Food grade phosphoric acid has a wide range of applications in various food and beverage products. It is used as a flavoring agent in colas and other carbonated soft drinks. Additionally, it is used as a preservative in dairy products, baked goods, and processed meats. Some key products where food grade phosphoric acid finds applications include carbonated drinks, flavored milk, sports and energy drinks, baked goods, meat products, dairy products, and other processed foods.
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 increasing demand in the beverage industry is one of the key drivers propelling the growth of the food grade phosphoric acid market. Phosphoric acid is widely used in carbonated soft drinks as it acts as a flavoring agent and preservative. It maintains the acidity level of soft drinks, which enhances the taste. According to the report by the United Nations Food and Agriculture Organization, the global consumption of carbonated soft drinks was estimated to be around 868 million tons in 2020 and it is projected to grow further in the coming years. This rising consumption of soft drinks is directly increasing the demand for food grade phosphoric acid.
Another factor fueling the market growth is rising consumption of dairy products. Phosphoric acid acts as a preservative in dairy products such as yogurt and flavored milk. It helps maintain the quality of dairy products and extend their shelf life. According to the report of Food and Agricultural Organization, global per capita consumption of milk increased from 92.1 kg in 1994 to 123 kg in 2018. This increasing milk consumption is augmenting the demand for food grade phosphoric acid in the dairy industry.
Segment Analysis
Food Grade Phosphoric Acid Market is segmented by grade type into 75%, 80%, and 85%. Among these, the 80% segment dominates the market and accounts for nearly 40% share in 2022. 80% grade phosphoric acid is widely used across various applications including soft drinks & fruit juices, bakery & confectionery, dairy & meat, and others. Its ability to be diluted easily without forming precipitates makes it suitable for these applications.
PEST Analysis
Political: Food grade phosphoric acid regulation primarily comes under food safety guidelines. Any changes to these regulations can influence the market.
Economic: Rising disposable income levels in developing countries have boosted demand for carbonated and processed food & beverages, driving phosphoric acid consumption.
Social: Changing eating habits & rising health consciousness have increased demand for nutrition-rich, low-calorie food & drinks requiring phosphoric acid.
Technological: Advancements in phosphoric acid production processes have aided greater purity and consistency in meeting stringent quality standards.
Key Takeaways
The Global Food Grade Phosphoric Acid Market Share is expected to witness high growth over the forecast period owing to rising demand from the food & 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 related content comprises
The Asia Pacific region is witnessing fastest growth in the Food Grade Phosphoric Acid Market. China and India are dominating the demand due to increasing middle-class populations and rapid urbanization which are boosting consumption of packaged food, beverages, confectioneries and dairy products.
Key players related content comprises
Key players operating in the Food Grade Phosphoric Acid Market are The Mosaic Company, OCP Group, ICL Food Specialties, JR Simplot, PhosAgro, and Aditya Birla Chemicals. The Mosaic Company is a leading player with over 20% market share owing to its integrated production capabilities and global distribution network.
For more details on the report, Read- https://www.pressreleasebulletin.com/food-grade-phosphoric-acid-market-demand-share-analysis/
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