Market Overview:
According to a new report by IMIR Market Research on Global The market for Ammonium Nitrate was valued at approximately USD 19.98 Billion in 2023. Over the course of the forecast period (2024–2031), it is expected to increase at a compound annual growth rate (CAGR) of 5.55%, reaching a valuation of USD 30.13 Billion by 2031.
The product's increasing popularity as a source of nitrogen in fertilizers is anticipated to fuel market expansion. Furthermore, the product is in great demand as an oxidizing agent in explosive manufacturing, which is anticipated to drive market expansion. The manufacturing of ammonium nitrate is facilitated by the abundant availability of essential raw ingredients such as sodium carbonate and nitric acid. Due to intense market competition, the majority of industry participants have used integration techniques, ranging from raw material manufacturing to distribution, to combat diminishing profit margins. Nitrogen is absorbed by plants as nitrate, which is easily obtained as ammonium nitrate. There is a significant nitrogen loss as a result of the nitrogen part being converted from anitrate to urea.
Ammonium nitrate is an effective fertilizer because it easily dissolves in soil water and is instantly absorbed by plants. Ammonium nitrate is a readily available source of nutrients for plants and is typically used by vegetable growers. Livestock farmers appreciate using it to fertilize hay and pastures since it is less susceptible to volatilization losses when left on the soil's surface. Ammonium nitrate's high solubility makes it perfect for use in the creation of fertilizer sprays or solutions. Ammonium nitrate use and requirement have so increased in response to the growing demand for fertilizers, propelling the market.
However, the availability of alternatives restricts market growth. The government has placed strict restrictions on the handling, production, and usage of ammonium nitrate in order to stop its inappropriate use in terrorist acts. The fertilizer & explosives application industries are using more alternatives, which will limit the growth of the ammonium nitrate market.
Market Dynamics:
Market Drivers-
Growing Demand for Agricultural Fertilizers
- The increasing demand for agricultural fertilizers. A common nitrogen-based fertilizer that provides crops with the nutrients they require to flourish and produce as much as they can is ammonium nitrate. Higher productivity in farming is required as a result of the increasing world population and the associated rise in food consumption. Agriculture & farmers apply ammonium nitrate fertilizers to their soils to increase fertility, replenish soil nutrients, & promote healthy plant growth. The use of modern agricultural equipment, the expansion of commercial farming methods, and attempts to boost crop yields all contribute to the demand for ammonium nitrate fertilizer. The demand for ammonium nitrate products is still mostly driven by the agriculture sector, which also helps the ammonium nitrate market develop & expand.
Growing Need for Explosions in Mining & Mining Operations
- The rising need for explosives used in quarrying and mining operations. The creation of industrial explosives, especially ammonium nitrate-fuel oil (ANFO) explosives, that are extensively utilized in mining, quarrying, building, and demolition applications, requires ammonium nitrate as a necessary ingredient. Due to their high energy output, reliability, and affordability, ammonium nitrate-based explosives are the go-to options for a variety of blasting activities in the mining and construction industries. The need for explosives for rock fragmentation, excavation, & processing of materials is driven by the global expansion of infrastructure projects, urban development initiatives, & mineral extraction operations. The continued demand for ammonium nitrate-containing explosions is further supported by the growth of the building industry and the increased requirement for raw materials such as minerals, metals, and aggregates. The quarrying and mining sector is a significant end-use market for ammonium nitrate products, contributing to both industrial growth & consumer demand.
Market Trends-
Growing Need for Specific Grades of Ammonium Nitrate
- The growing need for ammonium nitrate in specialized grades for certain uses. Ammonium nitrate used to be mainly used as fertilizers, but it has since been utilized in a wide range of industries, including construction, mining, & explosives manufacturing. Specialized varieties of ammonium nitrate intended for certain use cases are in greater demand due to rising performance, safety, & compliance with regulations. For instance, the farming sector hunts for high-purity ammonium nitrate classes since they perform well as nitrogen fertilizers, and the dynamite industry favors low-density porous prills due to their superior blasting qualities.As a result of this tendency, producers are creating and providing a wide variety of particular ammonium nitrate compositions to satisfy the changing requirements of various industries.
Growing Uptake of Ammonium Nitrate-Based Blended Fertilizers
- The growing use of mixed fertilizers with ammonium nitrate as a primary ingredient. Blended fertilizer combines multiple nutrient sources, including nitrogen, phosphorous, & the mineral potassium, into a single solution to give farmers an easy and affordable way to meet crop nutritional requirements or increase soil fertility. Ammonium nitrate is an useful part of blended fertiliser that helps enhance balanced absorption of nutrients, higher crop yield, or greater soil health due to its high nitrogen concentration and fast release qualities. The need for mixed synthetic fertilizers including ammonium nitrate is rising due to the growing market for this element. Blended fertilizer is becoming more and more popular between farmers because of their adaptable nutrient profiles, compatibility with different types of soil, and effective delivery of nutrients to plants.
Market Restraining Factors-
Strict Safety Standards and Regulation Requirements
- The strict legal restrictions and safety guidelines controlling ammonium nitrate manufacture, handling, storage, and transportation. Ammonium nitrate poses several risks, including the potential for explosive and fire, that's why it is subject to strict regulations and guidelines that are enforced globally by regulatory bodies and business organizations. In order to maintain safe storage and handling practices across the supply chain, regulatory requirements compliance frequently necessitates massive expenditures in safety infrastructures risk management strategies, and employee training programs. Additionally, as part of compliance with regulations, producers and distributors of ammonium nitrate products may need to submit to regular audits, tests, and reporting demands, raising their operational and administrative costs.
Ammonium Nitrate Market Players Analysis:
- Yara International ASA
- EuroChem Group AG
- CF Industries Holdings, Inc.
- Orica Limited
- The Mosaic Company
- URALCHEM JSC
- Borealis AG
- Potash Corporation of Saskatchewan Inc.
- Abu Qir Fertilizers and Chemicals Company
- OSTCHEM Holding AG
- Austin Powder Company
- Neochim AD
- JSC Belaruskali
- Ube Industries, Ltd.
- GPN Chemicals
- Enaex
- Fertiberia S.A.
- Lovochemie A.S.
- Guizhou Chanhen Chemical Corporation
- Sasol Nitro
Key Industry Developments:
- In January 2022, The Board of Chambal Fertilizers & Chemicals has approved a project to build a modern ammonium nitrate plant with an annual capacity of roughly 2,20,000 metric tonnes (MT) and an estimated cost of approximately Rs. 1170 crore. A factory to generate weak nitric acid at a rate of 1,80,000 MT per year will also be included in the project.
Ammonium Nitrate Market Segmentation Analysis:
By Product
By Application
- Fertilizers
- Explosives
- Others
The report also helps in understanding Global Ammonium Nitrate Market dynamics, structure by analyzing the market segments, and project the Global Ammonium Nitrate Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Ammonium Nitrate Market make the report investor’s guide.
Global Ammonium Nitrate Market Regional Insights:
Segmentation Analysis
The market scope is Categorised because of by Product, by Application.
By Type
Based on the Product of the market is Categorised into High Density, Low Density.
High-density ammonium nitrate had the largest market share in 2021 because it was mostly used as an oxidant in the agricultural industry. HDAN is a material that is extensively supported in the agriculture industry and will contribute to quick expansion because of its incredibly compact, non-porous, and natural shape prills. The rapidly increasing need for HDAN in agricultural activities as a result of increasing crop yields, better soil fertility, decreased development of vegetative mass, and higher gluten & diet composition in cereals will drive an expansion in the value of the worldwide ammonium nitrate market over the coming years.
By Application
Based on the Application of the market is categorised into Fertilizers, Explosives, Others.
The market for ammonium nitrate saw substantial expansion in the explosive segment because to an increase in mining and querying operations, which in turn raised demand for civil explosives. Roughly 99 percent of ammonium nitrate is utilized as an explosive for mining operations, according to the Queensland government. Furthermore, ammonium nitrate is combined with nitro chemicals and employed as an explosive in military applications. Ammonium nitrate's increasing use in the mining sector and in military applications as an explosive is anticipated to fuel market expansion over the course of the projected period.
Ammonium nitrate fertilizers release fewer greenhouse gases and are significantly more effective than other fertilizers. Half of the nitrogen in fertilizers containing ammonium nitrate is quick-release nitrogen, which is readily available to plants. Slow-release nitrogen makes up the other half, which provides plants with a balanced diet.
Regional Snapshots:
By region, Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. Asia Pacific held the most market share worldwide in 2021, and it is anticipated that it would hold that position for the duration of the forecasted period. Since agriculture accounts for the bulk of the economies in the Asia Pacific region, the fertilizer business there is expected to need more ammonium nitrate. The expanding global population, especially in China and India, is driving up nutritional need, which is being fulfilled by focusing on modern agriculture techniques including hydroponic and rotating crops, as well as agro-forestry-forestry techniques. Over the anticipated term, this is expected to have a major impact on the ammonium nitrate market.
North America's share of the worldwide ammonium nitrate market is anticipated to expand moderately over the next years. Ammonium nitrate is in high demand because of the growing need for fuel and the growing interest in defense-related explosives. An increase in farming operations brought on by the region's increasing fertilizer use throughout the projection period is one of the elements driving this area's growth. The US remains the region's largest market for agriculture, despite recent growth in Canada's fertilizer industry.
Ammonium Nitrate Market Report is also available for below Regions and Country Please Ask for that
North America
Europe
- Switzerland
- Belgium
- Germany
- France
- U.K.
- Italy
- Spain
- Sweden
- Netherland
- Turkey
- Rest of Europe
Asia-Pacific
- India
- Australia
- Philippines
- Singapore
- South Korea
- Japan
- China
- Malaysia
- Thailand
- Indonesia
- Rest Of APAC
Latin America
- Mexico
- Argentina
- Peru
- Colombia
- Brazil
- Rest of South America
Middle East and Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest Of MEA
Points Covered in the Report:
- The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
- The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
- The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
- Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
- The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.
Key Reasons to Purchase:
- To gain insightful analyses of the Ammonium Nitrate market and have comprehensive understanding of the global market and its commercial landscape.
- Assess the production processes, major issues, and solutions to mitigate the development risk.
- To understand the most affecting driving and restraining forces in the market and its impact in the global market.
- Learn about the Ammonium Nitrate market strategies that are being adopted by leading respective organizations.
- To understand the future outlook and prospects for the Ammonium Nitrate market. Besides the standard structure reports, we also provide custom research according to specific requirements.
Research Scope of Ammonium Nitrate Market:
- Historic year: 2019-2022
- Base year: 2023
- Forecast: 2024 to 2031
- Representation of Market revenue in USD Million
Ammonium Nitrate Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends:
