Ammonia Market Size
|Base Year For Estimation||2022|
|Fastest Growing Market||Middle-East and Africa|
|Largest Market||Asia Pacific|
*Disclaimer: Major Players sorted in no particular order
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Ammonia Market Analysis
The Ammonia Market size is expected to grow from 184.96 million tons in 2023 to 202.98 million tons by 2028, at a CAGR of 1.88% during the forecast period.
During the COVID-19 pandemic, there was a negative impact on the ammonia market globally as agriculture, textile, mining, and other end-user industries were significantly affected. However, growth in the pharmaceutical segment is improving in the industry, which would assist the market development. Currently, the ammonia market has recovered from the pandemic and is growing significantly.
- Over the short term, abundant use in the fertilizer industry and ammonia's increasing usage for the production of explosives are projected to fuel market growth throughout the forecast period.
- However, the hazardous effects of ammonia in its concentrated form are likely to hinder the growth of the market.
- Nevertheless, the use of ammonia as a refrigerant is likely to act as an opportunity for the market during the forecast period.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China and India.
Ammonia Market Trends
Agriculture Segment to Dominate the Market
- According to the World Economic Forum, ammonia plays a vital role in agriculture and the global food supply chain. Ammonia has also been recognized as a future energy source for clean hydrogen.
- Ammonia binds nitrogen from the atmosphere and produces the primary crop nutrients using the absorbed nitrogen, which is then used to produce nitrogen fertilizers. As an essential raw material for fertilizer production, ammonia improves crop health and, in the long run, maintains and even increases soil fertility
- According to the United Nations, the world population continues to grow and will reach 9 billion by 2050. By then, on the same land area, the demand for food production is expected to increase by 60%. Achieving food security requires the availability of sufficient, nutritious food at affordable prices. This can be achieved through the use of optimized fertilizers.
- The United States is among the top importers of the three major fertilizer ingredients. Major producers of the main fertilizer components include China, Russia, Canada, and Morocco. In March 2023, the US Department of Agriculture (USDA) announced to give the first two rounds of a new grant program to expand innovative production for domestic fertilizer production capacity in 47 states and two territories. The USDA further announced that it received USD 3 billion in applications from more than 350 independent companies, thus highlighting significant recovery in the country's fertilizer industry.
- Furthermore, the USDA also announced its first USD 29 million grant offering in the first round. The subsidy will help independent companies increase their production of American-made fertilizers and encourage healthy competition.
- In March 2023, CBH Group announced the opening of its new Kwinana Fertilizer Plant, which will benefit grain farmers in Western Australia significantly. The project marks the start of CBH's liquid fertilizer business, increasing its granular fertilizer production capacity by 15,000. The new facility has 32,000 tons of urea ammonium nitrate (UAN) storage capacity and 55,000 tons of granular bulk fertilizer.
- All the aforementioned factors are expected to drive the agricultural segment, enhancing the ammonia demand during the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region domionates the ammonia market owing to large consumption from the countries such as China, India, japan, and others.
- China is the largest producer and consumer of ammonia in the world. According to US Geological Survey (USGS), the country produced 42 million metric tons in 2022. The demand for ammonia in the country is rising due to increasing applications in the agriculture industry, such as fertilizers, textiles, pharmaceuticals, and mining.
- China leads the world in nitrogen (N) fertilizer consumption. Although using nitrogen fertilizers has contributed significantly to food production in China, the country continues to focus on securing fertilizer supplies and stabilizing prices once the spring farming season of 2023 begins. As a result, the National Development and Reform Commission (NDRC) and 13 other national ministries have issued notices to secure fertilizer supplies and stabilize prices.
- The textile industry also benefits from the capabilities of ammonia. The use of liquid ammonia in tanning is widespread, as well as the use of dyes in textile dyeing. Liquid ammonia plays an important role in the development of synthetic fabrics. The solution of ammonia enables fabric coloring to achieve almost any color.
- Japan has a long tradition in textile production and is one of the largest manufacturers of technical textiles. In order to remain competitive in a global market flooded with cheap textiles from China and other emerging countries, Japan's textile industry is transforming into an industry that specializes in technological and smart textiles. Innovations such as synthetic spider silk and wearable health monitors are among the efforts to differentiate Japan's textile industry.
- According to the Ministry of Finance, the imports of textile yarn and fabric were valued at JPY 1,261,222 million in January-December 2022, which was 25.7% higher than the same period of last year.
- According to the Indian Brand Equity Foundation, India’s textile and apparel exports (including handicrafts) from April 2023 to October 2023 stood at USD 21.15 billion. The industry is expected to reach USD 190 billion by 2025-26.
- Thus, all the above-mentioned factors are likely to provide the increasing demand for the ammonia market during the forecast period.
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Ammonia Industry Overview
The ammonia market is fragmented, with the inclusion of many international and local players in different regions. The major manufacturers in the market (in no particular order) include CF Industries Holdings Inc., Yara, Nutrien Ltd, OCI, and Qatar Fertilizer Company, followed by other prominent players.
Ammonia Market Leaders
CF Industries Holdings Inc.
QATAR FERTILISER COMPANY
*Disclaimer: Major Players sorted in no particular order
Ammonia Market News
- Jun 2023: BASF SE and Yara Clean Ammonia announced their collaboration for a joint study in order to develop and construct a world-scale low-carbon blue ammonia production facility with a total capacity of 1.2 to 1.4 million tons per annum with carbon capture in the US Gulf Coast region. Through this collaboration, the companies will serve the growing global demand for low-carbon ammonia.
- May 2023: SABIC Agri-Nutrients Company and IFFCO announced their collaboration to bring 5,000 metric tons of certified low-carbon ammonia from Saudi Arabia to IFFCO for fertilizer production. This collaboration will enhance the company’s business in the studied market.
- Mar 2023: CF Industries Holdings Inc. signed a definitive purchase agreement for the purchase of the Waggaman ammonia production facility from Incitec Pivot Limited, which has an annual capacity of 880,000 tons annually. Under this agreement, CF Industries will be able to provide 200,000 tons of ammonia annually for up to 25 years to its Dyno Nobel subsidiary.
- Oct 2022: Nutrien Ltd planned a new “Clean Ammonia” plant and selected thyssenkrupp Uhde as its technology provider and partner. The new plant will have a capacity of 3,500 metric tons/day and be built at Nutrien’s Geismar, Louisiana, US facility. The construction of the plant is anticipated to start by the end of 2023.
Ammonia Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Abundant Use In the Fertilizer Industry
4.1.2 Increasing Usage to Produce Explosives
4.2.1 Hazardous Effects In Its Concentrated Form
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.2 End-user Industry
5.2.6 Other End-user Industries
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.3.2 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Casale SA
6.4.3 CF Industries Holdings, Inc.
6.4.4 Chambal Fertilisers and Chemicals Ltd
6.4.6 EuroChem Group
6.4.7 Group DF (OSTCHEM)
6.4.9 Koch Fertilizer, LLC.
6.4.10 Nutrien Ltd
6.4.12 PJSC Togliattiazot
6.4.13 PT Pupuk Sriwidjaja Palembang (Pusri)
6.4.14 QATAR fertilizer COMPANY
6.4.15 Rashtriya Chemicals and Fertilizers Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Use of Ammonia as a Refrigerant
7.2 Growing Adoption of Green Ammonia
Ammonia Market Research FAQs
What is the study period of this market?
The Ammonia Market is studied from 2018 - 2028.
What is the growth rate of Ammonia Market?
The Ammonia Market is growing at a CAGR of 1.88% over the next 5 years.
Which region has highest growth rate in Ammonia Market?
Middle-East and Africa is growing at the highest CAGR over 2018-2028.
Which region has largest share in Ammonia Market?
Asia Pacific holds highest share in 2022.
Who are the key players in Ammonia Market?
CF Industries Holdings Inc., Yara, Nutrien Ltd, OCI, QATAR FERTILISER COMPANY are the major companies operating in Ammonia Market.
Ammonia Industry Report
Statistics for the 2023 Ammonia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ammonia analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.