Ammonium Nitrate Market Size

Ammonium Nitrate Market Size

Ammonium Nitrate Market size was over USD 14.5 billion in 2020 and is expected to grow at a CAGR of 3.3% from 2021 to 2027 owing to the rising demand to produce adequate food coupled with growing concerns of arable land across the globe and rapid population growth has continuously encouraged the adoption of quality fertilizers to secure the food demand.

Ammonium nitrate is a white crystalline solid chemical compound, composed of ammonium and nitrate ions. It is commonly used as a fertilizer owing to its high source of nitrogen. At an elevated temperature, ammonium nitrate can be decomposed violently, leading to its use as an explosive in the mining industry. Furthermore, owing to its excellent hygroscopic nature, the chemical compound is largely used in food preservation applications.

Fertilizers generally contain macronutrients such as nitrogen, phosphorus, and potassium. Among these, nitrogen fertilizers form a major share, followed by phosphate and potash. Nitrogen fertilizers are widely used in the agriculture industry for crop growth. Factors, such as rapid urbanization, increasing disposable income in developing countries, and rapid changes in dietary behaviors, collectively influence the food security.
 

The demand for food is likely to increase with the growing population across the globe. According to United Nations, the global population was 7.6 billion in 2017 and will reach 9.8 billion by 2050. Rising population and increasing income in the emerging countries are driving the world food demand.
 

The agriculture sector has experienced tremendous changes over the years as farmers are focusing on increasing the crop production across the globe. Further, limitations of total arable land across the world will considerably enhance the use of fertilizers, which will eventually boost the ammonium nitrate market share over the projected timeframe.
 

Additionally, favorable agro-food policies will sustain the demand for ammonium nitrate in the near future. Rapid climate changes coupled with extreme weather conditions further create scope for growth for the industry. Apart from the agricultural sector, the growing metal mining industry and construction sector will drive the product consumption over the assessment period. However, increasing inflation and fluctuating raw material prices may hamper the business growth in the coming years.
 

Further, safety measures, health impacts, and environmental concerns may limit the revenue generation. For instance, inhalation of concentrated ammonium nitrate may cause irritation in the respiratory tract. Moreover, the recent COVID-19 pandemic adversely impacted the industry size owing to production halts, labor shortages, and supply chain disruptions. Nevertheless, the rising demand from the agriculture industry and mining sector will stimulate the growth of ammonium nitrate market across the globe.