Phosphoric Acid Market Size, Share & Industry Analysis, By Application (Fertilizers {Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), Trisodium Phosphate (TSP), Others}, Animal Feed, Food Additives, and Others), and Regional Forecast, 2024-2032

The global phosphoric acid market was valued at USD 35.2 billion in 2023. It is projected to grow from USD 37.0 billion in 2024 to USD 54.0 billion by 2032, exhibiting a CAGR of 4.9% during (2024-2032). Asia Pacific dominated the phosphoric acid market with a market share of 54.55% in 2023.

Phosphoric acid (H₃PO₄) is an essential ingredient in the production of phosphate salts, which are used as fertilizers. Essentially, it is converted into three types of salts: triple superphosphate (TSP), diammonium hydrogen phosphate (DAP), and mono ammonium dihydrogen phosphate (MAP). Owing to its huge demand from fertilizers and other applications, phosphoric acid is the second-most developed inorganic acid in volume, after sulfuric acid. Efficacy to address phosphorus deficiencies in plants has made phosphoric acid an ideal ingredient in fertilizer production. In addition, it is used in dental cement, albumin derivatives preparation, and sugar and textile industries. Due to the significant product demand from a wide range of applications mentioned above, the market will experience an upward trend in its growth trajectory.

The world economy has been affected by the COVID-19 pandemic. In April 2020, the International Monetary Fund (IMF) projected a 3% fall in global economic activity for 2020, which is higher than the 2009 slowdown. As a result, East Asia, South Asia, and West Asia are the areas that are projected to undergo the greatest downturn. In North America, Latin America, and Europe, fertilizer use is projected to decrease moderately in 2020.

Global Phosphoric Acid Market Key Takeaways

Market Size & Forecast:

• 2023 Market Size: USD 35.2 billion
• 2024 Market Size: USD 37.0 billion
• 2032 Forecast Market Size: USD 54.0 billion
• CAGR: 4.9% from 2024–2032

Market Share:

• Asia Pacific dominated the phosphoric acid market with a 54.55% share in 2023, driven by the strong presence of fertilizer manufacturing, expanding agricultural sector, and rising government investments in food security and chemical production across China and India.
• By application, fertilizers are expected to retain the largest market share, supported by the growing demand for phosphate-based fertilizers like DAP, MAP, and TSP to enhance crop yields and soil productivity amid declining per capita arable land.

Key Country Highlights:

• China: Accounted for over 40% of the Asia Pacific market in 2023, bolstered by its status as a major fertilizer production hub and rapid expansion of end-use industries.
• India: Hosts a vast number of chemical manufacturing bases, with rising demand for phosphoric acid from agriculture and food industries expected to fuel market growth.
• United States: Increasing adoption of phosphoric acid in food additives and animal feed applications is contributing to stable demand across industrial and agricultural sectors.
• Europe: Growth is driven by its use in animal feed and food-grade applications, with regulatory frameworks encouraging balanced fertilizer application.
• Latin America: With 38% of land used for agriculture and rising crop production, the region is expected to witness steady growth in phosphoric acid demand, particularly for fertilizers.

Phosphoric Acid Market Trends

The decline in Per Capita Arable Land is a Prominent Trend

As the population is mostly growing in cities, per capita farmland is declining. However, higher food production from each acre of farmland is expected. According to the FAO, arable land is diminishing per person. It dropped from 0.38 ha in 1970 to 0.23 ha in 2000, with a decline estimated to 0.15 ha per person by 2050. South Asia uses ninety-four percent of the potentially arable land. In comparison, only 22 percent of theoretically arable land is under cultivation in sub-Saharan Africa. Asia Pacific witnessed a growth from USD 18.3 billion in 2022 to USD 19.2 billion in 2023.

The predicted slowdown reflects the projected lower growth rate of crop production, combined with the lack of suitable irrigation areas and water supply in some countries and the rising investment cost in irrigation. A decline in the arable land is thus forcing farmers to yield more output because of the increasing food demand. More yields can be generated with more fertile soil, which would boost the demand for phosphate fertilizers, driving phosphoric acid market growth.

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Phosphoric Acid Market Growth Factors

Increasing Demand for DAP Phosphate Fertilizers to Drive Growth

Phosphoric acid is an intermediate substance used for the manufacturing of phosphate fertilizers of different kinds. Diammonium phosphate (DAP), Monoammonium phosphate (MAP), NPKs, and SSP are the most widely used phosphatic fertilizers. The largest share of this demand was expressed by DAP, with MAP, SSP, and TSP accounting for much of the remainder. Commercial phosphate fertilizers are made using phosphate rock. About two-thirds of the phosphate supplies in the world are produced from deposits of sedimentary and aquatic phosphate rocks. In the past, ground rock phosphate was used as a source of phosphorus in soils. However, the use of rock phosphate in agriculture has declined dramatically due to the low phosphorus content in this native fiber, high transport costs, and limited crop responses. The use of phosphorus-based fertilizers, on the other hand, has increased dramatically.

DAP is one of the most commonly used phosphorus fertilizers in the world. Because of its moderately high nutrient content and exceptional physical properties, it is a commonly used fertilizer. For plant feeding, DAP is a significant source of phosphorus and nitrogen. The farming of grains such as barley, fruits, wheat, and vegetables supplies the right proportion of phosphorus and nitrogen.

The use of DAP soil fertilizer increases the soil's fertility and, thus, the crop's production. It improves the consistency of fruit and vegetable crops. Developed countries and regions are increasingly using DAP fertilizers to increase crop yields. These fertilizers are used to make up for the soil's lack of phosphate. The strong demand for food, driven by the surging population and increasing consumer buying power, is anticipated to support the growth of the phosphoric acid industry over the projected era.

RESTRAINING FACTORS

Environmental Concerns & Increasing Regulatory Pressure to Hamper Growth

At state, provincial, and national levels in many jurisdictions, phosphoric acid supply is related to government regulations. New rules are being implemented by lawmakers on fertilizers, certifications for goods and plants, and tailings management due to various environmental considerations.

In high-standard certification schemes, more fertilizer companies are pursuing registration. China's Regulatory Phosphogypsum Control and the EU's Green Deal criteria, as well as the introduction of emissions trading and carbon schemes around the world, are projected to have larger consequences in the fertilizer industry in the future. Several risks could affect the usage of fertilizers, including global development, the pace of economic recovery, geopolitics, trade relations, animal and plant health, temperature, and government behavior.

Phosphoric Acid Market Segmentation Analysis

By Application Analysis

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Fertilizers Segment to Lead in the Forecast Period owing to Rising Product Preference in Soil PH Adjustment

On the basis of the application, the market is segmented into fertilizers, animal feed, food additives, and others. This acid is ideal for usage in a number of applications, including industrial water treatment, phosphating metal treatment, machine washing, pH adjustment, aqueous paints, varnishes and wash primer systems, conversion of rust, and horticultural fertilizers. The global fertilizer demand is forecast to rise by an annual average rate of 0.7 percent to hit 197.1 Mt of nutrients at the end of 2024, according to the International Fertilizer Association (IFA). The P2O5 consumption is projected to rise at a marginally higher average annual rate (+0.8%) than N (+0.7%) and K2O (+0.6%).

• The animal feed segment is expected to hold a 7.2% share in 2023.

Latin America, accounting for 37 percent of the overall growth, is projected to fuel global fertilizer production. It would be followed by EECA (27%), South Asia (22%), Africa (15%), and North America (12%). This growth is expected to slow down in East Asia, with an expected decrease in the overall demand for fertilizers. It is anticipated that West Asia and Oceania will make modest contributions to the global rise in fertilizer production and consumption. At the same time, Europe is projected to see the least growth over time.

Phosphorus is a building block in growing healthy and strong plants and an essential ingredient for human and animal health. Phosphorus helps maintain a variety of cell functions to develop strong bones and teeth along with many biological processes. As a result, it has become a key ingredient in animal feed production. It plays a significant role in maintaining livestock health and overall food security. The demand for animal feed is on the rise due to the increasing meat consumption across the globe. The animal feed market is projected to grow continuously with an increasing preference for proteins from animal sources. With growing meat consumption, demand for animal feed products will experience significant growth during the forecast period, boosting the sales of phosphoric acid.

REGIONAL INSIGHTS

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In 2023, the Asia Pacific held the largest phosphoric acid market share and the market size stood at USD 19.2 billion. During the forecast period, the region is set to dominate the global market and is likely to retain its position, highly driven by government, the chemical industry, agriculture and consumer spending, all of which are core components of GDP. It is also certain that the increasing agricultural industry will push the regional market.

• In China, the animal feed segment is estimated to hold a 7.4% market share in 2023.

In 2023, China accounted for a more than 40% share of the Asia Pacific market. The nation is a major fertilizer production center. During the forecast period, the growth of end-use industries is anticipated to boost the demand in China. India has a vast number of chemical manufacturing bases that will, in turn, propel the country’s economy.

North America and Europe together accounted for more than 20% of the global market in 2023. A rise in the usage of this acid as food additives and animal feed would augment the demand in the region. The region of Latin America and the Caribbean (LAC) encompasses more than 2 billion ha. It comprises 34 countries with an approximate total population of 664.9 million in 2023, with a low average population density of 0.34 people per ha. Thirty-eight percent of the available land is used for agriculture, and forests cover the remaining 46 percent.

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List of Key Companies in Phosphoric Acid Market

Key Companies to Adopt Strategic Planning for Strengthening Their Market Shares

With the involvement of multiple large players and some global and regional small and medium-sized players worldwide, the industry is competitive. On the basis of the product quality delivered and the technologies used in terms of production, multiple firms are competing. They are searching for opportunities for vertical differentiation across the supply chain.

Major players are interested in mergers and acquisitions, infrastructure growth, expansion of their production facilities, and investment in R&D facilities.

LIST OF KEY COMPANIES PROFILED

• Nutrien (Canada)
• The Mosaic Company (U.S.)
• OCP (Morocco)
• Ma’aden (Saudi Arabia)
• EuroChem Group AG (Switzerland)
• Solvay S.A. (Belgium)  
• Arkema (France)

KEY INDUSTRY DEVELOPMENTS

• February 2024 – Coromandel International Ltd (CIL) announced plans to increase the production capacities of phosphoric acid and sulphuric acid at its plant located in southeastern Andhra Pradesh.
• December 2023 – PhosAgro shared plans to expand its overall agrochemical production by 1.4 million tons by 2026 compared to its production capacity in 2023. The expansion also includes developing company’s phosphoric and sulphuric acid production facilities.
• July 2018 – Innophos Holdings, Inc. reported that it has entered into a three-year supply agreement for Purified Phosphoric Acid ('PPA') with Nutrien. This global agricultural leader was established in January 2018 with the merger of Agrium and PotashCorp.
• July 2017 – EuroChem Group AG announced the purchase of a minority stake in Hispalense de Liquidos, a family-owned manufacturer of liquid NPK blends, based in southern Spain (50 percent-1 share). No announcement was made of the price and other terms of the contract.

REPORT COVERAGE

An Infographic Representation of Phosphoric Acid Market

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The market research report provides a detailed market analysis and focuses on crucial aspects such as leading companies, products, and applications. It also includes insights into trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth over recent years. It includes historical data and forecasts revenue growth at global, regional, and country levels and analyzes the latest market dynamics and opportunities in the industry.

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