FOOD GRADE PHOSPHORIC ACID MARKET ANALYSIS

The global food grade phosphoric acid market size was valued at USD 3,146.20 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 3.98% from 2022 to 2030. The market for food grade phosphoric acid is driven by increasing demand for packaged and frozen foods. The chemical can be used to enhance shelf-life in sauces, seafood, and mayonnaise. The growing demand for convenience foods is largely due to modern lifestyles and changing dietary habits. As a result, the market for food grade phosphoric acid is projected to grow exponentially in the near future. Food grade phosphoric acid is distributed globally in the form of chemical solutions and is marketed by several companies.

Global Food Grade Phosphoric Acid Market: Regional Insights

Regionally, North America is projected to dominate the global food grade phosphoric acid market over the forecast period owing to the increasing demand from food &beverage industry. It is commonly used as acidulate after citric acid. It is widely used in cola drinks The food grade phosphoric acid market in the United States was valued at USD 414.4 million in 2019, and it is expected to reach USD 500.1 million by 2025, registering a CAGR of 3.25% during the forecast period.

Asia Pacific is also projected to experience fastest growth in the global market over the forecast period owing to the increasing population of India and changing lifestyle. These factors are surging demand for ready-to-eat meals and beverages, which is projected to foster the growth of Phosphoric Acid 85%- Food Grade especially in India. The food grade phosphoric acid market in India was valued at USD 124.2 million in 2019, and it is expected to reach USD 163.6 million by 2025, registering a CAGR of 4.76% during the forecast period. Moreover, increasing development of high-speed food processing industry in China is again fostering regional market growth.

Figure 1. Global Food Grade Phosphoric Acid Market Share (%) in terms of Value, By Region, 2021

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Global Food Grade Phosphoric Acid Market Drivers:

High demand for phosphoric acid for producing cola drinks is driving growth of the global food grade phosphoric acid market. It is used in soda especially in cola drinks and it also used to preserve the integrity of soda recipe blend. Thus, increasing consumption of cola drinks is propelling growth of the market. According to the Beverage Digest, the companies PepsiCo and Coca Cola together constituted about 68% of total carbonated soft drink market share, in the United States, in 2018.

Growing demand for phosphoric acid as food additive is again augmenting growth of the market. Increasing demand for processed food products will favor the growth of the market. Phosphates in processed foods not only maintain and improvise color, structure, flavor, and other sensory attributes of the food, but also enhance performance in food items by attaining optimum leavening

Global Food Grade Phosphoric Acid Market Opportunities:

Increasing application in canned food products is projected to present significant growth opportunities over the forecast period.  Phosphoric acid is increasingly gaining adoption in canned food due to its high functionality, from preserving to adding flavor to the final food products. Manufacturer like Guangxi Qinzhou Capital Success Chemicals Co. Ltd, are providing phosphoric acid feasible to incorporate in canned foods.

Increasing usage of phosphoric acid in pharmaceutical industry where it is used as an intermediate in pharmaceutical application is projected to serve major growth opportunities for key players. One of the emerging areas that phosphoric acid is used is in dentistry. It is widely used as an etching solution and is mainly used to clean the teeth.

Global Food Grade Phosphoric Acid Market Trends:

Growing popularity of craft beer due to rising trend of westernization is expected to uplift the market growth in the near future. It is used to wash yeast in order to prevent the growth of spoilage causing bacteria in the wort. Also, increasing millennial population worldwide is again creating demand for craft beer which in turn augmenting food grade phosphoric acid market growth.

Increasing number of foodservice channel due to growing tourism is also acting as a major trend in the market. Moreover, growing market for bakery products and continuous innovation in food products is again accelerating market growth. Furthermore, food manufacturer are using active ingredient and preservatives which is further projected to foster the market growth.

Global Food Grade Phosphoric Acid Market Restraints:

Health risk associated with the high use of phosphoric acid in food products is expected to hamper the market growth. For instance, countries, like the United Kingdom and the United States, have set their respective Reference Nutrient Intake for phosphorus at 550 mg/ day for adults and 700 mg/ day for all adults over age 18. Moreover, adults with kidney disease are recommended to have no more than 800 to 1,000 mg of phosphorus a day.

Strict government regulation us usage of phosphoric acid is expected to face challenges in terms is production and supply of this product. This could limit the market growth in the near future.

Figure 2. Global Food Grade Phosphoric Acid Market Share (%), By Grade, 2021

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Global Food Grade Phosphoric Acid Market Segmentation:

The global food grade phosphoric acid market report is segmented into application and geography

Based on application, the market is segmented into food, beverages, and pharmaceutical. Out of which, Food is expected to dominate the global market over the forecast period and this is attributed to its functional benefits such as pH control and adjustment in various type of food and beverages. The food applications segment of the market studied was valued at USD 2,080.4 million in 2019, and it is expected to reach USD 2,608.2 million by 2025, registering a CAGR of 3.91% during the forecast period.

Beverages segment is also expected to witness significant growth in the near future and this is owing to the growing demand for carbonated drinks. It is used to give a sharper and tangy taste to the carbonate drink.

Global Food Grade Phosphoric Acid Market: Key Developments

In July 2018, Innophos Holdings Inc.  Entered a three-year purified phosphoric acid supply agreement with Nutrien Ltd. Under this agreement Nutrien may continue to supply Innophos with PPA, a key raw material in the manufacture of the company’s phosphate product portfolio.

Global Food Grade Phosphoric Acid Market: Key Companies Insights

The global food grade phosphoric acid market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global food grade phosphoric acid market are Brenntag AG, Arkema Group, Guangxi Qinzhou Capital Success Chemical Co. Ltd, OCP SA, Grasim Industries Limited, Merck KGaA, Yunphos, Spectrum Chemical, Manufacturing Corp., Prayon SA, Emco Dyestuff Pvt. Ltd, Nutrien Ltd, Anmol Chemicals, and Vinipul Inorganics Private Limited

*Definition: Phosphoric acid is used in foods and beverages to give them a tangy taste. It is also used as a rust remover. The phosphates can dissolve the rust and return the metal to its original state.