Phosphoric Acid Market Size, Share, and Growth Analysis, By Type (Calcium Phosphate, Sodium Tripolyphosphate), By Grade (Food Grade, Agricultural Grade), By Process Type, By End-User, By Region - Industry Forecast 2025-2032

Phosphoric Acid Market size was valued at USD 46.5 billion in 2023 and is poised to grow from USD 48.5 billion in 2024 to USD 67.92 billion by 2032, growing at a CAGR of 4.3% during the forecast period (2025-2032).

Phosphoric acid is essential for fertiliser production, providing vital nutrients to plants, balancing pH levels, and preventing lime buildup in irrigation systems. It plays a vital role in feeding the growing global population, driving the worldwide fertiliser market to project a 5% CAGR. With approximately 2.7 billion hectares of arable land available, particularly in the Asia-Pacific, South and Central America, and Sub-Saharan Africa, demand for fertilisers continues to surge. Moreover, phosphoric acid extends the shelf life of sugary foods by inhibiting bacterial and mold growth, thus supporting the convenience food sector. However, the market may face challenges from regulatory pressures concerning environmental impacts and trade fluctuations, while the US phosphoric acid market is expected to sustain growth in the coming years.

Top-down and bottom-up approaches were used to estimate and validate the size of the Phosphoric Acid market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Phosphoric Acid Market Segments Analysis

Global Phosphoric Acid Market is segmented by Type, Grade, Process Type, End-User and region. Based on Type, the market is segmented into Calcium Phosphate, Sodium Tripolyphosphate, Potassium Phosphate and Other. Based on Grade, the market is segmented into Food Grade, Agricultural Grade and Industrial Grade. Based on Process Type, the market is segmented into Furnace Process, Dry Kiln Process and Other. Based on End-User, the market is segmented into Fertilizer, Food and Beverages, Chemicals, Medicine, Metallurgy and Other. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Phosphoric Acid Market

The phosphoric acid market is significantly influenced by the agriculture sector, which is the primary user of phosphoric acid predominantly in fertilizers. Phosphorus is crucial for plant development, as it enhances root growth, flowering, and fruit production. As the global population continues to grow, there is an increasing necessity to boost agricultural output, leading to a rising demand for phosphoric acid-based fertilizers. This surge in agricultural needs is expected to propel the growth of the phosphoric acid market, highlighting its importance as a key driver in the industry.

Restraints in the Phosphoric Acid Market

The phosphoric acid market faces significant restraints stemming from price volatility influenced by various factors, including changing raw material costs, energy prices, and geopolitical dynamics that affect the supply chain. These fluctuations in pricing can adversely affect the profitability of manufacturers in the phosphoric acid sector, creating an environment of uncertainty for buyers. As a result, this unpredictability can hinder the overall growth of the market, making it challenging for stakeholders to plan and manage their operations effectively. Consequently, the susceptibility to price changes remains a critical barrier to the advancement of the phosphoric acid market.

Market Trends of the Phosphoric Acid Market

The Phosphoric Acid market is currently witnessing a significant upward trend driven by the growing demand for enhanced efficiency fertilizers that align with sustainable agricultural practices. With a heightened focus on reducing environmental impact, phosphoric acid-derived fertilizers, including monoammonium phosphate (MAP) and diammonium phosphate (DAP), are increasingly favored by farmers for their balanced nutrient profiles and improved application methods. These fertilizers are designed to provide controlled phosphorus release, effectively minimizing nutrient runoff while optimizing crop yields. As agriculture continues to evolve towards more eco-friendly solutions, the market for phosphoric acid is poised for substantial growth, catering to the needs of modern farming practices.