Ammonium Nitrate Market

Increasing demand for fertilizers

Ammonium nitrate is a white crystalline solid chemical compound that contains the ions ammonium and nitrate. Because of its high nitrogen content, it is often used as a fertilizer. Ammonium nitrate may breakdown violently at high temperatures, making it useful as an explosive in the mining sector. Furthermore, the chemical compound is widely employed in food preservation applications due to its great hygroscopic character.

Fertilizers often include macronutrients like nitrogen, phosphorous, and potassium. Nitrogen fertilizers are the most common, followed by phosphate and potash. Nitrogen fertilizers are commonly used in agriculture to promote crop growth. Food security is influenced by factors such as increased urbanization, rising disposable income in emerging nations, and quick changes in eating habits. Food consumption is expected to rise in response to the world's expanding population. According to the UN, the world population is expected to reach 9.8 billion by 2050. Rising population and affluence in emerging economies are pushing food consumption.

Farmers worldwide are working on improving crop output, which has resulted in huge developments in the agriculture industry over the years. Furthermore, limited total arable land throughout the world will increase fertilizer consumption, which would eventually improve ammonium nitrate market share during the predicted period. Thus, the increasing demand for fertilizers is likely to drive the growth of the Ammonium Nitrate market revenue.

The Global Ammonium Nitrate Market Industry is projected to experience robust growth, with significant financial metrics indicating a promising future. By 2024, the market is expected to reach 21.3 USD Billion, and forecasts suggest it could expand to 36.5 USD Billion by 2035. This growth trajectory is underpinned by a compound annual growth rate of 5.03% from 2025 to 2035. Such projections reflect the increasing demand for ammonium nitrate across various sectors, including agriculture and construction, as well as the industry's adaptation to evolving market dynamics and regulatory frameworks.

The Global Ammonium Nitrate Market Industry is experiencing heightened demand driven by the agricultural sector. Ammonium nitrate serves as a vital nitrogen source for fertilizers, which are essential for enhancing crop yields. As global populations rise, the need for food production intensifies, leading to an increased reliance on nitrogen fertilizers. In 2024, the market is projected to reach 21.3 USD Billion, reflecting the agricultural sector's growing emphasis on productivity. Countries with significant agricultural activities, such as the United States and Brazil, are likely to contribute substantially to this growth, as they seek to optimize their crop outputs to meet food security challenges.

Growing awareness of soil health among farmers and agricultural stakeholders is influencing the Global Ammonium Nitrate Market Industry. As soil fertility becomes increasingly recognized as a critical factor for sustainable agriculture, the demand for effective fertilizers like ammonium nitrate is likely to rise. Farmers are increasingly adopting practices that enhance soil quality, leading to a greater reliance on nitrogen fertilizers to replenish nutrient levels. This trend is expected to contribute to the market's growth trajectory, with a projected valuation of 21.3 USD Billion in 2024. The emphasis on soil health aligns with global efforts to promote sustainable agricultural practices.

Infrastructure development initiatives across various regions are propelling the Global Ammonium Nitrate Market Industry forward. Governments are investing in construction and infrastructure projects, which often utilize ammonium nitrate as an explosive in mining and construction activities. This trend is particularly evident in emerging economies, where urbanization and infrastructure expansion are priorities. As these projects unfold, the demand for ammonium nitrate is expected to rise, potentially leading to a market valuation of 36.5 USD Billion by 2035. The construction sector's reliance on ammonium nitrate for efficient blasting operations indicates a robust growth trajectory for the industry.

Regulatory support for fertilizer usage is a significant driver of the Global Ammonium Nitrate Market Industry. Governments worldwide are implementing policies that encourage the use of nitrogen-based fertilizers to boost agricultural productivity. This regulatory environment fosters a favorable market landscape, as farmers are incentivized to utilize ammonium nitrate for its efficiency in enhancing crop growth. Furthermore, initiatives aimed at promoting sustainable farming practices often include ammonium nitrate as a key component. As these regulations take shape, the market is poised for growth, with projections indicating a potential market size of 36.5 USD Billion by 2035.

Technological advancements in fertilizer production are reshaping the Global Ammonium Nitrate Market Industry. Innovations in manufacturing processes enhance the efficiency and sustainability of ammonium nitrate production. For instance, the adoption of precision agriculture techniques allows for optimized fertilizer application, reducing waste and environmental impact. These advancements not only improve crop yields but also align with global sustainability goals. As a result, the market is likely to witness a compound annual growth rate of 5.03% from 2025 to 2035, reflecting the industry's adaptation to modern agricultural practices and the increasing demand for environmentally friendly fertilizers.

By Region, the study segments the market into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa. Europe Ammonium Nitrate market accounted for largest market share in 2021 and is expected to exhibit an 5.50% CAGR during the study period. This is attributed to the robust growth of the construction, agriculture and other industries in major economies in the region is fueling the demand for Ammonium Nitrate.

Further, the major countries studied are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  Ammonium Nitrate MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America Ammonium Nitrate market accounts for the ~20%-22% market share. Overall, the US is the largest market share. Due to higher demand for Nitrogen fertilizers for the production of cereals, such as corn and wheat, in the country. Nitrogen fertilizer application is related to crop output. According to the US Department of Agriculture, the government extended farmlands to grow 94.0 million acres of maize and 85.0 million acres of soybeans, resulting in increased usage of nitrogenous fertilizers in 2021, sustaining domestic crop output in the country.

Further, the USA Ammonium Nitrate  market held the largest market share and was the fastest-growing market in the region

The Asia-Pacific Ammonium Nitrate Market has the second-largest market share of 25%-27% in Ammonium Nitrate market. This is due to growth in the construction and agriculture industry. Moreover, China Ammonium Nitrate market held the largest market share, and was the fastest growing market in the Asia-Pacific region.

The  Ammonium Nitrate market is characterized by the presence of , regional, and local players. The market is highly consolidated, with all the players competing to gain significant market share. The key market players of Ammonium Nitrate compete based on cost, product quality, availability of raw materials, and durability of the product. They are engaged in expanding their production capacity and investing in R&D activities to gain an edge over competitors. Furthermore, the growing popularity of Ammonium Nitrate in construction is expected to offer lucrative opportunities to manufacturers in the coming years.

However, scarcity of raw materials is expected to hinder the growth of the market studied significantly.

Additionally, the adoption of various strategies by the Ammonium Nitrate industry such as expansion, R&D, agreements, acquisitions, collaborations, and investments is expected to help these players to gain maximum revenue and long-term growth during the review period. The key participants in the  Ammonium Nitrate market are Enaex (Chile), EuroChem Group AG (Switzerland), CF Industries Holdings Inc.(U.S.), Incitec Pivot limited (Australia), Neochim Plc (Bulgaria), URALCHEM JSC (Russia),  San Corporation (China), Austin Powder (U.S.), Abu Qir Fertilizers and Chemicals Company (Egypt), Yara International ASA (Norway), and OSTCHEM (Austria).

Enaex is one of the largest explosive ammonium nitrate producers in the world with a capacity of 885 Kiloton/year. It offers raw materials for explosives, packaged explosives, and initiation systems. It also offers services and products such as open pit services, underground services, and mining technological solutions, among others. BHP, Anglo-American, Newmont, Glencore, Rio Tinto, Barrick, and Vale are among the significant mining clients served by Enaex. It has offices located in the major parts of the Americas, Europe, Asia-Pacific and the Middle East & Africa.

Also, CF Industries Holdings Inc. produces green and blue hydrogen and nitrogen compounds for use in energy, fertilizer, emissions reduction, and other industrial applications. It has 9 production facilities in the United States, Canada, and the United Kingdom, as well as storage, transportation, and distribution network in North America. It has a manufacturing capacity of approximately 9000 Kilotons/Year of ammonium nitrate. It also offers fertilizer products such as Urea, granular urea, urea ammonium nitrate, and others.