is widely used as an acidity regulator and nutrition agent for yeast that can be used in light beverages, canned foods, and wines. Food grade phosphoric acid is primarily used to preserve and acidify foods and beverages, such as colas and jams, and provide a sour and tangy taste to the products. It is also utilized for beverage production, metal treatment, sugar refining, and food preservation. It is commonly stored and packaged in an intermediate bulk container (IBC) and high-density polyethylene (HDPE) drums. It is widely used in producing carbonated beverages, packaged food items, and bakery products.

The widespread product utilization in the processing of bakery products is positively impacting the market growth. Other factors, including the increasing product adoption for the manufacturing of bottled coffee beverages and flavored waters, along with significant growth in the food and beverage industry, are anticipated to drive the market toward growth.

The global food grade phosphoric acid market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 4.12% during the forecast period (2023-2030).

Market Dynamics: Growing demand for frozen and packaged food products is driving the market

Growing demand for frozen and packaged food products is anticipated to boost the demand for food grade phosphoric acid shortly. Rapid urbanization has been seen in various countries across the globe, and this expansion has resulted in new food preferences and habits. The urbanized population is inclining towards packaged foods, forcing various hypermarkets and supermarkets to supply packaged food items, escalating the demand for food preservatives. With the increasing demand for preserved foods, food grade phosphoric acid consumption is expected to rise significantly shortly. Prominent manufacturers of food grade phosphoric acid are involved in the supply agreement of purified phosphoric acid with the end-users, enabling them to serve their customers with best-in-class products. Key players are also expanding their product lines to produce new products, which are expected to drive market growth. For instance, on January 18, 2022, Prayon expanded its expertise in water treatment with the acquisition of Solvay's Capterall® activity. Prayon, active in water treatment, is further strengthening its range of solutions for its industrial customers. Water treatment is a precious resource to preserve the products.

However, food grade phosphoric acid is a common additive that leads to decreased bone mineral density. The adverse effect of food grade phosphoric acid is restricting the market. The development of bio-based products and problems arising from the overuse of phosphate-based synthetic products can hamper the market's expansion during the forecast period.

Market Segmentation: The food preservation segment accounted for the highest global food grade phosphoric acid market share

The growing demand for food preservatives, especially in the beverage industry, is anticipated to propel the expansion of the food grade phosphoric acid industry in the forecast period. Pure food grade phosphoric acid is an essential additive in mayonnaise, food sauces, and fruit juices. It is a food additive in meat and poultry products to make them firmer and smoother. It is used as an acidity regulator and for yeast. Manufacturers consistently expand production capabilities to fulfill the growing demand for food grade phosphoric acid. Key players are also expanding their product lines to produce new products for food preservation, which have expected to drive market growth. For instance, in August 2020, OCP launched the construction of a new plant to produce purified phosphoric acid through their subsidiary, Euro Maroc Phosphore (EMAPHOS). This launch has helped the company increase its production capacity.

Geographical Penetration: Asia Pacific is the dominant region during the forecast period

The global market for food grade phosphoric acid is anticipated to be dominated by the Asia Pacific region, owing to the surging demand for preserved food products in developing countries such as China and India. The growing population and rising middle-class income are the major factors pushing the demand for packaged foods in these countries. Moreover, food grade phosphoric acid and phosphates have gained strong benefits from the rapid development of the food processing industry in countries like China, India, and other developing countries. Also, the Chinese government estimated that the annual demand for food grade phosphoric acid from China might reach more than 200,000 metric tons in the upcoming years. Most manufacturers consistently expand production capabilities to cater to the growing demand for food grade phosphoric acid. Factors such as high production and low labor rates have led developing countries to account for the region's major share of the food grade phosphoric acid market. Key players are also launching new products, which have expected to drive the market growth. For instance, in September 2020, Clariant AG launched a new and innovative phosphate ester offering outstanding performance and superior sustainability in metalworking fluid formulations. This product launch has helped the company widen its product portfolio.

Competitive Landscape:

Some of the food grade phosphoric acid market players are Arkema S.A., Brenntag SE, Emco Dyestuff Pvt. Ltd., Grasim Industries Limited (Aditya Birla Management Corporation Ltd.), ICL Group Ltd., Innophos Inc., Nutrien Ltd., OCP Group, Spectrum Laboratory Products Inc., The Mosaic Company, and Vinipul Inorganics Private Limited. The major players are focusing on leveraging the opportunities posed by emerging markets to expand their product portfolios so that they can cater to the requirements of various industries, especially the food processing industry. For instance, in 2019, Gujarat Alkalies and Chemicals Ltd. (GACL) roped in Israel-based Bateman Advanced Technologies Ltd. to provide technology and technical services for its upcoming food-grade phosphoric acid project at Dahej.

COVID-19 Impact: Positive impact on the global food grade phosphoric acid market

The COVID-19 pandemic significantly impacted regional and country-level food grade phosphoric acid markets. Economic recovery slowly, supply-chain disruption continued to pose challenges, and consumer demand remains weak. However, prominent manufacturers of food grade phosphoric acid were involved in the supply agreement of purified phosphoric acid with the end users, enabling them to serve their customers with best-in-class products. For instance, on November 11, 2020, GACL established a food-grade phosphoric acid plant at Dahej. At its meeting, the GACL Board of Directors approved the upward revision in the project cost to Rs. 520 crores for establishing a 33,870 TPA (85% H3PO4) (equivalent to 21,000 TPA at 100% P205) food-grade phosphoric acid plant at Dahej.

The global food grade phosphoric acid market report would provide an access to approximately 53 market data tables, 50 figures and 200 pages.