Phosphoric Acid Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Phosphoric Acid Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The market for phosphoric acid is expected to grow at a CAGR of about 5% during the forecast period. The market was negatively impacted by the COVID-19 pandemic as it disrupted the main supply and manufacturing lines, leading to acute shortages. Since the main use of phosphoric acid is for producing fertilizers, that also led to a decrease in crop production, accompanied by a shortage of food and other essentials among people. But since the end of the pandemic, the market has picked up speed, and it is likely that demand will grow as major industries get back to work.

Key Highlights

• Since most phosphoric acid is used to make fertilizer, rising demand from the fertilizer industry was the main thing driving the market that was looked at.
• On the flip side, health-related hazards caused by phosphoric acid are hindering market growth.
• The commercialization of chiral phosphoric acid as a catalyst and the recovery of rare earth elements from phosphoric acid are both things that could help the market grow in different ways.
• In terms of demand, the most important segments over the next few years will be fertilizer and food and beverages.
• The Asia-Pacific region is expected to be the biggest market in the world, with countries like China and India using the most.

Phosphoric Acid Market Trends

Increasing demand from Fertilizer Segment

• Phosphoric acid is basically an intermediate used to produce fertilizers. Fertilizers like monoammonium phosphate (MAP), diammonium phosphate (DAP), and trisodium phosphate (TSP) are produced from phosphoric acid. Phosphoric acid forms a key component for many fertilizers as it is a multi-function agent used for plant nutrition, pH adjustment, and cleansing irrigation equipment from lime precipitation. It is a rich source of phosphorus for plants. The global fertilizer industry is expected to grow at a CAGR of 5% during the forecast period.
• According to the Essential Chemical Industry, annually more than 43 million metric tons of phosphoric acid are produced worldwide, of which about 90% are used to make fertilizers.
• Phosphoric acid is also used extensively in the production of lithium-iron-phosphate batteries, and China is the dominant country in this field. In 2022, 44% of the total electric vehicles sold in China used LFP batteries, followed by 6% in Europe and 3% in the United States and Canada.
• Over the next few years, the fertilizer industry is expected to have the biggest share of the global phosphoric acid market.
• Due to the things listed above, the fertilizer industry's use of phosphoric acid is likely to be the most important during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region is expected to dominate the market for phosphoric acid production. This is due to China being the world's largest producer and consumer of fertilizer. In countries like China, India, and South-East Asian nations, the demand for phosphoric acid has been increasing continuously.
• Asia-Pacific is also expected to be the fastest-growing market during the forecast period, with increasing demand from end-users like fertilizers, food & beverages, chemicals, medicine, etc.
• During the forecast period, the fertilizer industry in the Asia-Pacific region is expected to grow at a CAGR of more than 6%. This will keep the demand for phosphoric acid high, which is used to make crop-growing fertilizers like monoammonium phosphate (MAP), diammonium phosphate (DAP), and trisodium phosphate (TSP).
• Phosphoric acid is also used in the food and beverage industries as it is used to acidify foods and beverages such as various colas and jams, providing a tangy or sour taste. The food and beverage industry in Asia is expected to grow at a healthy CAGR of more than 7% during the forecast period, owing to greater consumer spending power in the region. This will ensure the demand for phosphoric acid from the segment.
• So, the growth of the phosphoric acid market in the Asia-Pacific region is likely to be driven by rising demand from the above industries.

Phosphoric Acid Industry Overview

The global phosphoric acid market is fragmented with the presence of both international and domestic players. The major companies in the market studied include LANXESS, Nutrien Ltd., Prayon, Yara, and Solvay, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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