by Ammonium nitrate is a highly soluble salt that is widely used as a fertilizer in agriculture owing to its nitrogen content. It is also used as an oxidizing material for explosives in mining and construction activities. The global demand for agriculture products has been steadily rising due to the expanding population, thereby driving the need for such as ammonium nitrate.
The Ammonium Nitrate Market is estimated to be valued at US$ 21.18 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends: The growing agricultural production across major economies such as China, India and the United States has boosted the demand for ammonium nitrate over the past few years. Agricultural lands have been expanding to cater to the rising food demand from the burgeoning population worldwide. As ammonium nitrate enhances soil fertility and increases crop yields, its consumption has witnessed a corresponding rise. It is projected that agricultural output will continue increasing over the next decade to meet global nutrition requirements, thus propelling the ammonium nitrate market forward during the forecast period.
SWOT Analysis
Strength: Ammonium nitrate is widely used as an oxidizer in explosives and as a high-nitrogen fertilizer due to its availability and low cost. It has several agricultural and industrial applications.
Weakness: Improper handling and storage of ammonium nitrate can lead to accidental explosions causing safety issues. It is also highly regulated as a precursor for homemade bombs.
Opportunity: Increasing population and rising food demand is expected to boost the fertilizer market growth and in turn drive the ammonium nitrate demand. Growth in mining industry also creates new opportunities.
Threats: Stringent regulations regarding the production and transportation of ammonium nitrate can restrict market growth. Increase in raw material prices is also a major threat.
Key Takeaways
The global ammonium nitrate market analysis is expected to witness high growth over the forecast period of 2024 to 2031. The Ammonium Nitrate Market is estimated to be valued at US$ 21.18 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Regional analysis
comprises Asia Pacific dominates the global market and is expected to retain its pole position over the forecast period. The region accounts for over 50% of the total ammonium nitrate demand led by China, India and other developing nations. Growing population, rapid urbanization and initiatives to boost agricultural production are fueling the ammonium nitrate demand in the region.
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. These players are focusing on capacity expansion and new product launches catering to the growing fertilizer and explosive demand. BASF SE is one of the leading producers with a presence across major markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
