Table of Contents
Overview
New York, NY – January 7, 2025 – The global phosphoric acid market is projected to grow from USD 46.3 billion in 2023 to USD 71.2 billion by 2033, expanding at a CAGR of 4.4% during the forecast period from 2023 to 2033.
The Phosphoric Acid Market encompasses the global production, distribution, and consumption of phosphoric acid, a colorless and odorless inorganic acid containing phosphorus. This chemical is primarily utilized in the manufacturing of phosphate salts, which are essential for producing fertilizers. As a key component in agricultural products, phosphoric acid plays an integral role in enhancing soil fertility and boosting crop yields. Beyond its use in fertilizers, phosphoric acid serves as an acidity regulator in the food industry, particularly in beverages and processed foods, where it helps maintain product consistency and stability.
Environmental considerations and regulatory requirements are significant factors affecting the phosphoric acid market. The production of phosphoric acid typically involves the use of sulfuric acid, and the resulting byproducts must be carefully managed to prevent environmental harm. Regulations governing the use and disposal of these byproducts can influence production processes and costs, which in turn impacts market dynamics. Additionally, fluctuations in the cost of raw materials, such as phosphate rock and sulfuric acid, can affect the pricing and availability of phosphoric acid.
Key Takeaways
- The market is expected to grow from USD 46.3 billion in 2023 to USD 71.2 billion by 2033, with a CAGR of 4.4%.
- The fertilizers sector dominated the market in 2023, holding a 48.6% share, driven by its vital role in agriculture.
- The Thermal Process was the dominant production method in 2023, capturing a 65.7% market share, mainly due to its ability to produce high-purity acid.
- The Asia Pacific region secured a significant position in the global polyamide market, holding approximately 41% of the market share.
Key Market Segments
In 2023, Fertilizers dominated the Phosphoric Acid market, securing a market share of over 48.6%. This was largely driven by the essential role of phosphoric acid in the production of fertilizers, particularly Diammonium Hydrogenphosphate (DAP), Monoammonium Dihydrogenphosphate (MAP), and Triple Superphosphate (TSP). DAP is the most widely used phosphate fertilizer, valued for its high nutrient content, while MAP is favored for its lower ammonia content. TSP, with its high phosphorus content, is commonly used for root development in crops. Phosphoric acid also plays significant roles in the food and feed industry, detergent manufacturing, water treatment, and metal treatment sectors.
By application, the Thermal Process dominated the Phosphoric Acid market in 2023, accounting for over 65.7% of the market share. This process is highly valued for its ability to produce high-purity phosphoric acid, critical for industries like electronics. The Wet Process, despite having a lower market share, is crucial in the fertilizer industry due to its cost-effectiveness and lower energy demands.
Regional Analysis
In 2023, the Asia Pacific region led the global phosphoric acid market with a market share of approximately 41.2%. This growth is attributed to factors such as rapid urbanization, increasing disposable incomes, and shifting consumer preferences. The chemical industry’s expansion in Asia Pacific has made phosphoric acid a vital component for a variety of industrial applications. Countries like China, Taiwan, and Japan play central roles in both the production and consumption of phosphoric acid, meeting both regional and global demands. Additionally, the dense populations in China and India contribute to the rising consumer base for phosphoric acid and its derivatives.
Top Use Cases of Phosphoric Acid Market
Fertilizer Production: The largest use case, where phosphoric acid is essential for producing diammonium phosphate (DAP) and monoammonium phosphate (MAP) fertilizers. These are crucial for enhancing soil fertility and improving crop yield.
Supplement in Animal Feed: Phosphoric acid is used in the production of animal feed to ensure that animals get enough phosphorus, which is vital for bone health, growth, and overall metabolism.
Food Additive: Phosphoric acid is used as an acidulant and flavor enhancer, particularly in carbonated beverages like cola drinks. It helps to control acidity and preserve the flavor.
Water Treatment: Phosphoric acid is involved in water treatment processes for removing impurities and controlling the pH balance, especially in municipal and industrial wastewater treatment.
Metal Coating and Cleaning: It is used in metal treatment processes like steel pickling and aluminum phosphating, where it helps to remove oxidation and prepare metals for coatings or further processing.
Detergent Production: Phosphoric acid is used in the manufacturing of detergents, particularly in household and industrial cleaning products, where it serves as a pH adjuster and helps enhance cleaning power.
Pharmaceutical Manufacturing: Phosphoric acid is used in the synthesis of pharmaceutical products, including medications for treating various health conditions, particularly those involving calcium and bone health.
Flame Retardant Chemicals: Phosphoric acid is a key ingredient in producing phosphorus-based flame retardants, used in textiles, plastics, and other materials to improve fire resistance.
Recent Developments
Arkema, a French specialty chemicals company, offers products that enhance phosphoric acid production processes. In 2023, Arkema reported sales of €9.5 billion and an EBITDA of €1.5 billion, with a net income of €653 million.
EuroChem Group AG, a leading global fertilizer producer, plays a significant role in the phosphoric acid sector, primarily through its production of phosphate-based fertilizers. In 2023, EuroChem’s net income was approximately $495 million, with an EBITDA of $1.8 billion.
OCP Group S.A., a leading global fertilizer producer based in Morocco, plays a pivotal role in the phosphoric acid sector. In 2023, the company reported revenues of MAD 91.3 billion (approximately USD 9.02 billion), a decrease from MAD 114.6 billion in 2022.
PhosAgro Group, a leading Russian producer of phosphate-based fertilizers, has made significant strides in the phosphoric acid sector. In 2023, the company achieved a record-breaking production of 3.3 million tonnes of phosphoric acid, marking a 4.6% increase from the previous year.
Nutrien Ltd., a leading global fertilizer company, has a significant presence in the phosphoric acid sector. In 2023, Nutrien produced approximately 1.4 million metric tons of phosphate, marking an increase from the previous year.
Conclusion
In conclusion, the phosphoric acid market continues to show steady growth, driven by its essential role in fertilizer production, animal feed, and industrial applications like food and beverage processing and water treatment. As of 2023, demand for phosphoric acid has been supported by the agricultural sector’s need for high-quality fertilizers, with Asia-Pacific and North America being major consumers.
The market is expected to maintain a positive outlook, with innovation in sustainable production practices and stricter environmental regulations playing a pivotal role in shaping its future. Companies in the industry are increasingly investing in technologies that reduce emissions and enhance the efficiency of phosphoric acid production. While supply chain challenges and price fluctuations remain, the long-term demand for phosphoric acid across various industries suggests a continued upward trend.
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