Ammonium Nitrate Market - By Product (High Density, Low Density, Solution), By End-user (Agriculture, Mining & Quarrying, Civil Construction) & Forecast, 2024 - 2032

Ammonium Nitrate Market Size

Ammonium Nitrate Market size was valued at over USD 21.6 billion in 2023 and is estimated to register a CAGR of over 4.5% between 2024 and 2032 driven by its extensive use in agriculture and mining industries. The availability of modern agricultural techniques has prompted the demand for more effective and efficient chemicals, leading to the surging need for ammonium nitrate to increase soil fertility and crop yields.

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For instance, in November 2022, Uralchem invested RUB 50 billion in a port in Taman for ammonia handling. The expanding use in the mining industry as an explosive component for blasting operations will propel the market growth.

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The use of ammonium nitrate as an explosive for the construction of roads, tunnels, and other infrastructure-related projects, is steadily increasing. Innovations in technology that improve the production and application methods are making the compound more accessible and safer to use. Environmental regulations and eco-friendly formulations are also driving the market growth.

However, stringent regulations on the handling, storage, and transportation of ammonium nitrate along with its illegal use in mining are severely hampering the market expansion. Complying with these regulations can be costly and difficult for both manufacturers and distributors. The rise in environmental problems associated with excessive product use in agriculture is also a challenge as it leads to soil erosion and water pollution.

Ammonium Nitrate Market Trends 

The increasing adoption of precision agriculture technologies is enabling farmers to optimize the use of fertilizers for precisely monitoring and managing crop nutrition levels. For instance, in April 2024, AGCO Corporation launched PTx as a new brand for its precision agriculture technology, combining various technologies from AGCO's tech stack. This rising technology penetration will lead to the increase in ammonium nitrate material coatings to provide controlled release strength, improved nutrient utilization and reduced risk of leaching. The integration of digital platforms and IoT devices in the mining sector will also simplify the use of ammonium nitrate in the blasting industry for increasing safety and efficiency.

Ammonium Nitrate Market Analysis

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Based on product, the market size from the high-density segment recorded USD 12.9 billion in 2023 and will generate over USD 18.3 billion by 2032. This is due to the superior efficiency and effectiveness in both agricultural and industrial applications.  High-density ammonium nitrate is preferred in agriculture as it increases nitrogen levels, resulting in efficient yields and improved crop yields at lower application rates. Rising application in industrial explosives and blasting agents employed in mining operations, including coal, metal, and non-metal mines will add to the product demand.

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Based on end-user, the ammonium nitrate market from the agriculture segment is expected to witness 3.9% CAGR from 2024 to 2032 due to its crucial role as a high-efficiency nitrogen fertilizer, essential for enhancing crop yields and supporting global food production. Ammonium nitrate is especially valuable for its high nitrogen content, which is important for plant growth as well as its rapid fermentation for providing immediate crop nutrients. The compound also offers compatibility with a variety of soils and climates, making it preferred for farmers worldwide. Government policies and subsidies that encourage coal efficiency will continue to gain acceptance, adding to the segment growth.

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Europe ammonium nitrate industry size was valued at over USD 10.4 billion in 2023 and is expected to reach over USD 14.3 billion by 2032 attributed to the stringent agricultural policies for promoting high-efficiency fertilizers to boost crop productivity. The enhanced regulatory frameworks in the region are encouraging the use of ammonium nitrate due to its effectiveness in improving soil fertility and supporting intensive agricultural practices. Innovations in fertilizers tailored for European soils and climates will drive the product uptake. The rising focus on sustainable agricultural practices for minimizing the environmental impacts will drive the regional market growth.  

Ammonium Nitrate Market Share

Leading ammonium nitrate firms are adopting key strategies, such as mergers and acquisitions to consolidate market share and enhance their product portfolios. These industry players are investing in advanced manufacturing technologies to improve efficiency and reduce environmental impacts along with sustainability. They are also focusing on R&D activities to innovate and advance new high-performance products, such as coated controlled-release ammonium nitrate formulations.

Ammonium Nitrate Market Companies

Major players operating in the ammonium nitrate industry include

• Yara International
• Orica Ltd
• Enaex S.A
• CF Industries Holdings 
• URALCHEM Holding P.L.C.
• Incitec Pivot Limited Inc
• DFPCL
• Neochim Ad
• San Corporation
• Borealis
• Austin Powder International
• EuroChem Group AG
• CSBP Limited
• OSTCHEM Holding Company
• Abu Qir Fertilizers Co
• Fertiberia SA

Ammonium Nitrate Industry News

• In March 2024, Argus introduced the first global assessment for low and zero-carbon calcium ammonium nitrate (CAN), a popular nitrogen-based fertilizer in Europe, reflecting the production costs of CAN using blue or green ammonia for emphasizing sustainability.
• In March 2024, EuroChem's Nevinnomysskiy Azot commenced commissioning works for a new production facility capable of producing over 70,000 tonnes yearly for focusing on water-soluble fertilizers like potassium nitrate to enhance its agricultural technology application.

The ammonium nitrate market includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Tons) from 2021 to 2032, for the following segments

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By Product

• High density
• Low density
• Solution

By End-User

• Agriculture
• Mining & quarrying
• Civil construction
• Others

The above information is provided on a regional and country basis for the following

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa