by Ammonia is an important chemical commodity that is primarily used as a nitrogen fertilizer and as a building block for other chemical products. As a major fertilizer, ammonia enhances the yield and nutritional value of food crops. It is considered to be one of the key foundations of the global food system. Australia has a well-established agriculture industry and is among the leading exporters of agricultural products. Rising agricultural production in the country to cater to the growing global food demand is expected to significantly drive the demand for nitrogen fertilizers such as ammonia. The global Australia Ammonia Market is estimated to be valued at US$ 934.85 million in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The two primary drivers fueling the growth of the Australia ammonia market from 2023 to 2030 are rising demand for nitrogen fertilizers from the agriculture industry and increasing agricultural production in the country. Australia has seen considerable growth in agricultural exports over the past few years with agriculture accounting for approximately 2-3% of the country’s GDP. In order to boost farm productivity and fulfill the escalating global food demand, the usage of nitrogen fertilizers in Australian farmlands is increasing substantially. Additionally, initiatives by the government to enhance domestic food security through higher agricultural output will further augment the consumption of ammonia-based fertilizers in the foreseeable future. The above-mentioned factors are anticipated to propel the Australia ammonia market during the forecast period.
Segment Analysis
The Australia ammonia market is dominated by the agricultural sub-segment which holds around 70% share of the overall market. Ammonia is widely used as a nitrogen fertilizer in agricultural activities like crops cultivation. The demand for food grains has been increasing consistently in Australia which is boosting the demand for ammonia from the agricultural segment.
PEST Analysis
- Political: The government supports the agricultural industry through subsidies and initiatives which is positively impacting the ammonia market. Various regulations regarding the use and transportation of ammonia are in place.
- Economic: Strong economic growth, rising disposable income, and growing population are driving the demand for food in Australia. This is increasing the consumption of fertilizers including ammonia.
- Social: Increasing health awareness and changing dietary patterns are boosting the demand for fresh fruits and vegetable production. This is augmenting the use of ammonia fertilizers.
- Technological: Developments in production technologies are helping manufacturers to reduce costs and enhance production efficiencies. New application areas are also being identified.
Key Takeaways
The Australia ammonia market is expected to witness high growth over the forecast period supported by the growing requirement for agricultural produce to meet the demand of rising population.
Regionally, Western Australia emerges as the fastest growing region due to increasing cultivable land and agricultural activities in the region.
Key players operating in the Australia ammonia market are Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals, Energy & Fertilisers. Incitec Pivot Limited holds around 45% of the market share owing to its diversified production facilities and long presence in the Australian market. The company also engages in production of other fertilizers besides ammonia.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
