Phosphoric Acid Market size was valued at USD 54.1 billion in 2024 and is set to reach USD 131.51 billion by the end of 2037, expanding at around 7.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of phosphoric acid is assessed at USD 57.17 billion.
The growth of the market can be attributed to the increasing demand for phosphoric acid from various end-user industries. For instance, the global demand for fertilizers is estimated to reach 45 million metric tonnes by the year 2025. Further, the growing population and need for more crop production are also estimated to contribute to the growth of the market in the forecast period.
In addition to these, factors that are believed to fuel the market growth of phosphoric acid include the rise in investments and collaboration between major key players. For instance, on May 21st, 2021, Desmet Ballestra entered into an agreement to acquire BusschemTech AG. Phosphoric acid is produced by Buss ChemTech AG in various end-user applications. This is anticipated to increase the product range of Desmet Ballestra Group and its activities. The main strategies adopted by the world's biggest manufacturers to reinforce their position on the competitive landscape are partnerships, acquisitions, and agreements. In order to expand their business, market players further focus on the production of phosphoric acid at the national level as well as exporting it into other regions. Additionally, the increasing product launches in the field of phosphoric acid are also expected to contribute to the growth of the market.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.1% |
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Base Year Market Size (2024) |
USD 54.1 billion |
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Forecast Year Market Size (2037) |
USD 131.51 billion |
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Regional Scope |
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Application (Fertilizers, Feed & Food Additives, Detergents, Water Treatment Chemicals, Metal Treatment, Industrial Use)
The global phosphoric acid market is segmented and analyzed for demand and supply by application type into fertilizers, feed & food additives, detergents, water treatment, chemicals, metal treatment, and industrial use. Out of the seven types of phosphoric acid, the fertilizers segment is estimated to gain the largest market share of about 38% in the year 2037. The growth of the segment can be attributed to the increasing use of phosphoric acid in fertilizers production. Phosphoric acid is an intermediate used to manufacture fertilizers. Fertilizers like Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP), and Trisodium Phosphate (TSP) are produced from phosphoric acid. As phosphoric acid is a multifunction agent used for the nutrition of plants, pH adjustment, and disinfection of irrigation equipment, it forms an essential component in many fertilizers. For instance, in 2019, the total area of potential for global crop production remains at some 2.7 billion hectares, which is concentrated in Asia Pacific countries South and Central America, and Sub-Saharan Africa. The demand for fertilizers is increasing, with the world's population growing at a rate of around 1.05% per year, in 2020, 1.08% per year, in 2018, and 1.12% per year, in order to meet the ever-increasing food needs of the world's population. This is anticipated to contribute to the growth of the segment in the forecast period.
Process Type (Wet, Thermal)
The global phosphoric acid market is also segmented and analyzed for demand and supply by process type into wet and thermal. Amongst these two segments, the wet segment is expected to garner a significant share in the year 2037. Phosphoric acid obtained through the wet process may be impure but can be directly applied for the production of fertilizer that is not subject to purification. The main factor behind the wet process is the significant growth in demand for fertilizers. With a lower operating cost and less process time, the growth is supported by lower operating temperatures and easy operation. In the wet phase, rock with low phosphorus content may also be utilized as input material. In the phosphoric acid market, a significant issue is the decreasing availability of rock phosphate. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global market includes the following segments:
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By Process Type |
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By Application |
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APAC Market Statistics
The market share of phosphoric acid in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about 38% by the end of 2037. The growth of the market can be attributed majorly to the increasing production of fertilizers in the region. It is expected that the fertilizer industry in the Asia Pacific will grow by a CAGR of 6 % over the next five years, ensuring regular demand for phosphoric acid to produce fertilizers such as Monoammonium Phosphate and Trisodium phosphate which are used in growing crops. For instance, China made up over 40% of the Asia-Pacific phosphoric acid market in 2019, becoming the nation that is a major producer of fertilizers. It is expected that demand in China will be strengthened by the growth of end-use industries over the forecast period. In turn, India has a wide range of chemical manufacturing bases that will lead to the growth of its economy. Further, the market growth in this area is driven by increased disposable income for the middle-class population, as well as food processing expenditure. The market is also expected to grow owing to the growing demand for processed foods in emerging countries such as India and China. All these factors are anticipated to boost market growth during the forecast period.
North American Market Forecast
The North American phosphoric acid market is estimated to be the second largest, registering a share of about 24% by the end of 2037. The growth of the market can be attributed majorly to the increasing demand for phosphoric acid from the food & beverages, and pharmaceuticals industry. Moreover, the market in North America is further stimulated by strict government rules on phosphoric acid. However, North American phosphoric acid market growth is expected to be impeded by significant innovation and the introduction of new products. Furthermore, the availability of substituted products could create additional obstacles to the North American market for phosphoric acid over the coming years.
Europe Market Forecast
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2037. The growth of the market can be attributed majorly to the increasing demand for phosphoric acid in pharmaceutical industries, as well as growing demand from fertilizer producers. Moreover, the European market for phosphates is also expanding due to rigorous government regulations. However, the growth of the phosphoric acid market in Europe is expected to be slowed down by significant innovation and new product launches.
Author Credits: Radhika Pawar
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