The ammonium carbonate market comprises ammonium carbonate powder that is colorless and water-soluble. It is widely used as agriculture fertilizers for improving soil health and increasing crop yields. Ammonium carbonate acts as a nitrogen source for plant growth along with alkalizing soils to adjust soil pH levels. It also finds applications in the production of other fertilizer compounds, fire extinguishers, and flue gas desulfurization processes.
The global ammonium carbonate market is estimated to be valued at US$ 927.8 Mn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the ammonium carbonate market are Bayer CropScience, Shanghai Mingdou Agrochemical Co. Ltd, Taixing Dongyu Chemical, Oasis Fine Them, Taixing Experimental Chemical, Akash Purochem Private Limited, Shanghai Tenglong Agrochemical Co. Ltd., Monsanto, BASF SE, Yixing Waxing Chemical, P J Chemicals, Syngenta AG, SinoHarvest Corporation, Vinipul Inorganics India Pvt. Ltd., Nike Chemical, Foxkem Industries, Mubychem Group, Dhanlaxmi Pigments Pvt. Ltd, CDH Fine Chemical, and Haihang Industry. The growing demand for nitrogen-rich fertilizers from the agricultural industry is a major factor driving the growth of the ammonium carbonate market. The rising global food demand necessitates increased agricultural yields, which is expected to boost the consumption of ammonium carbonate. Moreover, expansion of manufacturing facilities by key players in Asia Pacific and North America is further expected to support the growth of the market.
Market drivers
The key driver for the Ammonium Carbonate Market Share is the increasing requirement for nitrogen-rich fertilizers in the agriculture sector. Ammonium carbonate is an important source of nitrogen for plants and helps in increasing crop productivity. The rapidly growing global population has raised global food demand considerably over the past few decades. This, coupled with decreasing agricultural lands, necessitates higher crop yields per unit area through the intensive use of fertilizers. As a result, ammonium carbonate, with its nitrogen nutrients, witnesses strong demand from the agricultural industry.
Geopolitical Situation and the Ammonium Carbonate Market
The current global geopolitical climate poses several challenges for the growth of the ammonium carbonate market. Rising geo-political tensions and trade wars between major economies have disrupted global supply chains for chemicals. Restrictions on trade of certain chemicals between countries engaging in trade conflicts can negatively impact the availability and pricing of ammonium carbonate. Additionally, political instability and conflicts in several parts of the world have hampered manufacturing and transportation activities in these regions. This has constrained the production and distribution operations of ammonium carbonate market players with manufacturing facilities located in conflict-affected areas. Going forward, companies operating in the ammonium carbonate market need to closely monitor changes in trade policies and adopt a flexible supply chain strategy to mitigate risks from geopolitical issues. They must also explore opportunities to locally source raw materials or shift production bases to stable geographies to ensure business continuity.
Geographical Regions of Concentrated Market Value
In terms of value, the ammonium carbonate market is primarily concentrated in Asia Pacific and North America. Asia Pacific accounts for approximately 35-40% of the global market value led by countries such as China, India, and Japan. This is due to large fertilizer manufacturing industries and ample availability of low-cost raw materials in the region. North America is the second largest regional market valued at around 25-30% of the global market. The United States is a major contributor due to large-scale fertilizer and pharmaceutical production. Europe holds a market share of 15-20% while Latin America, Middle East & Africa, and rest of the world constitute the remaining global market value for ammonium carbonate.
Fastest Growing Regional Market
The market for ammonium carbonate is witnessing rapid growth in the South East Asian countries. This region is forecast to emerge as the fastest growing regional market during the projected period from 2024 to 2031. Countries such as Indonesia, Vietnam, Thailand, and Malaysia are expected to spearhead the market growth in South East Asia. This is attributed to expanding agricultural output, rising fertilizer imports, and increasing domestic production of chemicals and pharmaceuticals in these nations. Additionally, South East Asian countries are gaining prominence as manufacturing hubs for multinational corporations. This is propelling new investments to set up ammonium carbonate manufacturing facilities in the region. A booming chemical industry and rapidly developing end-use applications will continue to drive the ammonium carbonate market at a double-digit CAGR in South East Asia over the next seven years.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
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