by Food grade phosphoric acid serves as an acidulant or pH control agent in various food and beverages. It provides tartness in flavored carbonated soft drinks, juices, and other beverages. It acts as a leavening agent and dough conditioner in baked goods and helps maintain moisture.
The global food grade phosphoric acid market is estimated to be valued at US$ 3401.62 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rising application of food grade phosphoric acid in varied food and beverage products like carbonated soft drinks, processed meat, baked goods is the primary driver estimated to fuel the growth of global food grade phosphoric acid market over the forecast period. Food grade phosphoric acid is widely used in carbonated soft drinks as an acidulant to provide tartness and moderate the pH level. According to data by International Council of Beverages Associations, the global carbonated soft drinks market was valued at US$ 376 Bn in 2021 and is estimated to grow at a CAGR of 4% during 2022-2030. Thus, the increasing demand for carbonated beverages from developed and emerging economies is projected to drive the food grade phosphoric acid market growth over the forecast period. Another factor augmenting the market growth is its ability to act as a dough conditioner and leavening agent in bakery products and helps to maintain moisture. Therefore, the rising consumption of bakery goods worldwide is also anticipated to propel the demand for food grade phosphoric acid.
SWOT Analysis
Strength: Food grade phosphoric acid is widely used in food and beverage industries for various purposes like increasing vitamin absorption, increasing shelf life and controlling microbial growth. It is a very cost effective preservative that enhances the taste of food products. Food grade phosphoric acid production process meets stringent safety standards.
Weakness: Excessive consumption of food grade phosphoric acid can lead to health issues like bone loss and kidney damage. Price fluctuations in raw materials used for production of food grade phosphoric acid impact the production costs.
Opportunity: Growing demand for convenience and processed food has increased usage of food preservatives like food grade phosphoric acid. Greater awareness about health benefits of consuming food with increased nutrient absorption can boost demand.
Threats: Strict regulations pertaining to use of phosphoric acid in food products and awareness about ill effects of excessive consumption pose challenges. Substitute products gaining popularity can threaten market share of food grade phosphoric acid.
Key Takeaways
The Global Food Grade Phosphoric Acid Market Share is expected to witness high growth owing to rising demand from food and beverage industry. The global food grade phosphoric acid market is estimated to be valued at US$ 3401.62 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030.
Regional analysis: The North America region accounts for over 35% share of the global food grade phosphoric acid market led by US and Canada. Extensive usage of food grade phosphoric acid as preservative by major food companies drives the market growth. Asia Pacific region is expected to grow at fastest pace during the forecast period aided by rising incomes, westernization of diets and increasing health awareness among consumers in countries like China and India.
Key players: Key players operating in the food grade phosphoric acid market are The Mosaic Company, Nutrien, OCP, ICL, Maaden, EuroChem Group, Prayon, Innophos, IFFCO, Yara International and Wengfu Group. These companies enjoy leading positions through continuous expansions, strategic partnerships and setting up production bases closer to end use industries especially in high growth regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
