Ammonium Nitrate Market

Ammonium Nitrate Market Size

The global ammonium nitrate market was valued at USD 16.2 billion in 2024. The market is expected to reach from USD 16.8 billion in 2025 to USD 23.5 billion in 2034, growing at a CAGR of 3.8% during the forecast period, according to the latest report published by Global Market Insights Inc. The growth of the market illustrates the critical applications of ammonium nitrate both as an agricultural fertilizer and in industrial explosives.

The growth of the market trajectory has been impacted by some macroeconomic factors including natural gas prices, which have stabilized since they have a direct impact on nitrogen production costs. Recent studies indicated that Henry Hub natural gas prices decreased from an average of USD 6.45/MMBtu in 2022 to an average of USD 2.54/MMBtu in 2023, giving manufacturers relief to their costs. This relief allowed producers to provide an attractive, competitive price while still increasing their profit margins, ultimately benefiting the growth of the overall market.

A quantitative assessment of the market noted that fundamentals remain strong among important end-use application sectors. Agricultural demand, which accounts for 56% of total consumption, continues to propel baseline growth amid growing global food security issues. Additionally, mining and quarrying, which accounts for 29% of the market share, represent the segment showing the largest growth potential at 3.8% CAGR, support by increased extraction of minerals globally and new development projects for the infrastructure space.

The regional markets demonstrate that Asia Pacific will be leading with a 35% market share, having overtaken Europe for the first time. This is due to the dual influenced demand from the agricultural sector in countries such as India and China, as well as the significant ongoing mining and construction projects in the region. Europe remains at a strong 33% market share but is growing much slower at a CAGR of 2.9% due to a combination of challenged volume demand, mature agricultural markets, and regulatory constraints for the use of ammonium nitrate.

Ammonium Nitrate Market Trends

• Consolidation of supply chains and regional optimization: There is a significant restructuring of supply chains occurring in the industry, with European producers appearing capacity constrained and Asian producers continuing to expand. As of January 2025, approximately 25% of European ammonia capacity remains curtailed or in shutdown, resulting in supply tightness in historical production regions. As a result of this consolidation, regional price differentials are expanding; December 2024 was marked by price increases in Europe and North America, while Asian markets experienced price decreases.
  
• Technology-fueled safety and sustainability integration: The industry is seeing increased adoption of new technologies focused on safety and sustainability. The most recent digital transformation initiatives include incorporating AI into automated loading and blast optimization systems that facilitate operational efficiencies and lessen safety risks. Additionally, the adoption of technology is a digital transformation in the mining explosives sections, in which the ANFO segment continues to lead with a 45% market share.
  
• Evolving regulations & security enhancement: Regulatory schemes are evolving very quickly, with new safety guidelines and security requirements driving operational activities. For instance, the U.S. OSHA issued revised safety guidelines for ammonium nitrate storage and handling in the month of August 2024, and the PHMSA clarified the waterfront facility requirements.
  

Ammonium Nitrate Market Analysis

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Based on product type, the ammonium nitrate industry is divided into fertilizer grade ammonium nitrate (FGAN), technical grade ammonium nitrate (TGAN), industrial grade ammonium nitrate (IGAN), calcium ammonium nitrate (CAN), ammonium nitrate solutions. Fertilizer grade ammonium nitrate (FGAN) segment generated a revenue of USD 6.2 billion in 2024 and USD 8.9 billion in 2034 at a CAGR of 3.9%.

• Fertilizer Grade Ammonium Nitrate (FGAN) represents the largest share of the global market at approximately 38% market share in 2024. FGAN's dominant market share can largely be attributed to the stable, consistent, high volume demand from the agricultural market, which is particularly true for developing countries, where nitrogenous fertilizers are a key to increasing crop yields.
  
• With the continued growth in global food demand associated with population growth, the pressure on arable land will increase and fertilizer applications rates will also increase when FGAN represents the most effective and low-cost solution.
  
• One of the product-specific benefits of FGAN is its high nitrogen content (around 33-34.5%), which makes FGAN superior to other options such as urea in cooler climates and temperate environments.
  
• Additionally, since FGAN is highly soluble, it will give nutrients to crops faster than other options, which is sure to also contribute to improving crop productivity for crops like wheat, corn, and barley. These benefits will solidify the agricultural market's preference for FGAN as a fertilizer source in Europe, Central Asia, and North America.
  

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Based on application, the ammonium nitrate market is divided into agricultural fertilizers, mining & quarrying explosives, construction explosives, industrial applications. In 2024, agricultural fertilizer segment held major market share, accounted for 56% share.

• Among the by application category in the global market, the agricultural fertilizers segment is the largest segment with around 56% share of the ammonium nitrate total market's demand in 2024. This market segment accounts for this large share due to the significance of ammonium nitrate, especially Fertilizer Grade Ammonium Nitrate (FGAN) as well as Calcium Ammonium Nitrate (CAN), to achieve desirable crop yields in nitrogen-based farming systems.
  
• The agricultural space is constantly under pressure to provide food for the projected global population to be above 9.5 billion people by 2050, especially in higher yield crop areas, such as North America, India and parts of Europe.
  
• First and foremost, ammonium nitrate has an important advantage in agriculture because it is a dry fertilizer with consistently high nitrogen content that provides a quick-release form of nitrogen for crops such as wheat, corn, canola, and barley.
  
• Additionally, ammonium nitrate is the preferred nitrogen fertilizer source because of the losses from volatilization associated with urea in temperate climates. It is known that using ammonium nitrate improves yield per hectare as well as stages of early vegetative growth and protein content in cereal crops, making it imperative for large scale mechanized conditioned farming.
  

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China ammonium nitrate market generated a revenue of USD 3.2 billion in 2024. China market is projected to grow at a CAGR of 4.1% reaching USD 4.9 billion by 2034 as it is driven by increased the consumption.

• Market analysis by region indicates that Asia Pacific is the leading ammonium nitrate industry by a substantial margin, accounting for 35% of total revenue valued at USD 5.6 billion in 2024, and it is growing at the fastest rate with a 3.9% CAGR. The dual demand driving this leadership is identified as the large demand for agricultural production in the highly populated countries of India and China, coupled with the huge amounts of mining and construction occurring due to a rapidly growing economy.
  
• Agricultural modernization programs in China and food security initiatives in India are driving significant fertilizer consumption, while infrastructure development initiatives throughout Southeast Asia are providing long-term explosive demands that originated from agricultural production.
  

The ammonium nitrate market in the U.S. is expected to experience promising growth from 2025 to 2034 due to growth of increasing consumption within the country.

• North America commands a 19% market share worth USD 3.1 billion in 2024, while also having a slower growth rate of 2.8% CAGR due to its mature market state and regulatory changes. The agricultural sector in North America favors growing for efficiency and sustainability, and precision agriculture is reducing the fertilizer application rates per hectare without decreasing overall productivity.
  
• Mining activities in North America generally focus on energy resources and industrial minerals, however, exploration and production of shale gas and initiatives for renewable energy infrastructure development has cultivated further specialized explosive usage. The most recent OSHA safety guidelines and regulatory clarifications to PHMSA have influenced operational practices and compliance costs.
  

Ammonium Nitrate Market Share

Top 5 companies in the ammonium nitrate industry are CF Industries Holdings Inc., Yara International ASA, URALCHEM JSC, EuroChem Group AG, and OCI N.V. In 2024, the market is moderately concentrated where the few large companies account for nearly 40% of the market share. This level of concentration is expected given the capital intensity of the industry, regulatory barriers to entry, and the need for scale to be cost competitive. Firms that lead in the market are ranked based on production capacity, geographic coverage, vertical integration capacity, and regulatory compliance capability.

CF Industries Holdings Inc. has the largest position in the market with a market share of about 11% of the global market, capitalizing on its vast production network in North America and good positions in key agricultural markets. CF Industries advantages include integrated ammonia production capabilities, which offer cost efficiencies and market control, along with specialized operations on nitrogen fertilizers.

Additionally, Yara International has around 9% of the market share supported by its large production network with strong positions in Europe and Asia Pacific region. Yara is integrated, producing ammonia, urea, and ammonium nitrate therefore being able to capture synergies and market flexibility. Yara's strategic move in shutting down its 400,000 t/y ammonia plant in Tertre, Belgium is an indication of its ongoing portfolio optimization.

Capital constraints and operational efficiency standards challenge smaller regional producers and create positive opportunity for larger operators with stronger capital positions. Safety regulations, environmental standards, and consolidation of buyers have placed increasing strain on smaller producers, forcing the migration of market share to larger, well-capitalized operators. The mergers and acquisitions activity within the industry is an indication of participants manoeuvring to be strategically positioned for regulatory conformance, geographic expansion, and investment in hard- and soft- technology.

Competitive strategies have emphasized operational excellence, safety performance, and customer service differentiation. Industry leaders are investing significantly in safety systems and environmental compliance programs to keep evolving customer relationships, as well as their regulatory compliance obligations. Innovation initiatives have focused on product development, and digital services aspects that enhance the value proposition to end users.

Ammonium Nitrate Market Companies

CF Industries Holdings Inc: CF Industries Holdings is a nitrogen fertilizer supplier and leading manufacturer, especially in ammonium nitrate production, in North America. The company has an integrated global production and distribution network, including major production assets in Louisiana, Oklahoma, and the UK, that provide significant access to many important agricultural markets. Because of its vertical integration from natural gas to finished fertilizer products, CF Industries can control its costs more effectively and optimize its supply chains. Most recently, it has initiated strategic projects focused on carbon capture and storage. The Donaldsonville facility is planned to capture and store up to 2 million metric tons of CO2 annually beginning in 2025, which strategically places CF Industries in line with expected changes in environmental regulations.

Yara International ASA: Yara International is a global leader in nitrogen fertilizer production and is a leading manufacturer of ammonium nitrate production in Europe, North America, and emerging markets. Like CF Industries, Yara is also an integrated nitrogen fertilizer producer, including the production of ammonia, urea, and ammonium nitrate. This integrated design allows for improved operational flexibility and responsiveness to the growing agricultural sector. In addition, their innovative strategic focus has been on precision agriculture, digital solutions for farming and sustainability. Most recently, Yara naturally has begun optimizing their current portfolio, which has included capacity adjustments and facility closure, to improve operational efficiency and profitability.

Orica Limited: Orica Limited is the world leader in the explosives business for mining through its comprehensive product portfolio of ANFO, emulsion explosives, and blasting services. The company's global operational footprint allows it to supply major mining customers in the coal, metals and industrial minerals segments. Orica is considered a technology leader, with products and service that include digital blast optimization systems, automated loading equipment, and innovative explosive formulations that drive productivity and safety in mining.

Incitec Pivot Ltd: Incitec Pivot Ltd is a key supplier of industrial explosives and fertilizers. The company uses an integrated supply chain model that includes ammonium nitrate production, explosives manufacturing, logistics and an array of services while primarily focusing on mining and construction customers in Asia Pacific and North America. Incitec Pivot's strategic imperatives focus on operational excellence, safety performance, and customer service.

EuroChem Group: EuroChem Group embodies significant European and global fertilizer production capacity and integrated ammonium nitrate manufacturing. The company has made significant capital investments into business expansion and technology enhancements as part of its business strategy to maintain worldwide competitive position. EuroChem's market entry and operational flexibility are derived from a footprint across Europe, Russia and emerging markets.

Ammonium Nitrate Industry News

• In January 2025, The report from CF Industries Holdings Inc. indicated net earnings for the full year 2024 at USD 1.2 billion and adjusted EBITDA of USD 2.28 billion, and ammonium nitrate production fell to 1.3 million tons, down from 1.5 million tons in 2023, due to the company's implementation of strategic capacity optimization.
  
• In December 2024, An opinion issued by the PHMSA Pipeline and Hazardous Materials Safety Administration clarified loading and unloading requirements for ammonium nitrate materials to the waterfront facility on behalf of port operations.
  
• In May 2024, Nutrien Group Ltd. made an intentional decision to pause its production at its ammonium nitrate plant based in Georgia so that the company may align its production to its core business of distributing fertilizer in the southeastern United States.
  
• In March 2024, CF Industries took a step toward sustainable farming by announcing large cooperative farming agreements to produce "green ammonia" for farming applications. This initiative is part of a broader push to create nitrogen fertilizers, including ammonium nitrate, to make any product utilizing these items a more environmentally sustainable product.
  
• In February 2024, Yara International successfully completed a test for a cargo ship running on clean ammonia. The test is part of Yara's plan to try to limit emissions in transportation of their fertilizers and any other products that Yara sells, including ammonium nitrate.
  
• In January 2024, Incitec Pivot Limited made the difficult decision to permanently close its ammonia and ammonium nitrate operations in Australia. The January 2024 closure came after the company determined the site was no longer economically viable to run.
  

The ammonium nitrate market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Tons) from 2021 to 2034, for the following segments:

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Market, By Product Type

• Fertilizer grade ammonium nitrate (FGAN)
• Technical grade ammonium nitrate (TGAN)
• Industrial grade ammonium nitrate (IGAN)
• Calcium ammonium nitrate (CAN)
• Ammonium nitrate solutions

Market, By Application

• Agricultural fertilizers
  • Crop-specific application analysis
  • Fertigation system integration
  • Precision agriculture adoption
  • Seasonal demand patterns 
• Mining & quarrying explosives
  • ANFO market dynamics
  • Surface mining applications
  • Coal mining sector demand
  • Metal ore extraction uses
• Construction explosives
  • Infrastructure development projects
  • Demolition & excavation applications
  • Tunneling & road construction
• Industrial applications
  • Cold pack manufacturing
  • Chemical synthesis intermediate
  • Pharmaceutical applications
  • Other industrial uses

Market, By End Use Industry

• Agriculture & horticulture
  • Large-scale farming operations
  • Greenhouse & controlled environment
  • Specialty crop production
  • Organic vs. Conventional farming impact 
• Mining industry
  • Coal mining sector
  • Metal ore mining
  • Quarrying operations
  • Aggregate production
• Construction industry
  • Residential construction
  • Commercial & industrial projects
  • Infrastructure development
  • Government construction programs
• Chemical manufacturing
  • Downstream chemical production
  • Catalyst & intermediate uses
  • Process chemical applications
• Pharmaceutical & medical
  • Medical device manufacturing
  • Pharmaceutical synthesis
  • Emergency medical applications

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East and Africa