Registering a 4.4% year-on-year growth, global purified phosphoric acid market sales totalled revenues of USD 8,357.3 million in 2022. Over the forecast period from 2023 to 2033, global demand for purified phosphoric acid is projected to rise at 4.7% CAGR.
The global purified phosphoric acid market size is anticipated to reach USD 8,702.8 million in 2023 and USD 13,782.4 million by 2033.
Key Market Shaping Factors:
High-quality purified phosphoric acid is referred to as a premium-grade form of acid that undergoes rigorous purification processes to eliminate impurities and contaminants.
Purified phosphoric acid is widely used in diverse sectors, including agriculture, food & beverages, electronics, chemicals, and pharmaceuticals. Its versatile applications range from fertilizer production and pH regulation to drug synthesis and electronic component manufacturing.
To meet the demand for purified phosphoric acid, manufacturers have developed advanced purification techniques that can remove impurities and contaminants from the acid. These techniques include distillation, ion exchange, and adsorption.
Purified phosphoric acid is a high-quality form of phosphoric acid that is widely used in diverse sectors due to its versatile applications. The focus within the purified phosphoric acid market is centered on the production and distribution of this refined variant to meet the specific requirements of various industries.
The purified phosphoric acid market is witnessing substantial growth primarily driven by the rising demand from the pharmaceutical and food and beverage sectors.
Purified phosphoric acid is being widely used as a preservative, acidulant, buffering agent, and excipient in food & beverage and pharmaceutical sectors. Hence, growth of these sectors is expected to eventually uplift purified phosphoric acid demand.
Purified phosphoric acid is being increasingly used as a food additive, especially in the production of soft drinks & food products. Increasing consumption of processed foods and beverages is expected to fuel purified phosphoric acid sales.
Manufacturers of purified phosphoric acid are actively expanding their production capacities, with a particular emphasis on pharmaceutical grade products. These products command higher prices and offer greater profit margins for manufacturers compared to other grades of purified phosphoric acid.
To maximize profitability, various manufacturers prefer captive manufacturing, wherein they establish in-house production facilities for purified phosphoric acid.
Growing usage of purified phosphoric acid in the electronics sector for producing semiconductors, PCBs, and electronic displays, along with its application in etching, cleaning, and specialized coatings is expected to boost the market.
As the electronic sector continues to advance and the demand for electronic devices rises, sales of purified phosphoric acid are expected to increase rapidly.
Another prominent factor boosting the target market is the rising demand for agrochemicals. Factors such as food insecurity triggered by population explosion and reduction in arable land are encouraging the adoption of agrochemicals made from ingredients like phosphoric acid.
The Food and Agriculture Organization (FAO) of the United Nations revealed that severe food insecurity rose from 10.9% in 2020 to 11.7% in 2021. This food insecurity issue is compelling farmers globally to use phosphate fertilizers to enhance their crop production. Driven by this, demand for PPA is expected to rise rapidly as it is being widely used for making agrochemicals.
| Attributes | Key Insights |
|---|---|
| Purified Phosphoric Acid Market Size (2022) | USD 8,357.3 million |
| Estimated Market Size (2023E) | USD 8,702.8 million |
| Projected Market Value (2033F) | USD 13,782.4 million |
| Value-based CAGR (2023 to 2033) | 4.7% |
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As per Future Market Insights (FMI), historically from 2018 to 2022, global sales of purified phosphoric acid increased at 4.3% CAGR. It attained a valuation of about US$ 8,357.3 million at the end of 2022.
Looking ahead, the target market is expected to thrive at a CAGR of around 4.7% during the assessment period. This is due to increasing demand for purified phosphoric acid from pharmaceutical, food & beverage, and other sectors and growing agricultural activities in emerging markets.
Factors such as raw material availability, technological advancements, and government regulations are also impacting market growth. Subsequently, increasing demand for eco-friendly and sustainable products is expected to contribute to market growth.
Purified phosphoric acid is in high demand in the food & beverage and pharmaceutical sectors owing to its specific properties, including its preservative nature.
In the food & beverage sector, the use of acidulants and preservatives has become increasingly important as processed foods become more prevalent. Purified phosphoric acid is widely used in carbonated beverages, jams, jellies, and processed meats due to its acidic properties and preservative effects.
Growing demand for clean-label ingredients has led to an increase in the use of PPA as a natural acidulant, replacing artificial additives.
In the pharmaceutical sector, PPA plays a critical role as an ingredient, excipient, and buffering agent. It is used in the formulation and manufacturing of medications such as tablets, capsules, and liquid formulations.
Purified phosphoric acid is essential in regulating the pH levels of pharmaceutical formulations, ensuring stability and efficacy. It serves as a buffering agent, maintaining the desired pH range during the drug manufacturing process.
The demand for high-quality products in the pharmaceutical sector, driven by the industry's strict quality standards and the need for precise formulations, is likely to foster market development.
Purified phosphoric acid is a versatile and essential ingredient in the food & beverage sector, serving as an acidulant and preservative, and in the pharmaceutical sector, it is relied upon for its ability to regulate pH levels and act as a buffering agent in medication formulations.
The demand for purified phosphoric acid is driven by specific factors in both sectors, highlighting its critical role in the production and manufacturing of various products.
Manufacturers can capitalize on the latest technologies and production methods to optimize the efficiency and quality of purified phosphoric acid production. This can involve implementing innovative purification techniques, optimizing process parameters, and incorporating automation and digitization in production facilities.
The new improvements can result in higher yields, reduced energy consumption, improved product purity, and overall cost savings. Engaging in research and development (R&D) activities can help manufacturers stay ahead of the curve in the industry.
Vertical integration offers manufacturers the opportunity to control the entire supply chain, from raw material sourcing to the production and distribution of purified phosphoric acid.
By integrating back into the production of raw materials or forward into distribution and marketing, manufacturers can exert greater control over quality, cost, and supply reliability. This can lead to improved coordination, shorter lead times, and reduced dependency on external suppliers, ultimately enhancing competitiveness in the market.
The manufacturers and suppliers should consider investing in technological advancements and vertical integration to capitalize on the opportunities available in the purified phosphoric acid market.
Principal Consultant
The production costs of purified phosphoric acid pose a significant challenge to the market. The purification process required to obtain high-purity phosphoric acid is complex and resource-intensive, resulting in elevated production expenses compared to other forms of phosphoric acid.
Numerous factors contribute to these high costs, including the need for multiple intricate steps such as filtration, concentration, and acidulation. These processes require substantial energy inputs, leading to increased production expenses, particularly in regions with high energy prices.
Advanced purification technologies and equipment are necessary to achieve the desired level of purity. These sophisticated systems, including filtration mechanisms, separation techniques, and chemical treatments, are costly to install, operate, and maintain.
Ensuring consistent quality is vital for purified phosphoric acid, particularly for applications in the food and pharmaceutical sectors. This necessitates rigorous quality control measures and regular testing throughout the production process, further adding to the overall production costs.
Regionally, East Asia and North America are prominent markets for purified phosphoric acid globally. It is projected that these regions will contribute more than 60% of the total market value, primarily owing to their high consumption levels.
In East Asia and North America, countries such as China and the United States have substantial domestic markets for pharmaceutical products. This is fuelled by factors like population growth, increased healthcare expenditure, and the prevalence of chronic diseases.
There is a significant consumption of purified phosphoric acid in these regions as an ingredient, excipient, or buffering agent in pharmaceutical formulations. This demand is driven by the necessity for high-quality pharmaceutical products to address the healthcare requirements of the population.
Similarly, robust growth of food & beverage sector in these regions is expected to elevate purified phosphoric acid demand. This is because purified phosphoric acid is being widely used in various applications, including pH adjustment, acidification, emulsification, and flavor enhancement in the food & beverage sector.
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Rising Spending on Pharmaceuticals Fueling Purified Phosphoric Acid Demand in the United States
According to Future Market Insights (FMI), the United States is likely to remain one of the dominant markets for purified phosphoric acid during the assessment period. Demand for phosphoric acid in the country is driven by rapid expansion of pharmaceutical sector.
Increasing spending on medicines across the United States is emerging as a prominent factor creating a high demand for purified phosphoric acid. This is attributable to rising usage of purified phosphoric acid for making a wide range of pharmaceutical formulations.
The United States is the leading country when it comes to healthcare spending. As per the U.S. Department of Health and Human Services, United States prescription drug expenditures totaled a massive valuation of US$ 370 billion in 2019. This in turn is positively impacting purified phosphoric acid sales.
Demand Remains High for Food Grade Purified Phosphoric Acid
Based on product type, demand is expected to remain high for food-grade purified phosphoric acid. Currently, the target segment dominates the global market with a share of more than 37%. This is attributable to rising usage of food-grade PPA as an acidulant, pH adjuster, and preservative in the food & beverage sector.
The high demand from the food sector results in prominent shares of food-grade purified phosphoric acid. In the food sector, purified phosphoric acid is widely used as an ingredient in various food products.
Purified phosphoric acid is commonly used as an acidulant to enhance the flavor and preserve the shelf life of food products. It is used in the production of soft drinks, fruit juices, jams, and jellies.
Purified phosphoric acid is also used in the production of processed meats, such as bacon and sausage, to enhance the flavor and preserve the quality of the meat.
Rising demand for processed and packaged food products due to changing lifestyles is expected to play a key role in fueling purified phosphoric acid sales during the assessment period.
Pharmaceutical Application to Generate Significant Revenues
On the basis of application, pharmaceutical segment leads the global market with more than 28% market shares. This is due to rising usage of purified phosphoric acid for the preparation of various pharmaceutical formulations.
Purified phosphoric acid is utilized as an ingredient in the production of certain pharmaceuticals. The main factor which contributes the most to the value shares in the global market is the price of PPA used in pharmaceutical applications. The price of PPA consumed in pharmaceuticals is high compared to the PPA used in the food and beverages sector.
Purified phosphoric acid serves as an API in medications, contributing to their therapeutic properties or serving as a component in drug formulation. It functions as an excipient, a substance added to pharmaceutical formulations for various purposes such as improving drug stability, solubility, or bioavailability.
Purified phosphoric acid is in high demand in the pharmaceutical sector owing to its unique properties and applications. It is an important ingredient in various pharmaceutical formulations, including oral liquids, tablets, and capsules. It is used as an excipient, buffering agent, and acidulant.
One of the primary factors for the high demand for purified phosphoric acid in the pharmaceutical sector is its ability to maintain the pH level of a formulation. It is an effective acidulant that can be used to adjust the pH level of a product to ensure that it is safe for human consumption.
Purified phosphoric acid can also be used as a buffering agent to maintain the pH level of a product over a wide range of temperatures and conditions.
Another factor for the high demand for purified phosphoric acid in the pharmaceutical sector is its role in the manufacturing of essential drugs. For example, it is used in the production of penicillin, a widely used antibiotic. Penicillin is produced through a chemical reaction that requires purified phosphoric acid as a reactant.
Rising production & consumption of various pharmaceutical formulations that require purified phosphoric acid for their preparation is projected to boost the target segment through 2033.
Key manufacturers hold around 40% to 45% market share in the global market. The market is expected to be fairly consolidated as prominent purified phosphoric acid manufacturers are holding a significant share of the market.
Leading players are continuously engaging in boosting their production capacity and updating their product portfolio. To gain maximum profits, companies are also utilizing strategies such as partnerships, mergers, agreements, alliances, acquisitions, etc.
Recent developments:
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 8,702.8 million |
| Projected Market Size (2033) | USD 13,782.4 million |
| Anticipated Growth Rate (2023 to 2033) | 4.7% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value and Tons for Volume |
| Key Regions Covered | North America, Latin America, Western Europe, Eastern Europe, Central Asia, Russia & Belarus, Balkan & Baltics, East Asia, South Asia Pacific, and Middle East Africa |
| Key Market Segments Covered | Product Type, Application, and Region |
| Key Companies Profiled | Nutrien Ltd. ; The Mosaic Company ; Ma'aden Wa'ad Al-Shamal Phosphate Company (MWSPC) ; ICL Group Ltd. ; Hubei Xingfa Chemicals Group Co., Ltd ; Yara International ASA ; OCP Group ; Jordan Phosphates Mines Company ; The Mosaic Company ; OCI Co. Ltd. ; PhosAgro ; EuroChem Group ; Gujarat State Fertilizers Corporation Limited ; Gujarat Alkalis and Chemicals Ltd. ; Industries Chimiques du Senegal |
The global purified phosphoric acid market is valued at US$ 8,702.8 million in 2023.
Nutrien Ltd., The Mosaic Company, and Ma'aden Wa'ad Al-Shamal Phosphate Company (MWSPC) are the leading industry players.
Food-grade purified phosphoric acid is the key segment by product type.
The global market surged at a 4.3% CAGR from 2018 to 2022.
North America is anticipated to dominate the industry during the forecast period.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Global Market - Pricing Analysis 7. Global Market Demand (in Value or Size in US$ Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 9.1. Food Grade 9.2. Pharmaceutical Grade 9.3. Technical Grade 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 10.1. Agrochemical 10.2. Animal Nutrition 10.3. Food & Beverage 10.4. Pharmaceutical 10.5. Chemical 10.6. Water Treatment 10.7. Others 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. Central Asia 11.6. Russia & Belarus 11.7. Balkan & Baltic Countries 11.8. Middle East and Africa 11.9. East Asia 11.10. South Asia and Pacific 12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. Central Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Russia & Belarus Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Balkan & Baltic Countries Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 20. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 21. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 22. Country-wise Market Analysis 23. Market Structure Analysis 24. Competition Analysis 24.1. Nutrien Ltd. 24.2. Quaker Chemical Corporation 24.3. Nutrien Ltd. 24.4. The Mosaic Company 24.5. Ma'aden Wa'ad Al-Shamal Phosphate Company (MWSPC) 24.6. ICL Group Ltd. 24.7. Hubei Xingfa Chemicals Group Co., Ltd 24.8. Yara International ASA 24.9. OCP Group 24.10. Jordan Phosphates Mines Company 24.11. The Mosaic Company 24.12. OCI Co. Ltd. 24.13. PhosAgro 24.14. EuroChem Group 24.15. Gujarat State Fertilizers Corporation Limited 24.16. Gujarat Alkalis and Chemicals Ltd. 24.17. Industries Chimiques du Senegal. 25. Primary Insights 26. Assumptions and Acronyms Used 27. Research Methodology
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Purified Phosphoric Acid Market
