Ammonium Nitrate Market Analysis

Ammonium Nitrate Market Analysis

High-density ammonium nitrate was valued at over USD 8.5 billion in 2020 as the product is mainly used as an oxidizing agent in the agriculture industry. High Density Grade (HDAN) is a low porous ammonium nitrate grade, which can also be transformed into the melt form to produce water gels or emulsion explosives. In Australia, CSBP Ltd. manufactures high density ammonium nitrate emulsions to produce water-resistant mayonnaise-like explosives, which can be used in wet conditions.
 

HDAN is a highly preferred product in the agriculture industry and will account for significant growth at a CAGR over of 3.4% up to 2027 owing to its highly dense, non-porous, and pure state prills. The rapidly growing demand for HDAN in agricultural applications due to the increasing crop yield, improving fertility of soil types, controlling growth of vegetation mass, and increasing gluten & protein content in grains will boost the overall ammonium nitrate market value over the forecast years.
 

The agriculture sector accounted for the largest share of more than 74% in 2020 in the ammonium nitrate market owing to the rising product usage as a fertilizer. Fertilizers are majorly applied on plants or soils to improve yield, fertility, and plant growth. Factors including need for improving the crop production rate to meet the increasing food demand across the globe along with government initiatives & programs to create awareness about the use of fertilizers among farmers will gradually contribute to the ammonium nitrate market growth in the coming years.
 

The Europe market is expected to surpass USD 8.8 billion by 2027. Countries, including Germany, the UK, France, and Italy, have a matured agriculture industry. According to the European Environment Agency, grassland and cropland together account for 39% of Europe’s land cover. Government programs and initiatives to enhance the use of fertilizers in the agriculture sector will augment the ammonium nitrate demand. For instance, the EU Nitrogen External Panel (EUNEP) provides Nitrogen Use Efficiency (NUE) indicators to adopt various strategies for improving crop yield and reducing environmental impact.
 

Furthermore, the European construction industry is growing at a significant rate due to the rising urbanization and the growing economy of the region. Increasing construction & mining activities in major countries of Eastern Europe, such as Ukraine, Russia, and Turkey, are likely to drive the explosives demand in the region.