Ammonium Nitrate Market is Poised to Reach USD 22.34 Billion by 2027
Published | 13 May 2021
A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global ammonium nitrate market reached USD 14.57 billion in 2020. The market is further expected to reach USD 22.34 billion by 2027 and is projected to grow at a CAGR of 6.7% during 2021-2027 (forecast period). The growth of the global ammonium nitrate market has been positively impacted by the growing agricultural demand around the world. Ammonium nitrate is an important component which is used in fertilizers for enhancing the production level of the agricultural produce. Ammonium nitrate helps in augmenting the production supply of the food grains for meeting the desired demand coming from different countries around the world. Additionally, ammonium nitrate is an agent that is used in various military applications for the production of explosives and as a component in various ammunition.
Rising population and income levels has resulted in
rising demand for ammonium nitrate
Over the last few
years, the world's population has exploded, with low- and middle-income
countries dominating the landscape. The demand for agricultural products rises
in lockstep with the growth of the population. Since ammonium nitrate is used
in fertilizers to increase the production of various agricultural products and
food grains, the global ammonium nitrate demand in these regions has been
witnessing a significant increase. Additionally, the rising female labor
participation rates in the developed regions have contributed to rising food
expenditures, thereby positively impacting the agriculture sector. As a result,
the demand in these regions has also been met by enhancing the production
levels by leveraging ammonium nitrate fertilizers.
Rising defense expenditure
around the world has resulted in more demand for ammonium nitrate
The rising
geopolitical tensions with China have resulted in increased defense spending by
major economies such as the United States and India, which has boosted demand
for ammonium nitrate. Ammonium nitrate is a key ingredient that is used as a
raw material in a variety of explosives. Since the demand for ammunition and
explosives is directly proportional to a country's defense spending, the global
ammonium nitrate market has been showing signs of expansion across regions.
Solid form segment occupies the largest market share in
the product type category
Ammonium nitrate is
available in the market in two forms—solid ammonium nitrate as well as liquid
ammonium nitrate. The solid form held the largest share in the global market in
2020. It is expected to maintain its market dominance during
the forecast period as well. The solid form of ammonium nitrate is made up of
two components with varying densities with the higher density components
finding use in a variety of industries, but mainly in military and demolition
operations.
Fertilizers hold the
largest share in the application segment
Based
on the applications, the global ammonium nitrate market is bifurcated into fertilizers,
explosive, food preservation, and others. The fertilizers segment accounted for
the largest share in the market and held over XX% of the market share in 2020, and
is expected to maintain its dominance in the upcoming years as well due to the
growing business investments in the agricultural sector around the world. Ammonium
nitrate is a raw material used in the production of fertilizers, which aids in
the improvement of agricultural output. Fertilizers, in the form of
agricultural imports and exports, have been meeting the demand for growing
populations all over the world. These fertilizers not only increase
agricultural productivity, but they also enhance soil texture, recycle
nitrogen, and provide all necessary components for plants to regain life. The
increasing demand for fertilizers is playing a key role in driving the growth
of the global ammonium nitrate market.
Global Ammonium Nitrate Market: Regional Insights
Based on region, the global
ammonium nitrate market has been categorized into North America, Europe, the
Asia-Pacific, the Middle-East & Africa, and Latin America. The Asia-Pacific
region held the largest share in in 2020 and grew at a
CAGR of 7% during the historical period. The subcontinent of India and China
has the most people in the world, resulting in a greater demand for
agricultural products than any other country. As a result, these countries
have contributed significantly to the ammonium nitrate market growth. Additionally,
China
and India are known for agricultural production and exports of granaries around
the world, which make them more important than other regions in the fertilizers’
usage.
On the other hand, North
America is expected to hold the second-largest share in the global ammonium
nitrate market during the forecast period. The surge in defense investments to
overcome the military and geopolitical problems with China is expected to
enhance the demand for explosives in the region.
COVID Impact Analysis
The COVID-19 pandemic
has had a negative impact on the overall ammonium nitrate market. However, as
vaccination levels rise worldwide and governments around the world easing
lockdown restrictions, the global ammonium nitrate market is steadily gaining
control and witnessing increasing demand from various sectors. Moreover,
consistent government initiatives are also helping the market grow in the
post-COVID era. For example, the new U.S. government has been allocating good
amount of funds in the agricultural sector of the Americas.
Additionally, the
European regions emphasis on the “Circular Economy” is also spreading its
presence in the agricultural sector. However, as a result of these
environmental policies, the market for ammonium nitrate as an inorganic
fertilizer is projected to decline in these developed regions. However, because
of growing population levels, low and middle-income countries such as India,
China, and Sub-Saharan Africa are projected to have a high demand for ammonium
nitrate after the pandemic.
The leading players in the global ammonium
nitrate market are Orica
Limited, Yara International ASA, Enaex S.A., CF Industries Holdings, EuroChem
Group AG, UralChem Group, Austin Powder International, OSTCHEM Holding Company,
Fertiberia S.A., San Corporation, Incitec Pivot Limited Inc., CSBP Limited
Clutch Group LLC, and other prominent players. The
global ammonium
nitrate market is highly fragmented in nature with
numerous players involved in the production of ammonium nitrate across developed
and emerging nations. Additionally, companies in the global ammonium nitrate market
are continually investing in mergers & acquisitions and partnership for
curbing their competition prospects.
Don’t miss the business opportunity of the ammonium
nitrate market. Consult our analysts to gain crucial insights and facilitate
your business growth.
The in-depth analysis
of the report provides information about growth potential, upcoming trends, and
statistics of the global ammonium nitrate market. It
also highlights the factors driving forecasts of total market size. The report promises
to provide recent trends of the global ammonium nitrate market and industry
insights to help decision-makers make sound strategic decisions. Furthermore,
the report also analyses the growth drivers, challenges, and competitive
dynamics of the market.
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