April 20, 2024

The global Australia Ammonia Market is estimated to Propelled by increasing nitrogenous fertilizer demand

Ammonia is a colourless gas and one of the major ingredients used in the production of nitrogenous fertilizers. Ammonia acts as a key nutritional supplement for crops and helps in increased crop yields. The demand for nitrogenous fertilizers has been consistently rising in the agriculture industry of Australia to cater to the booming food requirements. This has propelled the demand for ammonia in the country.

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 6.40% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increasing demand for nitrogenous fertilizers from the agriculture industry has been a major driver of the ammonia market in Australia. There has been rising pressure on farmers to increase crop production in order to meet the growing food demand of the rising population. This has increased the consumption of nitrogenous fertilizers which are key for boosting crop growth and increasing yields. As ammonia acts as a major raw material in the production of nitrogenous fertilizers, its demand from the fertilizer industry is also on a consistent rise. The ammonia market players are expected to gain significant opportunities from this rising demand for nitrogenous fertilizers in the coming years.

SWOT Analysis

Strength: Australia has abundant natural gas reserves which is a key feedstock for ammonia production. This ensures raw material security for domestic ammonia producers.

Weakness: Ammonia production in Australia is concentrated among a few large players. This concentration of production can increase vulnerability to supply disruptions.

Opportunity: Growing demand for ammonia as fertilizer from Australia’s agriculture industry is expected to drive market growth over the forecast period. Expanding agricultural output will boost fertilizer consumption.

Threats: Volatility in natural gas prices can impact production costs for ammonia manufacturers. As gas is a primary input, sharp rises in feedstock costs may squeeze profit margins. Stringent environmental regulations concerning ammonia emissions also pose a compliance challenge.

Key Takeaways

The Australian ammonia market is expected to witness high growth over the 2023-2030 period supported by a thriving agricultural sector. Expanding crop cultivation in major producing states will propel demand for nitrogen fertilizers. Furthermore, investments by leading players to diversify end-uses of ammonia beyond agricultural applications can open new growth avenues. 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 6.40% over the forecast period 2023-2030.

Regional analysis: The market is predominantly concentrated in Eastern Australia led by Queensland and New South Wales. These regions account for over 60% of the country’s total ammonia consumption driven by their large agricultural output. Western Australia is also growing in significance with its expanding mining industry fuelling ammonia demand.

Key players: Key players operating in the Australia ammonia market are Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals, Energy & Fertilisers. Incitec Pivot and Yara are the largest producers with integrated manufacturing plants located close to gas fields. All major players focus on expanding domestic distribution networks and export volumes.