Phosphoric Acid Market Overview
Phosphoric acid is a colorless inorganic solid, phosphorus-containing acid, typically found in an 85% aqueous form. It is primarily used in the production of fertilizers, such as superphosphate and ammonium phosphate, and in the food industry as a flavouring agent and acidulant.
Phosphoric acid is manufactured by three main commercial methods: wet process, thermal process, and dry kiln process. Over 80% of the world’s phosphoric acid is obtained via the wet process. The thermal process yields higher-purity phosphoric acid, used in high-grade chemicals, pharmaceuticals, detergents, food products, and other applications. The dry kiln process, still under development, promises a reduced environmental footprint and potential cost savings.
Phosphoric Acid, by Application
The global phosphoric acid market is segmented by applications, including fertilizers, the food industry, the chemical industry, water treatment, cosmetics & personal care, and others. Fertilizers dominate the global phosphoric acid market, as phosphoric acid is crucial for producing phosphate fertilizers, which are essential for agriculture. Phosphorus, one of the three primary macronutrients, is vital for plant growth. Phosphoric acid is used to make fertilizers like diammonium phosphate, monoammonium phosphate, and triple superphosphate, which help enhance soil fertility, promote root development, and increase crop yields.
In the chemical industry, phosphoric acid is used to produce phosphates such as sodium tripolyphosphate and phosphoric salts, which are applied in detergents, water treatment, and agriculture.
Phosphoric Acid Trade Analysis
Phosphoric acid trade is dominated by countries such as Morocco, China, India, Tunisia, Jordan, and the USA, all of which play a crucial role in global imports and exports.
Morocco remains the largest exporter since 2016, with exports averaging over 2,000 kilo tons from 2016-2023. In the current year, Morocco exported more than 1,800 kilo tons at an average price of USD 682 per ton. The primary destinations for Moroccan exports include India, Pakistan, Spain, Turkey, and the Netherlands.
India is the largest importer of phosphoric acid, consuming it primarily for fertilizers, electronics, and the chemicals industry. In 2023, India imported around 570 kilo tons in 2023, a 1% increase from the previous year. Major suppliers to India include Jordan, Morocco, Senegal, Tunisia, and Vietnam.
In 2023, China exported more than 700 kilo tons of phosphoric acid, and the country has seen a healthy growth of around 20% in the past two years due to the rising demand for fertilizers globally.
Phosphoric Acid Market Dynamics
Drivers : Increasing demand for phosphate fertilizers
Phosphoric acid is essential for the production of fertilizers that support plant growth, making it a crucial component in ensuring global food security. As the population grows, so does the need for fertilizers, particularly those based on phosphoric acid, which drives increased demand. In countries like India, where agriculture is vital to feeding a large population, this demand is especially pronounced.
Government programs such as PM-KISAN and PM-Garib Kalyan Yojana, which provide financial support to farmers, have further boosted the demand for fertilizers. These initiatives improve farmer liquidity, enabling greater investment in fertilizers. The United Nations Development Programme has recognized these efforts for their contribution to food security, which in turn supports the continued growth of the phosphoric acid market in India.
Phosphoric acid is integral to fertilizer production, specifically as a base fertilizer that promotes key growth processes such as root development, flowering, and fruiting. As the largest application of phosphoric acid, fertilizers are essential for increasing agricultural productivity to meet growing food demands. With agriculture evolving to keep pace with global population growth and urbanization, phosphoric acid’s role in fertilizers will boost in the upcoming years, positively impacting the global phosphoric acid market.
Environmental Concerns
Environmental concerns regarding phosphoric acid have led to the introduction of new standards for quality, health, and other factors, affecting both products and plants. These regulations are impacting fertilizer companies, particularly in areas like fertilizer legislation and tailings management.
As a result of stringent certification requirements, fertilizer companies are working toward registering their products. Global initiatives, such as the EU's Green Deal, China's Phosphogypsum Control regulations are expected to have widespread effects on the fertilizer industry. Thus, the environmental impact of phosphoric acid is limiting the growth of the market.
Phosphoric Acid Manufacturers
Key players in the phosphoric acid market include Nutrien, Paradeep Phosphates Limited, The Mosaic Company, , OCP Group, Eurochem, Coromandel International Ltd (CIL) , Aditya Birla Chemicals India, PhosAgro, INDORAMA - ICS (Industries Chimiques du Senegal), Bagfas Bandirma Gubre Fabrikalari A.S., ICL Group Ltd., Gujarat Alkalies & Chemicals Ltd (GACL), and Yara International .
Phosphoric Acid New Investments
Soulbrain TX LLC, a South Korean semiconductor parts manufacturer, plans to build a phosphoric acid plant in Taylor, USA, to produce electronics-grade phosphoric acid for semiconductor etching.
Coromandel International Ltd (CIL) in India plans to increase its phosphoric acid capacity by 48% at its Kakinada complex by Q4 2025.
The Jordan Phosphate Mines Company is set to commission a 300 kilo tons phosphoric acid plant in Turkey by the end of 2024.
Need help
How can we help you?
Reach us with your research requirements and we shall provide the optimum solution to suit your needs.