This Report Provides In-Depth Analysis of the Phosphoric Acid Market Report Prepared by P&S Intelligence, Segmented by Application (Diammonium Hydrogen Phosphate, Monoammonium Dihydrogen Phosphate, Triple Superphosphate), Grade (Food, Agricultural, Industrial), End Use (Fertilizers, Feed and Food Additives, Industrial Products, Detergents, Water Treatment Products, Metal Treatment Products), and Geographical Outlook for the Period of 2019 to 2032
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Phosphoric Acid Market Analysis
The global phosphoric acid market was USD 49.6 billion in 2024, and the market size is predicted to reach USD 67.3 billion by 2032, advancing at a CAGR of 4.0% during 2025–2032.
The market is driven by the growing demand of fertilizers. The production of phosphate-based fertilizers such as DAP and MAP requires phosphoric acid as an essential component to enhance soil productivity. Rising global population numbers require extra food production capacity to fulfill rising food requirements. The growing levels of agricultural production directly increase the market need for phosphoric acid since it functions as a vital component in fertilizer manufacturing. The primary use of this compound is in creating phosphate fertilizers which play a crucial role in boosting soil fertility and agricultural productivity. The government activities in India and China designed to increase agricultural productivity enhance the market demand for phosphoric acid. The developing agricultural sectors of these areas require phosphoric acid for manufacturing high-quality fertilizers that support sufficient food cultivation.
Phosphoric acid functions as an acidity regulator and preservative within the food industry, appearing frequently in soft drinks and processed foods. The production processes for detergents, water treatment solutions, and metal surface treatments utilize this compound. The resource quantity stands at 05 million tonnes while West Bengal contributes 57% and Jharkhand provides 30% of these resources.
The European Union permits the use of phosphoric acid and its phosphate derivatives as food additives according to certain regulatory standards. These compounds have undergone re-evaluation by the European Food Safety Authority (EFSA) to confirm their safety for food use. The EFSA's 2019 assessment determined that medical-purpose formulas with phosphates presented no safety issues for infants under 16 weeks old, yet phosphate exposure from food additives could surpass safe thresholds for many Europeans.
Phosphoric Acid Market Trends and Drivers
Sustainable and Green Production Methods Is a Key Trend
With increasing worries about the environment, both governments and industries are on the lookout for ways to cut down on emissions and waste linked to the production of phosphoric acid.
For instance, some manufacturers are putting their money into recycling phosphate from wastewater and agricultural runoff, aiming to lessen their reliance on mined phosphate rock.
The European Commission has been advocating for a circular economy approach to phosphorus management, which promotes the recovery and reuse of phosphates. In a similar vein, the U.S. Environmental Protection Agency (EPA) has been backing initiatives to tackle phosphorus pollution in our water bodies.
To reduce their environmental impact manufacturers, dedicate funds for acquiring clean energy-efficient technologies. Such efforts comply with sustainability targets worldwide as organizations understand their importance for market competition in our environmentally focused economy
This movement is in line with the tightening of environmental regulations around the globe, urging companies to embrace cleaner production technologies and alternative raw materials to secure long-term sustainability in the market.
Rising Demand for Phosphate Fertilizers in Agriculture Is a Growth Driver
Phosphate-based fertilizers, like diammonium phosphate (DAP) and monoammonium phosphate (MAP), are essential for boosting crop yields and enhancing soil fertility.
The Food and Agriculture Organization (FAO) has noted a steady rise in global fertilizer demand, especially in developing countries where there's a pressing need to improve agricultural productivity. In countries such as India and China, where agriculture is a vital part of the economy, there's a heavy reliance on phosphoric acid for making fertilizers.
The Indian Ministry of Chemicals and Fertilizers is actively encouraging investments in the local fertilizer industry to cut down on imports and better meet the increasing agricultural demands.
As food security continues to be a major concern around the globe, the need for phosphoric acid in the fertilizer industry is likely to be a significant factor driving market growth.
Segmentation Analysis
Application Analysis
The diammonium hydrogen phosphate category held the largest market share, of 55%, in 2024, because of its high nutrient value and general use in agriculture. DAP has both nitrogen and phosphorus, which makes it a priority fertilizer for most crops. It is extensively applied in Asia-Pacific, especially in China and India, where massive agricultural production fuels strong demand. Also, government subsidy on phosphate fertilizer in most developing countries further perpetuates the hegemony of DAP. With its high solubility and versatility, farmers find it most suitable, reasserting itself as the biggest application.
The monoammonium dihydrogen phosphate category will grow at a higher CAGR, of 4.5%, during the forecast period, fueled by its high phosphorus content efficiency and increasing use in precision agriculture. MAP offers a higher phosphorus concentration in a soluble form, which is best suited for contemporary farming practices such as fertigation and controlled-release fertilizers. The growing emphasis on sustainable and high-efficiency fertilizer particularly in areas with declining soil quality has increased MAP demand. Moreover, environmental issues regarding high levels of fertilizer runoff are causing a turn towards fertilizers based on MAP, which provides superior nutrient uptake and environmental suitability.
The agricultural category held the largest market share, of 50%, in 2024, with fertilizer manufacturing taking up most of the world's phosphoric acid consumption. The grade is an important raw material in producing phosphate fertilizers like diammonium phosphate (DAP), monoammonium phosphate (MAP), and triple superphosphate (TSP), which find extensive application in making soil fertile and increasing crop yield. Large-scale farming countries like China, India, and Brazil dominate the demand for phosphoric acid in the agricultural grade. Government subsidies and policies that favor the usage of fertilizers.
The food grade category will grow at a higher CAGR, of 5%, during the forecast period, due to rising demand within the food and beverage sector. It is extensively used as a food additive to regulate acidity, improve flavor (particularly in carbonated soft drinks such as colas), and as a processed food preservative. As consumption of processed and convenience foods, especially in emerging economies such as India and China, increases, demand for food-grade phosphoric acid is increasing. Further, stringent food safety regulations in countries such as North America and Europe are creating the need for high-purity food-grade phosphoric acid, thereby fueling its growth.
The grades analyzed here are:
Food (Fastest-Growing Category)
Agricultural (Largest Category)
Industrial
End Use Analysis
The fertilizers category held the largest market share, of 35%, in 2024, because it is a major constituent of phosphate-based fertilizers monoammonium phosphate (MAP) and diammonium phosphate (DAP), which play a crucial role in boosting farm productivity. The world's major agricultural countries, including China, India, and Brazil, are fueling this demand because they need to use fertilizers to boost production and maintain food supplies for the increasing populations of these countries. Government subsidies and farm policies in most countries also promote the usage of phosphate fertilizers, thus supporting this sector's stronghold.
The water treatment products category will grow at a higher CAGR, of 6%, during the forecast period, due to escalating worldwide interest in water quality, industrial wastewater management, and environmental sustainability. Phosphoric acid finds extensive application in municipal and industrial water treatment for corrosion prevention, pH correction, and pipeline and boiler scale protection. Urbanization and rapid industrialization in Asia-Pacific and North America have heightened the demand for effective and sustainable water treatment. In addition, stringent government policies regarding wastewater treatment and pure drinking water in countries such as Europe and U.S. are driving the use of phosphoric acid in this industry, propelling its high growth rate.
The end uses analyzed here are:
Fertilizers (Largest Category)
Feed and Food Additives
Industrial Products
Detergents
Water Treatment Products (Fastest-Growing Category)
Metal Treatment Products
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Phosphoric Acid Regional Market Performance
The APAC region held the largest market share, of 40%, in 2024, and will grow at a higher CAGR, of 5.5%, during the forecast period, as it is driven by dominance in agriculture, rapid industrialization, and rising food demand. China and India, among other nations, are dependent on phosphate-based fertilizers to sustain their huge agricultural economies and address their booming population's food needs. China is particularly the largest producer and consumer of phosphoric acid globally, controlling about 50% of the world market share as of 2022. This is driven by China's huge phosphate rock reserves, bulk production of yellow phosphorus, and large phosphate fertilizer industry. The area is anticipated to experience the quickest growth in the market, recording a significant rise in regional production of phosphoric acid during the forecast period. Being largely agrarian economies, China and India will propel increased crop yields, driving higher demand for phosphate-based fertilizers. Further, government measures, including subsidies for fertilizers in India, aid in the expansion of the market. As mature as Europe's phosphoric acid market is, capacity has grown mainly to supply India, a top importer of chemicals in the world. Asia-Pacific, with its rich phosphate deposits, burgeoning industrial economy, and strong agricultural backbone, is likely to dominate the phosphoric acid market worldwide for years to come.
The regions analyzed in this report are:
North America
U.S.
Canada
Europe
Germany
U.K.
France
Italy
Spain
Rest of Europe
Asia-Pacific (Largest and Fastest-Growing Region)
Japan
China
India
South Korea
Australia
Rest of APAC
Latin America
Brazil
Mexico
Rest of LATAM
Middle East and Africa
Saudi Arabia
South Africa
U.A.E.
Rest of MEA
Phosphoric Acid Market Share
The market for phosphoric acid is fragmented in nature because with large multinational companies alongside smaller regional producers. In the United States, relatively few companies control production. Interestingly, In 2020, their U.S. operations produced approximately 4.1 million tonnes of phosphoric acid, accounting for about 8% of global annual production and 57% of North America's annual output. This concentration by a few players differs from global production, where many firms produce in different regions, and the market landscape becomes more fragmented. The market shares of these firms are determined by factors such as access to raw materials, technology, and regional demand. Even though dominant companies control parts of the business, the total market is still competitive, and different manufacturers service a range of industrial and farming uses.
Phosphoric Acid Companies:
PhosAgro Group
Nutrien Ltd.
Indian Farmers Fertiliser Cooperative Limited
EuroChem Group AG
Prayon S.A.
ICL Group Ltd.
Yara International ASA
OCP Group
Innophos Holdings, Inc.
The Mosaic Company
Sinofert Holdings Limited
CF Industries Holdings Inc.
Phosphoric Acid Market News
In March 2025, ICL partnered with Dynanonic to manufacture lithium iron phosphate (LFP) for the European battery market. This collaboration aims to support the growing demand for sustainable energy storage solutions.
In March 2024 EuroChem company started operations at its modern phosphate fertilizer complex in Brazil. The facility operates to make one million tonnes of phosphate fertilizers per year through the combination of local ore mining with ammonia and sulfur delivery as input materials.
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