April 23, 2024
Ammonium Nitrate Market

The Ammonium Nitrate Market is trending towards sustainable agriculture practices by 2024

Ammonium nitrate is an inorganic compound that is widely used as a fertilizer in agriculture due to its high nitrogen content. It is made up of nitrica acid and ammonia and helps boost crop yields by supplementing the soil with essential nitrogen nutrients. Ammonium nitrate provides nitrogen to plants in a form that can be easily absorbed. As a crystalline solid, it is capable of dissolving in water and releasing nitrogen gradually over time for optimal plant growth. Further, it has cost-effective properties compared to other nitrogen fertilizers.

The Global Ammonium Nitrate Market 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. Key players are investing in expanding their production capacities to cater to the growing demand for ammonium nitrate.

The growing population and rising food consumption have increased the demand for fertilizers for higher agricultural productivity. Ammonium Nitrate Market Size remains the primary choice of nitrogen fertilizer for most farmers due to its suitability for row crops and cost-effectiveness. Population projections indicate that global food demand will continue rising at an average annual rate of over 1% in the coming decades.

Major players are focusing on expanding their geographical presence and unlocking opportunities in developing markets. For example, demand for fertilizers is surging in Asia Pacific and Latin America driven by large farming communities and government initiatives to boost agricultural output. International traders are increasingly supplying fertilizers to these high growth regions.

Market key trends

One of the key trends gaining traction in the Ammonium Nitrate Market is the use of ‘nitrification inhibitors’. Nitrification inhibitors are added during fertilizer production to slow down nitrification in soil, controlling the conversion of ammonium to nitrate. This helps reduce nitrogen loss through leaching or denitrification and improves nitrogen use efficiency. As a result, these inhibited fertilizers help boost crop yields with lower environmental impacts. Their adoption is expected to rise significantly over the forecast period driven by sustainable agriculture practices.

Porter’s Analysis

Threat of new entrants: High capital requirements for production facilities and distribution network create entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes.
Bargaining power of suppliers: Suppliers have moderate bargaining power as production requires raw materials that are commoditized.
Threat of new substitutes: Substitutes like urea and CAN possess threat due to their low cost.
Competitive rivalry: Intense competition exists among established players to gain higher market share.

Geographical Regions
North America holds the largest share in terms of value owing to high demand from agricultural and construction industries. The region accounted for over 35% share of the global market in 2024.

Asia Pacific is projected to witness the fastest growth during the forecast period. Countries like India, China and Indonesia are poised to drive the demand on account of rapid urbanization, infrastructure development and growth in agricultural activities. The region is estimated to expand at a CAGR of around 5.5% till 2031.

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