Phosphoric Acid Market Size & Outlook, 2025-2033

Phosphoric Acid Market Overview

The global phosphoric acid market size was valued at USD 38.63 billion in 2024 and is projected to reach from USD 40.37 billion in 2025 to USD 86.43 billion by 2033, growing at a CAGR of 4.5% during the forecast period (2025-2033). The market is propelled by the rise in demand from the agriculture and electronics industries. Being a major component in phosphate fertilizers and batteries, it is preferably utilised in agriculture and the electronics industry, respectively. For example, China’s growing electronics market fuels the demand for phosphoric acid as a functional component of batteries. Furthermore, the U.S. Department of Energy selected multiple projects to advance domestic manufacturing of next-generation batteries, thereby fuelling the demand for phosphoric acid.

Key Market Indicators

• Asia Pacific Largest market in 2024 with a 34.55% revenue share.
• Based on product type segment led the market in 2024 with a 43.89% revenue share.
• Based on process segment is the dominant process globally with a 51.68% revenue share in 2024.
• Based on end-use segment is the largest globally with a 37.59% revenue share.

Market Size & Forecast

• 2024 Market Size: USD 38.63 Billion
• 2033 Projected Market Size: USD 86.43 Billion
• CAGR (2025-2033): 4.5%
• Largest market in 2024 : Asia Pacific
• Fastest-growing region : North America

Projects Selected by U.S. Department of Energy, 2024

Source: U.S. Department of Energy

These battery manufacturing advancement projects potentiate the demand for phosphoric acid, thereby reflecting the market growth.

Phosphoric acid is a chemical entity available in various forms, such as monophosphoric and polyphosphoric acid. It is basically extracted from phosphate rocks and further processed by the wet process to convert it to a final product. Phosphoric acid is available in various grades such as food grade, electronics grade, fertiliser grade, and others. Each grade makes phosphoric acid specifically applicable for the respective industry.

Market Trends

Recycling Technology to Transform Underused Material into High-Purity Phosphoric Acid

Key players are approaching innovative technologies to offer phosphoric acid extracted from underused sources.

• For instance, in November 2024, Mitsui Chemicals, Inc. announced that they have started developing recycling technology to recover phosphoric acid from underused phosphorus resources.

The development of such innovative technologies helps to recycle underused materials into a high-grade pure product.

Anti-Dumping Investigation: A Strategic Way to Tackle Market Challenges

Phosphoric acid is a chemical entity applicable across multiple sectors with industry-specific grades. There are some countries which majorly rely heavily on the import of these grade-wise products from major exporters. This dependence on other countries creates a challenge of price fluctuations. So, some of the countries have started anti-dumping investigations.

• For instance, in December 2024, the Brazilian Ministry of Development, Industry, Trade, and Services launched an anti-dumping investigation on food-grade phosphoric acid from China, Morocco, and Mexico.

These investigations will impose anti-dumping duties, price adjustments, supply chain adjustments, and market diversification, thereby standardising the supply chain.

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Phosphoric Acid Market Drivers

Phosphoric Acid Pioneering Electronics Industry

The increasing demand for batteries is escalating the electronics industry. As phosphoric acid is widely used in batteries, companies are investing in enhancing the manufacturing capacities of electronic-grade phosphoric acid. Additionally, the rising consumption of electronic products eventually increases the requirement for phosphoric acid.

• For example, the rising import of electronics in the U.S. highlights the increase in consumption of electronic products and hence the demand for batteries.

Source: United States International Trade Commission

• In addition to this, in February 2025, Prayon invested to double its production of electronic-grade phosphoric acid.

This rise in import of electronic products and investments for the production of electronic-grade phosphoric acid significantly boosts market availability of electronic-grade phosphoric acid, thereby fulfilling the rising demand of the industry.

Rising Production of Fertilisers: A Gateway for Market Expansion

Phosphoric acid is the primary component of phosphatic fertilisers that provides essential nutrients required for plant growth. The rising use of fertilisers influences the production of fertilisers, thereby enhancing the demand for phosphoric acid. For example, the year-on-year rise in fertiliser production in India propels the demand for phosphoric acid.

Source: India Climate & Energy Dashboard

This rise in fertiliser production in comparison to the year 2020 highlights the demand from the agriculture industry, thereby driving the demand for phosphoric acid.

Market Restraining Factors

Middle East: Major Reserves of Phosphate but Political Instabilities

Phosphoric acid is synthesised from phosphate resources. The Middle East is rich in phosphate reserves. Countries such as Egypt, Tunisia, Morocco, Algeria, and Jordan have major reserves of phosphate. However, political instability in these countries creates challenges in the supply chain.

• For example, according to the Atlantic Council, in February 2024, Egypt grappled with political uncertainty under El-Sisi.

Such political uncertainties significantly impact the well-maintained supply chain of phosphate raw material, thereby impacting the market growth.

Market Opportunity

Expansion by Cola Beverage Manufacturers

Phosphoric acid is dominantly used as a flavouring agent and preservative in the food and beverages industry, specifically in cola and carbonated beverages. Investments by major market players for business expansion propel the demand for food-grade phosphoric acid.

• For instance, in May 2024, the Coca-Cola system announced a major investment of USD 175 million for business expansion in Kenya.

As Coca-Cola is a dominant player in the beverages industry, such investments for business expansion direct the demand for phosphoric acid.

Regional Analysis

The Asia Pacific region dominated the market with a revenue share of 34.55% in 2024. The growth is attributed to strong regional dominance in agriculture and electronics, and growing industries such as food & beverages. For instance, China’s dominance in electronics manufacturing, and growing demand for fertilisers in India, and market expansion by key beverage manufacturers contribute to the market dominance.

India- India is a dominant market in the agricultural industry. High budget allocation for agriculture and allied activities promotes the requirement of phosphoric acid for the production of fertilisers, thereby propelling market growth. For instance, the Indian government allocated USD 19,783.83 million for agriculture and allied activities in the budget 2025-26

China- China’s strong foothold in the electronics industry influences the demand for phosphoric acid. According to the Ministry of Industry and Information Technology, China, in 2024, the year-on-year combined profit for electronics companies was 75.8%. The percentage underscores the dominance of the electronics industry in China, propelling the demand for phosphoric acid for battery manufacturing

U.S.- The phosphoric acid market in the U.S. is driven by a surge in phosphate fertilizer production, a rise in domestic farming and exports, a boost in government subsidies, and agrotech innovations

UK- The UK’s dynamic approach with a critical mineral strategy secures the long-term supply of critical minerals. The initiative highlighted recovery of phosphorus, including the development of the National Phosphorus Transformation Strategy. Such strategic approaches by the government promote the domestic production of phosphoric acid in the UK

Brazil- Investments made by market players to increase the production of phosphate fertilisers propel the Brazilian phosphoric acid market. In March 2024, Serra do Salitre Mining and Industrial Complex invested USD 1 billion to add 1 million tons of phosphate fertilisers per year in the Brazilian market

Jordan- Collaborative approach with other countries boosts the trade of phosphate and related products in Jordan. For example, in September 2024, the UAE & Jordan signed an investment memorandum to strengthen the railway sector for linking phosphate and potash mines to the Port of Aqaba

Product Type Insights

The monophosphoric acid segment dominated the market with a revenue share of 43.89% in 2024. The growth is due to key applications in fertiliser manufacturing, beverages manufacturing, such as cola, and as a detergent in potable water systems. Rising investments in the beverages industry and rising demand for fertilisers fuel the demand for Monophosphoric acid.

Process Insights

The wet process segment dominated the market with a revenue share of 51.68% in 2024. The high share is attributed to its initial stage application in the manufacturing process, where the phosphate is reacted with sulfuric acid to form phosphoric acid. This initial stage application is a prominent step in manufacturing.

End Use Insights

The agriculture segment dominated the market with a revenue share of 37.59% in 2024, due to rising demand for fertilisers, high government budget allocations for agriculture, and an increase in fertiliser production rate. Being a major component of fertiliser, the rising demand for fertilisers directs the demand for phosphoric acid.

Company Market Share

The Global Phosphoric Acid Market is moderately fragmented in nature due to increasing demand for a pure form of phosphoric acid with multiple grades, such as electronics grade, fertiliser grade, and electronics grade. Strategic investments by key market players for enhancing market expansion drive the market growth. The top players in the industry are Nutrien, Mosaic, OCP, EuroChem Group, IFFCO CHEMICAL INDUSTRIES, and Yarafert.

Source: Straits Research Analysis

PhosAgro Group: An emerging player in the Phosphoric Acid market

BIO21 Co., Ltd., a Russia-based phosphoric acid manufacturing company founded in 2001, with a wide range of phosphate and related products, such as fertilisers. The company focuses on the rising demand for products and plans strategies accordingly. The company recently enhanced production of phosphoric acid by 4.6%. Such planned initiatives promote PhosAgro as an emerging player in the phosphoric acid market.

List of key players in Phosphoric Acid Market

1. Nutrien
2. Mosaic
3. OCP
4. Maaden
5. EuroChem Group
6. PhosAgro Group
7. IFFCO CHEMICAL INDUSTRIES
8. Prayon
9. ICL
10. Yarafert
11. Northstar Chemical
12. CORECHEM Inc.
13. Vizag Chemical
14. Jordan Phosphate Mines Company, PLC. (JPMC)
15. Hubei Sinophorus Electronic Materials Co., Ltd.
16. Others

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Recent Developments

• In July 2025 : First Phosphate signed an agreement with Port Saguenay to establish a phosphoric acid plant in Canada.
• In February 2025 : OCP Group increased its stake in GlobalFeed S.L. to 75% by acquiring an additional 25% capital of GlobalFeed S.L., highlighting the enhancement of capabilities, innovation across its product portfolio.
• In December 2024 : First Phosphate signed long-term offtake agreements with partners with respect to future production of phosphoric acid and other products in Canada.