Ammonium Nitrate Market Size to Reach USD 9.1 Bn by 2032 – Rise with Steller CAGR 4.2%

Introduction

The Global Ammonium Nitrate Market is expected to grow significantly, with its market size projected to reach USD 9.1 billion by 2032, up from USD 6.1 billion in 2022, reflecting a compound annual growth rate (CAGR) of 4.2% during the forecast period from 2022 to 2032. This growth is primarily driven by the increasing demand for ammonium nitrate in the agriculture sector as a high-nitrogen fertilizer, which enhances crop yield and soil fertility. Additionally, the mining and construction industries’ demand for explosives, where ammonium nitrate is a key ingredient, is contributing to market expansion.

Despite the promising growth, the market faces several challenges. Environmental and safety concerns regarding the storage and handling of ammonium nitrate due to its explosive nature pose significant regulatory challenges. Additionally, fluctuations in raw material prices and stringent government regulations may hinder market growth. However, ongoing research and technological advancements in the production and safe use of ammonium nitrate are expected to mitigate some of these challenges.

In 2022, Orica announced a significant investment in a new ammonium nitrate production facility in Australia, aimed at increasing production capacity to meet the growing demand from the mining sector. In 2021, Incitec Pivot Limited completed the acquisition of Dyno Nobel, a leading explosives company, to strengthen its position in the global ammonium nitrate market. Neochim PLC recently launched a new line of high-efficiency ammonium nitrate fertilizers, designed to improve nitrogen utilization in crops, reducing environmental impact. URALCHEM has invested in advanced production technologies to enhance the safety and efficiency of ammonium nitrate manufacturing, aiming to meet stringent safety standards and reduce production costs.

Statistics

• Consumption of CAN was 3.54 million tonnes in 4.45 million tonnes in 3.58 million tonnes. Production of calcium ammonium nitrate consumed 3% of world ammonia production in 2003.
• Most calcium ammonium nitrate is used as a fertilizer. Fertilizer grade CAN contains roughly 8% calcium and 21-27% nitrogen.
• The CAN is not used directly, but is instead first converted to ammonium nitrate; “More than 85% of the IEDs used against U.S. forces in Afghanistan contain homemade explosives, and of those, about 70% are made with ammonium nitrate derived from calcium ammonium nitrate.
• During the amount of AN stored was less than 100 tons, the major accidents are less, but that does not mean they will not occur.
• According to reports, 72 kinds of dangerous goods (4840.42 tons) were stored on-site, including 800 tons of AN, 360 tons of sodium cyanide, 48.17 tons of nitrocellulose, nitrocellulose solution, and nitro lacquer.
• Compared to the conventional practice, split applied ammonium sulfate nitrate with DMPP (ASN + DMPP), at either 75% or 100% of the recommended N rate (RNR), reduced N surplus in site-years with greater rainfall events and consistently increased potato tuber yield.
• In 2019 Hungary was ranked number 5 in Sold Production of Mixtures of Ammonium Nitrate with Calcium Carbonate with €37,943,182.19, compared to 6 in 2018.
• U.S. EPA’s Community Multi-scale Air Quality (CMAQ) indicated that reducing NOx by 50% reduced nitrate concentrations by 30% to 50% reductions, while reducing ammonia by 50% resulted in less than 5% reductions in nitrate concentrations.
• Ammonium sulfate nitrate (ASN) is a granular nitrogen fertilizer with a nitrogen content of 26% and an additional sulfur content of 13%.
• The presence of total nitrate in the atmosphere is as much as 25% of the total aerosol pollutants, in which ammonium nitrate is always in equilibrium with ammonia and nitric acid.
• Urea Ammonium Nitrate Price Outlook. The price of Urea Ammonium Nitrate (United States) decreased during April 2019 to 194 USD per metric ton, which represents a considerable decline of 10% compared to the previous month’s value. On a year-over-year basis, the prices of Urea Ammonium Nitrate (United States) increased modestly by 2%.
• Meanwhile, the average price of Urea Ammonium Nitrate (Europe) amounted to 184 USD per metric ton, from 192 USD per metric ton one year earlier. On a month-over-month basis, the price of Urea Ammonium Nitrate (Europe) is 20% lower than the price one month before.
• The price of Urea Ammonium Nitrate (Northeast Asia) declined considerably throughout April 2019, reaching 151 USD per metric ton.
• The price is 17% lower than the average price in the previous month and 0.7% higher than the average price one year before.
• Nitrate (South America) decreased significantly during April 2019, reaching 218 USD per metric ton, which means a decline of 11% from the previous month’s price and a rise of 0.9% from the previous year’s price.
• The uses and applications of Urea Ammonium Nitrate may vary according to its specification. The main forms of Urea Ammonium Nitrate are 28% nitrogen concentration; 30% nitrogen concentration; and 32% nitrogen concentration.
• The company plans to produce around 700,000 tons a year of ammonium nitrate, about half the amount it consumes, amid efforts to protect profit margins.
• A fire at the port caused the detonation of 2,750 tonnes of ammonium nitrate, which had been improperly stored in a port warehouse for six years.
• The disaster began with an explosion on a French freighter filled with more than 2,000 tons of ammonium nitrate fertilizer.
• Ammonium nitrate is found as a natural mineral in the driest regions of the Atacama Desert in Chile, often as a crust on the ground or in conjunction with other nitrate, chlorate, and halide minerals. Today almost 100% of the chemical used is synthetically produced.

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Emerging Trends

• Emerging Trends in the Ammonium Nitrate Market: The ammonium nitrate market is witnessing several emerging trends that are expected to shape its future growth and development. One of the key trends is the increasing demand for ammonium nitrate in the agricultural sector as a high-efficiency fertilizer, driven by the need to enhance crop yields to support the growing global population. Additionally, the mining and construction industries continue to utilize ammonium nitrate for explosives, which is further propelling market growth​.
• Sustainable Production Methods: A significant trend in the market is the shift towards sustainable production methods. There is a growing emphasis on developing ‘green’ ammonia, which uses renewable energy sources to produce ammonium nitrate with a lower environmental impact. This innovation not only addresses environmental concerns but also aligns with global efforts to reduce carbon footprints and comply with stricter environmental regulations.
• Regulatory Developments: The regulatory landscape is also evolving, with increased scrutiny and stringent safety standards being implemented across regions. This is particularly relevant for the storage and transportation of ammonium nitrate, given its potential misuse and explosive nature. Companies are investing in advanced safety measures and compliance strategies to navigate these regulations effectively​.
• Technological Advancements: Technological advancements are playing a critical role in the market. Innovations in production technology, such as the use of advanced spraying and coating techniques, are enhancing the efficiency and safety of ammonium nitrate production. These technologies help in achieving better control over particle size and distribution, improving the overall quality and application of ammonium nitrate.
• Regional Market Dynamics: Regionally, North America and Asia-Pacific are leading the market growth. North America’s market is driven by high demand from the agricultural and mining sectors, while Asia-Pacific’s growth is supported by rapid industrialization and infrastructure development in countries like China and India. The Middle East and Africa are emerging as fast-growing markets due to expanding mining activities and construction projects.

Use Case

• Agriculture: Ammonium nitrate is extensively used as a high-nitrogen fertilizer in the agricultural industry. It accounts for approximately 61% of the market share due to its efficiency in enhancing plant growth and crop yields. Farmers prefer ammonium nitrate for its ability to provide a steady supply of nitrogen, which is essential for plant development. The global demand for ammonium nitrate in fertilizers is driven by increasing agricultural activities and the need to improve food security, particularly in regions like Asia-Pacific and North America​.
• Mining and Quarrying: In the mining and quarrying industry, ammonium nitrate is a key component in the production of explosives. It is used to manufacture ANFO (Ammonium Nitrate Fuel Oil), which is widely utilized in blasting operations. The stability and effectiveness of ammonium nitrate in creating powerful explosives make it indispensable for mining activities. This sector contributes significantly to the market, with global mining operations demanding large quantities of ammonium nitrate for efficient extraction processes​.
• Construction Industry: The construction industry also utilizes ammonium nitrate for demolition purposes. The compound’s explosive properties are harnessed to safely and effectively bring down large structures and clear sites for new developments. The use of ammonium nitrate in controlled demolitions helps minimize risks and ensure precision in urban redevelopment projects. This application is particularly relevant in regions with ongoing infrastructural development​.
• Military and Defense: Ammonium nitrate is used in the production of explosives for military applications. Its role in manufacturing munitions and other explosive devices is crucial for defense operations. The compound’s ability to produce reliable and powerful explosives ensures its continued demand in the defense sector. Governments and defense contractors worldwide rely on ammonium nitrate to maintain their military capabilities​.
• Industrial Applications: Beyond its primary uses, ammonium nitrate finds applications in various industrial processes. It is used in the manufacture of nitrous oxide, an important compound in the chemical industry. Additionally, ammonium nitrate is employed in cold packs for medical and sports-related uses due to its endothermic reaction when dissolved in water. These diverse applications highlight the compound’s versatility and importance across multiple sectors​.

Key Players Analysis

Orica is a global leader in the manufacture and supply of commercial explosives, with a significant focus on ammonium nitrate production. The company supplies ammonium nitrate to the mining, quarrying, and construction industries, where it is used to produce blasting explosives. Orica has invested in expanding its production capabilities to meet increasing global demand. In 2022, Orica announced the opening of a new ammonium nitrate plant in Australia, enhancing its capacity and improving supply chain efficiency for its customers worldwide​.

Incitec Pivot Limited (IPL) is a major player in the ammonium nitrate market, focusing on both the agricultural and explosives sectors. The company manufactures and distributes ammonium nitrate fertilizers, which are crucial for enhancing crop yields and productivity. Additionally, through its subsidiary Dyno Nobel, IPL provides ammonium nitrate-based explosives to the mining and construction industries. The acquisition of Dyno Nobel has strengthened IPL’s market position, allowing it to leverage synergies and expand its reach in the global ammonium nitrate market​.

Neochim PLC is a prominent player in the ammonium nitrate market, focusing on the production of high-efficiency fertilizers. The company has developed a range of advanced ammonium nitrate-based products designed to improve nitrogen utilization in crops, which helps reduce environmental impact. Neochim’s innovative approach and commitment to sustainable agricultural practices have positioned it as a key supplier in the European market, where it continues to invest in new technologies and production methods to enhance product quality and environmental compliance.

URALCHEM Holding P.L.C. is one of the largest producers of ammonium nitrate in Russia, accounting for 22.4% of the country’s output in 2023. The company is known for its extensive production capabilities, including facilities that produce over 3 million tonnes of ammonium nitrate annually. URALCHEM’s strategic initiatives include investing in advanced production technologies and expanding its market presence through collaborations and acquisitions. These efforts aim to enhance production efficiency, meet stringent safety standards, and support the agricultural and mining sectors globally​.

San Corporation is a prominent player in the ammonium nitrate market, focusing on the production and supply of high-quality ammonium nitrate products. The company leverages advanced manufacturing technologies to ensure the stability and effectiveness of its products, which are widely used in fertilizers and explosives. San Corporation is committed to innovation and sustainability, continuously improving its processes to meet stringent environmental and safety regulations. Their efforts support the agriculture and mining industries, providing reliable and efficient solutions to enhance productivity​.

CF Industries Holdings is a leading global manufacturer and distributor of nitrogen products, including ammonium nitrate. The company is renowned for its high-efficiency fertilizers, which play a crucial role in enhancing crop yields. CF Industries operates extensive production facilities and a robust distribution network, ensuring consistent supply to its agricultural and industrial customers. Their flagship product, Nitram®, is trusted by farmers for its reliability and performance. The company also invests in sustainable practices, aiming to reduce the environmental impact of its operations.

EuroChem Group AG is a significant player in the ammonium nitrate market, focusing on the production of high-efficiency fertilizers. The company is committed to developing next-generation fertilizers like ENTEC® and UTEC®, which enhance nitrogen utilization and reduce environmental impacts. These products stabilize applied fertilizers, minimizing nutrient loss and emissions, and thereby improving crop yields. EuroChem’s extensive R&D efforts involve collaboration with numerous research partners and universities, conducting field trials globally to optimize fertilizer formulations for various soils and climates​.

Austin Powder Company is a key player in the ammonium nitrate market, primarily serving the mining and construction industries with its high-quality explosives. The company focuses on producing reliable ammonium nitrate-based blasting agents that enhance safety and efficiency in explosive applications. With a history of innovation and a commitment to quality, Austin Powder continues to develop advanced solutions to meet the demands of its global clientele, ensuring optimal performance and safety in all its products.

Vijay Gas Industry P Ltd is a leading manufacturer and exporter of ammonia, nitric acid, and ammonium nitrate, based in Mumbai, India. As an ISO 9001:2015 certified company, they have established a strong presence in Western India and export to regions such as Asia, the Middle East, and Europe. The company focuses on producing high-quality nitric acid, which is essential for ammonium nitrate production, and is known for its stringent safety and environmental standards, ensuring reliable supply for agricultural and industrial applications​.

OSTCHEM Holding, part of Group DF, is a significant player in the global ammonium nitrate market. With a production capacity of approximately 521,000 tons of ammonium nitrate in 2022, the company serves both agricultural and industrial sectors. OSTCHEM is dedicated to modernizing its production facilities to enhance efficiency and meet high safety standards. Their extensive supply chain and strategic investments underscore their pivotal role in providing ammonium nitrate for fertilizers and explosives worldwide.

Conclusion

The ammonium nitrate market is poised for steady growth, with the market size expected to reach USD 9.1 billion by 2032 from USD 6.1 billion in 2022, growing at a CAGR of 4.2%. This growth is driven by increasing demand in the agricultural sector for high-nitrogen fertilizers and in the mining and construction industries for explosives. Despite challenges such as environmental concerns and stringent regulations, advancements in production technologies and the adoption of green ammonia solutions present significant opportunities for market expansion.

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