Ammonium Nitrate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Ammonium Nitrate Market Analysis

The ammonium nitrate market is projected to register a CAGR of over 4% during the forecast period.

During Covid-19, the ammonium nitrate market growth was hampered owing to transport restrictions and the scarce availability of raw materials. However, it is projected to grow steadily, owing to increased urbanization activities in 2021. Many countries are investing heavily in developing their architecture, aided by assistance from government agencies as well as private companies.

• Over the short term, the rising demand for ammonium nitrate fuel oil (ANFO) is a major factor driving the market's growth.
• However, the increases in regulations due to the potential for misuse is a key factor anticipated to restrain the growth of the target industry over the forecast period.
• Nevertheless, the increase in the innovation of smart explosives is likely to create lucrative growth opportunities for the global market soon.
• North America dominated the market across the world with the largest amounts of ammonium nitrate consumption from countries, such as the United States and Canada.

Ammonium Nitrate Industry Segments

Ammonium Nitrate is a widely used fertilizer. It is also the main component in many types of mining explosives, where it’s mixed with fuel oil and detonated by an explosive charge. The ammonium nitrate market is segmented by application, end-users, and geography. By application, the market is segmented into fertilizers, explosives, and other applications, By end-users, the market is segmented into agriculture, mining, defense, and others. The report also covers the market size and forecasts for the ammonium nitrate market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo tons).

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Ammonium Nitrate Market Trends

This section covers the major market trends shaping the Ammonium Nitrate Market according to our research experts:

Agriculture Segment Accounts for Major Share of the Ammonium Nitrate Market

• In the agricultural industry, fertilizers are used to enrich the growth of plants. They contain essential nutrients for plants, which provide healthy growth and keep them disease-free. Various types of fertilizers are available in soluble, dry crystalline, and time-release forms. Ammonium nitrate is one such fertilizer used to provide adequate nitrogen levels to plants.
• The ammonium fraction from ammonium nitrate is taken up by roots or gradually converted to nitrate by soil microorganisms. Many vegetable farmers prefer an immediately available nitrate source of plant nutrition and use ammonium nitrate. Animal farmers like it for pasture and hay fertilization since it’s less susceptible to volatilization losses than urea-based fertilizers when left on the soil surface.
• Ammonium nitrate is commonly mixed with other fertilizers, but these mixtures can’t be stored for long periods because of a tendency to absorb moisture from the air.
• The agriculture domain has seen tremendous growth over the past few years. The total value of agricultural production reached 297.5 million tons in 2021 and registered good growth compared to 2020.
• Hence, with the rapidly growing agricultural activities across the world, the demand for solid ammonium nitrate is expected to rapidly increase over the forecast period.
• The 2,700 tons of Ammonium Nitrate blast in Beirut in 2020 though signifies the importance of handling the substance and the need for stricter and well-defined regulations in the industry.

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