Global Phosphoric Acid Market Overview 2025

The Global Phosphoric Acid Market Size was estimated at USD 39.69 Billion in 2024 and is projected to reach USD 48.40 Billion by 2033, exhibiting a CAGR of 2.23% during the forecast period– LOOKWHOLE INSIGHT

Source: Secondary Sources and LOOKWHOLE INSIGHT,2025

Phosphoric acid, also known as orthophosphoric acid (H₃PO₄), is the most significant oxygen acid of phosphorus and holds a vital position in both industrial and commercial sectors. Its largest end-use is in the production of phosphate fertilizers such as monoammonium phosphate (MAP) and diammonium phosphate (DAP), which are essential for enhancing crop yield and supporting food security in both developed and developing regions.

Beyond its agricultural applications, phosphoric acid is widely used across various industries. In the food and beverage sector, it serves as an acidity regulator and provides a fruit-like, tart flavor, particularly in soft drinks and processed foods. It also finds application in dental care products, such as dental cement, and in the pharmaceutical industry for preparing albumin derivatives. In the industrial sector, phosphoric acid is used in textile processing, sugar refining, and as an intermediate in the production of water treatment chemicals, detergents, and other specialty chemicals.

Looking ahead, the market is expected to benefit from ongoing technological advancements in purification and processing techniques, which are enabling the development of food-grade and electronic-grade phosphoric acid. Additionally, increasing global population and changing dietary habits continue to exert pressure on agricultural output, further reinforcing the long-term demand for high-efficiency fertilizers. These factors are likely to underpin steady market expansion throughout the forecast period.

Key Drivers

Growing global demand for fertilizers

One of the key drivers of the phosphoric acid market is the growing global demand for phosphate fertilizers. As the world population continues to grow – expected to exceed 9 billion by 2050 – the need to improve agricultural productivity is becoming more pressing. Phosphoric acid is a key raw material for the production of monoammonium phosphate (MAP) and diammonium phosphate (DAP), two of the most widely used fertilizers in the world. These fertilizers are essential for improving crop yields and soil fertility, especially in countries with limited arable land or poor soil quality. This demand is particularly strong in regions such as Asia Pacific, Latin America, and Sub-Saharan Africa, where agriculture remains the main economic activity and food security is a top priority.

Industry Diversification and Expanding End-use Applications

Besides agriculture, phosphoric acid is also experiencing growing demand in several industrial sectors such as food and beverage, pharmaceuticals, textiles, and chemicals. In the food and beverage industry, phosphoric acid is used as a food additive (E338) to acidify products such as soft drinks and processed foods. In the pharmaceutical industry, phosphoric acid plays an important role in dental cements and certain drug formulations. In addition, phosphoric acid is used in sugar production, metal treatment, and as a dispersant in detergents and water treatment solutions. Diversification of end-use applications broadens the market base and makes it resilient to seasonal or regional downturns in any single industry.

Advances in Processing and Purification Technologies

Innovations in phosphoric acid production and purification technologies are also boosting the market. Improvements in wet and thermal processes have increased production efficiency, reduced energy consumption, and enabled the development of higher purity grades of phosphoric acid. These advances are particularly important for applications that require food-grade or electronic-grade phosphoric acid, such as the production of semiconductors and specialty chemicals. With demand for finer and more stable chemical inputs across industries, manufacturers are increasing investments in technology upgrades and process optimization to meet quality standards and environmental regulations.

Increasing Government Support for Sustainable Agriculture

Government policies aimed at increasing agricultural yields and promoting balanced fertilization have further stimulated the demand for phosphoric acid. Many governments, especially in developing economies, are providing subsidies, tax incentives, and support programs to the fertilizer industry to encourage the use of phosphate products. In addition, initiatives focused on sustainable and precision farming are driving the adoption of fertilizers that optimize nutrient delivery and minimize environmental impact. These policy frameworks help stabilize the demand outlook for phosphoric acid in the long term.

Strategic Resource Control and Supply Chain Integration

Control of phosphate rock reserves, a key raw material for phosphoric acid, also plays a role in shaping market dynamics. Countries with abundant reserves, such as Morocco, China, and the United States, have strategic advantages in terms of supply security and cost competitiveness. Vertical integration of the supply chain from phosphate mining to fertilizer production by major producers can improve efficiency, price control, and responsiveness to market changes. As global demand grows, companies are increasingly investing in upstream resource acquisition and downstream value-added product development, strengthening the market's structural strength.

Source: Secondary Sources and LOOKWHOLE INSIGHT,2025

Competitive Landscape:

The global industry is concentrated on the presence of multiple million-dollar companies. There are multiple mergers & acquisitions, joint ventures and other alliances formed globally in the industry by most of these companies. For Instance, The Mosaic Group was formed in 2004 through the merger of Cargill's crop nutrition fertilizer businesses and IMC Global Inc. Also, Nutrien, another multinational fertilizer manufacturer, was formed as a merger between Agrium and Potash Corp. of Saskatchewan in 2017. The constantly evolving industry has led to several other strategic initiatives undertaken by key producers to increase their market share.

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