Asia Pacific Ammonium Nitrate Market is Projected to Reach USD 39.96 billion by 2032: Astute Analytica

The ammonium nitrate market faces a complex outlook. Growing demand from agriculture and mining in emerging economies is likely to clash with fluctuating prices and evolving regulations. Focus will intensify on safer, more efficient fertilizer use, potentially leading to gradual shifts towards alternatives while also driving innovation in ammonium nitrate application and formulation.

New Delhi, March 04, 2024 (GLOBE NEWSWIRE) — Asia Pacific ammonium nitrate market is projected to generate a revenue of US$ 39.96 billion in 2032 from US$ 27.12 billion in 2023 at a CAGR of 4.4% during the forecast period 2024–2032.

This growth of the ammonium nitrate market is driven by the region’s massive agricultural field, heavily reliant on ammonium nitrate for nitrogen fertilizer. The rising population in countries like China and India, combined with the need to keep food security high, increases the demand for higher crop yields. Aside from farming, mining is a huge consumer of ammonium nitrate in places like Australia, India, and China. This chemical helps make explosives that are necessary for mining operations. As industrialization rises across the region so does the demand for ammonium nitrate as well. It has applications across many manufacturing sectors in countries such as Japan and South Korea.

While this chemical’s future seems to be bright there are some potential roadblocks ahead. Stricter regulations may be imposed regarding how it’s handled or stored. There also could be a movement toward alternative fertilizers due to environmental concerns over ammonium nitrate’s lack of sustainability. India is a major player when it comes to demand and consumption of fertilizer. Importing companies such as Deepak Fertilizers & Petrochemicals Corp. Ltd (DFPCL) have set up TAN production lines expected to go live by 2024. China’s mining sector continues to be a driving factor behind regional demand for ammonium nitrate market.  

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Southeast Asian countries are also becoming more important markets due to growing agriculture industries that require use of fertilizers like ammonium nitrate. Overall, steady growth is expected in the Asia-Pacific market thanks to these important factors; agricultural necessity, industrial requirements, and infrastructural development.

Key Findings in Asia Pacific Ammonium Nitrate Market

Market Forecast (2032) US$ 39.96 billion
CAGR 4.4%
Largest Country (2023)  China (38.9%)
By Product Type  Nitrogenous Fertilizers (70.4%)
By Form Prill Form (49.7%)
By Application  Fertilizers (78.0%)
By End Users Agriculture Industry (79.1%)
Top Trends
  • Emphasis on fertilizer efficiency and precision application.
  • Rising environmental concerns and a potential shift to sustainable alternatives.
  • Growing importance of emerging markets in Southeast Asia.
Top Drivers
  • Need to feed growing populations in Asia-Pacific countries.
  • Expansion of mining industries requiring ammonium nitrate for explosives.
  • Government policies and support for agriculture and fertilizer use.
Top Challenges
  • Price volatility linked to global feedstock costs.
  • Increasingly strict safety and environmental regulations.
  • Competition from alternative fertilizer products.

Unstable Prices, Shifting Demand: The Asia-Pacific Ammonium Nitrate Market

In September 2022, ammonium nitrate from China was sold for the average price of $551 per ton (FOB). This cost is a significant decrease of -20.7% compared to the previous month. From January 2022 to September, the overall average monthly price rose by +2.8%, but with irregular jumps. July 2022 saw a swift increase of 29%, followed by August’s peak of $695 per ton and an equally large fall down in September.

These price changes have many implications for markets throughout Asia-Pacific. In a short time frame, the drop in September could make ammonium nitrate more affordable and boost demand from farmers. However, frequent volatility has also shown that people tend to wait out potential decreased costs or avoid purchasing altogether due to fear they’ll overspend on it later on this year or next year before the prices eventually recover after a spike like this one that occurred between July and August this year when it went up 29%.

These downswings can cause demand to drop temporarily despite seemingly good deals being presented in the ammonium nitrate market, thus leaving suppliers without business for some time. Additionally, export tariffs differ depending on which country is buying them from China. Data shows that Laos PDR paid higher than others at $649 per ton in September while Myanmar only gave $423 per ton. Such disparities show how fertilizer prices and demand change depending on location throughout the Asia-Pacific.

Fertilizers are the Largest Consumers of Ammonium Nitrates, Contribute More than 78% Revenue

In terms of revenue, Ammonium nitrate fertilizers are at the top with over 78% market share in the Asia-Pacific thanks to their large agricultural sector compared to other regions, feeding millions of people in countries like China, India, and Indonesia. The nitrogen packed fertilizers that has about 34% concentration is a high source of nutrient for plants and has been a main factor to their wide use in making crop yields as big as they can be. Not only does it contain this great plant nutrient but also costs less than some alternative fertilizers, which compel farmers find ammonium nitrate cost-effective for them. In addition to being used in both solid and liquid forms, it can even be put onto various crops and systems across Asia-Pacific ammonium nitrate market.

With extensive mining industry across China, India, Vietnam, Thailand, demand for blasting operations is on the rise in these countries. The product is also being used as a centralized supplier for many different raw materials for building structures. Ammonium Nitrate is an essential component in blasting processes which makes it very important for these industrial powers to maintain a good stock on it.

Prill Form Ammonium Nitrate is Highly Popular in Market, Captures More than 49.7% Market Share 

Prilled ammonium nitrate (AN), a small, uniform sphere, holds the largest share of the market in the Asia-Pacific ammonium nitrate market. Prills has many advantages over other types of AN. They have better physical properties such as lower hygroscopicity and caking tendency which makes it ideal for storage and handling. It also results in consistent flow through agricultural spreading equipment, enabling effective nutrient distribution. The key consumers of this nitrogenous fertilizer include farmers across the region, as most seek high yields to cater to their expanding population. Additionally, prill form AN is also widely used in mining-related industries such as quarrying and construction and explosives manufacturing sectors.

Prill form ammonium nitrate is also used in bulk explosive blends or as a component for tailored explosive formulations. Customers from mining companies, explosive manufacturers and construction industries favor this type of product mainly because they are easy to use while being cost-effective. There are several factors driving the demand for prilled ammonium nitrate in Asia-Pacific market including mineral extraction activities which rely on ANFO (ammonium nitrate fuel oil) explosives that contains prill form AN. Also, economic development in the region boosts the requirement for higher volumes of ammonium nitrate due to infrastructure projects that require large-scale mineral extraction activities.

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Southeast Asia is Emerging as Lucrative Ammonium Nitrate Market

Southeast Asia can’t get enough of ammonium nitrate. The region’s agricultural sector is growing fast, and to meet that expansion, farmers are gobbling up the nitrogen-rich fertilizer at breakneck speeds. Fertilizer consumption in Southeast Asia has grown 8.9% per year between 1997 and 2022, according to a recent study by the International Fertilizer Association. But average fertilizer consumption among the region’s countries — which include developing world heavyweights like Indonesia and Vietnam — is heavily influenced by China, which gobbles up 73% of all fertilizer applied in Southeast Asia. On its own, Southeast Asia consumes an average of only 147 kg/hectare of fertilizers each year, higher than the developing world average of 90 kg/hectare. However, take away China from the equation, and the rest of the region consumed just 93 kg/hectare on average last year.

Countries across Southeast Asia ammonium nitrate market are rapidly expanding their agricultural output to feed a booming population projected to exceed 700 million people by mid-century. For instance: Vietnam is one of the largest rice producers in the world (42.7 million metric tons produced in 2022) while Indonesia and Malaysia are global leaders in palm oil production. These crops require mountains of nutrients to grow properly and yield abundant harvests. Nitrogen fertilizers like ammonium nitrate help them do that. Between now and 2025 demand for this type of fertilizer is expected to increase at a compound annual growth rate of about 2.6%, according to IFA projections published earlier this month. Moreover, as traditional subsistence farmers transition into more lucrative markets such as cash crops or commercial agriculture operations with larger fields so too does their need for hyper-efficient fertilization techniques like ammonium nitrate— which promotes quick uptake into plants’ leaves rather than slower-absorbed roots-to-shoots nutrient transfer mechanisms used in organic fertilizers.

The region’s governments are pushing such intensification efforts with subsidies and other investments. In Indonesia ammonium nitrate market, for example, the government provides farmers with heavily subsidized fertilizer to help them increase food production. The country is one of the world’s largest consumers of ammonium nitrate. Wherein, High-value crops like fruits and vegetables also require higher levels of fertilization than staple grains like rice or wheat. Farmers often apply more synthetic fertilizers to these types of high-reward crops, which can yield profits many times greater than what staple grain cultivators earn.

Asia Pacific Ammonium Nitrate Market Key Players

  • Manufacturer
    • Austin Powder Company
    • EuroChem Group AG
    • Incitec Pivot Limited
    • CF Industries Holdings, Inc.
    • OSTCHEM Holding.
    • San Corporation
    • URALCHEM Holding P.L.C.
    • Vijay Gas Industry P Ltd
    • CSBP Fertilizers
    • Neochim PLC
    • Yara Australia
    • Incitec Pivot Limited
    • Indian Farmers Fertiliser Co-operative Limited (IFFCO)
    • PT Multi Nitrotama Kimia
    • PT Kaltim Nitrate Indonesia
    • Pupuk Indonesia
    • Others Prominent Players
  • Process Licenser
    • Espindesa
    • Uhde GmbH
    • Orica
    • CASALE
    • Kellogg Brown & Root (KBR)
    • Others Prominent Players

Key Segmentation:

By Product

  • Nitric Acid
  • Nitrogenous Fertilizers
    • Nitrate fertilizers
      • Sodium nitrate
      • Calcium nitrate
      • Potassium nitrate
    • Ammonical Fertilizers
      • Ammonium Sulphate
      • Ammonium chloride
      • Diammonium phosphate
    • Ammonical-nitrate fertilizers
      • Ammonium nitrate
      • Ammonium sulphate nitrate
      • Calcium ammonium nitrate
    • Amide fertilizers
      • Urea
      • Calcium cynamide

By Form

  • Granular Form
  • Prill Form
  • Emulsion

By Application

  • Fertilizers
  • Explosives
  • Others

By End User

  • Agriculture
  • Mining
  • Pharmaceutical
  • Defense
  • Others

By Asia Pacific

  • China
  • India
  • Japan
  • ASEAN
  • Oceania
  • Rest of Asia Pacific

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