Ammonium Nitrate Market Size, Share & Trends Analysis Report By Application (Fertilizers, Explosives), By Region (North America, Europe, Asia Pacific, CSA, MEA), Competitive Landscape, And Segment Forecasts, 2018 - 2025

Report Overview

The global ammonium nitrate market size was estimated at USD 4.67 billion in 2016. The increasing demand for the product in fertilizers as a nitrogen source is expected to propel the market growth. In addition, the product has high demand in explosive manufacturing as an oxidizing agent, which is expected to propel industry growth.

Abundant availability of the key raw materials including nitric acid and sodium carbonate eases production of ammonium nitrate. The majority industry players have adopted integration strategies from raw material manufacturing to distribution in order to counter with the declining profit margins owing to high competition in the market.

China accounted for a substantial share in terms of consumption owing to high fertilizer production volumes in the country. Furthermore, in 2016, China was recorded as the largest nitrogen fertilizer consuming countries in the world and this trend is expected to continue owing to growing agricultural activities in the region, propelling the industry growth over the forecast period.

The demand for a high-quality crop is incrementing significantly which is boosting the consumption of fertilizers over the past few years. This has prompted the expansion and remodeling of older production facilities and building new ammonium nitrate manufacturing plant to meet the surging demand.

Several terrorist acts in the past few years involved the use of ammonium nitrate, which has compelled the government to revamp stern regulations towards the utilization of the product. According to the Department of Homeland Security Appropriations Act, Public Law 110-161, the government of the U.S. is liable to regulate the transfer and sale of ammonium nitrate.

Ammonium nitrate is widely accessible for the use of fertilizer, however in various countries including the U.S. and India the usage of the product is restricted to the buyers with the legit license. The restriction is primarily due to the possible production of fertilizer bombs using the product which is expected to hinder the market.

The product over 400-degree Fahrenheit can detonate if it is heated, contaminated, and incarcerate with inadequate ventilation. As a result, there are several safety instructions are given for product manufacturing, handling, and storage. For instance, according to OSHA, the construction of new ammonium nitrate facility should be made of noncombustible materials.

Application Insights

In terms of revenue, fertilizer was the largest application segment accounting for USD 2.79 billion in 2016. The product provides higher nitrogen nutrients as compared to its substitute, urea. Rising population across the globe has compelled farmers to increase crop production yields, which has resulted in high demand for fertilizers, thereby propelling the industry growth. 

Rising demand for maize, barley, and soybean for various food and non-food applications including biofuel manufacturing is expected to propel demand for fertilizers, thereby impacting the industry trend on a positive note. As a result, the demand for the product in fertilizers is expected to grow at a CAGR of 3.5% from 2016 to 2025.

ANFO (Ammonium Nitrate Fuel Oil) contains about 94% porous ammonium nitrate, which is an extensively used industrial explosive mixture for quarry and mines operation such as coal and metal. The rising mining activities across various counties in the world including the U.S., Argentina, and India is expected to drive the market growth over the forecast period.

The increasing production and demand for bauxite, manganese, diamonds, and base metals are projected to drive the blasting products thereby propelling the ammonium nitrate market growth. In addition, high investments by the mining companies to explore new exploration sites for the valuable metals and minerals is further expected to fuel the market growth in mining applications.

Regional Insights

The U.S., Europe, and China dominated the industry in terms of both production and consumption in 2016. Together these regions accounted for about 74% of the consumption, 77% of the capacity, and 81% of the global production in 2016. The growth of end-use markets in these regions is expected to have a positive impact on industry growth over the projected period.

The demand for ammonium nitrate in Europe was valued at USD 2.03 billion in 2016. However, high penetration of urea in fertilizer applications to substitute the product in Spain and Portugal has hampered the product demand over the past few years and this trend is expected to continue over the next eight years impacting the industry growth in the region.

In July 2015, China’s ammonium nitrate export increased by over 25% to various countries including Oman, Thailand, and Malaysia. Moreover, the growth of the fertilizer manufacturing sector in the region owing to rising domestic consumption is expected to propel product demand over the forecast period.

Key Companies & Market Share Insights

The market is moderately competitive owing to the presence of numerous buyers and manufacturers. High initial investment in equipment such as driers, screeners, and recycle - slurry mixers coupled with tight profit margins is likely to lower the threat of new entrants, thus lowering the industry rivalry over the forecast period.

In India, the number of ammonium nitrate manufacturers, suppliers, and distributors has dwindled over past few years owing to stringent regulations coupled with shorter margins. Companies such as Deepak Fertilizers and Gujrat Narmada Valley Fertilizers are the only top manufacturers of the product thereby contracting the competition in the country.

Ammonium Nitrate Market Report Scope

Segments Covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global ammonium nitrate market on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Fertilizers

  • Explosives

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Ukraine

    • Poland

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Egypt