Phosphoric Acid Market Analysis | 2024-2030

Market Insights

“The phosphoric acid market was estimated at USD 47.7 billion in 2023 and is likely to grow at a CAGR of 6.95% during 2024-2030 to reach USD 76.34 billion in 2030”.

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Market Dynamics

Introduction

Phosphoric acid, denoted by the chemical formula H3PO4, holds immense significance across industries due to its multifaceted properties. Primarily known for its role in fertilizer production, phosphoric acid provides essential phosphorus nutrients critical for plant growth and agricultural productivity. Moreover, it serves as a key ingredient in the food and beverage industry, acting as an acidulant and flavor enhancer in soft drinks and processed foods. Beyond these applications, phosphoric acid finds utility in metal surface treatment and water purification processes. Its versatility and wide-ranging uses underscore its pivotal role in various industrial sectors, contributing to global agricultural, food, and manufacturing endeavors.

Market Drivers

The phosphoric acid market is propelled by rising demand from the fertilizer and food & beverage sectors, as well as increasing usage in fuel cells. However, challenges such as environmental concerns regarding industrial phosphoric acid disposal and regulatory pressures impede market growth. Yet, opportunities arise from commercializing chiral phosphoric acid as a catalyst and extracting rare earth elements from phosphoric acid.

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Recent Market JVs and Acquisitions:

A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:

• In January 2021, IGL Group Ltd. finalized the acquisition of Fertilaqua, marking a strategic move to leverage Fertilaqua's robust market presence. IGL Group Ltd. anticipates utilizing Fertilaqua's extensive distribution network to effectively distribute its organic chemicals and fertilizers worldwide. This acquisition aligns with IGL Group Ltd.'s goal of expanding its global reach and enhancing its product distribution capabilities in key markets.
• On September 21, 2020, IFFCO successfully acquired 3F Fuji Foods in India from Fuji Oil Group and their Indian partner, 3F Industry. This strategic move enhances IFFCO's presence in the Indian market and expands its product portfolio.
• OCP Group and Fertinagro Biotech S.L. are pleased to announce the completion of OCP's acquisition of Global Feed S.L. on May 17th, 2023, reinforcing OCP's standing in the global nutrition solutions market.

Recent Product Development:

In August 2020, OCP Group S.A. unveiled plans to expand its operations with the introduction of a new plant dedicated to producing purified phosphoric acid. This facility, to be overseen by Euro Maroc Phosphor (EMAPHOS), an OCP Group S.A. subsidiary, is slated to commence operations in the fourth quarter of 2022. With an anticipated annual production capacity of 280,000 tons, this initiative underscores OCP Group S.A.'s commitment to meeting the growing demand for purified phosphoric acid and strengthening its position in the market.

Segments Analysis

By Process Type

“Wet process is anticipated to experience the higher growth rate among processes throughout the forecast period”.

The phosphoric acid market is segmented into Wet Processes and Thermal Processes. The wet process is expected to remain dominant, the wet process, which produces impure phosphoric acid usable directly in fertilizer production, is driven by the increasing demand for fertilizers, supported by its low operating costs, reduced process time, lower operating temperatures, easy operation, and the utilization of low phosphorous content rock as a raw material; however, concerns arise due to the diminishing supply of rock phosphate, emphasizing the importance of implementing measures to secure future phosphate supplies despite the current lack of economically viable phosphate recycling from wastewater.

By Application Type

“Fertilizers are expected to remain the dominant and fastest-growing Application type in the market during the forecast period”.

The market is segmented into Fertilizers, Feed & Food Additives, Detergents, Water Treatment Chemicals, Metal Treatment, and Industrial Use. Fertilizers are expected to remain the dominant and fastest-growing Application type in the market during the forecast period. Fertilizers, consisting primarily of nitrogen, phosphorus, and potassium, play a crucial role in fostering the growth and nourishment of plants and crops. Accounting for the largest market share in the global phosphoric acid market in 2024 in terms of value, the application of fertilizers is propelled by factors such as the expanding global population and heightened usage of fertilizers to meet the escalating demand for food, establishing it as the dominant segment expected to persist throughout the forecast period.

Regional Insights

“The Asia-Pacific is expected to remain the largest market for Phosphoric Acid during the forecast period”.

In terms of countries, the Asia Pacific emerged as the leading market for phosphoric acid in 2021, driven by the significant presence of major fertilizer manufacturers and a robust demand for processed food within the region, particularly bolstered by high fertilizer consumption in China, India, and Indonesia. The forecasted period anticipates the Asia Pacific phosphoric acid market to exhibit the highest Compound Annual Growth Rate (CAGR) both in terms of value and volume, propelled by factors including the rising disposable income of the middle-class populace and their increased expenditure on processed food, further fueled by escalating demand for processed food in emerging economies like India and China.

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Key Players

The market is highly fragmented with the presence of over 500 players across the region. Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc. The following are the key players in the phosphoric acid market. Some of the major players are providing a complete range of services including engine and airframe.

Here is the list of the Top Players (Alphabetically Arranged)

• ICL Group Ltd.
• OCP Group S.A.
• The Mosaic Company
• Nutrien Ltd.
• Phosagro Group of Companies
• Eurochem Group AG
• IFFCO  

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s phosphoric acid market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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