Ammonium Nitrate Market Size (2024 - 2029)

The ammonium nitrate market is experiencing moderate growth, driven by increased consumption in agricultural production and fertilizers, which significantly contributes to its market size. Despite challenges posed by the COVID-19 pandemic, the market has shown recovery, although the presence of alternative nitrogen-based fertilizers may impede further expansion. The use of ammonium nitrate in explosives for the mining industry presents additional growth opportunities. North America leads in market share, with substantial consumption noted in the United States and Canada.

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Market Size of Ammonium Nitrate Industry

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Ammonium Nitrate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 1.31 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Ammonium Nitrate Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Ammonium Nitrate Market Analysis

The Ammonium Nitrate Market size is estimated at 49.13 Million tons in 2024, and is expected to reach 52.43 Million tons by 2029, growing at a CAGR of 1.31% during the forecast period (2024-2029).

During 2020, the ammonium nitrate market growth was hampered owing to the transport restrictions and the scarce availability of raw materials caused by the COVID-19 outbreak. However, the market has recovered steadily thereafter and is growing at a moderate pace, owing to increased consumption of ammonium nitrate from various industries post-pandemic.

  • Increasing consumption of ammonium nitrate in the production of agricultural products or fertilizers is a major factor fueling the market growth.
  • On the flip side, the presence of alternatives for ammonium nitrate in the market, such as urea and nitrogen-based fertilizers, is increasing and is anticipated to hinder the market's growth over the forecast period.
  • Furthermore, the growing usage of ammonium nitrate as a vital component in numerous explosives employed in the mining industry for seismic exploration is likely to create profitable growth opportunities for the global market in the future.
  • North America dominated the global market, wherein a significant share of ammonium nitrate consumption was observed from countries such as the United States and Canada.

Ammonium Nitrate Industry Segmentation

Ammonium nitrate (NH4NO3) is a chemical compound composed of ammonium ions (NH4+) and nitrate ions (NO3-). It is a white, crystalline solid that is highly soluble in water. Ammonium nitrate is well-known for its use in various industrial, agricultural, and commercial applications due to its unique properties.

The ammonium nitrate market is segmented by application, end-user industry, and geography. By application, the market is segmented into fertilizers, explosives, and other applications (cold packs, gas generators, pyrotechnics, rocket propulsion, and industrial processes). By end-user industry, the market is segmented into agriculture, mining, defense, and other end-user industries (automotive, food, chemical, oil and gas, medical, and construction). The report also covers the market size and forecasts for the ammonium nitrate market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (tons).

Application
Fertilizers
Explosives
Other Applications (Gas Generators, Cold Packs, Pyrotechnics, Rocket Propulsion, and Industrial Processes)
End-User Industry
Agriculture
Mining
Defense
Other End-user Industries (Automotive, Food Industry, Oil and Gas, Medical, and Construction)
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa
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Ammonium Nitrate Market Size Summary

The ammonium nitrate market is experiencing a steady recovery and moderate growth following the disruptions caused by the COVID-19 pandemic. The market's expansion is primarily driven by the increasing demand for ammonium nitrate in agricultural fertilizers, which are essential for providing nitrogen nutrition to plants. This demand is further bolstered by the growing agricultural activities worldwide. However, the market faces challenges from alternative nitrogen-based fertilizers, such as urea, which could potentially hinder its growth. Despite these challenges, the use of ammonium nitrate in the mining industry, particularly for explosives in seismic exploration, presents promising growth opportunities. North America, with significant consumption in the United States and Canada, leads the global market, supported by government initiatives to boost domestic fertilizer production and the region's robust agricultural sector.

The ammonium nitrate market is characterized by its fragmented nature, with key players including EuroChem Group, Orica Limited, CF Industries Holdings, Inc., URALCHEM JSC, and Yara International ASA. Recent developments in the industry, such as Yara Clean Ammonia's collaboration with Bunker Holding to explore ammonia as a shipping fuel, highlight the market's dynamic nature. Additionally, new projects, like Chambal Fertilisers' planned technical ammonium nitrate plant in India, indicate ongoing investments and expansion efforts. The market's growth trajectory is supported by the increasing demand for ammonium nitrate in both agricultural and defense sectors, with the latter driven by rising defense spending and the need for advanced explosives.

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Ammonium Nitrate Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Rising Demand for Ammonium Nitrate-Fuel Oil (ANFO)

      2. 1.1.2 Increasing Demand for Fertilizers in Agricultural Sector

      3. 1.1.3 Other Drivers

    2. 1.2 Restraints

      1. 1.2.1 Stringent Regulations on Using Ammonium Nitrate

      2. 1.2.2 Availability of Substitute Products

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION (Market Size in Volume)

    1. 2.1 Application

      1. 2.1.1 Fertilizers

      2. 2.1.2 Explosives

      3. 2.1.3 Other Applications (Gas Generators, Cold Packs, Pyrotechnics, Rocket Propulsion, and Industrial Processes)

    2. 2.2 End-User Industry

      1. 2.2.1 Agriculture

      2. 2.2.2 Mining

      3. 2.2.3 Defense

      4. 2.2.4 Other End-user Industries (Automotive, Food Industry, Oil and Gas, Medical, and Construction)

    3. 2.3 Geography

      1. 2.3.1 Asia-Pacific

        1. 2.3.1.1 China

        2. 2.3.1.2 India

        3. 2.3.1.3 Japan

        4. 2.3.1.4 South Korea

        5. 2.3.1.5 Rest of Asia-Pacific

      2. 2.3.2 North America

        1. 2.3.2.1 United States

        2. 2.3.2.2 Canada

        3. 2.3.2.3 Mexico

      3. 2.3.3 Europe

        1. 2.3.3.1 Germany

        2. 2.3.3.2 United Kingdom

        3. 2.3.3.3 Italy

        4. 2.3.3.4 France

        5. 2.3.3.5 Rest of Europe

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle East & Africa

        1. 2.3.5.1 Saudi Arabia

        2. 2.3.5.2 South Africa

        3. 2.3.5.3 Rest of Middle East & Africa

Ammonium Nitrate Market Size FAQs

The Ammonium Nitrate Market size is expected to reach 49.13 million tons in 2024 and grow at a CAGR of 1.31% to reach 52.43 million tons by 2029.

In 2024, the Ammonium Nitrate Market size is expected to reach 49.13 million tons.

Ammonium Nitrate Market Report Snapshots

Ammonium Nitrate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)