Ammonium Nitrate Market Size, Share & Industry Analysis, By Application (Fertilizers, Explosives, and Others), By End-Use (Agriculture, Mining, Defense, and Others), and Regional Forecast, 2024-2032

The global ammonium nitrate market size was valued at USD 31.61 billion in 2023 and is projected to grow from USD 30.76 billion in 2024 to USD 40.69 billion by 2032, exhibiting at a CAGR of 3.6% during the forecast period. Europe dominated the ammonium nitrate market with a market share of 36.06% in 2023.

Ammonium Nitrate (AN) is a pure, crystalline, water-soluble powder formed by vaporous ammonia reacting to nitric acid. It is widely used as a chemical compound with several important applications. Its primary adoption could be seen in fertilizer to promote plant growth. It is also utilized as a main component in several types of mining explosives, where it is mixed with detonated and fuel oil by an explosive charge. The rapid growth of the agriculture industry globally, coupled with growing mining activities, is expected to trigger product adoption in the coming years. Hence, increasing consumption in this application would help the overall market growth flourish during the forecast period.

However, disruptions in the agriculture industry during the COVID-19 pandemic severely impacted the overall production and consumption of ammonium nitrate.

Ammonium Nitrate Market Trends

Rapid Growth of the Defense Industry to Create Ample Opportunities for the Market

The defense industry offers significant demand for ammonium nitrate, particularly in its role as a key component in the production of high-performance explosives and propellants. Its stability, high energy content, and ability to be stored safely make it an ideal choice for various military applications, such as munitions, missiles, and pyrotechnics. Furthermore, ongoing advancements in defense technology continually drive the demand for more potent and reliable explosives, thereby creating a sustained need for product formulations.

Moreover, its versatility allows for adaptation to a wide range of defense requirements, from precision-guided munitions to Improvised Explosive Device (IED) countermeasures, making it crucial in modern defense technologies. Hence, due to such aforementioned factors, the defense industry offers ample opportunities for market growth.

Ammonium Nitrate Market Growth Factors

Growing Demand for Fertilizers Globally to Boost Market Growth

Growing product demand in fertilizers will boost market growth during the forecast timeframe. Ammonium nitrate is a widely used compound in fertilizers due to its dual role as a source of both nitrogen and oxygen, thereby making it an essential element for plant growth. Also, its high nitrogen content makes it an efficient fertilizer, promoting healthy foliage and vigorous growth. Furthermore, the nutritional benefits, along with affordability and ease of production, contribute to the surge in demand in the agricultural industry.

Moreover, ammonium nitrate is known for its stability, thereby allowing for convenient storage and transportation ensuring its widespread availability to farmers worldwide. Thus, the driving factors behind the product usage in fertilizers stem from its effectiveness, affordability, ease of handling, and crucial role in supporting global food production. As a result, the market is expected to grow positively in the near future.

RESTRAINING FACTORS

Implementation of Stringent Rules and Availability of Substitutes Restricts the Market Growth

The presence of substitute options, coupled with stringent governmental regulations to limit product utilization, poses a challenge to the ammonium nitrate market growth. Governmental authorities have implemented stringent guidelines governing the production, storage, transportation, and utilization of ammonium nitrate to mitigate its potential misuse in terrorist activities. Consequently, this regulatory environment is anticipated to restrain the market growth, as the utilization of alternative options has expanded across fertilizer and explosives application segments.

Ammonium Nitrate Market Segmentation Analysis

By Application Analysis

Fertilizer Segment to Hold Largest Share in this Market Due to Its Characteristics

Based on application, the market is segmented into fertilizers, explosives, and others.

The fertilizers segment accounted for the highest ammonium nitrate market share in 2023. The segment growth is attributed to its water-soluble properties that ensure rapid absorption by plants, promoting efficient nutrient uptake. Moreover, the rapid growth of the agriculture industry, coupled with rising technological innovations, will further propel the segment growth.

On the other hand, the demand for AN in the explosives segment is associated with its inherent properties and versatility. As a key ingredient, it serves as an oxidizing agent that releases oxygen during detonation, thereby fueling the combustion of other reactive materials in explosive formulations. The others segment includes cold packs, generators, rocket propulsion, pyrotechnics, and industrial processes.

By End-Use Analysis

Agriculture Segment is Largest End-Use due to Rapid Industry Growth and Technological Innovation

Based on end-use, the market is segmented into agriculture, mining, defense, and others.

The agricultural segment accounted for the highest market share. The rapid growth of the agriculture industry globally and technological innovations are creating lucrative opportunities for segment growth. Additionally, the cost-effectiveness and ease of production make the product an ideal choice in the agriculture industry.

Growing product adoption in mining activities will further fuel the segment growth. The growth is associated with its increasing use in explosive formulation, blasting, and safety precautions. On the other hand, the product is sometimes used as an oxidizing agent in pyrotechnic compositions for defense applications, such as signaling devices, smoke grenades, and illuminating flares.

REGIONAL INSIGHTS

Globally, the report was studied across the following regions: North America, Europe, Asia Pacific, and the Rest of the World.

The market size in Europe stood at USD 11.40 billion in 2023. The market is dominated by Europe, in which Germany, the U.K, France, and Italy are the key countries. A rise in food safety concerns is driving the demand for products. Collective efforts by governments, farmers, and organizations to enhance the yield per unit of cultivated land are fueling the usage of fertilizers, thereby driving market growth.

Asia Pacific is expected to witness higher growth during the forecast period. The high demand for ammonium nitrate fuel oil and defense explosives drives this massive product adoption. A rise in agricultural activities due to the increase in the application of fertilizers is one of the reasons for the growth in this region.

The markets in North America and the Rest of the World are expected to see significant growth during the review period. Growing technological innovations, along with product advancement and increasing mining activities, are the major factors surging product demand in these regions.

List of Key Companies in Ammonium Nitrate Market

Business Expansion is the Strategic Initiative Implemented by Companies to Gain Competence

Most of the key players in the ammonium nitrate market invest in capacity expansion and research & development activities to enhance product adoption and manufacturing. They focus on new product offerings, strategic acquisitions, partnerships, and production capacity expansion to boost their product portfolio, fortify their manufacturing capacities, and gain a competitive edge in the value chain.

LIST OF KEY COMPANIES PROFILED:

• Yara International ASA (Norway)  


• Orica Ltd (Australia)


• Sigdo Koppers Group (Chile)


• CF Industries Holdings, Inc. (U.S.)


• Incitec Pivot Ltd (Australia)


• Neochim Ad (Bulgaria)


• EuroChem Group AG (Switzerland)


• OSTCHEM Holding Company (Ukraine)


• Fertiberia SA (Spain)  


• Borealis AG (Austria)


• San Corporation (China)


• Deepak Fertilisers and Petrochemicals (India)


• CSBP Limited (Australia)


• Uralchem (Russia)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Incitec Pivot Limited’s Dyno Nobel entered into a partnership with Saudi Chemical Company Limited (SCCL) to investigate the operation and development of a technical ammonium nitrate plant in Saudi Arabia. With this partnership, Dyno Nobel will provide support to project service and project Front End Engineering Design (FEED) for the development of the 300,000 MTPA TAN plant in Ras Al-Khair, Saudi Arabia.


• January 2024: Ostchem Holding increased its mineral fertilizer production by 20% in 2023 and accounted for 2.1 million tons. With this development, the company’s ammonium nitrate production also increased by 60% to 835,900 tons in 2023.

REPORT COVERAGE

The global ammonium nitrate market research report delivers a detailed analysis of the market and focuses on crucial aspects such as leading companies, Applications, and end-uses. Also, it provides quantitative data in terms of volume and value, market analysis, research methodology for market data, and insights into market trends. It highlights vital industry developments and the competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation