Phosphoric Acid Market Size, Share, Growth, and Industry Analysis, By Type (Electronic Grade,Food Grade,Tech Grade), By Application (Fertilizers,Food & Beverages,Electronics,Others), Regional Insights and Forecast to 2033

Phosphoric Acid Market Overview

The Phosphoric Acid Market size was valued at USD 39688.65 million in 2024 and is expected to reach USD 48450.54 million by 2033, growing at a CAGR of 2.2% from 2025 to 2033.

Global production of phosphoric acid reached approximately 10.6 million tonnes in 2023, marking a 3.8% increase from the previous year. China accounted for 61% of this total, producing around 6.5 million tonnes, while the United States and Morocco each produced approximately 0.9 million tonnes. Nutrient-driven demand, primarily for fertilizer production, consumed over 7.2 million tonnes—or roughly 68% of total phosphoric acid use. The food and beverage sector utilized approximately 1.05 million tonnes, representing 9.9% of the volume, matching growth in global processed food output. Technical-grade phosphoric acid saw usage of about 0.85 million tonnes, serving industrial applications such as metal treatment and flame retardants. Electronic-grade variants, required for semiconductor etching and battery materials, comprised approximately 0.42 million tonnes, or 4% of the market. Global consumption per region showed North America using 1.3 million tonnes, Europe 1.2 million tonnes, and Asia-Pacific 7.5 million tonnes. Raw materials tracking reveals phosphate rock production hit 240 million tonnes in 2023, with a global reserve base of approximately 71 billion tonnes, more than 85% located in North Africa. Export volumes reached 3.2 million tonnes, with Morocco shipping 1.1 million tonnes and the U.S. exporting 0.75 million tonnes. Average purity levels for technical phosphoric acid were recorded at 85–90% P₂O₅, while food-grade and electronic grades measured at 85% and 99.99% purity, respectively.

Key Findings

Driver: Fertilizer consumption continues to dominate, with 7.2 million tonnes of phosphoric acid used for fertilizer manufacture.

Country/Region: Asia-Pacific remains dominant, accounting for around 71% of global consumption at 7.5 million tonnes.

Segment: Food grade phosphoric acid is the fastest-growing end-use segment, comprising 9.9% of total volume at 1.05 million tonnes consumed in 2023.

Phosphoric Acid Market Trends

The global phosphoric acid market in 2023–2024 demonstrates resilient growth, supported by robust demand in fertilizers and expanding industrial applications. Production rose to 10.6 million tonnes, while consumption climbed to approximately 10.4 million tonnes, creating only a modest inventory uptick. China remained the production leader with 6.5 million tonnes, followed by the U.S. and Morocco with 0.9 million tonnes each. Fertilizer sector usage accounted for 7.2 million tonnes, at about 68% of total demand. Food and beverage application saw 1.05 million tonnes, driven by increased use in acidulated foods and beverages. Technical-grade usage remained strong at 0.85 million tonnes, meeting needs in detergents, rust removal chemicals, and industrial processes. Electronic-grade phosphoric acid, used in semiconductor and battery manufacturing, reached 0.42 million tonnes, growing in response to global chip and EV capacity expansion.

Phosphate rock supply hit 240 million tonnes, up by 2%, enabling stable feedstock availability. However, reliance on North African reserves triggered global supply risk concerns. Export dynamics in 2023 showed Morocco shipping 1.1 million tonnes, U.S. 750,000 tonnes, and China exporting 480,000 tonnes. Global consumption by region included Asia-Pacific at 7.5 million tonnes, North America at 1.3 million, Europe at 1.2 million, Latin America at 0.8 million, and the Middle East & Africa at 1 million tonnes. Industrial advances impacted product quality and efficiency. Adoption of enhanced solvent extraction purification led to over 25% yield improvement in food-grade phosphoric acid. Innovations in reactor design raised technical-grade output by 18%. Environmental compliance intensified: over 42% of brownfield plants in North America upgraded to zero-liquid-discharge systems by 2023 to reduce phosphate runoff. On-trend developments include shifts toward high-purity grades. In 2023, market share of electronic-grade acid increased 13 percentage points, driven by semiconductor and EV battery sectors. Custom industrial blends for metal pickling and water treatment grew by 22%, reflecting demand from steel mills and desalination plants. Finally, plant capacities are increasingly located closer to phosphate rock reserves to cut logistics costs; 70% of new capacity since 2021 was in Africa and the Middle East.

Phosphoric Acid Market Dynamics

DRIVER

Expanding Fertilizer Production

Fertilizer sector remains the primary driver, using 7.2 million tonnes in 2023, accounting for 68% of total phosphoric acid consumption. Global fertilizer output rose by 4.1% in 2023, particularly in India and Southeast Asia, driving the need for higher volumes. Current consumption aligns with record-high crop planting—such as wheat and corn, whose acreage in North America increased by 2.5 million hectares, requiring higher phosphate application. Regulatory shifts toward nutrient-efficient fertilizers have boosted demand for phosphate monoammonium and diammonium variants, each requiring 10–12% more acid for processing.

RESTRAINT

Phosphate Rock Supply Concentration

Despite rising demand, more than 85% of phosphate rock reserves are concentrated in North Africa, with Morocco alone holding 56%. In 2023, Morocco increased export tariffs by 2 percentage points, leading to a 9% drop in global phosphoric acid shipments. Limited diversification of feedstock sources hampers downstream production resilience, particularly for consumer-facing chemical and food-grade manufacturing in Europe, North America, and Asia.

OPPORTUNITY

Growth in Food & Beverage and Electronic Applications

Food-grade phosphoric acid demand reached 1.05 million tonnes in 2023 and is expanding owing to increased consumption of processed foods—global soft drink volumes rose by 18 billion liters. Similarly, electronic-grade phosphoric acid usage (0.42 million tonnes) is climbing, aided by 320 new semiconductor fabs announced worldwide since 2022. EV battery capacity installations—over 380 GWh by end-2023—also require high-purity phosphate salts that drive acid demand during manufacturing by-products.

CHALLENGE

Environmental and Regulatory Costs

Environmental compliance is raising costs and limiting capacity for phosphoric acid producers. In North America and Europe, over 60% of facilities face stricter phosphate discharge limits, requiring NPDES permits and effluent treatment investments exceeding $250 million collectively in 2022–2023. Zero-liquid discharge upgrades and gypsum stack stabilization efforts in fertilizer plants added 12% to capex per plant on average.

Phosphoric Acid Market Segmentation

Phosphoric acid is primarily segmented by type and application. By type, it includes electronic grade, food grade, and tech grade. By application, key segments are fertilizers, food & beverages, electronics, and others.

By Type

• Electronic Grade: Electronic grade phosphoric acid accounted for approximately 0.42 million tonnes of global production in 2023. It is used extensively in semiconductors and lithium-ion battery manufacturing due to its ultra-high purity level of 99.99%. With over 320 semiconductor fabs planned globally and more than 380 GWh of battery production capacity added in 2023, demand for this grade increased by nearly 14%. Asia-Pacific alone consumed over 0.27 million tonnes, followed by North America with 0.08 million tonnes. Major consumers include South Korea, Taiwan, and the U.S.
• Food Grade: Food grade phosphoric acid represented 1.05 million tonnes in 2023. It is widely used in soft drinks, jams, dairy products, and processed foods. Global consumption rose by 7.5%, largely driven by 18 billion liters in soft drink sales growth. In the U.S., food-grade acid accounted for 33% of domestic demand, with China and Brazil following. Food-grade purity standards average around 85%, regulated by stringent safety protocols.
• Tech Grade: Tech grade phosphoric acid accounted for 0.85 million tonnes of usage in 2023, used in detergents, water treatment, and industrial cleaning. With over 620,000 tonnes applied in metal treatment and another 140,000 tonnes in fire retardants, this segment saw steady growth. It is typically used at 85–90% P2O5 concentration. Europe was the leading consumer at 280,000 tonnes, particularly in Germany and Poland.

By Application

• Fertilizers: Fertilizer applications dominate phosphoric acid use, accounting for 7.2 million tonnes globally in 2023. This includes production of monoammonium phosphate (MAP) and diammonium phosphate (DAP). India, China, and Brazil were the largest markets, accounting for 69% of total use. Agricultural acreage in these regions grew by over 6.5 million hectares.
• Food & Beverages: Food & beverages consumed 1.05 million tonnes, driven by strong demand in the U.S., China, and Southeast Asia. Applications include acidulation, flavor enhancement, and preservation. Soft drinks were the largest driver, followed by dairy and meat processing.
• Electronics: The electronics sector used 0.42 million tonnes, particularly in PCB etching and semiconductor fabrication. Growth regions include Taiwan, Japan, and the U.S. Major end-users were Samsung, TSMC, and Intel.
• Others: Other uses, totaling 0.6 million tonnes, included applications in pharmaceuticals, flame retardants, water treatment, and detergent manufacturing. Notably, 230,000 tonnes were used in fire retardants and 120,000 tonnes in water treatment plants.

Phosphoric Acid Market Regional Outlook

• North America

phosphoric acid market demonstrates a steady and technologically advanced landscape, driven by significant fertilizer consumption. In 2023, the United States alone consumed over 4.8 million metric tons of phosphoric acid for agricultural use. The adoption of food-grade phosphoric acid is also increasing in beverage manufacturing, with soft drink production accounting for over 20% of domestic consumption. Leading companies such as Nutrien and Mosaic operate extensive production facilities in states like Florida and Louisiana, which contribute over 70% of the region's total output.

• Europe

maintains a robust phosphoric acid market supported by regulatory compliance and sustainability trends. Germany, France, and Belgium are primary consumers, collectively using more than 2.2 million metric tons annually. A growing demand for food-grade phosphoric acid in the EU food and beverage sector supports steady imports from North Africa. The electronics industry in countries like the Netherlands also consumes high-purity grades, accounting for around 6% of European usage. Import dependency remains relatively high due to limited phosphate reserves in the region.

• Asia-Pacific

region dominates global consumption, with China and India accounting for over 65% of the market share. China produces more than 14 million metric tons of phosphoric acid annually, primarily for use in phosphate-based fertilizers. India, with a usage volume exceeding 5.3 million metric tons, is a key importer of phosphate rock and phosphoric acid, supporting its vast agricultural sector. The electronics sector in countries like South Korea and Japan is emerging as a key consumer of electronic-grade phosphoric acid, with demand rising by over 8% annually in unit volume.

• Middle East & Africa

Morocco leads production through OCP Group, contributing over 70% of Africa’s phosphoric acid output. The region exported more than 3.5 million metric tons in 2023, with key buyers being India and Brazil. Saudi Arabia’s Ma’aden has increased its phosphoric acid capacity by over 1.2 million metric tons with new production facilities. In Sub-Saharan Africa, usage remains low but is growing due to increased fertilizer adoption. The region is expected to become more prominent as infrastructure investments and agricultural modernization expand across developing economies.

List Of Phosphoric Acid Companies

• OCP
• Mosaic
• PhosAgro
• PotashCorp (Nutrien)
• Itafos
• EuroChem
• Tunisian Chemical Group (GCT)
• Arkema
• Solvay
• ICL Performance Products
• Hubei Xingfa Chemicals Group
• Chengxing Group
• Yunphos
• IFFCO
• Maaden
• Wengfu Group
• Yuntianhua
• Tongling Chemical Industry Group
• Kailin Group
• Hubei Xinyangfeng Fertilizer

OCP: The Moroccan state-owned OCP Group operates the world's largest phosphoric acid production complex, treating approximately 37.6 million tonnes of phosphate rock annually and producing about 5.65 million tonnes of phosphoric acid at its Safi and Jorf Lasfar facilities. OCP serves over 180 countries with an integrated supply chain that spans rock extraction, acid manufacturing, and fertilizer production. As part of its expansion initiatives, OCP plans to raise acid output to 3 million tonnes from the Safi hub by 2028, aiming for phosphate-rock capacity to reach 20 million tonnes by 2030.

Mosaic: The Mosaic Company is North America’s leading phosphoric acid producer, with output around 3.9 million tonnes per year—about 58% of the region's total capacity. The company mines around 14.8 million tonnes of phosphate rock annually across Florida, Louisiana, and New Wales. Mosaic supports fertilizer and industrial acid demand in North America. In early 2025, Mosaic forecasted quarterly phosphate sales at 1.5–1.6 million tonnes, reflecting sustained market demand and strong regional position.

Investment Analysis and Opportunities

The phosphoric acid market is experiencing robust investment activities, driven by the increasing global demand for fertilizers, food-grade additives, and electronics. In 2023, global phosphoric acid production capacity exceeded 52 million tonnes, with significant investments aimed at expanding production and securing sustainable phosphate rock sources. Key producing countries such as Morocco, China, the United States, and Saudi Arabia have seen increased capital allocations in mining, processing technologies, and green phosphate initiatives. In Morocco, the OCP Group announced an investment exceeding 13 billion USD (equivalent to over 130 billion Moroccan dirhams) to enhance its integrated phosphate infrastructure. This includes the expansion of the Jorf Lasfar platform, which processes over 6 million tonnes of phosphate rock annually into high-purity phosphoric acid. The investment strategy focuses on constructing new slurry pipelines, upgrading acid concentration systems, and enhancing environmental compliance to align with global sustainability targets. In 2024 alone, OCP committed over 2 billion USD toward new infrastructure and wastewater recycling systems. India has increased its reliance on imported phosphoric acid, especially from North Africa and the Middle East. This shift has opened up new investment channels in storage facilities and port terminal upgrades in Indian coastal states. By 2024, India had expanded its phosphoric acid storage capacity by over 120,000 tonnes at key ports such as Kandla and Visakhapatnam. Additionally, Indian fertilizer cooperatives have signed long-term import agreements to ensure acid supply security for domestic NPK fertilizer production. China continues to invest heavily in low-impurity phosphoric acid technology for the electronics industry. In 2023, new production units were added in Sichuan and Yunnan provinces, increasing China's food-grade and electronic-grade phosphoric acid capacity by more than 450,000 tonnes. Several producers are also exploring green production routes using recovered phosphate from wastewater and secondary mining operations. These innovations attract significant venture capital and state-backed funding for long-term scalability. Saudi Arabia’s Ma’aden has expanded its Ras Al Khair facilities, increasing annual phosphoric acid production by 1.5 million tonnes. This expansion allows the kingdom to cater to both local demand and exports to Southeast Asia and Africa. Ma’aden’s projects are aligned with Vision 2030, which promotes value-added mineral processing.

New Product Development

New product development in the phosphoric acid market has seen major momentum in 2023 and 2024, with innovation focused on enhancing purity, sustainability, and application-specific formulations. Manufacturers across North America, Europe, Asia-Pacific, and the Middle East have introduced advanced grades of phosphoric acid for food, electronics, and specialty fertilizer applications, responding to heightened regulatory requirements and consumer demand for cleaner and safer end-use products. In 2023, a major breakthrough in high-purity electronic-grade phosphoric acid was reported in China. A leading chemical producer launched a new product with over 99.999% purity, specifically engineered for semiconductor etching processes. This ultrapure acid saw application expansion across LCD panel manufacturing and photovoltaic cell production. Over 45,000 tonnes of this grade were produced in Jiangsu and Guangdong provinces in the second half of 2023, marking a 13% increase in year-over-year capacity for electronics-specific variants. European manufacturers focused on food-grade phosphoric acid improvements. A Belgian company unveiled a naturally filtered variant using membrane separation technology, achieving a 98.5% purity with a significant reduction in heavy metal residues. This new acid is now used in carbonated beverages and processed meats across 14 EU countries. In 2024, distribution of this food-grade product expanded to 8 additional markets including Turkey and South Africa, reflecting rising global demand for safe food preservatives. In India, indigenous R&D led to the creation of micronutrient-enriched phosphoric acid designed specifically for crop enhancement. This variant, containing trace elements such as zinc and boron, improved absorption rates in phosphate-deficient soils by 22% according to field tests conducted in Maharashtra and Punjab. Over 15,000 farmers adopted this version in the 2023 rabi season, and further scaling is projected in 2024. The Middle East witnessed innovation in environmental performance. A Saudi Arabian firm developed a phosphoric acid by-product recycling process, resulting in the creation of construction-grade calcium sulfate. This process helped reduce solid waste by 27% and created value-added revenue streams from what was earlier considered industrial waste. Over 90,000 tonnes of recycled gypsum were produced in 2023 alone. Additionally, new safety-enhanced packaging formats have entered the market. American and German companies introduced corrosion-resistant HDPE and fluoropolymer-lined containers that extended shelf-life and reduced storage losses by up to 14%. These packaging solutions now account for over 40% of phosphoric acid shipments in North America and parts of Europe, making logistics safer and more efficient.

Five Recent Developments

• In 2023, OCP initiated a USD 12 billion green investment program to be executed through 2027. This includes expanding phosphate rock mining and phosphoric acid production to raise fertilizer capacity from 12 million tonnes to 20 million tonnes by 2027.
• Also in 2023, OCP brought two additional phosphoric acid lines online at Jorf Lasfar, each with a 450,000 t/a P₂O₅ capacity. A third line is expected to start by early 2024. Prior upgrades had already increased acid capacity by 350,000 t/a.
• In early 2023, Mosaic began construction of a purification plant in St. James Parish, Louisiana, designed to convert existing fertilizer-grade acid into 100,000 t/a of technical-grade phosphoric acid tailored for lithium-iron-phosphate (LFP) battery production.
• In late 2023, OCP implemented Sulfacid technology at Jorf Lasfar and Safi, reducing SO₂ emissions from stack outlets—from around 600 ppm to less than 15 ppm—a reduction of 98%. This retrofit recovered SO₂ waste gas into sulfuric acid, improving both environmental performance and operational efficiency.
• In early 2025, Egypt's Misr Phosphate Co. commenced the development of a 1 million t/a phosphoric acid plant in Abu Tartur, built to process an estimated 980 million tonnes of ore grading 30% P₂O₅. Projected to cost USD 1 billion, the facility will be operated by a Chinese consortium and will sell 500,000 t/a of output to China's Wengfu Group.

Report Coverage of Phosphoric Acid Market

This report delivers an extensive analysis of global phosphoric acid trends, examining market size, production, consumption, technology, and competitive landscape through 2023–2024. It covers all major product grades—electronic, food, and technical—with detailed data on purity levels, end-use segments, and regional production capacities. Primary volume data includes global output of approximately 10.6 million tonnes, with regional usage breakdowns such as 7.5 million tonnes in Asia-Pacific, 1.3 million tonnes in North America, and 1.2 million tonnes in Europe. The study assesses segmentation by type and end use, including fertilizer (7.2 million tonnes), food & beverages (1.05 million tonnes), electronics (0.42 million tonnes), and industrial applications (0.85 million tonnes). It examines feedstock supply dynamics like 240 million tonnes of phosphate rock production and distribution of global reserves (estimated 71 billion tonnes), highlighting concentration in North Africa and supply chain risks. The regional analysis details production hubs, end-user consumption patterns, regulatory pressures, and infrastructure investments across North America, Europe, Asia-Pacific, and the Middle East & Africa. North America’s usage is highlighted by 1.2 million tonnes in the U.S. and 340,000 t in Canada; Europe consumes 1.2 million tonnes with Germany using 350,000 tonnes; Asia-Pacific leads with 7.5 million tonnes; and the Middle East & Africa shows strong growth with Morocco’s 6.5 million tonnes, Saudi Arabia’s new 450,000 t/a facility, and 600,000 tonnes consumed in South Africa. Company profiles include the two largest producers, detailing production volumes and strategic investment drives. OCP’s integrated supply chain handles 37.6 million tonnes of rock and 5.65 million tonnes of acid, while Mosaic contributes 3.9 million tonnes with major operations in North America and Latin America (1.0 million tonnes in Brazil). Market dynamics analysis covers drivers (fertilizer demand), restraints (raw material concentration), opportunities (electronics and food-grade growth), and challenges (environmental capital costs). Investment projects—like OCP’s USD 12 billion green program, Mosaic’s purification plant, and Misr’s Egyptian greenfield project—are analyzed qualitatively and quantitatively. Technological innovations, including salt-free purification, advanced distillation, and green sulfuric acid processes, are benchmarked. Trade flows are tracked, with morocco exporting 1.1 million tonnes, the U.S. 750,000 tonnes, and China 480,000 tonnes.

Frequently Asked Questions