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By Source Type;
Wet Process and Thermal ProcessBy Concentration;
75%, 85% and 92%By Grade;
Technical and FoodBy Application;
Fertilizers, Feed & Food Additives, Detergents, Water Treatment Chemicals and OthersBy Geography;
North America, Europe, Asia Pacific, Middle & East & Africa and Latin America - Report Timeline (2021 - 2031)Phosphoric Acid Market Overview
Phosphoric Acid Market (USD Million)
Phosphoric Acid Market was valued at USD 36,039.65 million in the year 2024. The size of this market is expected to increase to USD 48,067.83 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.2%.
Phosphoric Acid Market
*Market size in USD million
CAGR 4.2 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 4.2 % |
| Market Size (2024) | USD 36,039.65 Million |
| Market Size (2031) | USD 48,067.83 Million |
| Market Concentration | High |
| Report Pages | 316 |
Major Players
- ICL Group Ltd.
- OCP Group S.A.
- The Mosaic Company
- Nutrien Ltd.
- Eurochem Group AG
- Phosagro Group of Companies
- IFFCO
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Phosphoric Acid Market
Fragmented - Highly competitive market without dominant players
The phosphoric acid market anchors essential manufacturing chains in crop nutrition, food & beverage processing, water treatment, and battery-related materials. Buyers prioritize stable quality, supply reliability, and transparent costing so downstream steps remain efficient. Standardized formulations support >90% specification conformance in routine contracts, while operational controls keep conversion losses near 5–10%, strengthening process economics.
Production Standards & Purity
A widely used benchmark is the 85% concentration for commercial supply, balancing flowability, stability, and storage needs. For sensitive applications, purification targets >99% assay with residual metals held to <0.5%. Plants increasingly monitor inline parameters to sustain >95% uptime, trimming off-spec material by 10–15% and preserving consistent product quality at dispatch.
Application Readiness & Performance
Formulators value liquids in the 75–85% range for dosing precision, while advanced uses depend on high-purity (>99%) lots with <2% variability between batches. Predictable reactivity can unlock double-digit % productivity gains in blending, coating, or neutralization steps. Clear, testable specs streamline operations and lower waste generation by 5–8%, improving throughput and repeatability.
Commercial & Logistics Considerations
Because inputs and utilities can account for 60–70% of unit costs, buyers favor agreements that keep variance within 10–20% of index references. Performance scorecards typically track on-time delivery (>95%) and first-pass quality acceptance (>98%). Stock policies hold safety buffers near 2–4% of expected use to safeguard run rates, while digital reconciliation tightens inventory accuracy by 5–10%.
Advancement & Sustainability Focus
Modern upgrades reduce energy and reagent intensity by 15–25%, improving both cost control and environmental metrics. Closed-loop recovery raises phosphorus utilization by 30–40%, and optimized water circuits can deliver 20–30% lower freshwater intake. These steps help maintain high-purity outputs (>99%), steady throughput, and predictable, audit-ready quality for diverse industrial users.
Phosphoric Acid Market Recent Developments
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In March 2024, Mosaic Company acquired a stake in a Middle Eastern phosphoric acid producer, aiming to strengthen its supply chain for fertilizer production
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In February 2024, OCP Group expanded its phosphoric acid production facilities in Morocco to meet rising demand in agriculture and food processing industries
Phosphoric Acid Market Segment Analysis
In this report, the Phosphoric Acid Market has been segmented by Source Type, Concentration, Grade,Application and Geography.
Phosphoric Acid Market, Segmentation by Source Type
The Phosphoric Acid Market has been segmented by Source Type into Wet Process and Thermal Process.
Wet Process
The wet process segment dominates the phosphoric acid market, contributing nearly 80–85% of global production. It is widely used in fertilizer manufacturing, animal feed, and food-grade applications. With rising agricultural demand and global focus on crop yield improvement, this segment is expected to expand at a CAGR of 5–7% during the forecast period.
Thermal Process
The thermal process accounts for about 15–20% of the market and is mainly utilized for producing high-purity phosphoric acid used in electronics, pharmaceuticals, and specialty chemicals. Though smaller in share, it plays a vital role in industries requiring superior quality and consistency. This segment is projected to grow at a CAGR of 4–6%, supported by increasing applications in advanced manufacturing and healthcare.
Phosphoric Acid Market, Segmentation by Concentration
The Phosphoric Acid Market has been segmented by Concentration into 75%, 85% and 92%
75% Concentration
The 75% concentration segment holds about 35–38% of the phosphoric acid market. It is primarily used in food processing, water treatment, and fertilizers due to its moderate strength and cost-effectiveness. With increasing demand for safe food additives and agricultural inputs, this segment is projected to grow at a CAGR of 5–6%.
85% Concentration
The 85% concentration category accounts for nearly 45–48% of global demand, making it the largest segment. It is widely applied in industrial chemicals, detergents, and pharmaceutical formulations. The segment benefits from its balance of high purity and industrial usability, with expected growth at a CAGR of 6–7% in the coming years.
92% Concentration
The 92% concentration segment contributes around 15–18% of the market. It is mainly used in specialty chemicals, electronics, and high-grade industrial applications requiring superior concentration levels. Although smaller in scale, it shows strong potential, with a forecasted CAGR of 7–8%, supported by growth in advanced manufacturing and niche applications.
Phosphoric Acid Market, Segmentation by Grade
The Phosphoric Acid Market has been segmented by Grade into Technical and Food
Technical Grade
The technical grade segment dominates the phosphoric acid market, accounting for nearly 70–75% of total demand. It is widely used in fertilizers, detergents, water treatment, and industrial chemicals. With global agriculture driving fertilizer consumption, this segment is expected to grow at a CAGR of 5–7% in the forecast period.
Food Grade
The food grade segment holds about 25–30% of the market and is mainly applied in soft drinks, processed foods, and preservatives. Its role in maintaining flavor, acidity, and safety standards makes it essential in the food and beverage sector. This segment is forecasted to expand at a CAGR of 6–8%, supported by rising demand for packaged and convenience foods.
Phosphoric Acid Market, Segmentation by Application
The Phosphoric Acid Market has been segmented by Application into Fertilizers, Feed & Food Additives, Detergents, Water Treatment Chemicals and Others.
Fertilizers
The fertilizers segment dominates the phosphoric acid market, contributing nearly 70–72% of total demand. It is a key raw material for producing phosphate-based fertilizers such as DAP, MAP, and TSP. With increasing global focus on agricultural productivity and food security, this segment is projected to grow at a CAGR of 5–7%.
Feed & Food Additives
This segment holds about 10–12% of the market. Phosphoric acid is used as a nutritional supplement in animal feed and as a food additive for acidity regulation in beverages and processed foods. The growing demand for convenience foods and livestock nutrition is expected to drive growth at a CAGR of 6–8%.
Detergents
The detergents category represents nearly 5–7% of the market. Phosphoric acid enhances cleaning efficiency and is used in the production of household and industrial cleaning agents. Although smaller in share, this segment shows steady growth at a CAGR of 4–5%, driven by demand for hygiene and sanitation products.
Water Treatment Chemicals
This segment contributes about 6–8% of the market. Phosphoric acid is used for scale inhibition, corrosion prevention, and pH control in water treatment systems. With rising demand for safe water supply and wastewater treatment, the segment is expected to grow at a CAGR of 5–6%.
Others
The others category accounts for nearly 4–5% of the market, covering applications in pharmaceuticals, electronics, and specialty chemicals. While smaller in scale, this segment shows steady adoption with a CAGR of 4–5%, supported by niche industrial applications and R&D.
Phosphoric Acid Market, Segmentation by Geography
In this report, the Phosphoric Acid Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa and Latin America.
Regions and Countries Analyzed in this Report
Phosphoric Acid Market Share (%), by Geographical Region
North America
North America holds about 20–22% of the phosphoric acid market, with strong demand from fertilizers, food additives, and water treatment chemicals. The U.S. leads the region due to its large-scale agriculture sector and expanding industrial applications. Growth is expected at a CAGR of 4–6%, supported by advancements in crop nutrition and industrial processing.
Europe
Europe contributes nearly 18–20% of global demand, led by countries such as Germany, France, and the U.K.. Applications in fertilizers, food-grade phosphoric acid, and industrial chemicals drive regional consumption. With growing emphasis on sustainable agriculture and food safety, the market here is projected to grow at a CAGR of 4–5%.
Asia Pacific
Asia Pacific dominates the phosphoric acid market, accounting for nearly 45–48% of global share. Major consumers include China, India, Japan, and South Korea, driven by strong demand for phosphate fertilizers, processed foods, and industrial chemicals. With rapid industrialization and agricultural growth, this region is expected to expand at the fastest CAGR of 6–8%.
Middle East & Africa
The Middle East & Africa region represents about 8–10% of the market. Key demand comes from fertilizer production, water treatment, and food processing industries. Countries like Saudi Arabia, UAE, and South Africa are leading adopters. Market growth is forecasted at a CAGR of 5–6%, supported by infrastructure and agricultural development.
Latin America
Latin America contributes around 10–12% of global demand, with Brazil and Mexico as the largest consumers. Strong reliance on fertilizers for agriculture and increasing adoption in food and beverage industries are driving growth. The market in this region is expected to grow at a CAGR of 5–7% over the forecast period.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Phosphoric Acid Market. These factors include; Market Drivers, Restraints and Opportunities.
Drivers:
- Agricultural Demand
- Food Industry Use
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Industrial Applications - One of the primary drivers in industrial applications is phosphoric acid's role in metal treatment and surface finishing. It is employed to remove rust, scale, and other impurities from metal surfaces, preparing them for further processing such as plating or painting. Its ability to inhibit corrosion and improve adhesion makes it indispensable in enhancing the durability and aesthetic appeal of metal products across automotive, aerospace, and construction industries.
Phosphoric acid also serves as a crucial ingredient in the production of phosphate chemicals and fertilizers. It is used in the manufacturing of phosphates like sodium phosphate, potassium phosphate, and ammonium phosphate, which find applications in water treatment, detergents, and agricultural products. These phosphates contribute to improving water quality, enhancing cleaning efficiency, and promoting crop growth, supporting sustainable practices in agriculture and environmental management.
In the electronics industry, phosphoric acid is utilized in the manufacture of semiconductors and electronic components. It plays a role in etching silicon wafers and cleaning circuit boards, ensuring the precision and reliability of electronic devices. Its high purity and controlled chemical properties make it suitable for critical processes where precision and consistency are paramount.
Restraints:
- Environmental Concerns
- Regulatory Constraints
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Competition from Substitutes - One of the main substitutes for phosphoric acid comes from organic sources such as bio-based acids and natural extracts. These alternatives are gaining attention in sectors like agriculture and food production, where there is increasing consumer demand for organic and sustainable products. Bio-based acids can offer comparable nutrient profiles or acidity regulation capabilities as phosphoric acid, presenting a viable option for manufacturers and consumers looking to reduce dependency on conventional chemicals.
In industrial applications such as metal treatment and water treatment, there are alternatives to phosphoric acid that include other mineral acids or complex chemical formulations. These substitutes may offer improved performance characteristics or cost-effectiveness in specific applications, thereby challenging the market position of phosphoric acid in certain industrial sectors.
Technological advancements and innovations in chemical synthesis and formulation continue to drive the development of new substitutes with enhanced properties or reduced environmental impact compared to phosphoric acid. These innovations cater to evolving industry requirements for cleaner production processes, reduced emissions, and sustainable product solutions.
Opportunities:
- Emerging Markets
- Sustainable Production
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Pharmaceutical Applications - Phosphoric acid is utilized in the pharmaceutical industry primarily as a pH adjuster and buffering agent in the production of medicines and nutritional supplements. Its ability to stabilize pH levels ensures the effectiveness and stability of active pharmaceutical ingredients (APIs) in various dosage forms, including tablets, capsules, and syrups.
Phosphoric acid also serves as a key ingredient in liquid preparations such as syrups and elixirs, where it enhances solubility and palatability of medications, improving patient compliance and therapeutic outcomes. These formulations are crucial in pediatric and geriatric medicine, where precise dosing and ease of administration are essential considerations.
Phosphoric acid finds applications in the production of pharmaceutical excipients and coatings. It is used to modify the release profiles of drugs, ensuring controlled and sustained drug delivery over extended periods. This capability is particularly valuable in formulating sustained-release medications that maintain therapeutic levels in the body, reducing dosing frequency and improving patient convenience.
Phosphoric Acid Market Competitive Landscape Analysis
Phosphoric Acid Market is witnessing robust growth driven by strategic partnerships and collaborative strategies among leading chemical manufacturers. Mergers and acquisitions enhance market positioning, while continuous innovation in production and purification techniques supports expansion. Technological advancements improve product quality and efficiency, increasing operational performance by 45%.
Market Structure and Concentration
The market exhibits moderate concentration, with top companies controlling 50% of total production capacity. Small and medium enterprises contribute to growth through specialized phosphoric acid solutions for fertilizers and industrial applications. Collaborative strategies and selective mergers strengthen competitive positioning, while technological advancements enhance yield and process efficiency, driving overall market expansion.
Brand and Channel Strategies
Leading players leverage strong branding and multi-channel strategies to strengthen market presence. Strategic partnerships with distributors, industrial clients, and agricultural firms improve adoption. Marketing emphasizes quality and consistency, fueling growth, while technological integration ensures effective expansion, accounting for 40% of overall market penetration.
Innovation Drivers and Technological Advancements
Innovation and technological advancements are central, improving production efficiency and purity levels by 50%. Research-driven strategies and collaborative partnerships facilitate development of high-performance phosphoric acid. Mergers provide access to advanced technologies, collectively fostering market growth and reinforcing the future outlook for chemical and fertilizer applications.
Regional Momentum and Expansion
Asia-Pacific and North America lead regional expansion, contributing 55% of total revenue. Strategic partnerships and collaborations strengthen manufacturing and distribution networks. Investments in advanced technological advancements enhance production efficiency, while mergers support market consolidation. Innovative strategies drive growth across agricultural and industrial sectors.
Future Outlook
The market anticipates sustained growth through continuous innovation and strategic partnerships. Technological advancements are expected to improve production efficiency and product quality by 60%. Mergers and collaborations will reinforce market presence, while strategic expansion ensures long-term competitiveness. The future outlook remains positive with ongoing investment in advanced phosphoric acid technologies.
Key players in Phosphoric Acid Market include:
- ICL Group Ltd. (Israel)
- OCP Group S.A. (Morocco)
- The Mosaic Company (US)
- Nutrien Ltd. (Canada)
- Eurochem Group AG (Switzerland)
- Phosagro Group of Companies (Russia)
- IFFCO (India)
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Source Type
- Market Snapshot, By Concentration
- Market Snapshot, By Grade
- Market Snapshot, By Application
- Market Snapshot, By Region
- Phosphoric Acid Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Agricultural Demand
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Food Industry Use
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Industrial Applications
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- Restraints
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Environmental Concerns
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Regulatory Constraints
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Competition from Substitutes
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- Opportunities
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Emerging Markets
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Sustainable Production
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Pharmaceutical Applications
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Phosphoric Acid Market, By Source Type, 2021 - 2031 (USD Million)
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Wet Process
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Thermal Process
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Phosphoric Acid Market, By Concentration, 2021 - 2031 (USD Million)
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75%
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85%
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92%
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Phosphoric Acid Market, By Grade, 2021 - 2031 (USD Million)
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Technical
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Food
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- Phosphoric Acid Market, By Application, 2021 - 2031 (USD Million)
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Fertilizers
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Feed & Food Additives
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Detergents
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Water Treatment Chemicals
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Others
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- Phosphoric Acid Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Phosphoric Acid Market, By Source Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- ICL Group Ltd. (Israel)
- OCP Group S.A. (Morocco)
- The Mosaic Company (US)
- Nutrien Ltd. (Canada)
- Eurochem Group AG (Switzerland)
- Phosagro Group of Companies (Russia)
- IFFCO (India)
- Company Profiles
- Analyst Views
- Future Outlook of the Market