Global Phosphoric Acid Market Size, Share, Growth Analysis, By Method(Wet Process, Thermal Process), By Grade(Technical, Food) - Industry Forecast 2023-2030

Global Phosphoric Acid Market size was valued at USD 41.28 Billion in 2022 and is poised to grow from USD 43.06 Billion in 2023 to USD 60.30 Billion by 2031, at a CAGR of 4.3% during the forecast period (2024-2031).

Phosphoric acid plays a pivotal role in numerous fertilizers, serving various functions such as providing essential nutrients to plants, adjusting pH levels, and eliminating lime precipitation from irrigation equipment. It ensures an ample supply of phosphorus for plant growth. The global fertilizer market is projected to witness a 5% Compound Annual Growth Rate (CAGR) during the forecast period. Approximately 2.7 billion hectares of land remain available for potential crop cultivation, particularly in the Asia-Pacific region, South and Central America, and Sub-Saharan Africa. With the increasing world population, there is a growing demand for fertilizers to meet rising food requirements. Phosphoric acid also aids in extending the shelf life and affordability of sugary foods by preventing the growth of germs and mold. Consequently, phosphoric acid producers are expected to have promising prospects due to the surging demand for convenience foods and beverages. However, product uptake may face some limitations due to regulatory pressures and environmental concerns, such as regulations governing fertilizers, waste management, and certifications for plants and products. Additionally, trade disputes and global economic disturbances could adversely affect the sector outlook.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Phosphoric Acid Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Global Phosphoric Acid Market Segmental Analysis

Global Phosphoric Acid Market is segmented on the basis of method, grade and region. By method, the market is segmented into wet process, thermal process, dry kiln process. By grade, the market is segmented into technical, food, electronic. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Phosphoric Acid Market

The agricultural industry represents a significant user of phosphoric acid, mainly utilized in fertilizers. Phosphorus stands as a crucial element for plant growth, contributing significantly to root establishment, flowering, and fruit production. As the global population continues to grow and there is a heightened emphasis on improving agricultural output, the demand for fertilizers containing phosphoric acid is predicted to increase, thereby stimulating growth in the phosphoric acid market.

Phosphoric acid finds extensive application in the food and beverage sector, serving as an acidifier and flavour enhancer. It is frequently employed in carbonated drinks, processed foods, and food additives. The increasing population, evolving dietary habits, and the expanding food and beverage industry are fuelling the demand for phosphoric acid within this domain.

Restraints in the Global Phosphoric Acid Market

Price instability in the phosphoric acid market is influenced by various factors, including fluctuating expenses of raw materials, energy costs, and geopolitical issues impacting the supply chain. These fluctuations in prices can affect the profitability of phosphoric acid producers and introduce uncertainty for purchasers, thereby hindering market expansion.

Market Trends of the Global Phosphoric Acid Market

There is a growing need for fertilizers that provide enhanced nutrient delivery efficiency while minimizing environmental repercussions. Phosphoric acid-derived fertilizers like monoammonium phosphate (MAP) and diammonium phosphate (DAP) are becoming increasingly favoured for their well-balanced nutrient composition and user-friendly application. These fertilizers ensure the controlled release of phosphorus, mitigating the potential for nutrient runoff and enhancing crop productivity.