Ammonia Market

Global Market Study on Ammonia: Usage in Manufacturing Modified Fertilizers Increasing

About the Report

The ammonia market has seen considerable growth over the decades, and this trend is expected to continue over the coming years as well due to the rising demand for various fertilizers used in agriculture. One of the major factors impacting demand has been increasing population, which has fueled demand for agriculture and related agrochemical products.

As the population in Asia Pacific is rapidly growing, it is resulting in increased demand for food crops. The need to increase yield per unit of cultivated land in order to meet increasing production requirements is driving large-scale adoption of fertilizers and plant nutrition products. As ammonia is a key raw material used in the production of agrochemicals such as fertilizers, its demand is surging.

In its revised study, Persistence Market Research offers insights about key factors that are driving demand for ammonia. The report tracks global sales in 20+ high-growth markets, where demand is high across the regions of Asia, MEA, North America, and Europe. It also analyzes the impact COVID-19 has had on the agrochemicals industry in general, and demand for ammonia in particular.

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Companies

  • Yara International ASA
  • CF Industries Holdings, Inc.
  • Potash Corp
  • Orica Limited
  • Incitec Pivot Ltd
  • Mitsubishi Gas Chemical Co., Inc.
  • Praxair, Inc.
  • Achema AB
  • Linde Group
  • Jiangsu Huachang Chemical Co., Ltd
  • Koch Fertilizer LLC
  • SABIC
  • BASF SE
  • The Dow Chemical Company
  • Toggliazot PJSC
  • Haifa Chemicals Ltd.
  • Trammo, Inc.

What Does the Future Outlook for Ammonia in Comparison to Historic Sales?

The chemicals industry and agriculture industry have grown at a significant in recent times. In the region of Asia Pacific, agriculture and agrochemical industries have be none of the top-most growing industries among all. Ammonia is used significantly in the production process of fertilizers and other agrochemicals such as pesticides, and it is also used in a number of industries such as industrial chemicals, agrochemicals, and explosives.

Geographic expansion by market players has become more noticeable in European and East Asian countries. This is primarily due to efforts of meeting demand for ammonia-based goods and to gain access in high-growth markets of Europe and Asia Pacific, as well as to strengthen their foothold in the global market.

  • For instance, in 2016, Yara International entered into an agreement with Micro-Account to acquire one of their business segments, the Farm Management System business, in Bulgaria and Romania. This segment is associated with the trading of fertilizers and other agrochemicals.

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According to Persistence Market Research’s analysis, ammonia sales are expected to witness growth of over 4% CAGR from 2021 to 2031.

The market for ammonia is estimated to grow at a substantial rate over the coming years due to its rising demand from several industries such as agrochemicals, industrial chemicals, explosives, and many other industries. High growth projected for the agrochemicals segment is expected to aid expansion of the overall market. Rising consumption of ammonia and increasing application are some key factors driving overall demand.

Owing to the ongoing crisis caused by the COVID-19 pandemic, production and supply chain activities have seen a minor setback, yet, utilization rates will improve with economic recuperation post lifting of restrictions following the pandemic.

The COVID-19 pandemic has had a severe impact on the global economy at various levels, and the impact has been seen on end-use industries as well, particularly on industrial chemicals such as ammonia-based explosives.

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What is the Commercial Potential of Ammonia?

Due to increasing production of crops, fertilizers made from ammonia are set to drive the market and consumption over the coming years. Governments have also directed respective industrial chemical companies to establish new chemically treated fertilizers. Furthermore, growing awareness of producing better quality and quantity of crops has boosted demand for ammonia due to its properties of acidifying agents and soil conditioners.

global-ammonia-market

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Country-wise Insights

What Makes China One of the Leading Markets for Ammonia?

Persistence Market Research has projected China to remain one of the most remunerative and high-growth markets throughout the course of the forecast period. As the population is exponentially increasing in China, it leads to growing demand for daily-use products such as food & beverages, and so on.

China is estimated to be one the of the world’s largest consumers of ammonia in the world, along with a substantial production footprint as well, which provides high potential opportunities of ammonia manufacturers in the country.

Which are the Key Industries Driving Demand for Ammonia in India?

India is one of the largest markets in the South Asia & Pacific region. Growing mining activities in the country are driving demand for ammonia, along with the traditional fertilizers sector. Similarly, India is also influencing the regional market of ammonia due to the growth of its pharmaceutical sector.

As ammonia is used as a feedstock for various products such as medicines and cosmetics, demand is high across India. Since the last five years, increase in the number of expansion activities has been witnessed in the ammonia industry.

This can primarily be attributed to the efforts being made by companies to meet the rising demand for ammonia-based fertilizers and gain access to high-growth markets in India, as well as to strengthen their foothold in the global market.

Why is Demand for Ammonia Increasing across the U.S.?

With the regular use of chemical fertilizers and pesticides, there has been a substantial decrease in the quality of soil across the globe. As a result, in order to meet increasing demand for sustainable methods of agriculture, demand for organic fertilizers is increasing in the U.S. With increasing demand for organic fertilizers, growth of inorganic fertilizers might face challenges over the coming years, affecting market growth. However, there is no immediate threat to the ammonia market in the U.S., as nitrogenous fertilizers are still used on a large scale across the country, and the need for soil condition and acidifying agents is also increasing.

Why Does Germany Hold High Potential in Europe for Ammonia?

Over the past five years, fertilizer companies are found to have been involved in long-term agreements with other market players in the country that are dealing with ammonia and its products, such as agrochemicals, industrial chemicals, and others. Owing to major players present in the country, the market is anticipated to grow substantially in Germany with minimal supply constraints.

Why is Demand for Ammonia in Fertilizers Rising in Brazil?

Brazil is a prominent crop producer in the Latin American region. Consumption of fertilizers in this country was estimated to be around 13% of global consumption. There is especially high consumption of fertilizers such as urea, mono-ammonium phosphate, and di-ammonium phosphate in Brazil.

Additionally, fertilizer manufacturers are channelizing efforts to cater to increasing demand for urea and other fertilizers, which has resulted in increased demand for agrochemicals, and, in turn, is expected to drive demand for ammonia over the forecast period.

Category-wise Insights

Which End-use Industry Demands the Most Ammonia?

The agrochemicals sector is considered to be a prominent segment with the highest overall market attractiveness. The segment is expected to expand at a significant CAGR of over 4% during the forecast period. This can be attributed to increasing demand for fertilizers, especially from South Asian and East Asian countries.

The agrochemicals segment is projected to create a total incremental $ opportunity of close to US$ 18 Bn from 2021 to 2031, and account for more than half of the market share by 2031.

Why is Demand for Anhydrous Ammonia High?

Anhydrous ammonia is estimated to witness for lucrative growth in 2021, and is expected to continue its dominance in the near future over aqueous ammonia, owing to its significant properties. Also, the segment is expected to hold more than three-fourth of the market share in 2021, and is expected to expand at a CAGR of more than 4% through 2031.

Competitive Landscape

Globally, the ammonia market is a highly competitive in nature, dominated by key players selling cost-competitive products. Some of the key players are concentrating on building markets for a particular demographic. It is identified by a broad base of suppliers and powerful B2B networks.

Across the value chain, the industry has strong alliances. In order to meet the requirements of an expanding consumer base, companies operating are strategically partnering with end users and regional distributors to increase their market penetration.

Some of the leading companies operating in the market are:

  • Yara International ASA
  • CF Industries Holdings, Inc.
  • Potash Corp
  • Orica Limited
  • Incitec Pivot Ltd
  • Mitsubishi Gas Chemical Co., Inc.
  • Praxair, Inc.
  • Achema AB
  • Linde Group
  • Jiangsu Huachang Chemical Co., Ltd
  • Koch Fertilizer LLC
  • SABIC
  • BASF SE
  • The Dow Chemical Company
  • Toggliazot PJSC
  • OCI Nitrogen
  • Haifa Chemicals Ltd.
  • CNPC (China National Petroleum Corporation)
  • Trammo, Inc.
  • Haldor Topsoe A/s

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value and Kilotons for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • The Middle East & Africa

Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Turkey
  • Northern Africa
  • South Africa

Key Segments Covered

  • Type
  • Application
  • End Use
  • Region

Key Companies Profiled

  • Yara International ASA
  • CF Industries Holdings, Inc.
  • Potash Corp
  • Orica Limited
  • Incitec Pivot Ltd
  • Mitsubishi Gas Chemical Co., Inc.
  • Praxair, Inc.
  • Achema AB
  • Linde Group
  • Jiangsu Huachang Chemical Co., Ltd
  • Koch Fertilizer LLC
  • SABIC
  • BASF SE
  • The Dow Chemical Company
  • Toggliazot PJSC
  • OCI Nitrogen
  • Haifa Chemicals Ltd.
  • CNPC (China National Petroleum Corporation)
  • Trammo, Inc.
  • Haldor Topsoe A/s

Report Coverage

  • Market Forecasts
  • Brand Share Analysis
  • Competition Intelligence
  • DROT analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Market Segmentation by Category

  • By Product
    • Anhydrous Ammonia
    • Aqueous Ammonia
  • By Application
    • MAP (Mono-ammonium Phosphate)
    • DAP (Di-ammonium Phosphate)
    • Urea
    • Nitric Acid
    • Ammonium Sulfate
    • Ammonium Nitrate
    • Others
  • By End Use
    • Industrial Chemicals
    • Agrochemicals
    • Explosives
    • Others
  • By Region
    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Pacific
    • Middle East & Africa

Key Questions Answered in Report

  • Which is the most lucrative market for ammonia?

    East Asia currently leads in the global market for ammonia. Sales in East Asia will be over 31% of the global share throughout the forecast period.

  • Which is the top-selling type of ammonia?

    Anhydrous ammonia has significant demand, which is expected to remain high over the assessment period as well.

  • Which end-use industry is demanding the highest requirement for ammonia?

    Agrochemicals is one of the fastest-growing segments in the market, and is expected to dominate this space.

  • Which are some of the leading companies providing ammonia?

    Some of the leading companies manufacturing ammonia are Yara International ASA, CF Industries Holdings, Inc., Potash Corp, Orica Limited, Incitec Pivot Ltd, Mitsubishi Gas Chemical Co., Inc., Praxair, Inc., and Achema AB.

  • Which application segment is driving the sales of ammonia?

    Urea is one of the significant applications of ammonia, which is estimated to hold more than half of the market value and volume share.

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  • What are the sources of secondary research?

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