by The global Food Grade Phosphoric Acid Market is estimated to be valued at USD 3,146.20 million in 2022 and is projected to reach USD (incorporate given market value for 2023) million by 2023, growing at a CAGR of 3.98% during the forecast period of 2023 to 2030, according to a new report published by Coherent Market Insights.
Market Overview:
Food grade phosphoric acid finds extensive usage in the food industry as an additive and flavor enhancer. It is widely used in the production of soft drinks, baked goods, jams, jellies, and other food products. The advantage of using food grade phosphoric acid lies in its ability to act as a pH adjuster, emulsifier, and preservative. With the growing demand for processed food products and non-alcoholic beverages, the market for food grade phosphoric acid is expected to witness significant growth. Additionally, the increasing consumer preference for ready-to-eat meals and convenience foods is further fueling market growth. The need for food grade phosphoric acid is driven by the growing food industry and its associated demand for food additives and preservatives.
Market Key Trends:
One key trend observed in the food grade phosphoric acid market is the increasing popularity of organic and natural food additives. Consumers are becoming more health-conscious and are seeking food products that are free from synthetic additives. This trend has led to the development of organic food grade phosphoric acid derived from natural sources such as fruits. Organic food grade phosphoric acid offers natural flavor enhancement without compromising on health and safety concerns. The use of organic food grade phosphoric acid is expected to gain traction in the coming years as the demand for organic food products continues to rise. Organic certification and stringent quality control are key factors contributing to the growth of this trend in the food grade phosphoric acid market.
Porter’s Analysis
Threat of New Entrants: The threat of new entrants in the food grade phosphoric acid market is low due to the high barriers to entry. The market is highly regulated, requiring compliance with quality and safety standards. Additionally, established players have strong brand recognition and customer loyalty, making it difficult for new entrants to gain market share.
Bargaining Power of Buyers: The bargaining power of buyers in the food grade phosphoric acid market is moderate. While buyers have several options to choose from, they are dependent on suppliers for a consistent and reliable supply of high-quality phosphoric acid. Buyers may have some negotiating power in terms of price and delivery terms, but they are limited by the necessity of the product.
Bargaining Power of Suppliers: The bargaining power of suppliers in the food grade phosphoric acid market is high. There are a limited number of suppliers who have the technical expertise and resources to produce food grade phosphoric acid. Suppliers can dictate prices and terms to some extent, especially if they have strong relationships with buyers or offer specialized products.
Threat of New Substitutes: The threat of new substitutes in the food grade phosphoric acid market is low. Phosphoric acid is a crucial ingredient in the food and beverage industry, used for various purposes such as acidity regulator, flavoring agent, and nutrient source. There are currently no viable substitutes that can replicate the functionalities of phosphoric acid in food applications.
Competitive Rivalry: The competitive rivalry in the food grade phosphoric acid market is moderate. The market is consolidated, with a few key players dominating the industry. However, there is still competition among these players in terms of product quality, brand reputation, and customer service. The threat of new entrants or substitutes is limited, further intensifying the competitive rivalry among the existing players.
Key Takeaways
The Global Food Grade Phosphoric Acid Market Size is expected to witness high growth, exhibiting a CAGR of 3.98% over the forecast period from 2023 to 2030. This growth is primarily driven by the increasing demand for processed and convenience foods, which require phosphoric acid as a food additive. The growth of the food and beverage industry, specifically in developing regions, is also contributing to the market expansion.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the food grade phosphoric acid market. The region has a large and rapidly growing population, along with a rising middle class that has increased disposable income. This demographic shift is driving the demand for processed and packaged foods, consequently fueling the demand for food grade phosphoric acid.
Key players operating in the food grade phosphoric acid market include 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. These key players have established a strong presence in the market through their extensive distribution networks, product innovation, and strategic partnerships.
In conclusion, the food grade phosphoric acid market is poised for significant growth in the coming years, driven by the increasing demand for processed and convenience foods. Asia Pacific is expected to be the fastest-growing region, and key players in the market are focusing on product innovation and expanding their distribution networks to stay competitive.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
