A report from Global Market Insights Inc. suggests that the overall ammonium nitrate market size would exceed beyond USD 20 billion by 2027.
Ammonium nitrate boasts of vivid applications across industries encompassing fertilizers, civil construction, and mining and quarrying for a plethora of uses.
Modern-day agriculturists face two major issues- how to harvest enough food to feed the meteorically rising population and reduce the environmental damage associated with extensive agriculture.
“The global population is anticipated to exceed 10 billion by 2050, raising the overall food production need by 70% over 2005/07 to 2050.”- An FAO report suggests.
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This has encouraged farmers and agriculture industry leaders to seek the adoption of quality fertilizers to secure the burgeoning food demand, highlighting the importance of ammonium nitrate fertilizers. It is among the most economical, convenient, and potent fertilizers present in the market, supporting farmers in feeding huge masses.
Ammonium nitrate fertilizers are quite effective and known to produce less GHG emissions than other fertilizers. Half of the nitrogen in the compound is quick-release nitrogen, which is available to the plants, while the other half is slow-release nitrogen to deliver an efficient balance in plant nutrition.
Owing to its high crop recovery, ease of use, and suitability for in-season dressing, ammonium nitrate-based products are popularly used in European economies. Several Asian countries are as well considering the expansion of ammonium nitrate plants for fertilizer purposes.
Asia Pacific: a key contributor to ammonium nitrate industry expansion
The Asia Pacific is likely to stand as an eminent revenue ground for the ammonium nitrate market in the years to come. China and India are projected to be some of the leading contributors to the prolific market progression-
Thriving O&G exploration activities and mining industry in China
The Chinese subcontinent is rapidly evolving as one of the leading mining countries in the world, particularly for rare-earth commodities. In 2019, the Chinese economy produced nearly 85% of the world’s rare earth oxides and about 90% of rare-earth metals, permanent magnets, and alloys. In addition, an upsurge in exploration activities in the mining and quarrying and oil and gas sector in the country would further support the demand spurt for ammonium nitrate for reducing explosives.
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Expanding agriculture industry in India
Another regional hotspot, India, is making continuous strides in terms of revenue and sales in the ammonium nitrate industry throughout 2021-2027. Reason? The escalating food grain production and developing agriculture industry in the country.
According to the National Investment Promotion and Facilitation Agency, the total foodgrain production in India from 2020 to 2021 was estimated at a record 308.65 million tons, about 11.15 million tons more than that during the 2019-2020. It is imperative to note that the sector is a primary source of livelihood for approximately 58% of the country’s population.
Impelled by such statistics, the India ammonium nitrate market is slated to grow considerably over the forecast time frame. Smartchem Technologies, an Indian subsidiary of Deepak Fertilizers and Petrochemicals Corporation, in 2021 announced the launch of a USD 283 million technical ammonium nitrate plant in the state of Odisha. The unit will have an annual capacity of 377 kilotons and is scheduled for commissioning by August 2024.
While agriculture and mining are likely to remain the niche verticals for ammonium nitrate market over the foreseeable future, food preservation and use in cold packs is anticipated to emerge as strong applications. The compound is being studied to be used in some of the instant cold packs for storage purposes as its dissolution in water is highly endothermic.
In 2021, a group of researchers at the King Abdullah University of Science and Technology in Saudi Arabia conducted experiments to bring out an innovative cooling system that uses water and ammonium nitrate salt for off-grid cooling systems. It was demonstrated that the water could also be reused for solar energy to avoid water wastage. With advancements like these in line, the global ammonium nitrate industry is set to witness a steady growth over the upcoming years.
About Global Market Insights
Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider, offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy, and biotechnology.