Global Ammonia Fertilizer Market Overview
As per MRFR analysis, the Ammonia Fertilizer Market Size was estimated at 56.59 (USD Billion) in 2022.The Ammonia Fertilizer Market Industry is expected to grow from 58.21(USD Billion) in 2023 to 75.0 (USD Billion) by 2032. The Ammonia Fertilizer Market CAGR (growth rate) is expected to be around 2.86% during the forecast period (2024 - 2032).
Key Ammonia Fertilizer Market Trends Highlighted
As for the dynamic factors of the evolution of the world market for ammonium fertilizers, it can reasonably be noted that this sphere has regard towards ecological approaches and the advancement of digital technologies. The growing population and improving agricultural production are the key factors fuelling the growth of the market for ammonia fertilizers. On the other hand, environmental and carbon issues are the reasons behind the increasing usage of more eco-friendly methods in the sphere of ammonia production. The key players have an opportunity to take advantage of the growing trend of organic fertilizer demand and allocate resources to chemical fertilizer production development. The market is also evolving due to the advances in digital technology where it is now possible to use sensors and IoT devices to monitor the application of fertilizers and improve their application efficiency.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Ammonia Fertilizer Market Drivers
Increasing Demand for Food Production
Every day and with the passage of time, there is an increasing number of people which consequently also increases the quantities of food products required. Within these bounds, ammonia fertilizer is the most important crop nutrient, which enhances both the yields and the quality earned from crops grown. This way, since there will be an increase in food consumption, so will the ammonia fertilizer consumption increase. The Ammonia Fertilizer Market Industry is expected to grow at a CAGR of 2.86% from 2024 to 2032.
Moreover, even in 2032, when it holds the value, it will be USD 75.0 billion. One of the factors driving these and other exacerbating trends is the growing population and its increased need for food. First of all, it should be pointed out that ammonia fertilizer allows for increasing crop yields as the nitrogen nutrient is introduced into crops. It is one of the primary substances required for plant growth, which is found in proteins, chlorophyll, as well as many other critical plant components.
A diminution in nitrogen supply to a plant can result in non-growth, and growth yields will be low within that period. The ammonia fertilizer is the economical alternative that is aimed at increasing nitrogen and subsequently augmenting the crop yield. As long as the number of people increases, the demand of which requires food the requirement for ammonia fertilizer will grow as well. This phosphorus applies to the location enlargement of precipitation harvest and improves quality. As has been explained, this effect is based on the contribution of nitrogen to the increase in crop biomass.
The published policies include measures to mitigate deforestation in ways that enable and enhance sustainable growth. In addition, the protein content, which is vital to human and animal nutrition, may also be improved by chemical compositions in food ingredients. That is to say, as more humanity gets to appreciate high quality foods, the more the demand for ammonia fertilizer will rise. In summary, these trends support the growth of the Industry Ammonia Fertilizer Market Industry at a global scale.
Rising Prices of Natural Gas
Natural gas is the main feedstock for ammonia production, and its price has an influence on the cost of production of ammonia fertilizer. In the previous few years, there has been an increase in the price of natural gas which has resulted in a rise in the cost of production of ammonia fertilizer. As a result, there has been a need to reduce the cost of production on the part of the ammonia fertilizer producers, while the cost of the ammonia fertilizer has increased to the detriment of the price levels of the farmers.The increase in natural gas prices has been a major driving force of the growth within the Ammonia Fertilizer Market Industry, as the cost of production is likely to lead to an increase in the cost of ammonia fertilizer for farmers. This is a trend that is expected to continue over the coming years as the demand for natural gas is on the rise while the prices of natural gas continue to increase.
Government Regulations
Government regulations can have a significant impact on the Ammonia Fertilizer Market Industry. Governments can regulate the production, sale, and use of ammonia fertilizer, and they can also provide subsidies for the production of ammonia fertilizer. Government regulations can also impact the cost of ammonia fertilizer for farmers. Government regulations are a key driver of the growth of the Ammonia Fertilizer Market Industry. Governments can use regulations to promote the production and use of ammonia fertilizer, or they can use regulations to restrict the production and use of ammonia fertilizer.The impact of government regulations on the Ammonia Fertilizer Market Industry will vary depending on the specific regulations that are implemented.
Ammonia Fertilizer Market Segment Insights:
Ammonia Fertilizer Market Type Insights
Type Segment Insight and Overview The Ammonia Fertilizer Market is segmented based on type into anhydrous ammonia, aqua ammonia, urea, and ammonium phosphate. Among these, the urea segment held the largest market share in 2023, accounting for over 40% of the global revenue. The growth of this segment is attributed to the increasing demand for urea as a high-nitrogen fertilizer in various agricultural applications. Anhydrous ammonia is the second-largest segment, with a market share of around 30% in 2023. It is a concentrated form of nitrogen fertilizer that is directly applied to the soil.Aqua ammonia, a solution of ammonia in water, is primarily used in the production of urea and ammonium nitrate fertilizers. Ammonium phosphate is a compound fertilizer that provides both nitrogen and phosphorus to crops. The demand for ammonia fertilizers is expected to grow steadily in the coming years, driven by the increasing global population and the need to enhance agricultural productivity. The growing adoption of precision farming techniques and the increasing awareness of sustainable agriculture practices are also contributing to the market growth.In terms of regional markets, Asia-Pacific is the largest consumer of ammonia fertilizers, followed by North America and Europe. The high demand in Asia-Pacific is primarily driven by the large agricultural sector in countries such as China and India. The market in North America is expected to grow at a moderate pace, supported by the increasing demand for high-value crops. Europe is a mature market for ammonia fertilizers, but it is still expected to witness growth due to the adoption of sustainable farming practices. Overall, the Ammonia Fertilizer Market is poised for significant growth in the coming years, driven by the increasing demand for fertilizers in agriculture.The market is expected to be characterized by technological advancements, product innovations, and a growing focus on sustainable practices.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Ammonia Fertilizer Market Application Insights
The Ammonia Fertilizer Market segmentation by Application includes Fertilizer, Feed Additive, and Industrial. The Fertilizer segment dominated the market in 2023 and is expected to continue to hold the largest share over the forecast period. Fertilizer is the largest segment owing to the continuous growth of ammonia fertilizers due to its beneficial usage in boosting crop yields and ensuring the food security offered by fertilizer. The Feed Additive segment is estimated to grow at a steady pace owing to the growing demand for high-quality feed and the robust growth of the feed additives industry.The Industrial segment, on the other hand, is expected to grow and therewith increasing usage of ammonia in a wide range of industrial processes, such as in the production of plastics, textiles, and pharmaceuticals.
Ammonia Fertilizer Market Crop Type Insights
Corn, soybean, wheat, and rice are major crops that heavily rely on ammonia fertilizer for optimal growth and yield. In 2023, the corn segment dominated the Ammonia Fertilizer Market, accounting for around 38.4% of the total revenue. The soybean segment followed closely, capturing approximately 27.6% of the market share. Wheat and rice segments held significant market shares of 19.5% and 14.5%, respectively. The increasing demand for corn as a primary ingredient in animal feed, biofuels, and food products has driven the growth of the corn segment.The expanding livestock and poultry industries have fueled the demand for corn as a cost-effective feed source. Similarly, the rising consumption of soybean meal in animal feed and the increasing production of soybean oil for food and industrial applications have contributed to the growth of the soybean segment. The wheat segment has also witnessed steady growth due to the rising demand for wheat-based products such as bread, pasta, and other baked goods. The increasing population and changing dietary patterns have led to a surge in wheat consumption, boosting the demand for ammonia fertilizer in wheat cultivation.The rice segment has shown consistent growth due to the staple food status of rice in many regions, particularly in Asia. The growing population and urbanization have increased the demand for rice, driving the need for ammonia fertilizer in rice production.
Ammonia Fertilizer Market Grade Insights
The Grade segment of the Ammonia Fertilizer Market is classified into Technical Grade and Food Grade. The Technical Grade segment held a larger market share in 2023, accounting for around 65% of the Ammonia Fertilizer Market revenue. The Food Grade segment is projected to grow at a higher CAGR during the forecast period, owing to increasing demand for high-quality food products and rising awareness about food safety. The Ammonia Fertilizer Market revenue for the Food Grade segment is expected to reach USD 12.5 billion by 2024, growing at a CAGR of 4.2%.The growth of the food-grade segment is driven by factors such as increasing population, changing dietary patterns, and rising disposable income.
Ammonia Fertilizer Market Usage Insights
The Usage segment of the Ammonia Fertilizer Market is anticipated to exhibit steady growth in the coming years. Bulk usage accounted for a significant share of the market in 2023, and this trend is projected to continue in the future. The demand for bulk ammonia fertilizer is primarily driven by large-scale agricultural operations, which require substantial quantities of fertilizer to meet crop nutrient requirements. Packaged ammonia fertilizer, on the other hand, is gaining popularity among small-scale farmers and home gardeners due to its ease of handling and application.The Ammonia Fertilizer Market segmentation provides valuable insights into the market dynamics, enabling stakeholders to make informed decisions and capitalize on growth opportunities.
Ammonia Fertilizer Market Regional Insights
The Ammonia Fertilizer Market is segmented into regions including North America, Europe, APAC, South America, and MEA. In 2023, North America held the largest market share of around 30%, followed by Europe with a share of about 25%. The APAC region is anticipated to witness significant growth in the coming years, driven by increasing demand from emerging economies such as India and China. South America and MEA are expected to contribute moderately to the overall market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Ammonia Fertilizer Market Key Players And Competitive Insights:
Major players in the Ammonia fertilizer market industry are constantly engaged in research and development activities to improve their product portfolio and gain a competitive edge. Leading Ammonia Fertilizer Market players are focusing on developing innovative and sustainable solutions to meet the evolving needs of customers. The Ammonia Fertilizer Market development is driven by factors such as increasing demand for food and agricultural products, rising population, and growing awareness about the importance of soil fertility. The Ammonia Fertilizer Market Competitive Landscape is characterized by the presence of both global and regional players, with a few key players accounting for a significant market share.Yara International ASA, a leading player in the Ammonia fertilizer market, is committed to providing sustainable and innovative solutions for crop nutrition. The company has a global presence with production facilities in various countries and a strong distribution network. Yara focuses on developing tailored solutions for specific crop needs and provides technical support to farmers to optimize crop yields. The company's commitment to sustainability includes reducing its environmental footprint and promoting responsible farming practices.Another key player in the Ammonia Fertilizer Market is CF Industries Holdings, Inc. The company produces and distributes nitrogen fertilizers, including ammonia, urea, and nitric acid. CF Industries has a vast distribution network in North America and is expanding its presence in other regions. The company focuses on operational efficiency and cost optimization to maintain its competitive position. CF Industries invests in research and development to enhance its product offerings and meet the evolving needs of customers.
Key Companies in the Ammonia Fertilizer Market Include:
Ammonia Fertilizer Market Industry Developments
The Ammonia Fertilizer Market is projected to reach USD 75.0 billion by 2032, exhibiting a CAGR of 2.86% during the forecast period. Rising demand for food production, increasing adoption of precision farming techniques, and government initiatives to promote sustainable agriculture are driving market growth. Key industry participants include Yara International ASA, Nutrien Ltd., CF Industries Holdings, Inc., and OCI N.V.Recent developments include the construction of new ammonia plants in Saudi Arabia and Russia, as well as the expansion of existing facilities in the United States and India. Strategic partnerships and acquisitions are also shaping the market landscape, with companies seeking to strengthen their global presence and product portfolios.
Ammonia Fertilizer Market Segmentation Insights
Ammonia Fertilizer Market Regional Outlook
North America
Europe
South America
Asia Pacific
Middle East and Africa
| Report Attribute/Metric | Details |
| Market Size 2022 | 56.59(USD Billion) |
| Market Size 2023 | 58.21(USD Billion) |
| Market Size 2032 | 75.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 2.86% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Qatar Fertiliser Company, Anwil, Yara International, Ma'aden, Fertiberia, Koch Industries, OCI, BASF, CF Industries Holdings, PJSC Acron, Nutrien, Borealis AG, EuroChem, SABIC, Shree Renuka Sugars |
| Segments Covered | Type, Application, Crop Type, Grade, Usage, Regional |
| Key Market Opportunities | Growing Demand for HighYield Crops Shift towards Sustainable Farming Practices Expanding Biofuel Production Government Support for Increased Food Security Technological Advancements in Ammonia Production |
| Key Market Dynamics | Increasing population, rising food demand, favorable government policies, technological advancements and environmental concerns |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Ammonia Fertilizer Market is expected to be worth 58.21 billion USD in 2023.
The Ammonia Fertilizer Market is expected to grow at a CAGR of 2.86% from 2024 to 2032.
The Ammonia Fertilizer Market is expected to be worth 75.0 billion USD in 2032.
North America is expected to have the largest share of the Ammonia Fertilizer Market in 2023.
The key applications of ammonia fertilizer include crop production, industrial processes, and water treatment.
Key competitors in the Ammonia Fertilizer Market include Yara International, CF Industries, and Nutrien.
Key growth drivers of the Ammonia Fertilizer Market include increasing demand for food, growing population, and rising disposable income.
Key challenges facing the Ammonia Fertilizer Market include environmental regulations, rising energy costs, and geopolitical instability.
Key trends in the Ammonia Fertilizer Market include the adoption of precision farming techniques, the development of new fertilizer technologies, and the increasing use of organic fertilizers.
The outlook for the Ammonia Fertilizer Market is positive, with growth expected to continue in the coming years.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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