FOOD GRADE PHOSPHORIC ACID MARKET ANALYSIS

Food Grade Phosphoric Acid Market Size and Trends

Global food grade phosphoric acid market is estimated to be valued at USD 2.34 Bn in 2024 and is expected to reach USD 2.94 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.3% from 2024 to 2031.

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The market witness steady growth, owing to the increasing usage of food grade phosphoric acid across various food applications such as bakery goods, processed meat, beverages, and other products. The market can witness growth over the forecast period due to rising demand from the food processing industry. Growing consumption of convenience and packaged food items along with increasing health consciousness can drive the volumes sold of food grade phosphoric acid in the near future.

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Insights By Form - Liquid segment dominates with increasing demand for food grade phosphoric acid in the food manufacturing industry

In terms of form, liquid segment is estimated to contribute the highest market share of 60.5% in 2024, owing to wide application in food and beverages processing. Food manufacturers favor liquid acid because it enables precise dosing, and can be easily integrated into production lines. Its uniform consistency allows for accurate incorporation into complex food formulations. Liquid phosphoric acid is frequently used as a processing aid in the production of canned and bottled beverages, where it helps inhibit microbial growth.

Insights By Application- Food and Beverages segment dominates due to growing demand for processed foods

In terms of application, food and beverages segment is estimated to contribute the highest market share of 45.8% in 2024, owing to wide end-use in processed foods. This can be attributed to phosphates’ extensive utilization as an additive in processed foods and beverages. Phosphoric acid acts as an essential pH control agent helping to regulate acidity levels across numerous categories. It is widely used in cola beverages to provide tartness and replace calcium removed during demineralization.

Regional Insights

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Dominating Region- Asia Pacific

Asia Pacific region is expected to account for the largest market share of 47.6% in 2024. This dominance is driven by strong food processing sector and established agricultural practices. The demand has also been supported by stricter safety regulations for food additives such as FSANZ (Australia and New Zealand) and preservatives. Key players such as Ingredion Incorporated in the region benefit from economies of scale due to large-scale domestic production.

Fastest-Growing Region- North America

North America region exhibits the fastest growth due to rising living standards and growing health consciousness. Rapid urbanization has fueled the expansion of modern retail and food service sectors. Several countries like U.S. and Canada are key contributors to global food demand, relying on affordable food technologies to meet the needs of vast populations.

Food Grade Phosphoric Acid Market Outlook for Key Countries

U.S. Dominates Food Grade Phosphoric Acid Market Due to Growing Food and Beverage Sector and Stricter Food Safety Regulations

The U.S. leads the market for food grade phosphoric acid due to strong demand from the food and beverage sector. The growth is further supported by food processing industry's expansion and stricter food safety regulations. In December 2022, the U.S. FDA updated its guidelines for food additives, implementing more rigorous testing for substances like phosphoric acid used in food and beverages, reflecting the increasing emphasis on safety and quality.

China's Food Grade Phosphoric Acid Market Growth is Driven by Expanding Food and Beverage Industry and Increased Demand for Preservatives

China is experiencing strong growth in the food grade phosphoric acid market due to its expanding food and beverage industry. The country’s demand for food preservatives, especially in the beverage sector, drives the market growth. In October 2022, Sinochem International Corporation announced the expansion of its phosphoric acid production facility in China, which is expected to meet the rising demand for food-grade acid in China.

Germany's Food Grade Phosphoric Acid Market Growth Fueled by Innovation in Food Processing and BASF's New Production Facility

Germany's strong food processing industry fueled by innovations in food preservation can drive the growth of the food grade phosphoric acid market. In January 2023, BASF SE launched a new phosphoric acid production unit to address the growing demand for food-grade acid in the country. This development underscores Germany's increasing need for food additives in its expanding food sector.

Brazil's Food Grade Phosphoric Acid Market Driven by Rising Demand for Processed Foods and JBS S.A.'s Focus on Food Additive Production

In Brazil, the growing demand for processed and preserved foods is fueling the expansion of the food-grade phosphoric acid market. For instance, in March 2023, JBS S.A., one of the country's largest food companies, announced efforts to enhance its food additive production to cater to this rising demand, which in turn has boosted the need for food-grade phosphoric acid.

India's Growing Demand for Food Grade Phosphoric Acid Driven by Expanding Food and Beverage Industry and Carbonated Drink Consumption

India’s growing demand for food grade phosphoric acid is primarily driven by rapidly expanding food and beverage industry. For instance, according to the report published by Statista in 2022, India is the second-largest consumer of carbonated drinks in Asia, with the market expected to witness growth significantly in the near future. Phosphoric acid is a key ingredient in soft drinks to enhance flavor and shelf life, thus, driving its demand.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Food Grade Phosphoric Acid Market Players

• Established Players- Leading companies such as Ingredion Incorporated in the market focus heavily on research and development to innovate high-performance products. These invest over 5% of their annual revenue in R&D activities aimed at developing enhanced purity grades, novel production processes, and application-specific formulations.
• Mid-Level Players- Mid-sized companies such as Yunnan Tin Company Ltd. in the market adopt cost-effective strategies to deliver competitive solutions targeting price-sensitive consumers. These focus on optimizing production processes, reducing waste, and negotiating material costs to offer quality products at affordable prices. These players also explore collaborations with local distributors and manufacturers to expand distribution networks, boost production capacities, and gain better market access.
• Small-Scale Players- Emerging small-scale vendors specialize in niche applications within the food industry. These concentrate on developing unique formulations suitable for specialized food processes like sodium-free seasoning blends. These players leverage advanced technologies like automated packaging systems to improve efficiencies.

Emerging Startups in the Global Food Grade Phosphoric Acid Market

Innovative Technologies- Several technology startups are developing advanced solutions to disrupt the industry. Companies like 'FoodTech' use IoT sensors and AI to allow real-time monitoring of phosphoric acid quality during transportation and storage. This ensures product integrity from source to destination. AgroChem uses robotics and blockchain to streamline the supply chain and enhance traceability.

Sustainable Solutions- Startups focus on sustainability to address environmental concerns. GreenChem produces food-grade phosphoric acid from agricultural waste by using a novel biochemical process, reducing industrial waste. EcoChem offers a phosphoric acid recovery system for food factories to treat effluents and recover over 95% of the chemical for reuse.

Market Contribution- Niche startups fill critical market gaps. OrganicChem caters to organic food producers with non-GMO phosphates. PetroChem Alternative provides plant-based alternatives for vegan food brands.

Food Grade Phosphoric Acid Industry News

• In 2022, The Mosaic Company, a leading producer of phosphate-based products, announced a major investment in a new phosphoric acid production plant in Florida, aimed at improving the efficiency and quality of food-grade phosphoric acid. This is in response to increasing demand from the beverage and food processing sectors.
• In August 2020, OCP Group collaborated with Budenheim and Prayon to establish a new facility for producing purified phosphoric acid under their subsidiary, Euro Maroc Phosphore (EMAPHOS). This new plant is set to double EMAPHOS's annual production capacity.

Key Takeaways from Analyst

• Rising per capita consumption of carbonated soft drinks, juices and other processed food and beverages worldwide can boost the need for food grade phosphoric acid. Asia Pacific represents the largest dominant regional market, owing to growing populations, improving economic conditions and shifting dietary habits in countries like China and India.
• Increasing use of phosphoric acid in processed meat products to control pH levels and increase shelf-life also provides opportunities for market growth. However, fluctuating prices of raw materials needed for phosphoric acid production can hamper the market growth. Stringent regulations regarding the use of phosphates in food and beverages in some countries of North America and Europe poses challenge to industry players.
• In terms of demand, liquid form of food grade phosphoric acid dominates other forms, however, solid/dry form is expected to gain share due to ease of handling and transportation. Leading players are investing in R&D to develop innovative production technologies and product offerings to cater to diversifying end user requirements and gain an edge over competition.

Market Report Scope

Market Dynamics

Market Driver- Increasing demand for food preservation and flavor enhancement in the food and beverage industry

Increasing demand for food preservation and flavor enhancement is a key driver behind the growth of the global food grade phosphoric acid market. As lifestyles become increasingly fast-paced and convenient, more consumers are looking for food products that have a long shelf life without needing refrigeration. This benefits both food producers who can save on cold storage costs and consumers who have more flexibility in where and when they purchase certain items. For example, according to the data from the United Nations Food and Agriculture Organization in 2020, over 20% of the global fish catch was being wasted as of 2020 due to lack of adequate preservation techniques during distribution and storage before consumption. Using food grade phosphoric acid helps reduce this level of food waste by preserving foods longer.

Market Challenge- Regulatory challenges and compliance issues regarding food safety standards

This market faces various regulatory challenges regarding food safety standards. Different countries have implemented stringent regulations to ensure the quality and safety of food products. Phosphoric acid being a key ingredient in various food applications must comply with the respective national food safety standards. Non-compliance with the regulations can lead to One notable compliance issue is the improper labeling of food products, particularly regarding allergens. For example, failure to declare major allergens like peanuts, gluten, or dairy on product labels can lead to severe consequences, including product recalls, fines, and lawsuits. This issue has gained prominence due to evolving food safety regulations such as the U.S. This creates compliance issues for the manufacturers. Moreover, the standards are continuously evolving with new research on food safety.

Market Opportunity- Expansion of the food and beverage industry in emerging markets

The global food and beverage industry has experienced substantial growth over recent decades, driven by factors such as rising incomes, shifting dietary preferences, and the expansion of organized retail sectors in developing nations.  For example, as incomes rise, dietary patterns shift towards higher consumption of meat, dairy, and processed foods—a phenomenon known as the "nutrition transition." In China, rapid income growth has led to increased intake of animal-source foods and edible oils. Emerging economies in Asia Pacific, Latin America, Eastern Europe, Middle East, and Africa can boost demand for food and beverage products in the near future. Since phosphoric acid is widely used as a pH control agent, preservative, and color fixative in various food and beverage applications like juices, carbonated drinks, baked goods, dairy products, the expansion of the overall industry presents healthy growth opportunities for the food grade phosphoric acid players in market.

Market Segmentation

• By Form Insights (Revenue, USD Bn, 2019 - 2031)
• • Liquid
  • Solid
  • Others
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Food and Beverages
  • Pharmaceuticals
  • Animal Feed
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • The Mosaic Company
  • OCP Group
  • Nutrien Ltd.
  • Yara International ASA
  • Innophos Holdings, Inc.
  • ICL Group Ltd.
  • Hubei Ganke Chemical Co., Ltd.
  • Chengxing Group Co., Ltd.
  • Prayon S.A.
  • AAPPTec
  • S. J. Chemicals
  • Hubei Huashan Chemical Co., Ltd.
  • Kandla Chemicals Pvt. Ltd.
  • Hunan Nonferrous Chenzhou Fluoride Chemical Co., Ltd.
  • Jiangyin Chengxing Group Co., Ltd.