Ammonium Nitrate Market Size, Share, Growth, Trends 2024 To 2033

Ammonium Nitrate Market Size and Growth 2024 to 2033

The global ammonium nitrate market size was valued at USD 32.06 billion in 2024 and is projected to hit around USD 47.45 billion by 2033, expanding at a compound annual growth rate (CAGR) of 4.45% from 2024 to 2033.

Ammonium Nitrate as for its use is mostly as a fertilizer. This feeds as pellets that are coated with clay; Customers and consumers can therefore purchase the product in their preferred form. This is the case especially in agriculture since nitrogen is highly present in this compound which makes it very important. Nitrogen is amongst the macronutrients that the plants require and which enables the metabolic activities within the plant to take place.

Farmers use ammonium nitrate as it is cheaper as compared to many other expensive fertilizers. It can also bring about quick results and which can enhance the fruit setting possibility of a plant. It may also impact on the quality of the green leafy vegetables since the nitrogen which accounts for use by the plants is in actual sense beneficial in the process of photosynthesis.

Other well-known application of ammonium nitrate is in production of explosives where it serves as an additive. One external factor affecting ammonium nitrate is heat and any case of application of this factor may lead to an explosion. This substance is an oxidating agent of quite a high class. This means that it possess the ability to transfer some electrons from other reacting particles under redox chemical reaction. This is the reason why ammonium nitrates are always combines and incorporated together with combustibles such as TNT and others.

• According to the American Chemical Society, the ammonium nitrate market is on an upward trajectory, with recent reports estimating a market size of $24 billion by 2026. This increase in market value has been catalyzed by the growing population, creating an increased demand for food supply and real estate. Incidentally, ammonium nitrate is a valuable resource for both industries.
• According to the Ammonium Nitrate Storage Facilities Regulations, a single storage facility in Canada can store a maximum of 200 tonnes of ammonium nitrate. The chemical cannot be stored within 91 meters of a school, hospital, hotel, sports arena, condo tower, office building, or similar multi-story buildings where people might be gathered. Storage must also be at least 45 meters from a single-story building, such as a family home or a train station.
• Ammonium nitrate (AN) ranks as the second-largest nitrogen fertilizer globally, trailing only urea, with an annual production of approximately 16 million tons. Its widespread applications include the agricultural, mining, and civil construction sectors.

Report Highlights

• Europe region has accounted highest revenue share of 34% in 2023.
• Asia Pacific is expected to grow at a CAGR of 4.80% from 2024 to 2033.
• By end user, agriculture segment has accounted revenue share of 68% in 2023.
• By end user, mining segment has captured revenue share of 18% in 2023.

Ammonium Nitrate Market Growth Factors

• Government Policies and Agricultural Demand: There is pressure on fertilizers as the agricultural policies become stricter while food production requirements rise stiffening the demand for ammonium nitrate. The world’s governments are aiming at increasing the yields per unit area to feed the increasing population hence driving the demand for ammonium nitrate especially in agriculture.
• Technological Advancements: On a similar note and as the production technologies improve with every passing day, the manufacture of ammonium nitrate becomes ever efficient and the costs of production go down. New technologies and methods in the process and energy management are helping to drive the cost down and increase the efficiency of the ammonium nitrate production and this subsequently makes it easier to utilize in many uses.
• Rising Mining Activities: The growth in mining and quarrying activities worldwide is a major driver for the ammonium nitrate market. Ammonium nitrate is extensively used as an explosive in these industries, and the increasing demand for minerals and metals is directly contributing to the market's expansion.
• Strategic Partnerships and Investments: Collaborations between chemical companies and industrial players are accelerating the development and deployment of ammonium nitrate production facilities. Significant investments in expanding production capacity and developing new applications for ammonium nitrate are driving market growth.
• Focus on Safety and Regulation Compliance: The push for safer handling and use of ammonium nitrate is encouraging manufacturers to adopt stringent safety protocols and comply with regulatory standards. This focus on safety is essential for gaining market approval and ensuring the responsible use of ammonium nitrate, particularly in the explosives industry.

Ammonium Nitrate Market Trends

• Shift Toward Safer Alternatives: A notable trend in the market is the increasing focus on developing safer alternatives to traditional ammonium nitrate formulations, particularly in explosives. Manufacturers are working on new formulations that reduce the risk of accidental detonations while maintaining effectiveness.
• Development of Controlled-Release Fertilizers: The demand for controlled-release fertilizers, which minimize the environmental impact and improve nutrient efficiency, is on the rise. This trend is driving manufacturers to innovate in the production of ammonium nitrate-based fertilizers that offer better performance and sustainability.
• Growing Use in Mining Operations: Ammonium nitrate remains a key ingredient in the production of explosives for mining operations. With the global demand for minerals and metals increasing, the market for ammonium nitrate in mining is expected to see significant growth, particularly in regions rich in natural resources.
• Collaborations and Joint Ventures: The market is witnessing a rise in collaborations and joint ventures among chemical manufacturers and end-users. These partnerships aim to enhance production capabilities, share technological expertise, and explore new applications for ammonium nitrate, particularly in the agriculture and mining sectors.
• Emphasis on Regulatory Compliance: As the use of ammonium nitrate expands, there is a growing emphasis on compliance with safety and environmental regulations. Manufacturers are working to ensure that their products meet the highest safety standards, which is critical for gaining market approval and consumer trust.

Report Scope

Ammonium Nitrate Market Dynamics

Drivers

• Increased Demand in Agriculture: The growing need for higher agricultural productivity is driving the demand for ammonium nitrate fertilizers, which are essential for boosting crop yields.
• Expansion of Mining Activities: The global expansion of mining operations is significantly increasing the demand for ammonium nitrate, which is widely used as a blasting agent in the industry.

Restraints

• Safety Concerns: The potential hazards associated with ammonium nitrate, particularly in storage and transportation, pose significant challenges. Ensuring safety and regulatory compliance adds to the operational costs for manufacturers.
• Environmental Impact: The production and use of ammonium nitrate have environmental implications, including greenhouse gas emissions. Addressing these concerns requires additional investments in cleaner technologies and sustainable practices.

Opportunities

• Growth in Emerging Markets: Rapid industrialization and urbanization in emerging economies present significant growth opportunities for the ammonium nitrate market, particularly in agriculture and mining.
• Innovation in Fertilizer Technology: Advancements in fertilizer technology and the development of more efficient, controlled-release products offer opportunities for reducing environmental impact and enhancing agricultural productivity.

Challenges

• Regulatory Compliance and Safety Standards: Ensuring compliance with various safety and environmental regulations across different regions can be challenging for manufacturers, especially when expanding into new markets.
• Technological Adaptation: Keeping up with technological advancements and integrating new processes into existing production lines requires continuous investment, which can be a hurdle for smaller manufacturers in the ammonium nitrate market.

Ammonium Nitrate Market Segmentation Analysis

Application Analysis

Fertilizers: Ammonium nitrate is a critical component in the agricultural sector, where it serves as a potent nitrogen-rich fertilizer. It plays a vital role in enhancing soil fertility, supporting plant growth, and significantly improving crop yields. Due to its high nitrogen content, ammonium nitrate is particularly effective in providing the essential nutrients that plants need during their growth cycles. Its ability to dissolve easily in water ensures that nutrients are readily available to plants, making it a preferred choice for farmers globally. The use of ammonium nitrate in fertilizers is especially prominent in regions with high agricultural activity, contributing to food security and sustainable farming practices.

Explosives: In the mining, quarrying, and construction industries, ammonium nitrate is extensively used in the production of explosives. Its highly reactive nature makes it an ideal component in the formulation of blasting agents, such as ANFO (Ammonium Nitrate Fuel Oil), which is widely used for blasting operations. The explosive power of ammonium nitrate is harnessed to break through rock and earth, facilitating the extraction of minerals and the preparation of construction sites. Its relatively low cost and effectiveness in large-scale blasting operations have made it a staple in the explosives industry, particularly in regions with significant mining and construction activities.

Industrial Applications: Beyond its use in agriculture and explosives, ammonium nitrate finds applications in various industrial processes. It is utilized in the production of specialty chemicals, where it acts as a key reagent. In laboratories, ammonium nitrate is used for specific analytical purposes, such as in the synthesis of other chemical compounds or as a component in industrial refrigeration systems. Its versatility in industrial applications stems from its chemical properties, which allow it to be used in a range of chemical reactions and manufacturing processes.

Medical Applications: Although used in smaller quantities compared to other applications, ammonium nitrate also has medical uses. It is incorporated into certain pharmaceutical formulations and medical treatments, where its chemical properties are harnessed for therapeutic purposes. For example, ammonium nitrate may be used in the preparation of certain medications or in the production of diagnostic reagents. Its role in the medical field is more specialized, reflecting its utility in niche applications within pharmaceutical manufacturing and healthcare.

End-User Analysis

Agriculture: The agriculture industry is the largest end-user of ammonium nitrate, consuming it primarily as a fertilizer. Farmers and agricultural enterprises rely on ammonium nitrate to enhance soil fertility, boost crop yields, and support sustainable farming practices. The high nitrogen content of ammonium nitrate makes it particularly effective in promoting the healthy growth of a wide range of crops, from grains to vegetables. Its widespread use in agriculture underscores its importance in food production and the global agricultural supply chain, especially in regions where intensive farming is practiced.

Mining and Quarrying: In the mining and quarrying industries, ammonium nitrate is a crucial component in the production of explosives used for blasting operations. It is widely used to create explosive mixtures that are employed in the extraction of minerals and ores from the earth. The efficiency of ammonium nitrate in breaking through hard rock formations makes it indispensable in these industries. Its use in mining and quarrying is particularly significant in resource-rich regions, where large-scale extraction activities require reliable and powerful blasting agents.

Construction: The construction industry utilizes ammonium nitrate for demolition and excavation purposes, leveraging its explosive properties. It is commonly used in controlled blasting operations to clear land, excavate foundations, and break down structures. The ability of ammonium nitrate-based explosives to deliver precise and controlled blasts makes them ideal for use in urban construction projects where minimizing collateral damage is critical. Its role in the construction industry highlights its importance in infrastructure development and large-scale building projects.

Chemicals: Ammonium nitrate serves as a key raw material in the chemical industry, where it is used in the production of various chemicals and in research and development activities. Its chemical properties make it suitable for use in the synthesis of other compounds, as well as in laboratory experiments. The versatility of ammonium nitrate in the chemical industry is reflected in its wide range of applications, from the production of basic chemicals to its use in more advanced research settings.

Form Analaysis

Granular: Granular ammonium nitrate is the most common form used across various industries, particularly in agriculture and explosives. Its granular structure allows for easy handling, storage, and application. In agriculture, granular ammonium nitrate is spread on fields to fertilize crops, while in the explosives industry, it is used to create consistent and effective blasting agents. The granules' uniform size and shape make them ideal for controlled release of nitrogen in fertilizers and for predictable reactivity in explosive mixtures.

Liquid: Liquid ammonium nitrate is less common but is used in specific industrial applications where a dissolved form is required. In industries such as chemical manufacturing or industrial refrigeration, liquid ammonium nitrate is used for its reactive properties in controlled processes. The liquid form allows for precise dosing and mixing in industrial applications, where the solid form may not be as effective. Its use is more specialized, catering to industries that require ammonium nitrate in a more versatile and easily integrated form.

Prilled: Prilled ammonium nitrate consists of small, bead-like granules that are particularly favored in the explosives industry. The prilling process results in a product with a consistent size and shape, which enhances its performance in explosive formulations. Prilled ammonium nitrate is often used in the production of ANFO, a common explosive used in mining and construction. The prills' uniformity ensures that the explosive mixture is homogeneous, leading to more predictable and efficient blasting results. Its use in explosives manufacturing highlights the importance of precision in the formulation of industrial explosives.

Ammonium Nitrate Market Regional Analysis

Why is Europe leading the ammonium nitrate market?

The Europe ammonium nitrate market size was valued at USD 10.43 billion in 2023 and is expected to reach around USD 16.13 billion by 2033 with a CAGR of 4.60%. Europe is leading the market with demand spurred by its applications in agriculture, explosives, and industrial processes. Countries like Germany and France lead the market due to their strong agricultural sectors and industrial base. The European market is characterized by a strong regulatory framework that ensures the safe use of ammonium nitrate, as well as a focus on sustainable practices. This includes innovations in product formulation and efficient use in both agricultural and industrial contexts, aligning with Europe’s broader goals of environmental sustainability and resource management.

Why North America hits robust growth?

The North America is robust, largely driven by its extensive use in agriculture and industrial applications. The North America ammonium nitrate market size was valued at USD 8.90 billion in 2023 and is anticipated to hit around USD 13.76 billion by 2033 with a CAGR of 4.50%. The United States, a major producer and consumer, benefits from advanced manufacturing technologies and significant agricultural demand. Canada also contributes notably, with ammonium nitrate playing a crucial role in agricultural productivity and mining activities. The market dynamics in this region are influenced by consistent demand from the agricultural sector, stringent regulations, and ongoing technological advancements that enhance production efficiency and product safety.

Why is Asia-Pacific experiencing rapid growth in the ammonium nitrate market? 

The Asia-Pacific region is experiencing rapid growth due to escalating industrialization and agricultural demands. The global ammonium nitrate market size was estimated at USD 7.06 billion in 2023 and is projected to surpass around USD 10.91 billion by 2033 with a CAGR of 4.80%. China and India are significant contributors, with high demand for fertilizers driven by large-scale agricultural activities and infrastructure projects. Japan and South Korea also have substantial markets, particularly for specialized applications like explosives in mining and construction. The region's growth is supported by substantial investments in manufacturing infrastructure, advancements in agricultural technology, and increasing industrial activities, which bolster the demand for ammonium nitrate

LAMEA Market Trends

The global ammonium nitrate market size was valued at USD 4.30 billion in 2023 and is projected to reach around USD 6.64 billion by 2033. The Middle East, with its growing construction and mining industries, also contributes to the demand for ammonium nitrate. However, market growth in this region faces challenges such as economic fluctuations and infrastructural constraints. Despite these challenges, the region’s rich natural resources and increasing industrial activities offer significant opportunities for future market expansion. Brazil and South Africa are notable markets, benefiting from their burgeoning agricultural sectors and infrastructure development.

Ammonium Nitrate Market Top Companies

• Yara International ASA
• CF Industries Holdings, Inc.
• Nutrien Ltd.
• Orica Limited
• EuroChem Group
• Nouryon
• TogliattiAzot
• OCI Nitrogen
• SABIC
• K+S Group
• Incitec Pivot Limited
• LUXI Chemical Group
• Fertiberia
• JSC Acron

New players such as Hydrogen Pro and PowerCell Sweden AB are leveraging advancements in high-efficiency electrolyzer technology for green hydrogen production, focuses on innovative fuel cell systems. While dominating players like Air Liquide and Linde plc stand out due to their extensive global hydrogen infrastructure and industry expertise. Air Liquide excels with its expansive hydrogen networks and advanced storage solutions, while Linde plc drives innovation through its strategic partnerships and R&D efforts. Both established and emerging players are crucial in advancing hydrogen storage technologies and integrating them into broader energy systems.

CEO Statements

Yara International ASA: “Our focus is on sustainable agriculture and providing high-quality nitrogen fertilizers, including ammonium nitrate, to meet the increasing global food demand while minimizing environmental impact.”

CF Industries Holdings, Inc: “We are committed to being a leading provider of essential fertilizers, including ammonium nitrate, that help farmers increase crop yields and improve global food security.”

Nutrien Ltd: "Nutrien’s goal is to support global agriculture by delivering reliable and innovative products like ammonium nitrate, which are crucial for feeding a growing population

These developments underscore significant strides in advancing infrastructure and technology, reflecting growing collaborations and strategic investments aimed at expanding the global Ammonium Nitrate Market.

Ammonium Nitrate Market Recent Developments

Strategic partnerships and Launches highlight the rapid advancements and collaborative efforts in the ammonium nitrate market. Industry players are involved in various aspects of ammonium nitrate, including production, storage technologies, and fuel cells, and play a significant role in advancing the market.

• In March 2024, Argus launched the world’s first assessments for low and zero-carbon calcium ammonium nitrate (CAN), an important nitrogen-based fertilizer used extensively in Europe. The new calculated assessments show the cost of producing CAN with either blue ammonia made using natural gas, but such that associated carbon emissions are permanently stored or re-used or with green ammonia, made using renewable energy.
• In February 2023, Fertiberia, S.Asigned a cooperation agreement with Horisont Energi, a Norwegian clean energy company, to jointly develop the Barents Blue project in Finnmark (Norway): the largest clean ammonia production plant in Europe.
• In 2022, Orica installed tertiary abatement technology in its nitric acid plants at its Carseland manufacturing site in Canada, which is now delivering 95.0% abatement efficiency from unabated levels and enabling the production of a lower-carbon intensity ammonium nitrate (AN) for customers.
• In February 2022, Austin Powder used natural gas to make ammonia that enables Nitric Acid, Ammonium Nitrate (AN) PETN, ANFO, and Emulsion To improve the world through the safe and responsible use of explosives.

These developments underscore significant strides in advancing hydrogen infrastructure and technology, reflecting growing collaborations and strategic investments aimed at expanding the global market.

Market Segmentation

By Form

• Granular
• Liquid
• Prilled

By Application

• Fertilizers
• Explosives
• Industrial
• Medical
• Others

By End User

• Mining
• Construction
• Agriculture
• Military Explosives
• Others

By Region

• North America
• APAC
• Europe
• LAMEA