Published Date : 20 Nov 2023
The global phosphoric acid market size surpassed USD 47.6 billion in 2022 and is projected to rise to USD 74.27 billion by 2032, anticipated to grow at a CAGR of 4.6 percent during the projection period from 2023 to 2032.
Phosphoric acid, also known as orthophosphoric acid, is a clear, colorless liquid or a solid compound, depending on its concentration. It is a triprotic acid that can donate up to 3 hydrogen ions (H+) in aqueous solutions. Phosphoric acid is often used in its concentrated form for various industrial purposes and as flavoring agent in some food & beverage products. Phosphoric acid is widely used in industries such as agriculture, metallurgy, and the manufacture of various chemicals. It plays a critical role in the production of phosphate fertilizers, as well as in rust removal, metal cleaning, and as an ingredient in various chemical reactions. In addition, food industries use it as an acidulant, flavor enhancer, and pH regulator.
The phosphoric acid market is driven by various factors including the increasing agriculture and fertilizer production, growing food and beverage industry, rising utilization in the water treatment industry, increasing construction and infrastructure development, growing application in dental and medical, rising research and development, and technological advancements. Furthermore, the growing investment is one of the industry critical factors for the market growth over the anticipated timeframe.
|Market Revenue in 2023||USD 49.55Billion|
|Projected Forecast Revenue by 2032||USD 74.27 Billion|
|Growth Rate from 2023 to 2032||CAGR of 4.6%|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
Asia Pacific is expected to hold the largest market share. The market growth in the region is attributed to the increasing agriculture and fertilizer demand. Countries like India and China a major consumers of phosphate fertilizers. Phosphoric acid is a key component in the production of these fertilizers, and the growing need for increased crop yields to feed the region's large population is a significant driver of phosphoric acid demand.
In the region, China is expected to capture the largest market share. The growth in the country is attributed to the high production and consumption of phosphoric acid. For instance, according to INDEXBOX, about 68,000 tons of polyphosphoric and phosphoric acids were exported from China in March 2023, a 49% increase from February 2023 data. Furthermore, the nation possesses the greatest capability for producing fertilizers, which propels the expansion of the business.
Growing agriculture industry along with increasing demand for fertilizers
Phosphoric acid is a crucial ingredient in the production of phosphate fertilizers, which are essential for crop growth. The global demand for food and the need to improve agriculture productivity drive the demand for phosphoric acid in the agriculture sector. The demand for phosphate fertilizers is directly linked to the agricultural sector. Farmers use these fertilizers to enhance the nutrient content of the soil, ensuring optimal crop growth and higher agricultural yields. The global population's need for food and the increasing demand for agricultural products drive the use of phosphate fertilizers.
Increasing utilization of phosphoric acid in water treatment
Phosphoric acid is used for pH adjustment and scale inhibition in water treatment processes. Increasing concerns about water treatment processes. Increasing concerns about water quality and the need for effective water treatment systems contribute to the demand for phosphoric acid in this sector.
Concern over environment
Phosphoric acid production can have environmental implications, particularly when it comes to the extraction and processing of phosphate rock. These processes can lead to water pollution, habitat destruction, and soil erosion. As environmental regulations become stricter, producers may face higher compliance costs and need to adopt more sustainable practices. Thus, the environmental concern of phosphoric acid might be a major restraint for the market growth over the forecast period.
Competition from alternatives
In some applications, phosphoric acid faces competition from alternative chemicals or technologies that can achieve similar results. For instance, in certain industrial processes and water treatment applications, alternative acid or chemical treatments may be considered, potentially limiting phosphoric acid market share. For instance, Formic acid is used as a substitute for phosphoric acid in water treatment. In water treatment facilities, formic acid is utilized as a pH adjuster to treat sewage and wastewater. Compared to phosphoric and sulfuric acid, it is a more economical choice since it breaks down in wastewater without emitting any emissions or leaving phosphates behind, which lowers waste-water costs. Consequently, this impeded market expansion over the projected period.
Growing global population
The world population continues to grow, leading to increased food demand. Phosphoric acid is a crucial component of phosphate fertilizers, which are essential for enhancing crop yields. The increasing need for food security and agricultural productivity presents a significant opportunity for the phosphoric acid market. According to the United Nations, from an estimated 2.5 billion in 1950, the world's population has increased to 8.0 billion in mid-November 2022, with 1 billion more individuals since 2010 and 2 billion since 1998. Thus, the aforementioned facts are expected to offer a lucrative opportunity for market growth.
Increased sustainable practices
There is a growing emphasis on sustainable agriculture and responsible fertilizer use. Producers of phosphoric acid have an opportunity to develop more eco-friendly and sustainable production processes, which can align with changing consumer preferences and environmental regulations. Thus, this is expected to offer a lucrative opportunity for the market growth.
Segments Covered in the Report
By Process Type
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