Ammonium Nitrate Market Is Anticipated to Witness High Growth Owing to Rising Agricultural Production

 

Ammonium Nitrate Market 

Ammonium nitrate is a white crystalline solid primarily used as a fertilizer and as an oxidizing agent in explosives. As an agricultural fertilizer, ammonium nitrate provides a readily available source of nitrogen to plants and is highly soluble in water, allowing it to quickly penetrate the soil. It is one of the most commonly used nitrogen fertilizers globally due to its efficiency and relatively low cost compared to other sources of nitrogen. The global agricultural production has been steadily increasing in order to meet the escalating food demand of the growing population worldwide. This rising food production is majorly dependent on the usage of fertilizers such as ammonium nitrate which boosts the growth of crops.

The global ammonium nitrate market is estimated to be valued at US$ 21.18 billion in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period of 2024 to 2031.

Growing population and rising food demand across emerging economies are the key factors augmenting the demand for ammonium nitrate from the agricultural sector. Apart from its agricultural uses, ammonium nitrate also finds applications as an oxidizing agent in explosives and solid rocket propellants accounting for a noticeable market share. However, stringent regulations regarding its explosive properties somewhat limit the utilization of ammonium nitrate.

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. These major players are investing heavily in R&D activities to develop innovative product grades and focusing on geographic and capacity expansions to strengthen their market position.

The growing global population and rising food consumption present lucrative growth opportunities for Ammonium Nitrate Market Size manufacturers. Rapid urbanization and increasing disposable incomes in emerging economies are propelling the demand for fertilizers to boost agricultural yields. The requirement for sustainable and efficient agricultural practices is driving the adoption of ammonium nitrate globally.

The key players in the ammonium nitrate market are exploring opportunities in developing regions through partnerships, acquisitions, and joint ventures. BASF plans to expand its ammonium nitrate production facility in Louisiana to cater to the growing North American fertilizer demand. Clariant International announced the construction of a new ammonium nitrate plant in Nigeria. Huntsman International has commissioned a greenfield ammonium nitrate plant in Malaysia. Such global expansion strategies are expected to further fuel the growth of the ammonium nitrate market.

Market Drivers
Population growth - Growing population worldwide is majorly driving the agricultural production to meet the escalating global food demand which is the key factor propelling the ammonium nitrate market.
Agricultural productivity - Use of ammonium nitrate as a nitrogen fertilizer enhances crop yields and boosts the overall agricultural productivity substantially thereby fueling its market growth.

Market Restraints
Stringent transportation regulations - Owing to its explosive properties, there are regulations pertaining to the transportation of ammonium nitrate which add to the overall production and distribution costs.
Availability of substitutes - Other substitutable sources of nitrogen such as urea and calcium ammonium nitrate limit the overall demand for ammonium nitrate up to some extent in the global market.

Segment Analysis
The Ammonium Nitrate market can be segmented into explosives and fertilizers based on applications. The fertilizers sub-segment dominates the market as ammonium nitrate is widely used as a fertilizer due to its nitrogen content which helps in improving soil fertility and promoting crop growth. It is used as a fertilizer primarily for grains like corn, wheat and cotton. According to FAOSTAT, nitrogenous fertilizers account for over 60% of the total fertilizer consumption globally making ammonium nitrate the largest fertilizer in terms of consumption.

Global Analysis
The Asia Pacific region is expected to be the fastest as well as the largest growing regional market for ammonium nitrate during the forecast period. Countries like China, India, Indonesia, Bangladesh are the major growers and consumers of fertilizers and hence the demand for ammonium nitrate is also high in this region. China dominates the global ammonium nitrate market owing to the large scale manufacturing of ammonium nitrate in the country by key players like Aluminium Corporation of China, China National Chemical Corporation etc. North America and Europe are also significant markets driven by mining and construction industries in countries like the US and Germany.

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