Global Ammonium Nitrate

Ammonium Nitrate Market Overveiw

The global Ammonium Nitrate Market size was calculated at USD 15.1 Billion in 2022 and is estimated to achieve USD 19.7 Billion by 2030, with a CAGR of 3.6% during the forecast period of 2022-2030. Ammonium nitrate is an explosive compound that must handle with extreme caution. Because of its explosive properties, the material is majorly used in the production of explosives and serves in various military applications. Moreover, it is utilized in mining and quarrying actions as well. The compound is explosive after combining with various fuels and oxidizers of non-explosive properties.

What is Ammonium Nitrate?

Ammonium nitrate is a combination salt of nitric acid, and ammonia is a colorless and odorless chemical mixture. It is commercially available in a crystalline solid-state and can be processed into flakes for certain applications. It is dissolved in water. It is utilized to make fertilizers, explosives and nutrients during manufacturing antibiotics and yeast. Ammonium nitrate is hygroscopic and preferably soaks moisture from the air, so it is normally stored in an air-conditioned warehouse or sealed bags. It is an essential fertilizer as the nitrate present in the compound readily drives soil water to the roots, where it is directly available for plant uptake. Also, it is utilized in food preservation as it can make an instant cold pack. Ammonium nitrate is usually stored in air-conditioned storage or sealed bags. It is a prominent fertilizer as the nitrate form in the compound moves readily along with soil water to the plant roots. Moreover, ammonium nitrate is used to make an instant cold pack for food preservation. The advancement in demand for fertilizers and explosives is a major market driver.

Growth Drivers

Growing population contributes to the expansion of agricultural production

The growth of agricultural production has been noticing a rising movement in the middle and low-income countries where the population growth rate has been growing even though at a diminishing rate. Population growth has a positive impact on agricultural production, impacting fertilizer demand. More increased agricultural demand necessitates boosted productivity, which can only meet through higher-yielding methods, and fertilizers act as a catalyst in such a plan. As one of the main combinations used in fertilizer production, ammonium nitrate is experiencing rising demand in the global ammonium nitrate industry.

Opportunities

Increasing demand for convenience food Worldwide

The rising demand for convenience food globally has been a significant contributing factor to the growth of the ammonium nitrate market. Ammonium nitrate functions as a food protection agent, protecting food from internal degradation and contamination while also maintaining the food’s taste and flavor. When combined with water, ammonium nitrate makes an excellent cold pack. It instantly decreases the temperature inside the package by 2 to 3 degrees Celsius.

Restraints

The delicacy of the material may restrict its growth

Ammonium nitrate is an explosive combination that must handle with excessive caution. Because of its explosive qualities, the material is mostly used to manufacture explosives and helps in different military applications. Also, it is used in quarrying and mining actions as well. The compound is explosive after combining with various oxidizers and fuels of non-explosive properties. However, it has been one of the most controversial compounds recently. For example, the compound was the main culprit when the capital (Beirut) was rocked in August 2020 due to an explosion near the seaport were improperly kept ammonium nitrate was. Because of its explosive properties, the material could reduce consumption in various sectors worldwide.

Pre Covid-19 Impact on Global Ammonium Nitrate Market

Before the covid-19 period, Ammonium Nitrate was an integral element in explosives and demolition actions; rising acquisitions for infrastructure development in countries such as China, India, Brazil, and Indonesia, coupled with growing farming activities, are causing the product demand. Ammonium nitrate is the main component for commercial explosives, widely used in the mining and civil construction industries, which boosts the market growth of the ammonium nitrate before the pandemic era.

Covid-19 Impact on Global Ammonium Nitrate Market

During the covid-19 period, the pandemic had a harsh impact on almost all industries due to lockdown restrictions levied by the governments of various countries to check the spread of the covid-19. The coronavirus-induced pandemic did not spare the ammonium nitrate sector as well. The industry noticed a sharp decrease in demand in the initial months of the pandemic. During the pandemic, the demand for necessary food boosted dramatically, necessitating the production of more food grains. The global ammonium nitrate demand started to grow as ammonium nitrate became one of the most influential compounds in the fertilizers industry for growing food grain production.

Post Covid-19 Impact on Global Ammonium Nitrate Market

After the covid-19 period, the pandemic had an unfavorable impact on the overall ammonium nitrate market. However, as vaccination levels increase and governments worldwide reduce lockdown restrictions, the global ammonium nitrate market is steadily gaining control and noticing increasing demand from various sectors. Moreover, regular government initiatives are also helping the market grow in the post-pandemic era. For instance, the new U.S. government has been allotting a good amount of funds in the agricultural sector of the Americas.

By Application Segmental Analysis

Based on application, the global ammonium nitrate market is segmented into Explosive and Fertilizers. The fertilizers segment is calculated for the largest share in the market. It is expected to dominate in the upcoming years due to the growing business investments in the agricultural sector worldwide. Ammonium nitrate is a raw material utilized in fertilizers, which aids in the improvement of agricultural output. In the formation of agricultural imports and exports, Fertilizers have been meeting the demand for growing populations all over the world. These fertilizers increase agricultural productivity and enhance soil texture, recycle nitrogen, and provide all necessary elements for plants to regain life. The growing demand for fertilizers is playing a key role in driving the growth of the global ammonium nitrate market.

By End-User Segmental Analysis

Based on end-user, the global ammonium nitrate market is segmented into Agriculture, Construction, Mining and Query. The agriculture segment has encountered massive changes over the years as farmers focus on growing crop production across the globe. Further, limitations of total arable land across the world will considerably enhance the use of fertilizers, which will eventually increase the ammonium nitrate market share over the projected timeframe.

By Regional Segmental Analysis

Based on region, the global ammonium nitrate market is segmented into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. The Asia-Pacific region carried the largest share in 2021. The subcontinent of India and China has the most people globally, resulting in a greater need for agricultural products than any other country. As a result, these countries have donated immensely to the ammonium nitrate market growth. Further, China and India are known for agricultural production and export granaries worldwide, making them more significant than other regions in fertilizers’ usage.

Competitors Analysis

The companies include EuroChem Group AG, OSTCHEM Holding, Enaex S.A, Orica, Neochim PLC, Incitec Pivot Limited, San Corporation, URALCHEM Holding P.L.C, Austin Powder Company, Florikan and other prominent players in the global ammonium nitrate market. Key Stakeholders

• Market research and consulting firms
• Industry associations
• Ammonium Nitrate Firms
• Local Governments
• Regulatory bodies
• Suppliers
• Retailers

Recent Development

• In July 2019, Florikan collaborated with EuroChem Group AG. For purchasing standard fertilizers and marketed premium products from EuroChem Group AG to expand its new product line of controlled-release fertilizers.
• In July 2020, Sasol and Enaex S.A. announced that the companies are getting into a joint venture to initiate operations in Southern Africa. The new venture is predicted to operate under the name Enaex Africa.
• In Aug 2016, Yara today officially extended the plant, marking an exciting development in the company’s growth strategy and investment in Australia. The plant, developed in a joint venture by Yara International ASA and Orica Limited, will have the capacity to produce 330,000 tonnes of ammonium nitrate (AN) per annum.
• In October 2015, Yara International acquired 100% of Apache Fertilisers Pty Ltd shares, which holds Apache’s 49%ownership position in Yara Pilbara Holdings Pty Ltd (PHL) for USD 391 million.

Scope of the Report

Report Attribute	Details
Revenue in 2021	USD 4.9 billion
The revenue forecast in 2028	USD 9.9 billion
Growth Rate	CAGR of 11.1 % from 2022 to 2028.
Historical data	2017 – 2020
Base Year	2021
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The companies include EuroChem Group AG, OSTCHEM Holding, Enaex S.A, Orica, Neochim PLC, Incitec Pivot Limited, San Corporation, URALCHEM Holding P.L.C, Austin Powder Company, Florikan are the key players.

Market Modelling

By Application

• Explosive
• Fertilizers

By End-User

• Agriculture
• Construction
• Mining
• Query

By Region

• North America
• Europe
• Asia Pacific
• South America
• The Middle East & Africa

Australia Car Care Products Market Report

Automotive Turbocharger Market

Food Contact Paper Market

Product Cost Management Market

Water-Based Lamination Market

Truck Aluminum Alloy Wheel Market

Malaysia Air Purifier Market

Label-Free Detection Market

HIV Drug Market