Global Food Grade Phosphoric Acid Market is Estimated to Witness Steady Growth Due to Increasing Demand from Food Industry and Expanding Clean Label Trends
Global food grade phosphoric acid market is estimated to be valued at USD 2.34 Bn in 2024, exhibiting a CAGR of 3.3% over the forecast period (2024-2031). The market is witnessing steady growth, owing to increasing application of food grade phosphoric acid in variety of food products such as beverages, dairy products, bakery products and others. Furthermore, growing clean label trend can boost demand for naturally sourced food ingredients including food grade phosphoric acid.
Market Dynamics
Global food grade phosphoric acid market growth is driven by increasing demand from food industry and expanding clean label trends. Rising consumption of packaged food and beverages globally boosts demand for various food additives including food grade phosphoric acid, which is widely used as a pH control agent and preservative in different food products. Changing consumer preference towards clean label and natural products drives food manufacturers to replace artificial preservatives with naturally sourced ones like food grade phosphoric acid.
Increasing Demand for Beverages Drives Food Grade Phosphoric Acid Market Growth
Key drivers for food grade phosphoric acid market includes rising global consumption of beverages such as soft drinks, juices, and flavored drinks. Phosphoric acid is widely used in the beverage industry to add tartness and balance the flavor. It also acts as an acidulant and preservative in many beverages. As beverage consumption rises, there will be huge demand for phosphoric acid used in their production. The expanding global beverage industry is positively influencing the food grade phosphoric acid market.
Growing Meat Production is Another Major Market Driver
Another major driver for food grade phosphoric acid market includes rising global meat production and consumption. Phosphoric acid plays an important role in the meat industry as it helps retain moisture and improves the texture, taste, and shelf life of meat products. It is widely used for processing and preserving beef, pork, and poultry meat. As meat production increases globally to feed the expanding population, it will fuel the food grade phosphoric acid market that caters to this industry.
Stringent Regulations on Food Additives Poses Challenge
Key restraints for food grade phosphoric acid market includes stringent regulations imposed on food additives by various regulatory bodies worldwide. For instance, the European Food Safety Authority has specific approved conditions of use for phosphoric acid in food products and tight limits on the maximum permitted levels. Countries like the U.S. and Canada have their own guidelines regarding the utilization of phosphoric acid in the food industry. Evolving standards and compliance issues associated with food additives discourage their large-scale use. Over-regulation poses a challenge to the growth of the phosphoric acid market.
Growing Demand for Processed Food Creates Opportunities
Key opportunities for food grade phosphoric acid market growth includes rising global demand for processed and packaged food items. Phosphoric acid finds wide usage as a leavening agent in bakery products, acidulant in canned foods, emulsifier in dairy items, and preservative in meat products. As urbanization increases worldwide, more people are adopting western-style diets rich in processed snacks, ready meals, and packaged food items. This growing processed food industry can boost demand for phosphoric acid as a critical food additive.
Increasing Health Awareness Boosts Low-Calorie Beverage Sales
Another significant opportunity for food grade phosphoric acid market emerges from rising popularity of low-calorie beverages among health-conscious consumers. Phosphoric acid is often used as an effective replacement for sugar in beverages to reduce calories without compromising taste. Increasing cases of obesity and lifestyle-driven diseases boosts demand for low-calorie drinks. As health awareness grows globally, low-calorie beverage sales and corresponding phosphoric acid usage is expected to increase further in the near future.
Link: https://www.coherentmarketinsights.com/market-insight/food-grade-phosphoric-acid-market-5317
Key Developments
- In 2022, The Mosaic Company, a key producer of phosphate-based products, announced plans for a significant investment in a new phosphoric acid production facility in Florida. This investment aims to enhance the efficiency and quality of food-grade phosphoric acid to meet the growing demands of the beverage and food processing industries.
- In August 2020, OCP Group formed a partnership with Budenheim and Prayon to build a new plant for producing purified phosphoric acid through their subsidiary, Euro Maroc Phosphore (EMAPHOS). This new facility is expected to double EMAPHOS's annual production capacity.
Key Players
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., and Jiangyin Chengxing Group Co., Ltd.
