Ammonium Nitrate Market Analysis

Global Ammonium Nitrate Market Overview

Ammonium Nitrate Market Size was valued at USD 19.11 billion in 2023. The Ammonium Nitrate industry is projected to grow from USD 21.29 Billion in 2024 to USD 31.06 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.55% during the forecast period (2024 - 2032). Increasing demand for fertilizers and Increasing construction activities rising consumption in explosives are driving market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Ammonium Nitrate Market Trends

• 
  

  Increasing demand for fertilizers

  
  

Ammonium nitrate is a white crystalline solid chemical compound that contains the ions ammonium and nitrate. Because of its high nitrogen content, it is often used as a fertilizer. Ammonium nitrate may breakdown violently at high temperatures, making it useful as an explosive in the mining sector. Furthermore, the chemical compound is widely employed in food preservation applications due to its great hygroscopic character.

Fertilizers often include macronutrients like nitrogen, phosphorous, and potassium. Nitrogen fertilizers are the most common, followed by phosphate and potash. Nitrogen fertilizers are commonly used in agriculture to promote crop growth. Food security is influenced by factors such as increased urbanization, rising disposable income in emerging nations, and quick changes in eating habits. Food consumption is expected to rise in response to the world's expanding population. According to the UN, the world population is expected to reach 9.8 billion by 2050. Rising population and affluence in emerging economies are pushing food consumption.

Farmers worldwide are working on improving crop output, which has resulted in huge developments in the agriculture industry over the years. Furthermore, limited total arable land throughout the world will increase fertilizer consumption, which would eventually improve ammonium nitrate market share during the predicted period. Thus, the increasing demand for fertilizers is likely to drive the growth of the Ammonium Nitrate market revenue.

Ammonium Nitrate Market Segment Insights

Ammonium Nitrate Material Application Insights

The  Ammonium Nitrate market segmentation, based on application, includes Explosives, Fertilizers, and Others. The fertilizers segment held the majority share in 2021 contributing to around ~60%-62% with respect to the  Ammonium Nitrate market revenue. Ammonium nitrate is a common fertilizer because nitrogen is a vital component of the compound's two parts: NH4 (ammonium) and NO3 (nitrogen). Plants can obtain nitrogen directly from the nitrate form of the molecule, but soil microbes can also progressively convert the ammonium part to nitrate. Ammonium nitrate is a common alternative for vegetable farmers that desire a readily available nitrate source for plant nourishment because of these features. Animal farmers prefer ammonium nitrate for pasture and hay fertilization over urea-based fertilizers, which can volatilize before being utilised by the plants. It is also very soluble, which makes it ideal for use in irrigation systems.

January 2023: KAZAZOT has selected Técnicas Reunidas as the contractor to develop a novel ammonium, urea, nitric acid, and ammonium nitrate complex. The facility will be built in Aktau, Mangistau Oblast, in Kazakhstan's southwestern region. Técnicas Reunidas will begin by performing engineering design work under a FEED OBE contract (front-end engineering design/open book estimation). The new world-scale complex will be capable of producing 660,000 tons per year of ammonia, 577,500 tons per year of urea, 395,000 tons per year of nitric acid, and 500,000 tons per year of ammonium nitrate.

Ammonium Nitrate Material End-use Insights

The  Ammonium Nitrate market segmentation, based on end-user, includes Construction, Mining, Quarry, Agriculture, and Others. The agriculture segment held the majority share in 2021 contributing to around ~48%-50% with respect to the  Ammonium Nitrate market revenue. As the population grows, so does the demand for food. According to the Organization for Economic Cooperation and Development (OECD) and FAO (Food and Agriculture Organization) annual Agricultural Outlook, worldwide grain output is expected to grow by 13% by 2027. Crop production, farming operations, and trade volumes will need to expand to fulfill the rising population's demands. Agribusiness firms will boost their purchases of arable land in order to increase agricultural output. Agriculture firms are anticipated to expand their presence and operations in order to fulfill rising demand from farming activities and flourish. Hence the growth in the agriculture industry will propel the demand in the ammonium nitrate market.

January 2023: Enaex announced the purchase of MTi HoldCo, a manufacturer of drilling and blasting systems, and formed an agreement with digital mining tools expert O-Pitblast to develop its 4.0 strategy. MTi HoldCo, a subsidiary of the Australian conglomerate MTi, has manufacturing facilities in Australia, the United States, South Africa, and China. BHP, Anglo American, Newmont, Glencore, Rio Tinto, Barrick, and Vale are among the significant mining clients served by Enaex and MTi. This will further broaden the growth opportunity for the Ammonium Nitrate industry.

Figure 2:  Ammonium Nitrate Market, by End-use, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Ammonium Nitrate Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa. Europe Ammonium Nitrate market accounted for largest market share in 2021 and is expected to exhibit an 5.50% CAGR during the study period. This is attributed to the robust growth of the construction, agriculture and other industries in major economies in the region is fueling the demand for Ammonium Nitrate.

Further, the major countries studied are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  Ammonium Nitrate MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America Ammonium Nitrate market accounts for the ~20%-22% market share. Overall, the US is the largest market share. Due to higher demand for Nitrogen fertilizers for the production of cereals, such as corn and wheat, in the country. Nitrogen fertilizer application is related to crop output. According to the US Department of Agriculture, the government extended farmlands to grow 94.0 million acres of maize and 85.0 million acres of soybeans, resulting in increased usage of nitrogenous fertilizers in 2021, sustaining domestic crop output in the country. Further, the USA Ammonium Nitrate  market held the largest market share and was the fastest-growing market in the region

The Asia-Pacific Ammonium Nitrate Market has the second-largest market share of 25%-27% in Ammonium Nitrate market. This is due to growth in the construction and agriculture industry. Moreover, China Ammonium Nitrate market held the largest market share, and was the fastest growing market in the Asia-Pacific region.

Ammonium Nitrate Key Market Players & Competitive Insights

The  Ammonium Nitrate market is characterized by the presence of , regional, and local players. The market is highly consolidated, with all the players competing to gain significant market share. The key market players of Ammonium Nitrate compete based on cost, product quality, availability of raw materials, and durability of the product. They are engaged in expanding their production capacity and investing in R&D activities to gain an edge over competitors. Furthermore, the growing popularity of Ammonium Nitrate in construction is expected to offer lucrative opportunities to manufacturers in the coming years. However, scarcity of raw materials is expected to hinder the growth of the market studied significantly.

Additionally, the adoption of various strategies by the Ammonium Nitrate industry such as expansion, R&D, agreements, acquisitions, collaborations, and investments is expected to help these players to gain maximum revenue and long-term growth during the review period. The key participants in the  Ammonium Nitrate market are Enaex (Chile), EuroChem Group AG (Switzerland), CF Industries Holdings Inc.(U.S.), Incitec Pivot limited (Australia), Neochim Plc (Bulgaria), URALCHEM JSC (Russia),  San Corporation (China), Austin Powder (U.S.), Abu Qir Fertilizers and Chemicals Company (Egypt), Yara International ASA (Norway), and OSTCHEM (Austria).

Enaex is one of the largest explosive ammonium nitrate producers in the world with a capacity of 885 Kiloton/year. It offers raw materials for explosives, packaged explosives, and initiation systems. It also offers services and products such as open pit services, underground services, and mining technological solutions, among others. BHP, Anglo-American, Newmont, Glencore, Rio Tinto, Barrick, and Vale are among the significant mining clients served by Enaex. It has offices located in the major parts of the Americas, Europe, Asia-Pacific and the Middle East & Africa.

Also, CF Industries Holdings Inc. produces green and blue hydrogen and nitrogen compounds for use in energy, fertilizer, emissions reduction, and other industrial applications. It has 9 production facilities in the United States, Canada, and the United Kingdom, as well as storage, transportation, and distribution network in North America. It has a manufacturing capacity of approximately 9000 Kilotons/Year of ammonium nitrate. It also offers fertilizer products such as Urea, granular urea, urea ammonium nitrate, and others.

Key Companies in the Ammonium Nitrate market includes

• Enaex (Chile)


• EuroChem Group AG (Switzerland)


• CF Industries Holdings Inc.(U.S.)


• Incitec Pivot limited (Australia)


• Neochim Plc (Bulgaria)


• URALCHEM JSC (Russia)


• San Corporation (China)


• Austin Powder (U.S.)


• Abu Qir Fertilizers and Chemicals Company (Egypt)


• Yara International ASA (Norway)


• OSTCHEM (Austria).

Ammonium Nitrate Industry Developments

November 2022: Incitec Pivot Ltd (IPL) of Australia has formed a partnership with Saudi Arabia's Modern Chemicals Company (MCC) to construct the Kingdom's first technical-grade ammonium nitrate facility. The project at Ras Al Khair Industrial City in Saudi Arabia's Eastern Province will have a capacity of 300,000 t/y. The project will enable backward integration by ensuring a competitive long-term domestic supply of the feedstock needed to produce civil explosives for the mining sector in the region.

November 2022: UralChem is investing in building a port in Taman for handling of company’s ammonia, ammonium nitrate and other products. The port is assumed to be operational by the end of 2023. This project will enable the company to cater to the increrasinf demand from the growing economies from Asia and Africa.

Ammonium Nitrate Market Segmentation

Ammonium Nitrate Application Outlook

• Explosives


• Fertilizers


• Others

Ammonium Nitrate End-user Outlook

• Construction


• Mining


• Quarry


• Agriculture


• Others

Ammonium Nitrate Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Mexico
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC
  
  
  • South Africa
  
  
  • Rest Of Middle East & Africa