Report Overview

Global Ammonium Nitrate Market- Industry Trends & Forecast Report 2027

The global ammonium nitrate market reached USD 14.57 billion in 2020. The market is further expected to reach USD 22.34 billion by 2027 and is projected to grow at a CAGR of 6.7% during 2021-2027 (forecast period). The growing demand for agricultural products is driving the growth of the market. According to the Food & Agriculture Organization (FAO), the rising female participation in the workforce and rapid urbanization levels around the world are expected to increase the demand for food products, thereby contributing to the growing demand for agricultural products. As a result, a rise in agriculture products positively impacts the demand for fertilizers, which in turn helps enhance the agricultural yield to meet the rising demand. These are the primary factors driving the global ammonium nitrate market.

Source: BlueWeave Consulting

Global Ammonium Nitrate Market Overview

Ammonium nitrate is a chemical compound that leverages nitrogen as a source for production of artificial fertilizers on a large scale. The chemical formula of ammonium nitrate is NH₄NO₃. It is produced in small porous pellets, popularly known as “prills”. It is also one of the most widely used chemical components for making fertilizers.

Ammonium Nitrate is also used as an integral component in explosives and demolition activities wherein a combination of ammonium with fuel oil is created and detonated for an explosive charge. Ammonium nitrate is an odorless and almost colorless crystal salt. By leveraging ammonium nitrate in agricultural fields, farmers can enhance their production levels and plant growth, thereby offering abundant supply. To make fertilizer, ammonia gas is combined with nitric acid, and the chemical reaction that follows is a concentrated form of ammonium nitrate.

Growth Drivers

Growing population contributes to the growth of agricultural production

The growth of agricultural production has been witnessing a rising trend in the middle and low-income countries where the population growth rate has been rising even though at a diminishing rate. Population growth has a positive effect on agricultural production, which in turn impacts fertilizer demand. Higher agricultural demand necessitates increased productivity, which can only be met through higher-yielding methods, and fertilizers act as a catalyst in such a pursuit. Ammonium nitrate, as one of the main compounds used in fertilizer production, is therefore experiencing increasing demand in the global ammonium nitrate industry.

Rising demand for convenience food around the world

The rising demand for convenience food around the world has been a major contributing factor to the growth of the ammonium nitrate market. Ammonium nitrate serves as a food protection agent, helping to protect food from internal degradation and contamination while also preserving the food's taste and flavor. Additionally, when combined with water, ammonium nitrate makes an excellent cold pack. It immediately reduces the temperature inside the package by 2 to 3 degrees Celsius.

The surge in defense expenditure propelling the market growth

According to the April 2020 report from the Stockholm International Peace Research Institute, the global military expenditure stood at USD 1,917 billion in 2019, which is estimated to be 3.6% higher than in 2018. It grew more than 7.2% over the past decade. The rising geopolitical tensions around the world have contributed to the rise in military expenditure worldwide. Because ammonium nitrate has been a major ingredient in the defense sector for the production of ammunition and as an agent in explosives, the market for this particular compound has been increasing and is expected to remain steady in the coming years.

Restraints

The delicacy of the material may hinder its growth

Ammonium nitrate is an explosive material compound that must be handled with extreme caution. Because of its combustible qualities, the material is mainly used in the manufacture of explosives and serves in a variety of military applications. Additionally, it is used in quarrying and mining activities as well. The compound is used as an explosive after mixing it with various oxidizers and fuels of non-explosive properties. However, it has been one of the most controversial compounds in recent times. When the capital of Lebanon (Beirut) was rocked in August 2020 due to an explosion in a building near the seaport where ammonium nitrate was improperly stored, the compound was discovered to be the main culprit. Because of its explosive properties, the material could see a decline in consumption in a variety of sectors around the world.  

Impact of COVID-19 on global ammonium nitrate market

The pandemic has had a severe impact on almost all the industries owing to lockdown restrictions imposed by the governments of different countries to check the spread of the deadly virus. The coronavirus-induced pandemic did not spare the ammonium nitrate sector as well. The industry witnessed a sharp decline in demand in the initial months of the pandemic. However, the global ammonium nitrate market was able to regain confidence and started growing despite the pandemic as the governments around the world started easing the lockdown restrictions. During the pandemic, the demand for necessary food increased dramatically, necessitating the production of more food grains. The global ammonium nitrate demand began to grow as ammonium nitrate became one of the most influential compounds in the fertilizers industry for increasing food grain production.

Global Ammonium Nitrate Market- By Product Type

Based on product type, the market can be bifurcated into solid form and liquid form. Because of the higher percentage of consumption around the world, the solid form product category for ammonium nitrate currently has a greater market share. The solid form segment is expected to retain a larger share in the market during the forecast period as well. The solid form of the ammonium nitrate comprises high-density and low-density compounds of ammonium nitrate. Among these distinct density compounds, high-density ammonium nitrate has a wider reach in the global ammonium nitrate market for its use in fertilizers. High-density ammonium nitrate also serves as a raw material for producing explosives or water gels. As a result, the growth of the solid form of ammonium nitrate really does have a positive effect on overall market demand.

Global Ammonium Nitrate Market- By End-User

Based on the end-user, the global ammonium nitrate market can be segmented into agriculture, mining, construction, defense, aerospace, and others. The agriculture segment held the largest market share. It is further projected to hold the largest share in the coming years as well. The agriculture sector leverages the ammonium nitrate compound as an integral component for fertilizers for boosting agricultural production and meeting the growing demand for food grains around the world in less time than usual. 

Source: BlueWeave Consulting

Global Ammonium Nitrate Market- By Region

Based on region, the global ammonium nitrate market is segmented into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. The Asia Pacific market has grown in revenue due to increased agricultural production and fertilizer use making it the biggest region in the market. The region grew at a CAGR of 6.7% during the historical period. Furthermore, due to the rising demand of a growing population and the abundance of surplus agricultural produce, India, and China are known as the world's agriculture powerhouses, contributing to the region's demand for ammonium nitrate. Furthermore, ammonium nitrate is extensively used in building activities, and since these two countries are home to nearly 2.8 billion people worldwide, construction remains an important area of demand for ammonium nitrate in the region, driving the growth of the global ammonium nitrate industry.

 Source: BlueWeave Consulting

Competitive Landscape

The global ammonium nitrate industry is highly fragmented, with various players engaged in ammonium nitrate production in both developed and developing countries.

The global ammonium nitrate market is providing a lot of opportunities for new entrants as well. The key market players include firms like Orica Limited, Yara International ASA, Enaex S.A., CF Industries Holdings, EuroChem Group AG, Uralchem Group, Austin Powder International, OSTCHEM Holding Company, Fertiberia S.A., San Corporation, Incitec Pivot Limited Inc., CSBP Limited Clutch Group LLC, and other prominent players. The market players are competing intensively in terms of producing cost-effective and efficient ammonium nitrate compounds.

Recent Developments

·      In July 2020, Sasol and Enaex S.A. announced that the companies are getting into a joint venture to start operations in Southern Africa. The new venture is expected to operate under the name Enaex Africa. Enaex S.A. is expected to hold the majority stake in the company and possess the management and operational control of the enterprise.

·      In July 2019, Florikan announced its partnership with EuroChem Group AG. for purchasing standard fertilizers and market premium products from EuroChem Group AG for augmenting its new product line of controlled-release fertilizers.

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Scope

By Product Type

• Solid Form
• Liquid Form

By Application

• Fertilizers
• Explosive
• Food Preservation
• Others

By End-User

• Agriculture
• Mining
• Construction
• Defense
• Aerospace
• Others

By Region

• North America
• Europe
• The Asia-Pacific
• Latin America
• The Middle East and Africa

1.    Research Framework

1.1. Research Objective

1.2. Product Overview

1.3. Market Segmentation

2.    Research Methodology

2.1. Qualitative Research

2.1.1.   Primary & Secondary Research

2.2. Quantitative Research

2.3. Market Breakdown & Data Triangulation

2.3.1.   Secondary Research

2.3.2.   Primary Research

2.4. Breakdown of Primary Research Respondents, By Region

2.5. Assumption & Limitation

3.    Executive Summary

4.    Global Ammonium Nitrate Market Insights

4.1. Industry Value Chain Analysis

4.2. DROC Analysis

4.2.1.   Growth Drivers

4.2.2.   Restraints

4.2.3.   Opportunities

4.2.4.   Challenges

4.3. Recent Development

4.4. Porter’s Five Forces Analysis

4.4.1.   Bargaining Application of Suppliers

4.4.2.   Bargaining Application of Buyers

4.4.3.   Threat of New Entrants

4.4.4.   Threat of Substitutes

4.4.5.   Intensity of Rivalry

5.    Global Ammonium Nitrate Market Overview

5.1. Market Size & Forecast by Value, 2017-2027

5.1.1.   By Value (USD Million)

5.2. Market Share & Forecast

5.2.1.   By Product Type

5.2.1.1.       Solid Form

5.2.1.2.       Liquid Form

5.2.2.   By Application

5.2.2.1.       Fertilizers

5.2.2.2.       Explosive

5.2.2.3.       Food Preservation

5.2.2.4.       Others

5.2.3.   By End User

5.2.3.1.       Agriculture

5.2.3.2.       Mining

5.2.3.3.       Construction

5.2.3.4.       Defense

5.2.3.5.       Aerospace

5.2.3.6.       Others

5.3. By Region

5.3.1.1.       North America

5.3.1.2.       Europe

5.3.1.3.       Asia Pacific

5.3.1.4.       Latin America

5.3.1.5.       Middle East and Africa

6.    North America Ammonium Nitrate Market  

6.1. Market Size & Forecast by Value, 2017-2027

6.1.1.   By Value (USD Million)

6.2. Market Share & Forecast

6.2.1.   By Product Type

6.2.2.   By Application

6.2.3.   By End User

6.2.4.   By Country

6.2.4.1.     United States

6.2.4.2.     Canada

7.    Europe Ammonium Nitrate Market

7.1. Market Size & Forecast by Value, 2017-2027

7.1.1.   By Value (USD Million)

7.2. Market Share & Forecast

7.2.1.   By Product Type

7.2.2.   By Application

7.2.3.   By End User

7.2.4.   By Country

7.2.4.1.       Germany

7.2.4.2.       United Kingdom

7.2.4.3.       Italy

7.2.4.4.       France

7.2.4.5.       Spain

7.2.4.6.       Rest of Europe

8.    Asia Pacific Ammonium Nitrate Market

8.1. Market Size & Forecast by Value, 2017-2027

8.1.1.   By Value (USD Million)

8.2. Market Share & Forecast

8.2.1.   By Product Type

8.2.2.   By Application

8.2.3.   By End User

8.2.4.   By Country

8.2.4.1.     China

8.2.4.2.     India

8.2.4.3.     Japan

8.2.4.4.     Singapore

8.2.4.5.     South Korea

8.2.4.6.     Rest of Asia Pacific

9.    Latin America Ammonium Nitrate Market

9.1. Market Size & Forecast by Value, 2017-2027

9.1.1.   By Value (USD Million)

9.2. Market Share & Forecast

9.2.1.   By Product Type

9.2.2.   By Application

9.2.3.   By End User

9.2.4.   By Country

9.2.4.1.     Brazil

9.2.4.2.     Mexico

9.2.4.3.     Rest of Latin America

10.The Middle East & Africa Ammonium Nitrate Market

10.1. Market Size & Forecast by Value, 2017-2027

10.1.1.      By Value (USD Million)

10.2. Market Share & Forecast

10.2.1.  By Product Type

10.2.2.  By Application

10.2.3.  By End User

10.2.4.  By Country

10.2.4.1.      Saudi Arabia

10.2.4.2.      UAE

10.2.4.3.      South Africa

10.2.4.4.      Rest of Middle East & Africa

11.Competitive Landscape

11.1.   List of Key Players and Their Offerings

11.2.   Market Share Analysis, 2020

11.3.   Competitive Benchmarking, By Operating Parameters

12.Impact of Covid-19 on Ammonium Nitrate Market Industry

13.Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)**

13.1.   Orica Limited

13.2.   Yara International ASA

13.3.   Enaex S.A

13.4.   CF Industries Holdings

13.5.   EuroChem Group AG

13.6.   UralChem Group

13.7.   Austin Powder International

13.8.   OSTCHEM Holding Company

13.9.   Fertiberia S.A

13.10.  San Corporation

13.11.  Incitec Pivot Limited Inc

13.12.  CSBP Limited Clutch Group LLC

13.13.  Others

*Financial details of unlisted companies will be available as per data availability in final deliverable

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Fig: Global Ammonium Nitrate Segmentation

Fig: Global Ammonium Nitrate Market Value Chain Analysis

Fig: Company Market Share Analysis, 2020

Fig: Global Ammonium Nitrate Market Size, By Value (USD Million), 2017-2027

Fig: Global Ammonium Nitrate Market Share, By Product Type, By Value, 2017-2027

Fig: Global Ammonium Nitrate Market Share, By Application, By Value, 2017-2027

Fig: Global Ammonium Nitrate Market Share, By End User, By Value, 2017-2027

Fig: Global Ammonium Nitrate Market Share, By Region, By Value, 2017-2027

Fig: North America Ammonium Nitrate Market Size, By Value (USD Million), 2017-2027

Fig: North America Ammonium Nitrate Market Share, By Product Type, By Value, 2017-2027

Fig: North America Ammonium Nitrate Market Share, By Application, By Value, 2017-2027

Fig: North America Ammonium Nitrate Market Share, By End User, By Value, 2017-2027

Fig: North America Ammonium Nitrate Market Share, By Country, By Value, 2017-2027

Fig: Europe Ammonium Nitrate Market Size, By Value (USD Million), 2017-2027

Fig: Europe Ammonium Nitrate Market Share, By Product Type, By Value, 2017-2027

Fig: Europe Ammonium Nitrate Market Share, By Application, By Value, 2017-2027

Fig: Europe Ammonium Nitrate Market Share, By End User, By Value, 2017-2027

Fig: Europe Ammonium Nitrate Market Share, By Country, By Value, 2017-2027

Fig: Asia-Pacific Ammonium Nitrate Market Size, By Value (USD Million), 2017-2027

Fig: Asia-Pacific Ammonium Nitrate Market Share, By Product Type, By Value, 2017-2027

Fig: Asia-Pacific Ammonium Nitrate Market Share, By Application, By Value, 2017-2027

Fig: Asia-Pacific Ammonium Nitrate Market Share, By End User, By Value, 2017-2027

Fig: Asia-Pacific Ammonium Nitrate Market Share, By Country, By Value, 2017-2027

Fig: Latin America Ammonium Nitrate Market Size, By Value (USD Million), 2017-2027

Fig: Latin America Ammonium Nitrate Market Share, By Product Type, By Value, 2017-2027

Fig: Latin America Ammonium Nitrate Market Share, By Application, By Value, 2017-2027

Fig: Latin America Ammonium Nitrate Market Share, By End User, By Value, 2017-2027

Fig: Latin America Ammonium Nitrate Market Share, By Country, By Value, 2017-2027

Fig: Middle East & Africa Ammonium Nitrate Market Size, By Value (USD Million), 2017-2027

Fig: Middle East & Africa Ammonium Nitrate Market Share, By Product Type, By Value, 2017-2027

Fig: Middle East & Africa Ammonium Nitrate Market Share, By Application, By Value, 2017-2027

Fig: Middle East & Africa Ammonium Nitrate Market Share, By End User, By Value, 2017-2027

Fig: Middle East & Africa Ammonium Nitrate Market Share, By Country, By Value, 2017-2027

List of Tables

Table: Global Ammonium Nitrate Market Size, By Product Type, By Value, 2017-2027

Table: Global Ammonium Nitrate Market Size, By Application, By Value, 2017-2027

Table: Global Ammonium Nitrate Market Size, By Region, By Value, 2017-2027

Table: North America Ammonium Nitrate Market Size, By Product Type, By Value, 2017-2027

Table: North America Ammonium Nitrate Market Size, By Application, By Value, 2017-2027

Table: North America Ammonium Nitrate Market Size, By Country, By Value, 2017-2027

Table: Europe Ammonium Nitrate Market Size, By Product Type, By Value, 2017-2027

Table: Europe Ammonium Nitrate Market Size, By Application, By Value, 2017-2027

Table: Europe Ammonium Nitrate Market Size, By Country, By Value, 2017-2027

Table: Asia-Pacific Ammonium Nitrate Market Size, By Product Type, By Value, 2017-2027

Table: Asia-Pacific Ammonium Nitrate Market Size, By Application, By Value, 2017-2027

Table: Asia-Pacific Ammonium Nitrate Market Size, By Country, By Value, 2017-2027

Table: Latin America Ammonium Nitrate Market Size, By Product Type, By Value, 2017-2027

Table: Latin America Ammonium Nitrate Market Size, By Application, By Value, 2017-2027

Table: Latin America Ammonium Nitrate Market Size, By Country, By Value, 2017-2027

Table: Middle East & Africa Ammonium Nitrate Market Size, By Product Type, By Value, 2017-2027

Table: Middle East & Africa Ammonium Nitrate Market Size, By Application, By Value, 2017-2027

Table: Middle East & Africa Ammonium Nitrate Market Size, By Country, By Value, 2017-2027

Table: Orica Limited Financial Analysis

Table: Yara International ASA Financial Analysis

Table: Enaex S.A Financial Analysis

Table: CF Industries Holdings Financial Analysis

Table: EuroChem Group AG Financial Analysis

Table: UralChem Group Financial Analysis

Table: Austin Powder International Financial Analysis

Table: OSTCHEM Holding Company Financial Analysis

Table: Fertiberia S.A Financial Analysis

Table: San Corporation Financial Analysis

Table: Incitec Pivot Limited Inc Financial Analysis

Table: CSBP Limited Clutch Group LLC Financial Analysis