Ammonium chloride is a white crystalline solid with the chemical formula NH4Cl. It is highly soluble in water producing mildly acidic solutions. Ammonium Chloride is composed of ammonium and chloride ions. It is also known as Sal ammoniac, Salmiac, and Salt Armoniack.
Ammonium chloride has different applications in various industries. Almost 90% of all ammonium chloride produced is used in agriculture for producing fertilizers. It is an important source of nitrogen and chlorine and stimulates plant growth. Plus, it is used in the manufacture of cleansing products, and medicine, and as a flavouring agent in the food industry.
Ammonium chloride market
The global Ammonium chloride market size was US$ 1.4 billion in 2022 and is expected to reach US$ 2.1 billion by 2030, growing at a CAGR of 4.1% from 2022 to 2030.
The global Ammonium chloride market is segmented by grade (agriculture grade, industrial grade, food grade), by application (fertilizers, medical/pharmaceuticals, food additives, leather & textiles, batteries, metal works), and by region (North America, Europe, Asia-Pacific, Middle East and Africa). Asia Pacific is estimated to be the largest market for the global ammonium chloride market over the period 2022-2030 with a 34.17% share of the market revenue.
Ammonium chloride market growth drivers
The Ammonium chloride market has witnessed significant growth in recent years, driven by several factors:
- Fertilizer industry: Ammonium chloride is widely used as a nitrogen source in fertilizers. The growing demand due to population growth and the need for increased agricultural productivity is expected to drive the demand for ammonium chloride in the coming years.
- Pharmaceutical industry: Ammonium chloride is used in the pharmaceutical industry as an expectorant to treat coughs and respiratory conditions. The increasing prevalence of respiratory diseases and the growing demand for cold medications are expected to drive the demand for ammonium chloride in the pharmaceutical industry.
- Industrial applications: Ammonium chloride is used in different industrial processes such as metal works, textiles, and batteries. It is used as a pH regulator in textile dyeing and as an electrolyte in dry cell batteries. The growth of these industries is driving the demand for ammonium chloride.
- Wastewater treatment: Ammonium chloride is used in wastewater treatment as a source of nitrogen for biological nutrient removal processes. The increasing focus on environmental sustainability and regulations regarding water pollution is expected to drive the demand for ammonium chloride in wastewater treatment applications.
Ammonium chloride price trend
Due to the high demand for nitrogen sources in fertilizers, the global Ammonium chloride market is growing and it is expected that this trend will continue in the next 10 years. Plus, the increasing usage of Ammonium chloride in applications other than fertilizers, is anticipated to create new revenue opportunities for the suppliers of Ammonium chloride. Some key factors that can impact the price trend of Ammonium chloride include:
- Supply and demand: supply and demand play a significant role in determining the price of ammonium chloride. If the demand for ammonium chloride exceeds the available supply, prices tend to increase. Factors that can affect supply and demand include changes in industrial demand and government regulations.
- Raw chemical material costs: The price of ammonium chloride is influenced by the cost of its raw chemical materials, particularly ammonia and hydrochloric acid. Changes in the prices of these raw materials can impact the overall cost of producing ammonium chloride and, consequently, its market price.
- Market competition: competition in the ammonium chloride market can influence pricing. There are many suppliers of ammonium chloride, competing for market share, so prices may be more competitive. On the other hand, if there are limited suppliers for a product, prices may be higher due to reduced competition.
- Trade regulations: International trade policies and regulations can have a significant impact on the price of ammonium chloride. Trade agreements can affect the cost of importing or exporting ammonium chloride, leading to price fluctuations. Plus, changes in regulations related to safety standards, or transportation requirements can also influence production costs and, subsequently, ammonium chloride price.
It’s important to note that these factors can interact with each other and vary over time, leading to shifts in ammonium chloride price trends.
Our experts in ArChem monitor and analyze various aspects of the global Ammonium chloride 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.
FAQ
What is the Ammonium chloride market size?
The global Ammonium chloride market size was US$ 1.4 billion in 2022 and is expected to reach US$ 2.1 billion by 2030, growing at a CAGR of 4.1% from 2022 to 2030.
What is Ammonium chloride?
Ammonium chloride is an inorganic compound, which is highly soluble in water. The ammonium chloride solutions are mildly acidic. It is used in fertilizers and as flavouring agents in the food industry. The ammonium chloride is produced from the reaction of hydrochloric acid and ammonia.
What is the fastest-growing region in the Ammonium chloride market?
The Asia Pacific has the largest share of the ammonium chloride market with the majority of the world’s production highly concentrated in China, which accounts for more than 80% of global exports. China is producing ammonium chloride using the Solvay process that yields ammonium chloride, along with soda ash as a byproduct.
What is the major driver of Ammonium chloride in the global market?
The fertilizer segment is expected to drive the growth of the Ammonium chloride market. Ammonium chloride-based fertilizers are suitable in low-lying areas where paddy and other crops are cultivated by farmers.