Food Grade Phosphoric Acid Market

Global Food Grade Phosphoric Acid Market:

The global food grade phosphoric acid market size reached US$ 2.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 3.3 Billion by 2032, exhibiting a growth rate (CAGR) of 3.37% during 2024-2032. The market is primarily driven by the rising awareness among consumers towards the importance of food safety, the growing consumption of beverages, and the escalating demand for convenience food items, owing to the evolving individual tastes and preferences.

Global Food Grade Phosphoric Acid Market Analysis:

• Major Market Drivers: The expanding food and beverage sector along with the escalating demand for processed and convenience food items is mainly augmenting the food grade phosphoric acid market growth. Moreover, the elevating requirement for phosphoric acid as an acidulant in carbonated drinks is also catalyzing the global market.
• Key Market Trends: The shifting consumer preferences towards products with clean label and natural ingredients, owing to the increasing awareness towards health and wellness, are bolstering the market growth. Besides this, the growing popularity of functional beverages, including sports and energy drinks and enhanced waters is augmenting the demand for phosphoric acid as an ingredient in formulations developed to provide energy, hydration, or improved performance, which is further propelling the market outlook.
• Competitive Landscape: Some of the major food grade phosphoric acid market companies comprise Arkema S.A., Brenntag SE, Emco Dyestuff Pvt Ltd, Grasim Industries Limited (Aditya Birla Management Corporation Ltd.), ICL Group Ltd., Innophos Inc., Nutrien Ltd., OCP Group, Spectrum Laboratory Products Inc., The Mosaic Company, and Vinipul Inorganics Private Limited, among others.
• Geographical Trends: Asia Pacific accounted for the largest region in the food grade phosphoric acid market, owing to the escalating consumption of carbonated soft drinks by individuals, changing dietary habits and preferences, and the rising need for convenience and processed foods. Furthermore, the growing popularity of plant-based diets and the ongoing advances in food processing technologies that aid manufacturers in producing phosphoric acid more efficiently and sustainably are catalyzing the expansion of the market further. Besides this, the inflating disposable incomes of consumers and the continuous improvements in production techniques, such as waste minimization and recycling, are positively influencing the market growth in this region.
• Challenges and Opportunities: The major challenges hampering the market include the rising consumer concerns towards the potential health risks associated with high phosphoric acid consumption, including bone health issues and dental erosion. However, the emerging trend of consuming functional food and beverage products, fortified with vitamins, minerals, and other bioactive compounds, is anticipated to present substantial opportunities for market expansion in the future.
   

Food Grade Phosphoric Acid Market Trends:

Rising Awareness about Food Safety

The increasing awareness among individuals towards food safety is supporting the food grade phosphoric acid market statistics. In line with this, consumers are becoming concerned about the security of the edible items they consume. Furthermore, the growing incidences of high-profile foodborne illness, along with the rising individual concerns towards the potential risks associated with food products, is offering a positive market outlook. For instance, Pepsi, in response to several epidemiological studies, stated a research finding about the health-effectiveness of phosphoric acids. Additionally, major companies, such as Coca-Cola, are even comparing the incorporated phosphorus content with food products, including milk, rice, and chicken, to gain consumers' confidence. Besides this, governing agencies of various countries are implementing strict food safety regulations and standards, which is propelling the market growth further. Compliance with these regulations is necessary for food manufacturers and suppliers to maintain a competitive edge in the market. For example, according to the Bureau of Indian Standards, the use of food-grade phosphoric acid is permitted in India under the Prevention of Food Adulteration Rules, 1955, unless it contains sulfate, fluoride, and chloride impurities. The country utilizes 85% food-grade phosphoric acids in beverages, seed processing, sugar juice, sugar refining, and food and phosphate manufacturing.

Growing Demand for Convenience Food Products

The rising demand for convenience food items, on account of the evolving tastes and preferences of individuals across the globe, is bolstering the food grade phosphoric acid market recent opportunities. In addition to this, the elevating consumption of quick and hassle-free meal solutions among consumers with busy lifestyles and hectic working schedules is propelling the market growth forward. Moreover, phosphoric acid aids in maintaining the texture and appearance of convenience food products. For instance, Coca-Cola incorporates phosphoric acid, which is used in its certain sparkling beverages to add tartness. It also prevents undesirable changes, such as discoloration and texture degradation, which can occur during storage and processing. Apart from this, the increasing demand for portion-controlled and single-serving convenience food options is offering a positive market outlook. Furthermore, the shifting individual preferences towards convenience food derivatives through online platforms, owing to their enhanced suitability and doorstep delivery solutions, is strengthening the market forecast. For example, according to a 2023 survey by Ayana Bio, a plant cell technology company, 34% of Americans choose ultra-processed foods because of their longer shelf life. Additionally, the American Heart Association (AHA) reports that a majority of Americans prefer less sodium in their food, with over half actively seeking more control over their sodium intake. 

Increasing Consumption of Beverages

Consumers are increasingly becoming more health-conscious and opting for beverages that align with their dietary preferences, which is primarily driving the food grade phosphoric acid market demand. In line with this, the increasing individual interest in bottled water, herbal teas, and low-sugar or sugar-free options is augmenting the market growth. Moreover, the widespread adoption of beverages that offer functional benefits, such as enhanced hydration, energy boost, and are enriched with vitamins, minerals, and other bioactive compounds, is also catalyzing the global market. For instance, the U.S. has some of the highest rates of soda consumption globally, with each individual consuming an estimated 154 liters per year, according to data from the World Population Review for 2024. As a result, food grade phosphoric acid is widely used as an acidulant in the beverage industry, on account of its crucial role in adjusting and enhancing the acidity of various beverages. It is essential for achieving the desired taste profile and providing a refreshing sensation. Apart from this, the growing consumption of on-the-go beverages, including ready-to-drink (RTD) options, such as bottled juices, iced coffee, and energy drinks among individuals with busy lifestyles, is bolstering the market growth further. For example, in October 2023, the Tropicana brand of PepsiCo Inc. launched its two new smoothie flavors containing Vitamin C. The products Tropicana Smoothie Pineapple & Mango and Strawberry & Banana were retailed across India in all distribution channels operating in the market. Furthermore, Danone North America launched the Activia+ multi-benefit probiotic yogurt drink, which includes billions of active and live probiotics to support gut health. The product is a good source of zinc and vitamins D and C.

Global Food Grade Phosphoric Acid Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product type and application.

Breakup by Product Type:

• Food Grade 75%
• Food Grade 80%
• Food Grade 85%
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product type. This includes food grade 75%, food grade 80%, food grade 85%, and others.

Food grade 75% refers to the specific concentration of phosphoric acid that is suitable for use in the food and beverage (F&B) industry. It is formulated to meet the strict quality and safety standards. Additionally, this concentration is generally utilized as an acidulant and potential of hydrogen (pH) regulator in various items, including carbonated beverages, jams, and canned goods, as it enhances flavor, preserves shelf life, and maintains the safety and quality of products. For instance, based on data from the World Population Review for 2024, as compared to other countries across the globe, Argentina has the most soda consumption (approximately 155 liters per person) annually. Besides this, food grade 80% is the specific concentration of phosphoric acid that meets the purity and safety standards required for use in the F&B sector. This concentration is typically employed as an acidulant and pH regulator in the production of carbonated drinks, canned goods, and condiments. Moreover, food grade 85% represents that the product contains 85% pure phosphoric acid and 15% water or other permissible diluents. It adheres to rigorous quality and safety standards required for food applications. It serves as an important ingredient in the food processing sector, functioning as an acidulant and pH regulator. For example, the leading companies, including Coca-Cola are comparing the incorporated phosphorus content with several food products, such as milk, rice, and chicken, to gain the confidence of consumers.

Breakup by Application:

• Food Preservation
• Beverages Production
• Metal Treatment
• Sugar Refining
• Others
   

Food preservation currently dominates the food grade phosphoric acid market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes food preservation, beverages production, metal treatment, sugar refining, and others. According to the report, food preservation accounted for the largest share in the food grade phosphoric acid market.

Food preservation refers to the practice of extending the shelf life and ensuring the safety of food products through various techniques and methods. Phosphoric acid, with its acidic properties, assists in inhibiting the growth of harmful microorganisms, such as bacteria and molds, in food items. This preservation method prevents spoilage, maintains product quality, and enhances safety. In addition to this, it is commonly utilized in canned goods, where its acidity preserves the contents and blocks bacterial contamination and degradation. Moreover, food grade phosphoric acid is crucial in ensuring that individuals have access to safe and long-lasting food products. For instance, major brands, such as Bell Chem have been offering food-grade phosphoric acid that acts as a food source for yeast and is often used as an ingredient to leaven baked goods. Furthermore, Kerry, a leading company in the taste and nutrition industry, successfully acquired Niacet, a renowned global leader in the field of preservation. This strategic move by Kerry augmented the company's food protection and preservation platform, as it leverages the synergies between its own food protection portfolio, resources, and global scale and Niacet's capabilities, expertise, and knowledge.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest food grade phosphoric acid market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific represents the largest region according to the food grade phosphoric acid market overview, owing to the escalating consumption of carbonated soft drinks by individuals, changing dietary habits and preferences, and the rising need for convenience and processed foods. Furthermore, the growing popularity of plant-based diets and the ongoing advances in food processing technologies that aid manufacturers in producing phosphoric acid more efficiently and sustainably are catalyzing the expansion of the market further. Besides this, the inflating disposable incomes of consumers and the continuous improvements in production techniques, such as waste minimization and recycling, are positively influencing the market growth in this region. For instance, according to the Bureau of Indian Standards, the use of food-grade phosphoric acid is permitted in India under the Prevention of Food Adulteration Rules, 1955, unless it contains sulfate, fluoride, and chloride impurities. The country utilizes 85% food-grade phosphoric acids in beverages, seed processing, sugar juice, sugar refining, and food and phosphate manufacturing.

Competitive Landscape:

Key players are investing in research and development (R&D) activities to develop innovative applications for elevating the food grade phosphoric acid recent price. They are focusing on discovering new uses, improving product formulations, and enhancing the efficiency of production processes. In line with this, they are maintaining the highest standards of product quality and safety by adhering to stringent regulatory requirements. They are ensuring that their products meet or exceed industry standards. Furthermore, companies are seeking to expand their market reach by entering new geographic regions or exploring emerging markets. Apart from this, major manufacturers are diversifying their product portfolios to include a range of food additives and ingredients. Moreover, companies are focusing on reducing their environmental footprint by investing in sustainable sourcing of raw materials, energy-efficient production processes, and eco-friendly packaging.

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the major market players in the Food Grade Phosphoric Acid Industry include:

• Arkema S.A.
• Brenntag SE
• Emco Dyestuff Pvt Ltd
• Grasim Industries Limited (Aditya Birla Management Corporation Ltd.)
• ICL Group Ltd.
• Innophos Inc.
• Nutrien Ltd.
• OCP Group
• Spectrum Laboratory Products Inc.
• The Mosaic Company
• Vinipul Inorganics Private Limited
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Food Grade Phosphoric Acid Market Recent Developments:

• April 2024: The Serbian Elixir Group continues to focus on the expansion and sustainability of its Prahovo Industrial and Chemical Park (ICPP). To complete the phosphoric acid product family, the Elixir team is currently in the process of expanding the technical facilities for the production of food-grade acid.
• January 2024: Gujarat Alkalies and Chemicals Ltd (GACL) launched the advanced Food Grade Phosphoric Acid plant at Dahej, with a capacity of 33,870 MTA, as part of its commitment to "Atmanirbhar Bharat". This plant caters to an annual import volume of around 35,000 MTA.

Food Grade Phosphoric Acid Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the food grade phosphoric acid market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global food grade phosphoric acid market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the food grade phosphoric acid industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.