Asia-Pacific Ammonium Nitrate Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.14 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Ammonium Nitrate Market Analysis
The Asia-Pacific ammonium nitrate market is estimated to reach 13.81 million tons by the end of this year, and it is projected to reach 15.35 million tons in the next five years, registering a CAGR of 2.14% during the forecast period.
The COVID-19 pandemic affected several industries negatively. The end-user industries, including agriculture, mining, and others, were also affected due to the COVID-19 outbreak since the activities in the industries were on a halt in most countries in the Asia-Pacific region. However, the conditions started recovering in 2021, restoring the market's growth trajectory.
- Over the short run, the increasing demand from the fertilizer industry and the increasing demand for ammonium nitrate-fuel oil are major factors driving the growth of the market studied.
- However, the stringent regulations related to the production, storage, and handling of ammonium nitrate may act as a restraint in the growth of the studied market.
- Nevertheless, the development of smart explosives is likely to create lucrative growth opportunities for the Asia-Pacific market.
- China represents the largest market, and it is expected to be the fastest-growing market over the forecast period due to the increasing consumption from the mining and agricultural sector.
Asia-Pacific Ammonium Nitrate Market Trends
Agricultural Sector to Dominate the Market
- Ammonium nitrate is generally used as a fertilizer. The reason why it is very popular in agriculture is because of the high nitrogen amount in this compound.
- Nitrogen is a very important plant nutrient that assists in the growth and metabolic processes that the plant undergoes. Agriculturists prefer using ammonium nitrate since it is a cheap alternative to expensive fertilizers.
- The rapid population growth in India stands as a primary factor, along with supporting domestic exports, which has made it necessary to increase the agricultural yield in the country.
- India is one of the major players in the agriculture sector worldwide, and it is the primary source of livelihood for ~55% of India's population. As most rural households mainly depend on farming for their livelihood and the country's agricultural land suffers from varied degrees of degradation and erosion, many farmers use chemical fertilizers such as nitrogen fertilizers to improve plant nutrients and crop yields, therefore, boosting their earnings.
- As per First Advance Estimates, which was released for Union Finance Ministry and other departments' reference, the total foodgrain production (Kharif crops) in the country is estimated at 149.92 million tonnes in FY2023.
- According to Inc42, the Indian agricultural sector is expected to reach USD 24 billion by 2025.
- Additionally, China, a big agricultural country endowed with rich agricultural resources, has a long history of farming and the tradition of intensive cultivation as well as a huge rural population.
- According to the National Bureau of Statistics, China's total grain output set a new record in 2022, reaching 687 million tonnes, an increase of 0.5% over the previous year, and remained above 650 million tonnes for eight consecutive years.
- Furthermore, China's grain output is expected to reach 694 million tonnes in 2023, up 1.1% from the previous year.
- Therefore, the use of ammonium nitrate fertilizers in increasing agricultural activities in the Asia-Pacific region is likely to impact the market in the forecast period.
China to Dominate the Market
- China is expected to be the largest and fastest-growing market for ammonium nitrate during the forecast period. Factors such as the growing mining sector and agricultural activities are likely to drive market growth.
- The use of nitrogen fertilizers has played a significant role in maintaining food security in China by allowing large increases in both grain and non-grain yields.
- According to the Ministry of Commerce, China indicates an increase in online retail sales of agricultural products in 2022, wherein online sales of China's farm produce rose 9.2% year-on-year to CNY 531.38 billion (USD 78.58 billion).
- Furthermore, in 2022, China's online retail sales in rural areas reached CNY 2.17 trillion (USD 301.96 billion), up 3.6% year-on-year. While the agriculture sector in the country aims at increasing agricultural output and online sales in the coming years, this is also likely to hold a positive influence on the domestic demand for ammonium nitrate from the sector.
- Additionally, the United States Geological Survey estimates that China accounted for 40-50% of global demand for minerals over the past three decades. China has over 1,500 major mining operations, and approximately 75% of the operations involve underground mining activities. Thus, ammonium nitrate explosives are highly demanded to assist underground activities like creating tunnels, slopes, etc., in the country.
- China's mining industry is enormous. It is the world's leading producer (often by a large margin) of more than 20 metals, including aluminum, cement, coal, gold, graphite, iron and steel, lead, magnesium, rare earth, and zinc.
- China is the third-largest producer of iron ore in the world. According to the United States Geological Survey, in 2022, an estimated 380 million metric tons of iron ore was extracted in China, which was a slight decline from the previous year, which was recorded to be 394 million metric tons.
- Overall, the extended use of ammonium nitrate in the agriculture and mining sector is likely to influence the demand for the ammonium nitrate market in the country over the coming years.
Asia-Pacific Ammonium Nitrate Industry Overview
The Asia-Pacific ammonium nitrate market is fragmented in nature. The major players (not in any particular order) include YARA, Orica Limited, San Corporation, Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL), and Sumitomo Chemical Co. Ltd.
Asia-Pacific Ammonium Nitrate Market Leaders
YARA
Orica Limited
San Corporation
Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL)
Sumitomo Chemical Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Ammonium Nitrate Market News
Aug 2022: Deepak Fertilisers & Petrochemicals Corp. Ltd (DFPCL) announced to start of operation in its 377 million tonnes per year technical ammonium nitrate (TAN) project line in the next two years. The operations at the TAN line at the Gopalpur Industrial Park in eastern Odisha state are expected to begin operations by August 2024 and will become the key supply source for TAN in east India in the mining sector.
Apr 2022: Enaex plans to invest USD 49 million for the construction of an ammonia production facility. The company's liquid ammonia would be shipped to the Enaex plant in the city of Mejillones, Chile, where it will be used to produce ammonium nitrate. This expansion will help the company have strong growth in the Asia-Pacific market through its product portfolio.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 DRIVERS
4.1.1 Increasing Demand from the Fertilizer Industry
4.1.2 Increasing Demand for Ammonium Nitrate-Fuel Oil (ANFO)
4.1.3 Other Drivers
4.2 Restraints
4.2.1 Stringent Regulations related to Production, Storage and Handling of Ammonium Nitrate
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)
5.1 Application
5.1.1 Fertilizers
5.1.2 Explosives
5.1.3 Other Applications
5.2 End-User Industry
5.2.1 Agriculture
5.2.2 Mining
5.2.3 Defense
5.2.4 Other End User Industry
5.3 Geography
5.3.1 China
5.3.2 India
5.3.3 Japan
5.3.4 South Korea
5.3.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Austin Powder
6.4.2 CSBP
6.4.3 Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL)
6.4.4 ENAEX
6.4.5 Fertiberia, S.A.
6.4.6 Incitec Pivot limited
6.4.7 Orica Limited
6.4.8 OSTCHEM
6.4.9 San Corporation
6.4.10 Sumitomo Chemical Co., Ltd.
6.4.11 Yara
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Development of Smart Explosives
7.2 Other Opportunities
Asia-Pacific Ammonium Nitrate Industry Segmentation
Ammonium nitrate is a widely used chemical compound with various important applications. As a fertilizer in the agricultural industry, it helps feed billions. It is also the main component in many types of mining explosives, where it is mixed with fuel oil and detonated by an explosive charge.
The Asia-Pacific Ammonium Nitrate Market is segmented by Application (Fertilizers, Explosives, and Other Applications), End-user Industry (Agriculture, Mining, Defense, and Other End-user Industries), and Geography (China, India, Japan, South Korea, and the Rest of Asia-Pacific). Each segment's market sizing and forecasts are based on volume (Million tons).
| Application | |
| Fertilizers | |
| Explosives | |
| Other Applications |
| End-User Industry | |
| Agriculture | |
| Mining | |
| Defense | |
| Other End User Industry |
| Geography | |
| China | |
| India | |
| Japan | |
| South Korea | |
| Rest of Asia-Pacific |
Frequently Asked Questions
What is the current Asia-Pacific Ammonium Nitrate Market size?
The Asia-Pacific Ammonium Nitrate Market is projected to register a CAGR of 2.14% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific Ammonium Nitrate Market?
YARA, Orica Limited, San Corporation, Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) and Sumitomo Chemical Co., Ltd. are the major companies operating in the Asia-Pacific Ammonium Nitrate Market.
What years does this Asia-Pacific Ammonium Nitrate Market cover?
The report covers the Asia-Pacific Ammonium Nitrate Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Ammonium Nitrate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Ammonium Nitrate Industry Report
Statistics for the 2024 Asia-Pacific Ammonium Nitrate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Ammonium Nitrate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
