Ammonium nitrate is an important inorganic fertilizer predominantly used in farming activities owing to its high nitrogen content. It provides a stable source of nitrogen and oxygen to plants and helps increase crop yields. Ammonium nitrate contains approximately 33-35% nitrogen and is highly soluble andmobile in soil which allows easy absorption by plant roots.
The global ammonium nitrate market size is estimated to be valued at US$ 21.18 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the ammonium nitrate market are BASF SE, Clariant International Limited, DIC Corporation, Huntsman International LLC, Tronox, Inc, Rockwood Holdings, Inc., Lanxess AG, Atlanta AG, Ferro Corporation. And Merck. BASF SE accounted for over 15% of the global market share in 2021.
The Ammonium Nitrate Market Growth is increasing from the agriculture sector globally owing to the growing population and subsequent rise in demand for food. Ammonium nitrate applications in fertilizers are expected to drive the market growth at a significant rate during the forecast period.
Technological advancements in fertilizer production such as development of nitrogen-fortified compounds and slow-release fertilizers are expected to boost fertilizer consumption and in turn support the growth of the ammonium nitrate market over the coming years.
Market Trends
Rise in organic farming - Strict regulations regarding the use of chemical fertilizers and growing popularity of organic farming is driving the demand for organic fertilizers. This is expected to moderately impact the demand for ammonium nitrate.
Adoption of precision farming - Precision farming techniques help optimize fertilizer application and increase nutrient-use efficiency. This trend is expected to drive sustainable consumption of ammonium nitrate in the long run.
Market Opportunities
Use of ammonium nitrate as an explosive - Opportunities exist for ammonium nitrate manufacturers to expand in construction, mining, and defense sectors owing to its widespread use as a mainstream explosive.
Revenue from non-agricultural applications - Focused R&D towards developing applications of ammonium nitrate in wastewater treatment, metal treatment, and other sectors can unlock new revenue streams for manufacturers.
Impact of COVID-19 on Ammonium Nitrate market
The outbreak of the COVID-19 pandemic has affected the ammonium nitrate market significantly. The production facilities of ammonium nitrate witnessed restrictions due to lockdowns and social distancing norms imposed across countries. This disrupted the supply chain and logistics, leading to reduced availability of ammonium nitrate. The demand from end-use industries such as explosives, fertilizers also dropped considerably as construction, mining activities were halted temporarily.
However, post lockdowns, the market is recovering gradually as restrictions are lifted and economic activities restart. The demand for ammonium nitrate is rising from fertilizer manufacturers to meet the demand for farming. The industrial sectors are also gaining momentum, driving the requirement for explosives. The key players are focusing on capacity expansion plans and strategic collaborations to cope up with increasing demand. For instance, manufacturers are investing in developing highly concentrated grades of ammonium nitrate to reduce transportation costs.
Thus, while the initial months of the pandemic impacted the market growth negatively, the ammonium nitrate market is projected to grow steadily in the coming years backed by rising fertilizer consumption and revival of industrial activities. Continuous R&D for developing efficient production techniques would also support market expansion.
Geographical regions with highest ammonium nitrate market share
Asia Pacific dominates the global ammonium nitrate market in terms of value. Within the Asia Pacific region, China accounts for the major share of over 30% owing to large-scale production and consumption of ammonium nitrate for fertilizers and explosives. India, Indonesia also contribute significantly to the ammonium nitrate demand in Asia Pacific due to expanding agricultural sector.
Europe stands as the second largest ammonium nitrate market globally. Germany, Russia, Poland are the major consumers in Europe due to sizable mining and construction industries. Strict regulatory policies regarding ammonium nitrate usage and storage in European countries ensure its safe application.
North America is projected to witness the fastest growth during the forecast period attributed to reviving oil & gas exploration activities in the US and Canada translating to demand for explosives. Modernization of agricultural practices also stimulates the fertilizer consumption in North America.
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