The phosphoric acid market is evaluated at US$43.804 billion for the year 2019 growing at a CAGR of 3.53% reaching the market size of US$53.939 billion by the year 2025.
Phosphoric acid is a type of inorganic acid that is primarily derived from phosphate rocks. This acid is colorless and odorless, and non-toxic in nature. Phosphoric acid is often considered as a non-volatile and crystalline liquid. There are wide applications of phosphoric acid that include fertilizer production and as an additive in food and beverages along with some uses in the pharmaceutical applications. The market for phosphoric acid is primarily being driven by the fact that the globally growing demand for food due to the constantly growing global population has led to an upsurge in the agricultural output. This, in turn, acts as a catalyst for market growth as the majority of the phosphoric acid that is manufactured globally is used for manufacturing fertilizers. Additionally, the wide application of phosphoric acid in processed food and beverages as an additive for the enhancement of taste along with the globally growing market for processed foods and beverages is also a key factor playing a significant role in shaping up the phosphoric acid market growth during the next five years. The strict rules and regulations by the governments across several countries have led to increased adoption of phosphate fertilizers for the safety of food, which is also positively impacting the market growth throughout the forecast period.
However, the demand for phosphoric acid may be restrained by the fact that there are many countries that are now increasingly adopting sustainable agricultural practices which have further led to the adoption and development of sustainable options such as micronutrients and organic chemicals among others. Thus, the increase in the adoption of organic products will further slow down the demand for phosphate fertilizers, thus, fertilizers being one of the major applications of phosphoric acid is fertilizer manufacturing among others. Additionally, the outbreak of novel coronavirus disease is further anticipated to negatively impact the market growth during the short run owing to the fact the decline in the manufacturing activities due to temporary halt in the manufacturing output of various industries led to a decline in the demand for phosphoric acid as well. Furthermore, the trade barriers further led to a decline in exports of fertilizers and other products in which phosphoric acid is used. This, in turn, has led to a decline in the consumption of phosphoric acid globally, which is hampering the market growth to some extent, especially during the short run.
Globally growing food demand
One of the prime factors that is supplementing the constantly growing demand for phosphoric acid is the globally growing food demand. Simultaneously, with the growing demand for food, the demand for fertilizers has also increased globally. The globally growing population along with significant growth in the urban population in both developed and developing economies of the globe are some of the key factors bolstering the growing food demand globally. According to the data provided by the United Nations, the global population is expected to reach 9.7 billion by the year. The growing population is increasing the pressure on limited available resources as rapid industrialization and urbanization has been one of the major factors which have led to a deterioration in the quality and the quantity of the available resources such as land, air, and water among others. Thus, in limited resources the output required is more, this has increased the propensity of farmers towards an increasing production output which can be done with two possible ways which are the expansion of agricultural land and enhancement of crop productivity on the existing lands. However, due to industrialization and urbanization, the expansion of agricultural land is considered comparatively tougher, which has led to an increased usage of urban farming practices which is further led to an increase in the adoption of fertilizers and other nutrients required for the enhancement of crop growth. Thus, playing a significant role in shaping up the demand for phosphoric acid for fertilizer production.
Key Developments in the market
There is a significant volume of companies working in the phosphoric acid market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better products and services to their customers worldwide, which is further expected to propel the growth of the market in the coming years. For instance, recently in August 2020, OCP, one of Morocco’s phosphates and fertilizers manufacturing company announced the partnership with German and Belgian partners, Budenheim and Prayon to build a new plant for the production of purified phosphoric acid to enhance the production output for meeting the growing demand. Also, in March 2019, PhosAgro, a chemical holding company based out of Russia that produces fertilizer, phosphates, and feed phosphates announced the launch of a new project in which a new modern phosphate-based fertilizer production facility and energy plant is planned to be constructed at the company’s Metachem production site with an estimated investment of RUB 23 billion. In this project, the up-gradation and overhaul of the phosphoric acid is also planned with an aim to boost the output capacity to 500 ths tonnes per year. Also, major companies in the developing economies have also enhanced their production output to meet the domestic as well as international demands. For example, in February 2016, Greenstar Fertilizers Limited, a leading manufacturer of fertilizers in India announced an expansion worth Rs 320 crores to double the production capacity of its phosphoric acid plant from 75,000 tonnes per year to 150,000 tonnes per year.
The phosphoric market has been segmented on the basis of application, process, and geography. By application, the segmentation of the market has been done into fertilizers, food and beverages, pharmaceuticals, and others. By process, the market has been classified as wet process and thermal process. Furthermore, on the basis of geography, the phosphoric acid market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Fertilizers to hold a significant share
By application, the fertilizer segment is anticipated to hold a promising share in the market owing to the fact that the majority of the acid is used in the production of fertilizers. Furthermore, the globally growing demand for food due to the growing population is one of the key factors augmenting the demand for fertilizers in many parts of the world. Also, the growing exports of fertilizers is another additional factor that is bolstering the growth of this segment over the next five year. The food and beverage application segment is projected to witness a promising growth due to the fact that phosphoric acid is being increasingly adopted in the industry as a food additive due to its evolving properties for processed food and beverages. Thus, a significant increase in the demand for processed food and beverages is a major factor which is supporting the growth of this segment throughout the course of the next five years.
APAC to hold a noteworthy share
By geography, the Asia Pacific region is expected to hold a significant market share throughout the course of the next five years. The region also boasts of being a major producer of phosphoric acid as China being the leading country. Also, the presence of a vast agricultural sector in the region due to the presence of the world’s largest economies such as India and China is also a major factor that has further supported the significant share in the market throughout the forecast period. Additionally, the presence of a vast population base in the region is also supporting the region’s share in the market over the course of the next five years. However, the outbreak of the novel coronavirus disease is expected to hamper the market growth to some extent during the period of short-run as numerous manufacturing plants across the regions temporarily suspended their operations due to the non-availability of raw materials, labor, and disruption in the supply chain.
Prominent/major key market players in the phosphoric acid market include The OCP Group, novaphos corporation, and Nutrien Ltd among others. The players in the phosphoric acid market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive Process and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the phosphoric acid market.