Phosphoric Acid Market Share, Growth Forecast

Global Phosphoric Acid Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Phosphoric Acid Market size is estimated to reach ~USD 108 Billion by the end of 2035 by growing at a CAGR of ~7.10% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of phosphoric acid was ~USD 47 Billion. The growth of the market can be attributed to the increasing demand for phosphoric acid from various end-user industries. For instance, the global demand for fertilizers is estimated to reach 45 million metric tonnes by the year 2025. Further, the growing population and need for more crop production are also estimated to contribute to the growth of the market in the forecast period.

In addition to these, factors that are believed to fuel the market growth of phosphoric acid include the rise in investments and collaboration between major key players. For instance, on May 21st, 2021, Desmet Ballestra entered into an agreement to acquire BusschemTech AG. Phosphoric acid is produced by Buss ChemTech AG in various end-user applications. This is anticipated to increase the product range of Desmet Ballestra Group and its activities. The main strategies adopted by the world's biggest manufacturers to reinforce their position on the competitive landscape are partnerships, acquisitions, and agreements. In order to expand their business, market players further focus on the production of phosphoric acid at the national level as well as exporting it into other regions. Additionally, the increasing product launches in the field of phosphoric acid are also expected to contribute to the growth of the market.

Global Phosphoric Acid Market: Growth Drivers and Challenges

Growth Drivers

Increasing Demand for Phosphate Fertilizers in Agriculture – The increased demand for phosphoric acid is driven by the growing population across the globe, which has made fertilizer production from phosphoric acid more and more important. The world's population is expected to increase, as set out by the UN Department of Economic and Social Affairs. Increase by a further two billion, which will reach 9.9 billion in 2050. The growing population is contributing to an increased demand for food, which can be supplied by the cultivation of crops fed with fertilizers.
Rising Product Launches to Flourish the Market – In order to improve the accuracy and overall functionality of new products, manufacturers have introduced a set of measures. For instance, in March 2017, the Phosphoric Acid catalyst Polymax 850 was introduced by Clariant, a producer of specialty chemicals that is capable of converting oils to gasoline for plasticizers. In addition, market players are looking to expand their phosphoric acid product range in various sectors of the pharmaceutical industry and commercial sectors.
Surge in Usage of Phosphoric Acid in Healthcare Application – According to the most recent expenditure data, global health spending has grown over the past 20 years, doubling in real terms to reach USD 8.5 trillion in 2019 and 9.8% of GDP, up from 8.5 percent in 2000. It is predicted that this boom would continue over the forecast period.
Increasing Recovery of Rare Earth Elements from Phosphoric Acid – Based on the elimination of impurities from phosphoric acid and phosphogypsum a process called sulfuric acid recovery is used to extract precious metal elements. The main challenge is that these products dilute the rare earth element content. In other decomposition, rare earth elements are transported completely to leaching solutions in the process of HNO3, H3PO4, or HCl, which is followed up by extraction of these rare earth elements from this solution. Reports cite about 50 million tonnes of rare earth are stored in phosphate resources worldwide, with around one hundred thousand tons mined each year for the production of phosphate rock.

Challenges

Reduced supply of phosphate - Phosphates are used as a basic component for the production of phosphatic acid and phosphate products such as fertilizers, food, or beverages. Nevertheless, the excessive application of phosphate as a fertilizer has caused widespread pollution and eutrophication. As a consequence, the world is beginning to run out of large reserves. So, the diminished supply of phosphates is a major growth-hindering factor.
Environmental concerns & stringent regulations
Side effects of phosphoric acid

Global Phosphoric Acid Market Segmentation

The global phosphoric acid market is segmented and analyzed for demand and supply by application type into fertilizers, feed & food additives, detergents, water treatment, chemicals, metal treatment, and industrial use. Out of the seven types of phosphoric acid, the fertilizers segment is estimated to gain the largest market share of about ~38% in the year 2035. The growth of the segment can be attributed to the increasing use of phosphoric acid in fertilizers production. Phosphoric acid is an intermediate used to manufacture fertilizers. Fertilizers like Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP), and Trisodium Phosphate (TSP) are produced from phosphoric acid. As phosphoric acid is a multifunction agent used for the nutrition of plants, pH adjustment, and disinfection of irrigation equipment, it forms an essential component in many fertilizers. For instance, in 2019, the total area of potential for global crop production remains at some 2.7 billion hectares, which is concentrated in Asia Pacific countries South and Central America, and Sub-Saharan Africa. The demand for fertilizers is increasing, with the world's population growing at a rate of around 1.05% per year, in 2020, 1.08% per year, in 2018, and 1.12% per year, in order to meet the ever-increasing food needs of the world's population. This is anticipated to contribute to the growth of the segment in the forecast period.

The global phosphoric acid market is also segmented and analyzed for demand and supply by process type into wet and thermal. Amongst these two segments, the wet segment is expected to garner a significant share in the year 2035. Phosphoric acid obtained through the wet process may be impure but can be directly applied for the production of fertilizer that is not subject to purification. The main factor behind the wet process is the significant growth in demand for fertilizers. With a lower operating cost and less process time, the growth is supported by lower operating temperatures and easy operation. In the wet phase, rock with low phosphorus content may also be utilized as input material. In the phosphoric acid market, a significant issue is the decreasing availability of rock phosphate. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global phosphoric acid market includes the following segments:

By Process Type	Wet Thermal
By Application	Fertilizers Feed & Food Additives Detergents Water Treatments Chemicals Metal Treatment Industrial Use

Global Phosphoric Acid Market Regional Synopsis

The market share of phosphoric acid in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~38% by the end of 2035. The growth of the market can be attributed majorly to the increasing production of fertilizers in the region. It is expected that the fertilizer industry in the Asia Pacific will grow by a CAGR of 6 % over the next five years, ensuring regular demand for phosphoric acid to produce fertilizers such as Monoammonium Phosphate and Trisodium phosphate which are used in growing crops. For instance, China made up over 40% of the Asia-Pacific phosphoric acid market in 2019, becoming the nation that is a major producer of fertilizers. It is expected that demand in China will be strengthened by the growth of end-use industries over the forecast period. In turn, India has a wide range of chemical manufacturing bases that will lead to the growth of its economy. Further, the market growth in this area is driven by increased disposable income for the middle-class population, as well as food processing expenditure. The market is also expected to grow owing to the growing demand for processed foods in emerging countries such as India and China. All these factors are anticipated to boost market growth during the forecast period.

The North American phosphoric acid market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for phosphoric acid from the food & beverages, and pharmaceuticals industry. Moreover, the market in North America is further stimulated by strict government rules on phosphoric acid. However, North American phosphoric acid market growth is expected to be impeded by significant innovation and the introduction of new products. Furthermore, the availability of substituted products could create additional obstacles to the North American market for phosphoric acid over the coming years.

Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for phosphoric acid in pharmaceutical industries, as well as growing demand from fertilizer producers. Moreover, the European market for phosphates is also expanding due to rigorous government regulations. However, the growth of the phosphoric acid market in Europe is expected to be slowed down by significant innovation and new product launches.

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Top Featured Companies Dominating the Global Phosphoric Acid Market

Eurochem Group AG,
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

The Mosaic Company,
R. Simplot Company,
WengFu Group,
Israel Chemicals Ltd,
Maaden,
Prayon S.A.,
OCP Group,
Solvay,
Yara International,
CECA (Arkema Group)

In The News

With a view to financing the planned expansion of the Paradeep Phosphates plant in Goa, it has increased its capital by about INR 1,255 billion. 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.
EuroChem Group has signed an agreement to purchase the Serra do Salitre phosphates project based in Minas Gerais of Brazil from Norway's Yara. In 2023, the project is designed to bring into operation a 1 million tonnes per annum phosphate plant producing MAP NP as well as SSP and TSP.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the phosphoric acid market?

Ans: Increasing demand for phosphate fertilizers and new product launches in the field are the major factors driving the market growth.

2) What would be the CAGR of phosphoric acid market over the forecast period?

Ans: The market size of phosphoric acid is anticipated to attain a CAGR of ~7.10% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the phosphoric acid market growth?

Ans: The major players in the market are Eurochem Group AG, The Mosaic Company, R. Simplot Company, WengFu Group, Israel Chemicals Ltd, Maaden, Prayon S.A., OCP Group, Solvay, Yara International, CECA (Arkema Group)

4) Which region will provide more business opportunities for growth of phosphoric acid market in future?

Ans: Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the phosphoric acid market?

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity, and the new products being launched into the market by the company.

7) What are the segments in the phosphoric acid market?

Ans: The market is segmented by process type, application, and by region.

8) Which segment captures the largest market size in the application segment in the phosphoric acid market?

Ans: The fertilizers segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~7.10%
Base Year Market Size (2022)	~ USD 47 Billion
Forecast Year Market Size (2035)	~ USD 108 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)