Ammonium Sulfate Market Size, Share & Industry Analysis, By Application (Fertilizers and Industrial), and Regional Forecast, 2024-2032

The global ammonium sulfate market size was valued at USD 8.20 billion in 2023 and is projected to grow from USD 8.58 billion in 2024 to USD 13.00 billion by 2032 at a CAGR of 5.3% during the forecast period. Asia Pacific dominated the ammonium sulfate market with a market share of 27.68% in 2023.

The global market for ammonium sulfate is anticipated to experience significant growth owing to the increasing demand for agrochemicals and taste-enhancing additives in the food industry. Moreover, the rising demand from non-agricultural applications such as fire extinguishers, flame-retarding agents, and other industrial applications is anticipated to positively contribute to the market.

The COVID-19 pandemic had a broad impact on economic conditions across the globe. This led to vast socio-economic disruptions in almost every sector of the economy. The outbreak of the pandemic significantly affected the manufacturing and supply of raw materials and finished products in the agrochemical sector. Moreover, agriculture is a labor-intensive sector, which was severely affected due to the restrictions imposed by the government and regulatory authorities to curb the spread of the virus.

The production, harvesting, and packaging of agriproducts were affected by the pandemic, which in turn, led to the disruption of the supply and demand for food products. For agrochemical-producing companies, changes in suppliers for raw materials and distributors of finished products possessed certain risks, including updates in registration for fertilizers and pesticides. Changes in the use of raw materials for agrochemicals, product registration, and other manufacturing activities require updates. The rules and regulations mandated to restrict the spread of the virus led to lower production activities.

However, the increasing demand for convenience food products and packaged products has surged the demand for taste-enhancing additives. The sudden filling up of the stockpiles across the globe during the lockdown boosted the demand from the food industry.

Ammonium Sulfate Market Trends

Technological Development in Production Techniques is a Vital Trend

Advancements and implementation of production techniques such as vacuum thermal stripping and vacuum absorption processes are expected to aid market growth. The vacuum thermal stripping process allows the manufacturer to produce granules of ammonium sulfate. The ammonia recovery process includes vacuum thermal stripping with acid absorption. In this process, the ammonia is stripped out of the digestate and boiled at a temperature below the boiling point using a vacuum. Further, it is absorbed into sulfuric acid, which forms crystals. Certain tests demonstrated the formation of high-purity ammonium sulfate crystals through this process. The high efficiency of the vacuum stripping production technique coupled with high purity output is expected to increase the adoption rate in manufacturers. High demand for pure ammonium sulfate from end-use sectors is likely to drive market growth.

Furthermore, the production of the compound is largely dependent on the crude oil industry for energy sources and raw materials. Therefore, the optimization of the production process to reduce the carbon footprint by using renewable energy and bio-based raw materials presents lucrative opportunities for profit generation. Many leading players in the market are focusing on the optimization of production process. For instance, Fibrant, a leading manufacturer, produces Caprolactam and Ammonium Sulphate in a relatively sustainable manner by using its HPO and HPOplus technology with competitive investment and production cost.

Growth Factors

High Demand for Agrochemicals to Drive Market Growth

Ammonium sulfate serves as a fast-acting acidic fertilizer specifically designed for alkaline soils. Its nitrogen content, ranging from 20% to 25%, is beneficial for restoring fertility in nitrogen-deficient and alkaline soil conditions. The growing need for food crops due to the increasing global population is expected to fuel the demand for agrochemicals, thereby stimulating market growth.

As per the Food & Agriculture Organization (FAO), the global ammonia supply for fertilizer use reached 160,492 million tons in 2020. Nitrogen, a crucial nutrient for soil, plays a vital role in plant growth, food metabolism, and chlorophyll synthesis. The anticipated surge in nitrogenous fertilizer adoption among farmers aiming for higher crop yields is poised to drive product demand. Additionally, the reduction in arable land availability is another factor propelling fertilizer demand. For example, FAO data shows a decline in agricultural land share from 37% in 2017 to 36.9% in 2018.

Furthermore, the utilization of ammonium phosphate as a food and feed additive is expected to contribute to market growth. Its application as an acidity regulator in flour and bread, as well as in feed production to stimulate enzyme production and reduce potassium levels in vinasse, enhances feed quality.

Increasing Adoption across Industrial Sector to Boost Market Growth

The rising adoption of ammonium sulfate from the industrial sector for various applications, including wood preservation, NMR spectroscopy, water treatment, feedstock chemicals, and flame retardants, is expected to drive the product demand. In water treatment, ammonium sulfate is used in combination with chlorine, which generates monochloramine-producing disinfectant action. This is one of the popular methods used for water treatment across the world. The method drives product demand in different regions with growing awareness about the consumption of purified water.

The implementation of the product as flame retardant composition is similar to diammonium phosphate. It increases the combustion temperature of materials and decreases the weight loss rates, further increasing the production rate of residue. In NMR spectroscopy, a saturated solution of ammonium sulfate in heavy water is used as an external reference in sulfur with a shift value equal to 0. Moreover, the adoption in the healthcare sector as an ingredient for vaccines by the Centre for Disease Control is anticipated to aid the ammonium sulfate market growth.

RESTRAINING FACTORS

Toxicity of the Product May Hamper Market Growth

Ammonium sulfate is considered toxic to human health. It is acutely toxic in nature but can be fatal if exposed to humans for the longer term. It is also a known skin and eye irritant and environmental hazard to the aquatic ecosystem. These factors are expected to hamper the growth of the market.

Segmentation Analysis

By Application Analysis

Fertilizers Segment Held the Largest Share in 2023 Due to High Demand for Nitrogen Fertilizer

In terms of application, the market is segmented into fertilizers and industrial.

The fertilizers segment held the largest ammonium sulfate market share in 2023. Rising demand for agricultural yield due to the increasing population is the prime factor driving the segment growth. Besides, the increasing demand for nitrogen fertilizers, attributed to the benefits provided, is expected to foster market growth.

Moreover, increasing adoption from the industrial sector for various applications such as textile dyeing, feed additives, food additives, leather processing, water treatment, and flame retardant are expected to show significant growth in industrial sector.

REGIONAL INSIGHTS

By geography, the market for ammonium sulfate has been analyzed across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa

The market size in Asia Pacific stood at USD 2.27 billion in 2023. Asia Pacific region dominated the market by holding the largest share of the global market and is anticipated to continue its dominance during the forecast period. Increasing demand for agricultural yield and food crops due to the increasing population in China, India, Bangladesh, Indonesia, Pakistan, and Japan is expected to boost the demand for fertilizers and agrochemicals, further supporting regional growth. Additionally, the presence of an ample number of manufacturers in the region is likely to foster a growth rate.

Europe holds a significant share attributed to the high crop production in the agricultural sector. According to research conducted by Europa, the EU-27 produced about 299 million tons of cereals in 2019. Strong manufacturing as well as a consumer base for fertilizers is likely to boost the product demand in the region.

North America closely followed Europe in terms of value attributed to the high demand for soil conditioning fertilizers. Implementation of modern farming techniques, usage of soil conditioners, and pH maintaining fertilizers is expected to lead to a considerable growth in the demand for ammonium sulfate. Additionally, increasing demand for water-treating chemicals attributed to the stringent regulations imposed by the Environmental Protection Agency (EPA) is likely to foster market growth.

The Latin America market is anticipated to exhibit considerable growth driven by the high demand for agrochemicals from agricultural countries such as Brazil, Mexico, Argentina, and Chile. Social and economic development and rapid industrialization are positively influencing the market expansion in this region.

The Middle East & Africa market is poised to record considerable growth. The region records a low rate of agriculture owing to harsh weather conditions and lack of cultivable land. However, mechanization and large-scale irrigation have enabled crop cultivation in the region which is expected to boost the fertilizer demand.

List of Key Companies in Ammonium Sulfate Market

Key Companies Adopt Strategies to Broaden their Market Presence

With a few global players capturing a significant share, the global market is concentrated in nature. BASF, Evonik, Sumitomo, Lanxess, Domo Chemicals, Arkema, Fibrant, Royal DCM, Novus International, and ArcelorMittal are some of the key players in the market.

Industry players operate principally on the product's price and  application. To boost their market share and achieve a competitive advantage, several major players are engaged in numerous strategic alliances to promote brand and sales.

LIST OF KEY COMPANIES PROFILED:

• BASF (Germany)


• Evonik (Germany)


• Sumitomo Corporation (Japan)


• Lanxess (Germany)


• Domo Chemicals (Germany)


• Arkema (France)


• Fibrant (Netherlands)


• Royal DCM (Netherlands)


• Novus International (U.S.)


• ArcelorMittal (Luxembourg)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 - Evonik Industries AG announced that it signed a supply agreement with Interoceanic Corporation (IOC), a manufacturer of fertilizers and industrial chemicals, to supply blueSulfate, a liquid ammonium sulfate (8-0-0-9) solution.


• July 2019 – Arkema completed the acquisition of Arrmaz, a manufacturer of specialty surfactants for crop nutrition, infrastructure, and the mining market. This acquisition is another milestone for Arkema’s journey toward specialty chemicals and is expected to reinforce the product profile of the company.

REPORT COVERAGE

The ammonium sulfate market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and raw materials. The report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market growth in recent years. This report includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation