Phosphoric Acid Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Phosphoric Acid Market is projected to expand from USD 46.09 Billion in 2025 to USD 59.27 Billion by 2031, registering a CAGR of 4.28%. This compound serves as a vital intermediate in producing phosphate fertilizers, such as diammonium phosphate, while also supplying industrial needs in food processing and water treatment. The market is primarily underpinned by the urgent need for global food security, which necessitates higher fertilizer usage to improve agricultural yields across key farming economies. Reflecting this robust demand, the International Fertilizer Association estimated that phosphoric acid production increased by 4% to reach 88.4 million tonnes in 2024.

However, market growth faces significant obstacles related to the environmental management of phosphogypsum, a hazardous byproduct of production. The strict storage and disposal requirements for this radioactive waste create substantial regulatory barriers that often delay capacity expansion and inflate operational costs. These compliance obligations restrict manufacturers' ability to quickly increase supply, thereby imposing a tangible limit on the market's broader expansion potential.

Market Drivers

The rising demand for phosphate fertilizers to ensure global food security acts as the primary catalyst for the Global Phosphoric Acid Market. With a growing population and limited arable land, the agricultural sector is under immense pressure to boost crop yields through the intensive use of phosphate-based fertilizers like diammonium phosphate, driving consistent demand for phosphoric acid. The U.S. Geological Survey estimated that global consumption of P2O5 in fertilizers reached 47.5 million tons in 2024, highlighting the extent of this reliance. Despite this high demand, supply chain issues remain a factor; for instance, The Mosaic Company reported a decrease in phosphate sales volumes to 6.4 million tonnes in 2024 due to operational limitations, illustrating the market's tight supply conditions.

Concurrently, the market is being transformed by the increasing production of Lithium-Iron-Phosphate (LFP) batteries for electric vehicles. Automakers are gravitating toward LFP chemistry for its cost efficiency, safety, and lack of reliance on costly metals like cobalt and nickel, creating a rapidly expanding segment for high-purity phosphoric acid. This shift elevates the material from a standard agricultural input to a strategic battery component. According to the International Energy Agency's 'Global Critical Minerals Outlook 2025', LFP batteries accounted for nearly half of the global electric car market, signaling a major structural change in industrial usage.

Market Challenges

The management of phosphogypsum presents a major barrier to the growth of the Global Phosphoric Acid Market. This radioactive byproduct, produced in large volumes during wet-process manufacturing, requires stringent long-term storage and disposal measures to prevent soil and groundwater contamination. Compliance with these hazardous waste regulations drives up operational costs and complicates the permitting process for facility expansions. As a result, manufacturers must often prioritize regulatory adherence over capacity investments, creating a bottleneck that hinders the supply chain's ability to keep pace with rising global agricultural needs.

This limitation is evident in the stagnation of international market liquidity and restricted cross-border trade. The International Fertilizer Association's 'Medium-Term Fertilizer Outlook 2025-2029', released in 2025, noted that global phosphoric acid trade volumes increased by a mere 1% to 8.3 million tonnes in 2024. This minimal growth, despite surging fertilizer demand, underscores how the logistical and regulatory challenges associated with byproduct management effectively constrain the industry's ability to broaden its global distribution networks.

Market Trends

The increasing use of ultra-high purity acid in semiconductor manufacturing is carving out a high-value niche separate from the agricultural commodity market. As chip production expands in Western regions, the need for electronic-grade phosphoric acid for precision etching and cleaning is rising, driving manufacturers to enhance their purification capabilities. This trend represents a structural decoupling, where part of the market shifts focus from fertilizer cycles to advanced technology applications. For example, Prayon announced in February 2025 that it is constructing a new facility in Switzerland to double its electronic-grade production capacity by 2028, specifically to support the burgeoning semiconductor sector.

At the same time, the recovery of phosphorus from wastewater and secondary sources is reshaping supply chain sustainability and raw material security. Regulatory pressures, especially within Europe, are encouraging a move away from finite phosphate rock mining toward "urban mining," which extracts phosphorus from sewage sludge ash to create high-grade acid and lower import reliance. This circular economy approach helps mitigate the environmental impact of primary extraction while diversifying supply sources. Highlighting this shift, Water Online reported in January 2025 that EasyMining plans to open a new facility in Sweden capable of processing 30,000 tonnes of sewage sludge ash annually for sustainable nutrient recovery.

Key Players Profiled in the Phosphoric Acid Market

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

Report Scope

In this report, the Global Phosphoric Acid Market has been segmented into the following categories:

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
• Personal Care
• Metal Treatment)

Phosphoric Acid Market, by Sales Channel:

• Direct Sales
• Indirect Sales

Phosphoric Acid Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Phosphoric Acid Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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