Phosphoric Acid Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Grade (Technical, Industrial), By End User Industry (Fertilizers, Food and Feed Additives, Pharmaceutical, Detergent & Cleaning Agents, Others (Cosmetics and Personal Care, Metal Treatment)), By Sales Channel (Direct Sales, Indirect Sales), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 46.09 Billion
CAGR (2026-2031)	4.28%
Fastest Growing Segment	Industrial
Largest Market	Asia Pacific
Market Size (2031)	USD 59.27 Billion

Market Overview

The Global Phosphoric Acid Market will grow from USD 46.09 Billion in 2025 to USD 59.27 Billion by 2031 at a 4.28% CAGR. Phosphoric acid is a crucial mineral acid primarily serving as an intermediate in manufacturing phosphate fertilizers like diammonium phosphate, while also supporting industrial sectors such as food processing and water treatment. The fundamental driver for this market is the escalating necessity for global food security, which compels the agricultural sector to intensify fertilizer application to enhance crop yields. This structural demand ensures consistent consumption volumes across major agrarian economies. According to the International Fertilizer Association, phosphoric acid production was estimated to rise by 4% to 88.4 million tonnes in 2024, reflecting this resilient industrial momentum.

Conversely, a significant impediment to market expansion involves the environmental management of phosphogypsum, a hazardous byproduct generated during production. The rigorous storage and disposal protocols required for this radioactive waste impose strict regulatory hurdles that frequently delay capacity expansions and increase operational expenditures. These environmental compliance burdens limit the ability of manufacturers to rapidly scale supply and thereby create a tangible constraint on broader market growth.

Key Market Drivers

The primary driver propelling the Global Phosphoric Acid Market is the Rising Demand for Phosphate Fertilizers to Support Global Food Security. As the global population expands, the agricultural sector faces intensifying pressure to maximize crop yields on limited arable land, necessitating the heavy application of phosphate-based fertilizers like diammonium phosphate (DAP). This trend creates a sustained, high-volume requirement for phosphoric acid as a critical feedstock. According to the U.S. Geological Survey, January 2025, world consumption of P2O5 contained in fertilizers was estimated to have reached 47.5 million tons in 2024, underscoring the scale of agricultural dependence. However, supply chain disruptions often challenge this demand; for instance, according to The Mosaic Company, February 2025, phosphate sales volumes decreased to 6.4 million tonnes in 2024 due to operational constraints, highlighting the tight supply dynamics characterizing the broader market.

Simultaneously, the market is being reshaped by the Surging Production of Lithium-Iron-Phosphate (LFP) Batteries for Electric Vehicles. Automotive manufacturers are increasingly shifting toward LFP chemistry due to its cost-effectiveness, superior safety profile, and non-reliance on expensive cobalt and nickel, creating a rapidly growing niche for high-purity phosphoric acid (PPA). This transition has elevated phosphoric acid from a purely agricultural commodity to a strategic battery material. According to the International Energy Agency, May 2025, in the 'Global Critical Minerals Outlook 2025', lithium iron phosphate (LFP) batteries supplied almost half of the global electric car market, reflecting a massive structural shift in industrial consumption patterns.

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Key Market Challenges

The environmental management of phosphogypsum constitutes a formidable impediment to the expansion of the Global Phosphoric Acid Market. As a radioactive byproduct generated in vast quantities during the wet-process manufacturing of phosphoric acid, phosphogypsum mandates rigorous, long-term storage and disposal protocols to prevent groundwater and soil contamination. These hazardous waste compliance requirements impose substantial operational expenditures and necessitate complex permitting processes for stack expansions. Consequently, manufacturers are often forced to divert capital investment toward regulatory adherence rather than production capacity upgrades, creating a structural bottleneck that prevents supply from scaling rapidly enough to meet the escalating global agricultural demand.

This constraint is quantitatively reflected in the stagnation of international market liquidity and restricted cross-border supply flows. According to the International Fertilizer Association, in its 'Medium-Term Fertilizer Outlook 2025-2029' released in 2025, global phosphoric acid trade volumes rose by only 1% to 8.3 million tonnes in 2024. This marginal growth in traded volume, despite the robust parallel rise in fertilizer application needs, highlights how the regulatory and logistical burdens associated with byproduct management effectively cap the industry's ability to expand its global distribution network.

Key Market Trends

The Rising Utilization of Ultra-High Purity Acid in Semiconductor Manufacturing is rapidly expanding a high-value niche distinct from agricultural commoditization. As chip production localizes in Western markets, the demand for electronic-grade phosphoric acid used in precision wafer etching and cleaning has surged, prompting manufacturers to upgrade their technical purification capabilities. This structural shift is decoupling a portion of the market from traditional fertilizer cycles to serve advanced technology sectors. Validating this investment pivot, according to Prayon, February 2025, in the press release 'Prayon invests in a new plant to double its production of electronic-grade phosphoric acid', the company announced the construction of a new facility in Switzerland designed to double its electronic-grade capacity by 2028 to serve the growing semiconductor industry.

Simultaneously, the Emergence of Phosphorus Recovery from Wastewater and Secondary Sources is redefining supply chain sustainability and raw material security. Regulatory pressure, particularly in Europe, is driving a transition from finite phosphate rock mining toward "urban mining," where phosphorus is extracted from sewage sludge ash to produce high-grade acid and reduce import dependence. This circular economy model mitigates the environmental impact of primary extraction while diversifying feedstock sources. Exemplifying this trend, according to Water Online, January 2025, in the article 'EasyMining Expands Phosphorus Recovery Capacity With A Second Ash2Phos Plant In Europe', EasyMining announced plans for a new facility in Sweden designed to process 30,000 tonnes of sewage sludge ash annually for sustainable nutrient recovery.

Segmental Insights

The Industrial segment is currently recognized as the fastest-growing category within the Global Phosphoric Acid Market, propelled by rapid industrialization and diverse manufacturing requirements. This accelerated expansion is primarily driven by the booming automotive and construction sectors, which heavily rely on technical-grade phosphoric acid for metal surface treatment, specifically for rust removal and passivation. Furthermore, the segment benefits significantly from stringent environmental mandates necessitating effective water treatment solutions, where the acid is critical for pH adjustment and corrosion control. These dynamic applications in manufacturing and industrial cleaning underscore the segment's superior growth trajectory compared to traditional fertilizer uses.

Regional Insights

Asia Pacific maintains a leading position in the global phosphoric acid market, driven largely by the extensive agricultural sectors in China and India. The region requires significant volumes of phosphoric acid for the production of phosphate fertilizers to support high crop yields and food security initiatives. Furthermore, rapid industrialization has increased the application of this chemical in water treatment and food processing sectors. This robust internal consumption, coupled with strong local manufacturing infrastructure, solidifies Asia Pacific as the principal region for market development.

Recent Developments

• In January 2025, the Saudi Arabian Mining Company (Ma'aden) awarded three major construction contracts valued at a combined $922 million for its Phosphate 3 megaproject. The agreements were signed with international engineering firms to build extensive infrastructure, including facilities for phosphoric acid and sulphur production at the Wa’ad Al Shamal and Ras Al Khair industrial cities. This expansion was designed to add approximately 3 million tonnes of phosphate fertilizer capacity per year to the company's operations. The project underscored the firm's commitment to capitalizing on the Kingdom's mineral resources and enhancing its contribution to the global agricultural supply chain.
• In September 2024, OCP Group initiated the execution of its Mzinda Meskala Strategic Programme, a massive expansion effort targeting increased production capacities in Morocco. The initiative aimed to boost annual output in the Mzinda-Safi Corridor to 3 million tonnes of phosphoric acid by 2028, alongside significant increases in fertilizer and phosphate rock production. This development was part of the company's broader investment strategy to meet rising global demand for plant nutrition solutions. The expansion also included plans for the Meskala-Essaouira Corridor, further solidifying the company's position as a leader in the global phosphate value chain.
• In April 2024, Coromandel International commenced project activities to establish a new phosphoric acid and sulphuric acid complex in Kakinada, Andhra Pradesh. The company announced an investment of Rs 1,000 crore for the facility, which was designed to possess a production capacity of 650 tonnes per day of phosphoric acid using advanced process technology. This strategic expansion aimed to strengthen the firm's backward integration capabilities and secure a stable supply of key intermediates for fertilizer manufacturing. By reducing reliance on imports, the new plant was expected to replace a significant portion of the company's external acid requirements.
• In February 2024, First Phosphate Corp. announced the successful completion of a pilot project focused on transforming its high-purity phosphate concentrate into battery-grade purified phosphoric acid. This breakthrough verified the suitability of the company’s phosphate rock for producing cathode active material, which is essential for the lithium iron phosphate battery industry. The development marked a critical step in the firm's strategy to establish a vertically integrated supply chain in North America for the electric vehicle sector. Following this technical achievement, the company advanced its plans to engage partners for downstream processing and battery cell production facilities.

Key Market Players

• OCP Group
• Mosaic
• Ma’aden
• EuroChem
• ICL Group
• Innophos
• Yara
• Prayon
• Chemische Fabrik Budenheim
• Nutrien

By Grade	By End User Industry	By Sales Channel	By Region
Technical Industrial	Fertilizers Food and Feed Additives Pharmaceutical Detergent & Cleaning Agents Others (Cosmetics and Personal Care, Metal Treatment)	Direct Sales Indirect Sales	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Phosphoric Acid Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Phosphoric Acid Market, By Grade:

• Technical
• Industrial

• Phosphoric Acid Market, By End User Industry:

• Fertilizers
• Food and Feed Additives
• Pharmaceutical
• Detergent & Cleaning Agents
• Others (Cosmetics and Personal Care, Metal Treatment)

• Phosphoric Acid Market, By Sales Channel:

• Direct Sales
• Indirect Sales

• Phosphoric Acid Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE