Ammonium Nitrate market size, share, trends & opportunities

Ammonium nitrate is a white crystalline solid compound, composed of ammonium and nitrate ions. It is basically used to make fertilizers, herbicides, explosives, etc. Ammonium nitrate is highly water-soluble and has the ability to retain water from the environment by absorption.

The global Ammonium nitrate market is segmented by application (fertilizers, explosives and others), by End-users (agriculture, mining & quarrying, civil construction and others), and by region (North America, Europe, Asia-Pacific, and Africa). Increasing demand in the agriculture, defence, and mining industries will help the Ammonium nitrate market grow. Due to the widespread usage of ammonium nitrate in agriculture, it accounted for more than 70% of the global market share in 2020 and it is expected that the same process will exist in the coming years.

Ammonium nitrate specifications

Pure Ammonium Nitrate does not burn, but it Accelerates the burning of combustible materials and produces toxic oxides of nitrogen during combustion. So, it should not be stored near combustible substances.

Ammonium Nitrate specifications
CAS No.	6484-52-2
HS Code	310230
Packaging	Jumbo Bag

Our experts in ArChem monitor and analyze various aspects of the global Ammonium Nitrate market. They analyze various segments and provide an analysis of the market performance in the long term. This would be useful for our customers to plan their future investments, understand the cost dynamics, and gain awareness about the behaviour of competitors across the globe.

Ammonium nitrate market

Ammonium nitrate is manufactured by neutralizing nitric acid with ammonia. ammonium nitrate is sold in several forms. Liquid ammonium nitrate is used as fertilizer, while solid ammonium nitrate is produced as grains, granules, or crystals. Crystals and granules are used as fertilizer while grains are employed for the manufacture of explosives.

The global Ammonium nitrate market size was US$ 20 billion in 2021 and is expected to reach US$ 42 billion by 2030, growing at a CAGR of 8.5% over the period 2021-2030. Due to the rapid population growth and growing concerns of arable land across the globe, Demand for Ammonium nitrate has increased and it is expected that the same trend will exist in the coming years.

The Ammonium nitrate market is segmented on the basis of application, end user, and geography. By application, the market is segmented into fertilizers, explosives, and other applications. By end-users, the market is segmented into agriculture, mining, and others. By geography, the Ammonium Nitrate market is classified into North America, Europe, Asia Pacific, and the Rest of the world.

Ammonium nitrate market, by application

Based on application, the Ammonium nitrate market is segmented into Explosives and Fertilizers. In the agricultural industry, fertilizers are used to enrich the growth of plants. Various types of fertilizers are available in soluble, dry crystalline, and time-release forms. Ammonium nitrate is one of the best fertilizers used to provide adequate nitrogen levels to plants.

Due to the growing usage of explosives in mine operations, the explosives segment is projected to grow significantly. Plus, increasing demand for metals such as manganese and diamond is projected to fuel market growth.

Ammonium nitrate market, by end-user

Based on end-user, the market is segmented into Agriculture, Mining and others. The market share of agriculture is the largest. In the agriculture industry, Ammonium nitrate is used as a key component of fertilizers to increase agricultural output.

Ammonium nitrate market, by geography

Based on geography, the global Ammonium Nitrate market is classified into North America, Europe, Asia Pacific, and Rest of the world.

Europe accounted for the largest share of the global market due to the high usage of fertilizers. Due to the growing consumption and increasing mining activities, Asia Pacific is expected to emerge as a key revenue-generating region. It is expected to rise the demand in countries such as China, India, Thailand and Malaysia.

Ammonium Nitrate Market Drivers

One of the key drivers of the Ammonium Nitrate market is the growth in agricultural production as a result of a growing population. The agriculture sector accounted for the largest share of more than 70% in 2020 in the ammonium nitrate market owing to the rising product usage as a fertilizer. Fertilizers are applied to plants or soils to improve fertility and plant growth.

Another driver of the Ammonium Nitrate market is the rising demand for explosives and gunpowder. Growth in mining activities leads to the increased utilization of explosives, which results to move the demand for ammonium nitrate.

Global Ammonium Nitrate Market Trends

Fertilizers are used to enrich the growth of plants. Ammonium nitrate is one of the fertilizers used to provide adequate nitrogen levels to plants. Many vegetable farmers prefer an available nitrate source of plant nutrition and use ammonium nitrate. The agriculture industry has seen great growth over the past years. The total value of agricultural production reached 297 million tons in 2021. with the rapidly growing agricultural activities across the world, the demand for solid ammonium nitrate is expected to rapidly increase over the forecast period.

Plus, advances in the development of high-tech explosives in the military and defence industry are expected to be the key trends guiding the growth of the industry.

FAQ

What are the advantages of Ammonium Nitrate?

Ammonium nitrate is chosen over urea because of its higher stability and lower nitrogen dispersion to the atmosphere. it is more acceptable in agriculture because crops consume nitrogen in the form of nitrate.