The global phosphoric acid market size was estimated at USD 41.26 billion in 2022 and is projected to reach USD 87.06 billion by 2040, growing at a CAGR of 4.2% from 2023 to 2040. The market growth is primarily driven by the extensive use of phosphoric acid in the production of phosphate-based fertilizers, including Mono-Ammonium Phosphate (MAP) and Diammonium Phosphate (DAP), which are essential for enhancing crop yields and supporting global agricultural productivity.

Globally, phosphoric acid ranks as the second-largest consumed inorganic acid after sulfuric acid, reflecting its critical role in various industrial and agricultural applications. It is produced industrially in three main grades, each designed for specific applications: food grade, agriculture grade, and industrial grade. Among these, agriculture grade phosphoric acid dominates the global market in both value and volume due to its high demand in the manufacturing of fertilizers, which are essential for supporting large-scale agricultural operations worldwide.

The United States represents one of the leading markets for phosphoric acid, supported by its strong agrochemical industry. The country is home to several major fertilizer manufacturers, including BASF SE, Fertilizer Canada, Yara, and others. Agriculture is a key sector in the U.S., encompassing a wide range of operations from small-scale farms to large commercial enterprises, and the nation is a net exporter of food. The growing preference among farmers for the cultivation of maize and other high-demand crops is expected to drive increased consumption of phosphatic fertilizers, which in turn will bolster demand for phosphoric acid across the country. This combination of industrial capacity, agricultural demand, and export-oriented farming practices solidifies the U.S. as a significant contributor to the global phosphoric acid market.

Key Market Trends & Insights:

• Asia Pacific dominated the global phosphoric acid market in 2022, capturing a revenue share of 49.5%. The region’s leadership is supported by its large agricultural sector, high demand for phosphate-based fertilizers, and the presence of major fertilizer manufacturing companies. Rapid population growth, increasing food demand, and ongoing expansion of crop cultivation in countries such as China, India, and Southeast Asian nations have further reinforced Asia Pacific’s position as the largest market for phosphoric acid.

• By application, Diammonium Phosphate (DAP) led the market in 2022 with a revenue share of over 33.0%. DAP is widely used as a high-efficiency phosphate fertilizer due to its balanced nitrogen and phosphorus content, making it a preferred choice for farmers to enhance crop yield and soil fertility. Its widespread adoption across major agricultural regions has contributed significantly to its market dominance in terms of revenue.

• Meanwhile, the Monoammonium Dihydrogenphosphate (MAP) segment is projected to register the fastest compound annual growth rate (CAGR) from 2023 to 2040. The growth of the MAP segment is driven by its increasing use in specialty crops, precision farming, and high-value agricultural applications where tailored nutrient management is essential. As farmers and agricultural businesses continue to adopt advanced fertilization practices and focus on maximizing crop productivity, demand for MAP is expected to rise at a rapid pace, contributing to its status as the fastest-growing application segment in the phosphoric acid market.

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Market Size & Forecast:

• 2022 Market Size: USD 41.26 Billion

• 2040 Projected Market Size: USD 87.06 Billion

• CAGR (2023-2040): 4.2%

• Asia Pacific: Largest market in 2022

Key Companies & Market Share Insights:

The global phosphoric acid industry is highly concentrated, with several multi-million-dollar companies playing a dominant role in shaping the market landscape. To strengthen their positions and expand their global footprint, many of these companies actively engage in strategic initiatives such as mergers and acquisitions, joint ventures, and other collaborative alliances. These strategies allow firms to enhance production capacity, access new technologies, enter new markets, and maintain competitive advantage in a dynamic and evolving industry.

For instance, in July 2022, Ineos Group Ltd. signed three strategic agreements with SINOPEC valued at USD 7 billion, aimed at expanding its chemical production capabilities and strengthening its presence in key markets. Similarly, in January 2022, SABIC completed a comprehensive transformation process and launched a dedicated agri-nutrients company focused on sustainable growth in the agricultural sector. This initiative allows SABIC to offer end-to-end agricultural solutions, while also enhancing its phosphoric acid production capabilities to meet rising global demand.

Such strategic movements reflect a broader trend in the industry, where key producers continually implement mergers, partnerships, and internal transformations to boost operational efficiency, expand their product portfolios, and increase market share in the rapidly growing phosphoric acid market.

Key Players

• The Mosaic Company

• PJSC PhosAgro

• Nutrien

• IFFCO

• EuroChem Group AG

• Prayon Group

• Israel Chemical Ltd.

• Yara International

• OCP S.A.

• Aditya Birla Group

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Conclusion:

The global phosphoric acid market is expected to grow significantly over the forecast period, driven primarily by its extensive use in the production of phosphate based fertilizers to support the expanding global agricultural sector. Asia Pacific currently leads the market, supported by strong production and consumption in major agricultural economies. Among applications, Diammonium Phosphate (DAP) remains the dominant segment, while Monoammonium Phosphate (MAP) is anticipated to grow the fastest. Ongoing strategic activities by key industry players, such as partnerships, expansions, and corporate transformations, are shaping competitive dynamics and helping meet rising demand from agriculture and related industries.