June 25, 2024
Global Ammonium Nitrate Market

Ammonium Nitrate Market to Witness High Growth Owing to Increasing Application in Agriculture Industry

Ammonium nitrate is an inorganic compound that is used as a fertilizer in agriculture sector. It is non-flammable in itself but may contribute to fire and explosion when contaminated. As an agricultural fertilizer, it provides a readily available source of nitrogen to plants. Ammonium nitrate’s main use is as a fertilizer in agriculture industry, where it is applied in granular form.

The global ammonium nitrate market is estimated to be valued at US$ 21.18 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period from 2024 to 2030.

Key Takeaways

Key players: Key players operating in the Global 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 is one of the leading producers of ammonium nitrate with annual production capacity of over 900 kilotons.

Key opportunities: Growing demand for high-efficiency fertilizers from developing countries due to increasing area under cultivation represents major growth opportunities for ammonium nitrate producers. Furthermore, development of ammonium nitrate with nitrification and urease inhibitors is expected to drive its adoption.

Global expansion: Leading manufacturers are focusing on capacity expansion strategies across developed as well as developing regions. For instance, acquisition of methanol plant in Trinidad by Tronox expanded its vertical integration. Additionally, rising fertilizer demand from Brazil, India and China is expected to drive the ammonium nitrate market growth during the forecast period.

Market drivers: One of the major drivers for ammonium nitrate market is increasing application in agriculture industry. As the demand for food keeps pace with world population growth, increased fertilizer usage is imperative to sustain agricultural productivity. Ammonium nitrate helps boost crop yields which is a critical requirement from agricultural industry. Additionally, availability of ammonium nitrate at lower costs compared to other nitrogen fertilizers further drives its demand.

PEST Analysis
Political: Ammonium nitrate market is regulated by government for its use as fertilizer and explosive. Regulations around its production, storage, transportation and usage define growth opportunities.
Economic: Demand for ammonium nitrate is directly linked to agricultural and construction sector. Economic growth and government investments in infrastructure impact its consumption.
Social: Preference for organic farming and sustainability concerns can influence buyers’ choice between conventional and organic fertilizers. Safety issues also need addressing.
Technological: New applications in mining, quarrying, infrastructure projects create scope. Innovation in production processes boosts efficiency and quality while ensuring safety.

The geographical regions housing the major consumption of ammonium nitrate market in terms of value currently are Asia Pacific and North America. The Asia Pacific region, driven mainly by agricultural activity in China and India, constitutes over 50% of global demand.
North America, focused more on construction and mining applications, has also seen steady uptake over the years supported by economic growth.

The fastest growing region for the ammonium nitrate market currently is South America. Countries like Brazil and Argentina are modernizing their agriculture sector and expanding infrastructure. This is spurring greater use of ammonium nitrate as fertilizer as well as in quarrying and mining activities. Government initiatives to boost farm output and accelerate construction projects are further propelling the market in the region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it