 |
| Ammonium nitrate market |
Ammonium nitrate is an inorganic chemical compound widely used as a fertilizer
and as an oxidizing agent in explosives. As an agricultural fertilizer,
ammonium nitrate's major advantage is its sheer nitrogen content, which is
about one-third the weight of the prilled or granular solid, making it cost
effective for improving soil fertility and enhancing crop yields. It is also
increasingly being used for mining and construction activities owing to its
ability to facilitate breaking of hard surfaces and rocks.
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 of 2024 to 2030.
The Global
Ammonium Nitrate Market is primarily driven by rising application of
ammonium nitrate in agriculture to improve crop yields. According to estimates,
around 60% of the ammonium nitrate produced globally is used as a fertilizer.
Owing to growing population and rising demand for food, adoption of fertilizers
is increasing significantly.
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. BASF SE is the global leader in ammonium nitrate production with an
annual capacity of over 1.5 million tons.
Growing population is creating significant opportunities for ammonium nitrate
producers as demand for food continues to rise at a rapid pace. According to
estimates, global food production must rise by over 70% by 2050 to meet demand
from an expected 9.7 billion people on planet. This rising demand for food will
necessitate higher fertilizer adoption to boost crop yields, driving ammonium
nitrate market growth.
Ammonium nitrate producers are ramping up overseas investments and exports to
capitalize on rising fertilizer demand globally. For instance, European and
American producers are set to increase exports to Asia and Latin America where
fertilizer consumption growth is exceeding local production capacities.
Ammonium nitrate companies are also foraying into emerging markets through
joint-ventures and acquisitions to establish a global footprint.
Market Drivers
Rising population: Growing population worldwide is necessitating higher food
production which can only be achieved through increased fertilizer usage
including ammonium nitrate. Global population is expected to reach 9.7 billion
by 2050 from current 7.7 billion, driving immense fertilizer demand.
Increasing fertilizer consumption: With income levels rising in developing
regions, demand for high value foods like meat and dairy is growing rapidly.
Producing such foods requires much more cropped area and fertilizer usage
compared to basic staple crops. This is positively impacting fertilizer
consumption including ammonium nitrate.
Market Restrain
Stringent regulation: Large scale industrial accidents involving ammonium
nitrate explosions have led many countries to impose stringent regulations
regarding its production, storage, and transportation. Complying with such
regulations increases costs for companies.
Price volatility: Ammonium nitrate prices tend to fluctuate frequently
depending on swings in raw material prices like natural gas. Sharp rises in
input costs can reduce farmer and miner profitability, hampering ammonium
nitrate demand.
Segment Analysis
Ammonium nitrate market comprises blasting grade and fertilizer grade. Blasting
grade dominates the market as it accounts for over 60% of total sales. Blasting
grade ammonium nitrate is majorly used in mining and construction activities
for explosives. Rising mining and infrastructure development projects in
emerging economies are the key demand drivers for blasting grade ammonium
nitrate.
Global Analysis
Asia Pacific dominates the global ammonium nitrate market and accounts for
around 45% of total sales. China leads the Asia Pacific market due to presence
of large mining and construction industries. Growing infrastructure development
in countries such as India is also propelling the APAC ammonium nitrate market
growth. Europe is the second largest market followed by North America. Europe
witnesses higher demand from mining industry. Presence of many mining companies
in Canada and U.S. makes North America an important regional market for
ammonium nitrate. Latin America and Middle East & Africa are relatively
smaller markets but are expected to witness fastest growth during forecast
period due to upcoming mining projects.
Get More Insights On This Topic: Ammonium
Nitrate Market