Market Overview Phosphoric acid, also known as orthophosphoric acid, is a tribasic, weak, transparent, and inorganic category of acid. It is the largest produced and consumed acid in terms of revenue, and the second largest in terms of volume, after sulfuric acid. It is a major component in the production process of phosphatic fertilizers, animal feeds, water treatment solutions, dental cement, albumin derivatives, sugar, textiles and, beverages.
Phosphatic fertilizers are the largest application in the global phosphoric acid market, followed by detergents, metal treatment, and water treatment. The demand for phosphoric acid from these end-user industries propels Phosphoric Acid Market growth.
Market Dynamics The market influencing factors include the demand for production of phosphate fertilizers, increase in the production of phosphate rocks, such as Mono-Ammonium Phosphate (MAP) and Diammonium Phosphate (DAP), and Retail Price Administration and Subsidies on Sales of Fertilizers.
Increase in the production of phosphate rocks
The global population is rapidly growing. To meet the crop demands many governments of developing countries are taking measures to enhance the production of phosphate rocks which produce phosphoric acid.
For instance, the IPL (Indian Potash Ltd) in 2018, acquired stocks of Jordan's largest phosphate mining company named JPMC. This step will ensure phosphate reserve security to India, which is the largest imported of phosphate rocks. This deal will reduce the cost of production of phosphate fertilizers in turn decreasing the cost of inputs in agriculture.
Another instance is of a 50-year agreement between a Russian vendor and the Syrian government, in 2018, which allows the former to mine phosphate in the country and is expected to produce 2.2 million tonnes of phosphate every year.
Market Segmentation: By Production Process • Wet Process • Thermal Process By Application • Fertilizers • Animal Feed • Food Additives • Others
Geographical Analysis Region-wise, the global Phosphoric Acid market is divided into North America, Asia-Pacific, Europe, South America, and the Middle East and Africa.
The US has many different fertilizer manufacturing companies and is one of the leading agrochemical industries of America. The global population is rapidly growing and there is a decline in the arable lands in the world. To face this issue, there will be a necessity for quick-growing chemicals in the future. Therefore, the US and other agrochemical industry leaders will be key players in the fertilizers industry in the forthcoming years.
The population growth in countries like India, China, Indonesia, and Thailand is more than the global average. The region is thus, going to experience increasing demand for crops in the forthcoming years. Hence the demand for phosphoric acid-based fertilizers, food additives, and animal feed will also increase thus driving the phosphoric acid market. China is the largest producer of phosphate rock in the world.
It has a substantial share of global phosphoric acid production. About 85% of the phosphate rock produced in the country is consumed for indigenous production of phosphoric acid, which is used to produce phosphatic fertilizers. India is the largest importer of phosphate rock in the world with a share of about 25%.
Competitive Analysis The key players who dominate and consolidate the global phosphoric acid market are The Mosaic Company, PJSC PhosAgro, Nutrien, IFFCO, EuroChem Group AG, Prayon Group, Israel Chemical Ltd., Yara International, OCP S.A. and, Aditya Birla Group. The market constantly witnesses mergers & acquisitions, joint ventures, and other alliances as the industry is rapidly growing owing to the growth of the agricultural industry.
The companies have a diverse range of fertilizer products with integrated upstream capacities and rely upon their captive sources for raw materials. They have manufacturing locations across the world. Most of the phosphate value chain players either ensure proximity to the raw materials - sulfuric acid and phosphate rock - or easy access to the phosphate producing countries like China, the US, North African countries like Tunisia, Morocco, and Jordan.
