by The global ammonium nitrate market is witnessing significant growth due to the growing need for ammonium nitrate as a key fertilizer ingredient. Ammonium nitrate is one of the most commonly used nitrogen fertilizers and has high solubility, making it ideal for increasing crop yields. It is widely used in the agricultural sector for boosting food production to meet the rising global food demand. Ammonium nitrate also finds applications in mining, construction, and explosives industries. The manufacturing process of ammonium nitrate is cost-effective and environment-friendly compared to other nitrogen fertilizers.
The Global Ammonium Nitrate Market is estimated to be valued at US$ 25.86 Bn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the ammonium nitrate market are Orica, Enaex, Austin Powder Company, Incitec Pivot, CSBP, Yara International, San Corporation, Fertiberia, Neochim, URALCHEM Holding, Dyno Nobel, Vijay Gas Industry, Solar Industries, Maxam, AEL Mining Services, EPC Groupe, Gulf Oil Corporation, IDEAL Industrial Explosives, Sichuan Meifeng Chemical Industry, and Jiaocheng Jinxin Chemical.
The growing demand for food from the rising global population has increased the use of nitrogen fertilizers, driving the Ammonium Nitrate Market Value. Ammonium nitrate offers higher nitrogen content, which helps to boost crop yields. This has augmented its use among farmers globally.
Expansion of mining and construction industries is another factor fueling the ammonium nitrate market growth. Ammonium nitrate is widely used as an explosive for mining and quarrying activities. Moreover, various government initiatives to enhance agricultural productivity are also boosting the market’s growth worldwide.
Market Key Trends
Development of advanced fertilizer formulations using ammonium nitrate is one of the key trends observed in the market. Companies are focusing on introducing custom-made formulations for different crop types. This helps increase the efficiency and uptake of nitrogen by crops. Introduction of fertilizer formulations especially for fruits, vegetables and high-value crops is also gaining traction. With the use of advanced fertilizer products, farmers can maximize yields while using lesser quantities of fertilizers. This trend is expected to boost the ammonium nitrate market during the forecast period.
Porter’s Analysis
Threat of new entrants: New entrants need to invest substantially in establishing manufacturing facilities and distribution channels. Significant capital requirements and established customers reduce threat of new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power as ammonium nitrate has few substitute options and buyers require reliable suppliers.
Bargaining power of suppliers: Few manufacturers control global supply of raw materials, giving them significant bargaining power over buyers.
Threat of new substitutes: No direct substitutes exist for ammonium nitrate’s wide range of applications in explosives, fertilizers and other industries.
Competitive rivalry: The market is moderately concentrated with top players competing on pricing, quality, and supply reliability. Competition is based on consistency and reliability of supply.
Geographical Regions of Value Concentration
Asia Pacific accounts for the largest share of the global Ammonium Nitrate Market Regional Analysis in terms of value owing to high demand from construction and mining industries in China, India, and other developing countries. China is the largest consumer as well as producer of ammonium nitrate globally due to large scale infrastructure projects and coal mining activities.
Fastest Growing Geographical Region
Middle East and Africa is projected to be the fastest growing region during the forecast period due to rising exploration and production activities in oil and gas industries and expanding mining sector. Countries such as Saudi Arabia, UAE, South Africa etc. are expected to drive the demand for ammonium nitrate for construction and mining applications.
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
