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Ammonium Nitrate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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  • 120 Pages
  • February 2024
  • Region: Global
  • Mordor Intelligence
  • ID: 4772051
The Ammonium Nitrate Market size is estimated at 49.13 Million tons in 2024, and is expected to reach 52.43 Million tons by 2029, growing at a CAGR of 1.31% during the forecast period (2024-2029).

During 2020, the ammonium nitrate market growth was hampered owing to the transport restrictions and the scarce availability of raw materials caused by the COVID-19 outbreak. However, the market has recovered steadily thereafter and is growing at a moderate pace, owing to increased consumption of ammonium nitrate from various industries post-pandemic.

Key Highlights

  • Increasing consumption of ammonium nitrate in the production of agricultural products or fertilizers is a major factor fueling the market growth.
  • On the flip side, the presence of alternatives for ammonium nitrate in the market, such as urea and nitrogen-based fertilizers, is increasing and is anticipated to hinder the market's growth over the forecast period.
  • Furthermore, the growing usage of ammonium nitrate as a vital component in numerous explosives employed in the mining industry for seismic exploration is likely to create profitable growth opportunities for the global market in the future.
  • North America dominated the global market, wherein a significant share of ammonium nitrate consumption was observed from countries such as the United States and Canada.

Ammonium Nitrate Market Trends

Agriculture Segment Dominates the Demand for Ammonium Nitrate

  • In the agricultural industry, fertilizers enrich the growth of essential nutrients for plants, which provide healthy growth and keep them disease-free. Various fertilizers are available in soluble, dry crystalline, and time-release forms. Ammonium nitrate is one such fertilizer used to provide adequate nitrogen levels to plants.
  • Ammonium nitrate provides both immediate and sustained nitrogen nutrition for plants. Roots readily absorb the ammonium fraction, while the nitrate fraction is slowly converted from ammonium by soil microorganisms. Vegetable growers often prefer ammonium nitrate for its immediate availability of nitrate.
  • Rashtriya Chemicals and Fertilizers Limited (RCF), an Indian central public sector under the Ministry of Chemicals and Fertilizers, paid a total of INR 212.40 crore (USD 25.5 million) for FY 2021-22, which is used to enhance the production of Ammonium Nitrate (AN) melts from its existing plant from 150 thousand metric tons to 19 thousand metric tons per annum by optimal utilization of existing infrastructure.
  • As per IBEF, India's agricultural products exports stood at USD 43.37 billion in FY22, which shows the growth in the consumption of ammonium nitrate fertilizers. The more crops cultivated, the more will be will the usage of ammonium nitrate fertilizers use.
  • As per Thyssenkrupp AG, approximately 80% of the yearly generated ammonia is primarily applied in producing fertilizers. Fertilization enhances plant nourishment, stimulates plant development, elevates crop excellence, and ultimately upholds and potentially boosts soil fertility.
  • Hence, with the rapidly growing agricultural activities worldwide, the demand for solid ammonium nitrate is expected to increase over the forecast period rapidly.

North America Region to Dominate the Market

  • North America accounts for the largest share of the demand for ammonium nitrate in the global market.
  • In North America, the United States provides the primary market for the agricultural industries, though Canada's fertilizer industry has seen growth in the near past.
  • According to the United States Department of Agriculture (USDA), the Biden-Harris administration is increasing US-made fertilizer production to counteract and counter the rising prices for the farmers caused by the war in Ukraine. In September 2022, the government announced to offer a grant of USD 500 million to boost domestic fertilizer production. The administration's fertilizer expansion program is part of a government-wide effort to increase competition in the agricultural market.
  • The agriculture industry is a major contributor to the Canadian economy. According to Agriculture and Agri-Food Canada (AAFC), Canada was the world’s fifth largest agricultural exporter in 2022. During 2022, the agriculture and agri-food sectors of Canada generated USD 143.8 billion (around 7.0%) of Canada's gross domestic product (GDP), by providing safe, nutritious, and sustainable food for the world.
  • Canada's fertilizer industry has many manufacturers and wholesale and retail distributors of nitrogen fertilizers, including ammonium nitrate. The country also has a vast export market.
  • As per FERTILIZER CANADA, the Canadian fertilizer industry supports 76,000 jobs in Canada. The fertilizer industry creates USD 23 billion in annual economic activity in Canada. 12% of the world's fertilizer supply comes from Canada.
  • The enormous demand for ammonium nitrate results from the growing demand for ammonium nitrate fuel oil and increased demand for explosives in defense.
  • The U.S. Bureau of Mines has a continuing program to study the products from explosives and to identify explosives that can be used safely underground. This enables more advancement in explosives made of ammonium nitrate in the United States.
  • As per the U.S. Congressional Budget Office, CBO has projected the discretionary spending in defense and military of USD 828 billion in FY 2023, a 4% growth in defense spending from FY 2022. This enables an increase in the production of explosives for military purposes in the country.
  • The fertilizer segment is projected to grow owing to the dynamic growth of agricultural activities in the region over the forecast period.

Ammonium Nitrate Industry Overview

The ammonium nitrate market is highly fragmented in nature. The major players in the studied market (not in any particular order) include EuroChem Group, Orica Limited, CF Industries Holdings, Inc., URALCHEM JSC, and Yara International ASA, among others.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Rising Demand for Ammonium Nitrate-Fuel Oil (ANFO)
4.1.2 Increasing Demand for Fertilizers in Agricultural Sector
4.1.3 Other Drivers
4.2 Restraints
4.2.1 Stringent Regulations on Using Ammonium Nitrate
4.2.2 Availability of Substitute Products
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Volume)
5.1 Application
5.1.1 Fertilizers
5.1.2 Explosives
5.1.3 Other Applications (Gas Generators, Cold Packs, Pyrotechnics, Rocket Propulsion, and Industrial Processes)
5.2 End-User Industry
5.2.1 Agriculture
5.2.2 Mining
5.2.3 Defense
5.2.4 Other End-user Industries (Automotive, Food Industry, Oil and Gas, Medical, and Construction)
5.3 Geography
5.3.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.3.2 North America United States Canada Mexico
5.3.3 Europe Germany United Kingdom Italy France Rest of Europe
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle East & Africa Saudi Arabia South Africa Rest of Middle East & Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share(%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 CF Industries Holdings, Inc.
6.4.2 Chambal Fertilisers
6.4.3 ENAEX
6.4.4 EuroChem Group
6.4.6 Orica Limited.
6.4.7 Sasol Ltd.
6.4.8 San Corporation
6.4.10 Vijay Gas Industry Pvt. Ltd
6.4.11 Yara International ASA
7.1 Development of Smart Explosives
7.2 Other Opportunities

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • CF Industries Holdings, Inc.
  • Chambal Fertilisers
  • EuroChem Group
  • Orica Limited.
  • Sasol Ltd.
  • San Corporation
  • Vijay Gas Industry Pvt. Ltd
  • Yara International ASA