|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD
2.60 Billion
|
|
CAGR
(2025-2030)
|
3.07%
|
|
Fastest
Growing Segment
|
Fertilizer
|
|
Largest
Market
|
West India
|
|
Market
Size (2030)
|
USD
3.08 Billion
|
Market Overview
India Phosphoric Acid
Market was valued at USD 2.60 Billion in 2024 and is expected to reach USD 3.08 Billion by 2030 with a CAGR of 3.07% during the forecast period. Phosphoric
acid is classified as a weak acid with the chemical formula H3PO4, commonly
known as orthophosphoric acid or phosphoric(V) acid. In its purest state, this
chemical appears as a colorless solid. It is a non-toxic acid that remains
solid at room temperature and pressure. Primarily utilized in the production of
fertilizers, phosphoric acid also finds application in cleaning products, food
additives, and water treatment. It serves as a versatile compound, serving
purposes such as plant feeding, pH adjustment, and cleaning irrigation
equipment from lime precipitation. As a key component in numerous fertilizers,
phosphoric acid is predominantly employed in the production of phosphate
compounds. Two widely adopted methods for its production are the wet process
and the thermal process. While wet process phosphoric acid is commonly used in
fertilizer manufacturing, the thermal process yields a purer form suitable for
high-grade chemicals, pharmaceuticals, detergents, food, beverages, and other
non-fertilizer applications. Noteworthy applications of phosphoric acid include
rust removal, personal care products, its incorporation in the food and
beverage industry, agricultural practices, pharmaceutical applications, and
various other uses.
Key Market
Drivers
Growing
Demand of Phosphate Fertilizers
With the global population
soaring and agricultural productivity becoming a paramount concern, the demand
for effective and efficient fertilizers is on the rise. Among these, phosphate
fertilizers play a pivotal role in enhancing crop yields and ensuring food
security. This surge in demand for phosphate fertilizers has significantly
impacted the phosphoric acid market in India, propelling its growth and shaping
its future trajectory. Ensuring food security for this burgeoning population
necessitates increased agricultural output. Phosphate fertilizers, with their
ability to promote healthy root development, aid in energy transfer, and
stimulate overall plant growth, are invaluable tools in achieving higher yields
and bridging the gap between food demand and supply. As the Indian agricultural
landscape evolves, there is a growing emphasis on crop diversification and sustainable
farming practices.
In February 2024, India aims to finalize a long-term contract with Mauritania for the import of rock phosphate, a crucial component in fertilizer production, due to disruptions in supply and increased global prices resulting from the Ukraine conflict and the Red Sea crisis. India is actively seeking reliable fertilizer suppliers in light of the recent union budget, which allocated a substantial USD 20 billion for fertilizer subsidies. Over the past two years, India has already established long-term agreements with Morocco, Senegal, Israel, Oman, Canada, Saudi Arabia, and Jordan.
Crop rotation and diversified cultivation require tailored
nutrient management strategies. Phosphate fertilizers, as a source of essential
phosphorus, are central to maintaining soil fertility and supporting the
nutrient requirements of a wide range of crops. This diversification trend is
expected to drive the demand for phosphate fertilizers and subsequently impact
the phosphoric acid market positively. India's position as a significant player
in the global agricultural market further amplifies the impact of phosphate
fertilizer demand on the phosphoric acid market. As both a consumer and
producer of phosphate fertilizers, India's demand can influence global market
dynamics. The country's increasing requirement for phosphoric acid, a key
ingredient in the production of phosphate fertilizers, has a ripple effect on
the international trade of phosphoric acid and related products. As
agricultural practices continue to evolve with technological advancements and
sustainable initiatives, the phosphoric acid market is set to play an
increasingly crucial role in India's journey towards agricultural
self-sufficiency and prosperity.
Growing
Demand of Water Treatment
With the rise of
industrialization and urbanization, water bodies in India are facing
unprecedented pollution levels. Agricultural runoff, industrial effluents, and
improper waste disposal have resulted in the contamination of rivers, lakes,
and groundwater sources. Phosphoric acid, known for its efficacy in removing
heavy metals and other pollutants from water, plays a crucial role in water
treatment systems. Its ability to bind with contaminants and facilitate their
removal through precipitation or filtration makes it a valuable asset in
restoring water quality. The need to provide safe and potable water to growing
urban populations necessitates robust treatment processes. Phosphoric acid is
utilized in various treatment methods, including coagulation and flocculation,
to facilitate the removal of suspended particles and impurities from water. Its
role in enhancing the efficiency of these processes is driving its demand in
municipal water treatment plants across the country. Industries, ranging from
power generation and mining to chemical manufacturing, heavily rely on water
for their operations. However, the discharge of industrial wastewater often
contains harmful contaminants that can have detrimental effects on the
environment.
Phosphoric acid-based treatments aid in reducing the levels of
pollutants in industrial effluents, enabling companies to meet stringent
environmental regulations. Its use in neutralizing acidic effluents and
controlling pH levels further highlights its significance in industrial water
treatment. As freshwater sources become scarcer, desalination is gaining
prominence as an alternative source of potable water. However, the desalination
process requires effective treatment to ensure the removal of salts and other
impurities from seawater. Phosphoric acid helps control scaling and fouling in
desalination systems, thereby enhancing their efficiency and longevity. The
water treatment industry is witnessing a surge in technological advancements
aimed at improving treatment processes and efficiency. These innovations also
impact the demand for phosphoric acid. New formulations and methods utilizing
phosphoric acid are continuously being developed to address evolving water
treatment challenges. This innovation-driven demand is likely to further shape
the phosphoric acid market in India.
Growing
Demand of Phosphoric Acid from Pharmaceutical Industry
Phosphoric acid is an
inorganic acid widely utilized across various industries due to its colorless
and odorless properties. In the pharmaceutical sector, it plays multiple
crucial roles, contributing significantly to the development of essential
medicines and treatments. One of its primary applications is as a pH adjuster
in drug formulations. Precise pH levels are essential for optimal stability, solubility,
and efficacy of many pharmaceutical compounds. Therefore, phosphoric acid's
ability to fine-tune pH is invaluable in a variety of pharmaceutical
formulations, including oral medications and injectables. The buffering
capacity of phosphoric acid is vital for maintaining drug stability and
bioavailability. It helps prevent rapid changes in pH that could potentially
degrade active pharmaceutical ingredients (APIs). This is particularly crucial
for oral medications, which need to survive the acidic environment of the
stomach before being absorbed in the intestines. Many APIs exhibit poor
solubility in water, which can hinder their absorption and effectiveness.
Phosphoric acid's solubilizing properties assist in enhancing the solubility of
these compounds, facilitating their incorporation into formulations, and
improving therapeutic outcomes. Furthermore, phosphoric acid's ability to form
stable complexes with metal ions finds applications in drug development.
Chelation and complexation processes involving phosphoric acid can enhance the
stability, safety, and bioavailability of pharmaceutical compounds, enabling
targeted and controlled drug delivery. In pharmaceutical formulations,
phosphoric acid derivatives, such as sodium phosphate salts, are widely used as
excipients. These salts contribute to the stabilization of emulsions, act as
electrolytes, and assist in controlling osmotic pressure in intravenous
solutions. Additionally, phosphoric acid plays a role in the production of
nutraceuticals and dietary supplements. It promotes bone health and aids in calcium
absorption. The increasing prevalence of chronic diseases and the rising need
for affordable healthcare solutions further stimulate the demand for innovative
pharmaceutical formulations, thus driving the demand for phosphoric acid.