Phosphoric Acid Market Size & Share 2023 to 2032
Market Size by Concentration (75%, 85%, 92%), by Grade (Technical, Food), by Application (Fertilizer, Metal Treatment, Catalyst, Food Additive), by End User (Energy, Construction, Beverage, Processed foods, Dairy products), Forecast.
Report ID: GMI2290
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Published Date: March 2023
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Report Format: PDF
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Authors:
Kiran Pulidindi, Kunal Ahuja
Phosphoric Acid Market Size
Phosphoric Acid Market size reached USD 58 billion in 2022 and is anticipated to witness around 5.5% CAGR between 2023 and 2032, on account of the high intake of cheese and dairy products.
Phosphoric Acid Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Phosphoric acid is utilized as a key ingredient in many foods and beverages. The dairy sector gained significant consumer interest, especially during the coronavirus pandemic. The development of phosphoric acid for dairy products including cheese is therefore likely to rise, as the consumption of these products to control pH levels increases. Furthermore, the growing awareness about the role of food additives in preservation will escalate product usage in the manufacturing of packaged foods and cold drinks.
Phosphoric acid can prevent the growth of bacteria and mold in sugary foods, thereby increasing their shelf life and improving affordability. The mounting consumption of convenience snacks and beverages will thus create lucrative growth prospects for phosphoric acid producers. However, regulatory pressure and environmental concerns may limit product adoption to some extent. Lawmakers have been implementing regulations for plant and product certifications, fertilizers, and tailing management.
Phosphoric Acid Market Analysis
Phosphoric acid market value from the technical grade segment exceeds USD 2 billion by 2032, given the escalating construction spending. As per statistics from the New York Building Congress, in 2021, construction spending reached an all-time high of USD 86 billion in New York. These factors will accelerate the use of colorless and transparent phosphoric acid in construction applications such as metal finishing. Additionally, this technical grade acid is a non-volatile liquid in 75% to 85% liquid solution concentration, making it suitable for several industrial and commercial purposes.
The 75% concentration segment held approximately 78% of the phosphoric acid market share by 2032. This growth is a result of the widespread product acceptance in foods and beverages as an etching, sanitizing, chelating, and flavoring agent, pH modifier, and rust inhibitor. Phosphoric acid 75% is also gaining traction in a range of industry applications including detergents and fertilizers. The rise in government agricultural spending is also set to accelerate the production of phosphoric acid 75%, especially in developing economies.
Phosphoric acid market from fertilizer segment is likely to attain 5.5% CAGR up to 2032, on account of the introduction of funding programs to support the agricultural sector. For example, the USDA announced substantial funding to support projects that allow underserved producers to access capital, land, and markets, and train the diverse generation of agricultural professionals. Since 80%-90% of phosphoric acid is utilized in fertilizer development, this trend will contribute to industry expansion.
Asia Pacific phosphoric acid market size is set to surpass USD 46 billion by 2032, on account of the strong focus on wastewater treatment. In August 2022, a China-funded green sewage treatment plant was introduced in South Asia to minimize human impacts on natural environments. Such initiatives will fuel product consumption to prevent the after-effects of groundwater exposure to manganese and iron. Likewise, the growing acceptance of phosphoric acid in fertilizer manufacturing across countries adopting more agricultural practices, including China, will complement the regional market outlook.
Phosphoric Acid Market Share
Some of the key players operating in the phosphoric acid industry include:
These firms are focusing on new product development, mergers & acquisitions, and business expansions to solidity their presence in the global market.
Impact of inflation on phosphoric acid market dynamics
Global inflation has created a major challenge for the construction sector, mainly due to an upsurge in the price of building materials, machinery hiring rates, and other inputs to projects. These factors have led to a delay in construction project completion and a reduced profit margin. The increase in price or extension of the project completion timeline may also create a burden for clients, thereby limiting the use of phosphoric acid in metal treatment and other construction applications.
Phosphoric acid market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD Million from 2018 to 2032 for the following segments:
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By Concentration
By Application
By Grade
By End-Use
By Region
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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2. Primary research
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Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
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Verified data sources
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Parameters studied & evaluated
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