Ammonium nitrate is a white crystalline solid which exists in two forms – prilled and granular. It is highly soluble in water and has high nitrogen content. Ammonium nitrate provides a readily available source of nitrogen for plant growth. It is widely used as a fertilizer in agriculture owing to its easily soluble nature and high fertilizing value. Ammonium nitrate gives an immediate green color to plants and leads to high crop yields. It is also used as an oxidizing agent in explosives for mining and construction activities.
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 2024 to 2031.
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.
Key opportunities in the market include increasing application in emulsion explosives. Ammonium nitrate emulsion is finding large scale usage in mining and construction activities due to its safer handling properties as compared to ANFO mixtures. This is expected to drive the demand for ammonium nitrate over the forecast period.
Growing construction activities across developing nations of Asia Pacific and Latin America is expected to propel the demand for Ammonium Nitrate Market Size based explosives. Major infrastructure development projects in countries like China, India are relying on ammonium nitrate for blasting and mining applications. This is anticipated to fuel the growth of the global ammonium nitrate market.
Market drivers
Increasing demand from the agricultural sector is a major driver for the ammonium nitrate market. Ammonium nitrate constitutes over 35% of nitrogen requirements for fertilizers globally. Growing population and declining arable land are prompting farmers to maximize crop yields through heavy fertilizer usage. This will positively impact the consumption of ammonium nitrate in the coming years. Additionally, rising construction and mining activities are also augmenting the demand for ammonium nitrate based explosives thereby driving the market growth.
PEST Analysis
Political: Regulations around the transportation, storage, use and sale of ammonium nitrate are stringent. However, governments across regions are supporting the usage of ammonium nitrate in agriculture to boost farm productivity and improve food security.
Economic: Stable demand from the agriculture industry and growing infrastructure development activities are fueling ammonium nitrate sales. However, volatility in raw material prices can impact product costs.
Social: Rising global population is increasing the demand for food. Ammonium nitrate effectively helps improve crop yields which is essential to meet the nutritional requirements worldwide. Concerns around the misuse of ammonium nitrate for illegal activities can negatively impact the market.
Technological: Companies are developing nitro phosphate fertilizers and controlled release fertilizers which provides nutrients to plants for an extended period. Some are also working on improving the stabilization and granulation process to enhance the storage and handling of ammonium nitrate.
In terms of value, North America accounts for over 30% share of the overall ammonium nitrate market owing to highest consumption in the agriculture industry. Europe is another major region supported by developed agriculture sector and infrastructure space.
The Asia Pacific region is poised to showcase highest growth through 2031 on account of rapidly expanding population, urbanization and industrial activities specifically in China and India. Supportive government policies for agriculture coupled with investment in infrastructure building are fueling ammonium nitrate demand across emerging Asian economies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it