Phosphoric Acid Market Size Worth $87.06 Billion By 2040

Phosphoric Acid Market Growth & Trends

The global phosphoric acid market size is projected to reach USD 87.06 billion by 2040 registering a CAGR of 4.2%, according to a new report by Grand View Research, Inc. increasing production of fertilizers owing to the development in the global agricultural sector is expected to augment the product demand.

Fertilizers is the key point of application for phosphoric acid wherein the product is used to formulate Diammonium Hydrogen Phosphate (DAP), Mono Ammonium Dihydrogen Phosphate (MAP), and Triple Superphosphate (TAP). Among these, DAP constituted the largest share of the market, in terms of volume, in 2022.

For instance, in June 2019, EuroChem opened its third fertilizer blending plant in Brazil, which has a capacity of 6 kilotons per day. According to the International Fertilizer Industry Association, the global capacity of nitrogen, phosphoric acid, and potash is expected to rise significantly of which phosphoric acid is expected to register highest growth rate. Asia Pacific was the major consumer in 2022 and this trend is expected to continue over the forecast period.

The production and consumption of fertilizers is anticipated to grow by 2040, owing to the increasing productivity in agricultural sector.

The growth can be attributed to rising production of fertilizers in China. The growth, however, is anticipated to be hindered in 2020 on account of the Covid-19 pandemic, which is believed to be originated from China. Hubei was the key producer of MAP and DAP in the country. However, as of February 2020, only four manufacturers are engaged in production, rest all other phosphate plants had suspended their operations, which impacted half of the Hubei’s phosphate industry.

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Phosphoric Acid Market Report

Phosphoric Acid Market Report Highlights

• DAP accounted for the largest volume share in 2022 on account of its high nutrient grade, which leads to cost reduction in terms of handling, freight, as well as application and is projected to grow at a volumetric CAGR of 3.5% from 2023 to 2040
• Phosphoric acid is majorly produced by two commercial methods, which include wet process and thermal process; wherein more than 50% of the global production sites utilize Prayon Technology (wet process technology)
• Asia Pacific is expected to register the fastest growth rate of 4.0%, in terms of volume, over the forecast period, owing to increasing production of fertilizers in the region
• The market is highly competitive and thus, manufacturers are investing in production capacity expansion