Nitric Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Nitric Acid Market is segmented by End-user Industry (Fertilizer, Aerospace, Inks, Pigments, and Dyes, Chemical Manufacturing, Explosives, and Other End-user Industries) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for the nitric acid market in revenue (USD million) for all the above segments.

Market Snapshot

Nitric acid market Overview
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >5 %

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Market Overview

The global nitric acid market was valued at over USD 24 billion in 2021, and the market is projected to register a CAGR of greater than 5% during the forecast period (2022-2027).

Due to the COVID-19 outbreak, nationwide lockdown around the globe, disruption in manufacturing activities and supply chains, production halts have negatively impacted the market in 2020. However, the conditions started recovering in 2021, thereby restoring the growth trajectory of the market studied during the forecast period.

  • Over the short term, the increasing demand for nitric acid from the fertilizer industry is expected to drive the market's growth.
  • On the flipside, health-related hazards caused by nitric acid islikely to hinder the growth of the market.
  • Fertilizer is the dominant segment, in terms of demand, over the forecast period.
  • The Asia-Pacific region is expected to dominate the market, globally, with the largest consumption from countries, such as China, Japan, and India.

Scope of the Report

Nitric acid is a colorless, highly corrosive mineral acid with the chemical formula HNO3. It can be produced through a two-step process including oxidation of ammonia and then after, absorption of produced nitrogen oxides. Nitric acid finds its major application in the fertilizer industry. The nitric acid market is segmented by end-user industry and geography. By end-user industry, the market is segmented into fertilizer, aerospace, inks, pigments, and dyes, chemical manufacturing, explosives, and other end-user industries. The report also covers the market size and forecasts for the nitric acid market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD million).

By End-user Industry
Fertilizers
Aerospace
Inks, Pigments, and Dyes
Chemical Manufacturing
Explosives
Other End-user Industries (pharmaceuticals, food processing)
By Geography
Asia Pacific
China
India
Japan
South Korea
Rest of Asia Pacific
North America
United States
Mexico
Canada
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand from Fertilizer Industry Segment

  • Over 80% of nitric acid is used in manufacturing fertilizers. Fertilizers, like ammonium nitrate and calcium ammonium nitrate, are produced from nitric acid. To meeting the needs of the increasing global food demand, more arable land is required for cultivation. Hence, fertilizer demand is increasing, with the global fertilizer industry expected to witness a CAGR of about 5% during the forecast period.
  • Ammonium nitrate is a popular, efficient nitrogen-based fertilizer with around 35% (by mass) of total nitrogen content. Moreover, Calcium Ammonium Nitrate (CAN) fertilizer has a nitrogen content of ~25-28%. CAN fertilizer is used to supply nitrogen to advance the growth of any plant.
  • Calcium ammonium nitrate is manufactured by mixing molten ammonium nitrate and calcium carbonate at a temperature of around 170°C. It is hygroscopic in nature and can absorb moisture from the environment. Thus, calcium ammonium nitrate can be used in soil without sufficient water.
  • According to the US Food and Agriculture Organization (FAO), the global demand for fertilizers is expected to reach 197.93 million ton and 200.92 million ton in 2021 and 2022, respectively, with nitrogen-based fertilizers registering Y-o-Y growth of 1.4% in 2021.
  • According to the FERTILIZERS EUROPE, the annual nitrogen fertilizer consumption in the European Union is expected to reach 10.6 million tons by the 2029/2030 season, compared to the current average consumption of 11.2 million tons. After several years of recovery, annual fertilizer consumption over the next ten years is foreseen to decrease for the fourth consecutive year, thereby restrict the market growth.
  • Thus, the above-mentined factors are likely to affect the nitric acid market for fertilizers application in the forecast period.
Nitric Acid  Market - Segmentation

Asia-Pacific to Dominate the Market

  • Asia-Pacific is expected to be the dominant market in nitric acid production, owing to the largest production and consumption of fertilizer in Asia-Pacific countries, including China, India, South Korea, etc.
  • According to ITC trademap, South Korea is the largest exporter of nitric acid with exported quantity of 534.2 thousand tons in 2021, whereas China is the second largest importer in 2020 with imported quantity of 152.8 thoudsand tons for various end user industries like fertilizers, inks, pigments and dyes, and the chemical manufacturing industries.
  • In India, according to the Fertilizer Association of India, the production of total fertilizer products stood at 43.49 million MT during 2020-21 showed an increase of 1.7% over 2019-20. While production of Nitrogen based fertiizers stood at 13.74 million MT during 2020-21 recorded a marginal increase of 0.2% over 2019-2020.
  • According to the National Bureau of Statistics, in 2021, the grain production totaled 682.9 million tons , up from 650 million tons last year, registering an increase of 2%. Corn acreage rose 5 per cent from last year and output rose 4.6 per cent. The growing use of fertilizers to increase productivity to keep up with the declining cultivated area is expected to drive the market in the country.
  • Nitric acid is used as a raw material for inks, pigments, and dyes, which finds its major application in the textile industry. The textile industry of China grew steadily during the first nine months of 2021 with collectively profits worth 171.1 billion yuan (approximately USD 26.80 billion), a 31.7 per cent increase year-on-year (YoY), according to the Ministry of Industry and Information Technology (MIIT).
  • Nitric acid is used to produce explosives such as trinitrotoluene (TNT), nitrocellulose, nitroglycerin, and others, which are being used in mining applications. for refernece, on March 2021, Coal India Ltd (CIL) approved 32 new coal mining projects, of which 24 are the expansion of the existing projects, and the remaining are greenfield. The estimated cost of the project is INR 47,000 crore thereby augmenting the market studied.
  • Therefore, the factors mentioned above are expected to show a significant impact on the market in the coming years.
Nitric Acid Market - Regional Trend

Competitive Landscape

The global nitric acid market is fragmented in nature. The major companies of the market studied (not in any particular order) include BASF SE, Nutrien Ltd, Yara, LSB INDUSTRIES and Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL), among others.

Recent Developments

  • In April 2021, Hanwha Corporation announced its plan to build a nitric acid production plant with an annual production capacity of 400 kilo tons by 2024 in Yeosu Industrial Complex located in south of Seoul, South Korea, with an investment of KRW 190 billion (~USD 170 million). Thereby, the company’s annual production capacity of nitric acid will increase from current value of 120 kilotons to 520 kilo tons, by 2024.
  • In March 2021, HUCHEMS has announced that the company completed the layout design and the selection of technology partners for its new nitric plant to be built by 2024 in Yeosu city, Seoul of South Korea. Moreover, the company has invested KRW 150 billion (~USD 132 million) in building the new nitric acid plant with an annual production capacity of 0.4 million tons, which may increase its total nitric acid production capacity to 1.5 million tons after completion.

Table of Contents

  1. 1. Introduction

    1. 1.1 Study Assumptions

    2. 1.2 Scope of Study

  2. 2. Research Methodology

  3. 3. Executive Summary

  4. 4. Market Dynamics

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand from Fertilizers

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Health Hazards Caused by Nitric Acid

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Intensity of Competitive RiIvalry

    5. 4.5 Regulatory Policy Analysis

    6. 4.6 Trade Analysis

  5. 5. Market Segmentation

    1. 5.1 By End-user Industry

      1. 5.1.1 Fertilizers

      2. 5.1.2 Aerospace

      3. 5.1.3 Inks, Pigments, and Dyes

      4. 5.1.4 Chemical Manufacturing

      5. 5.1.5 Explosives

      6. 5.1.6 Other End-user Industries (pharmaceuticals, food processing)

    2. 5.2 By Geography

      1. 5.2.1 Asia Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Mexico

        3. 5.2.2.3 Canada

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 France

        4. 5.2.3.4 Italy

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 United Arab Emirates

        3. 5.2.5.3 Rest of Middle-East and Africa

  6. 6. Competitive Landscape

    1. 6.1 Merger and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 BASF SE

      2. 6.4.2 CF Fertilisers UK

      3. 6.4.3 Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL)

      4. 6.4.4 Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC)

      5. 6.4.5 INEOS

      6. 6.4.6 Hanwha Corporation

      7. 6.4.7 HUCHEMS

      8. 6.4.8 LSB INDUSTRIES

      9. 6.4.9 MAXAMCORP HOLDING SL

      10. 6.4.10 Mitsubishi Chemical Corporation

      11. 6.4.11 Nutrien Ltd

      12. 6.4.12 Sasol Ltd

      13. 6.4.13 Sinopec Nanjing Chemical Industries Co. Ltd (China Petrochemical Corporation)

      14. 6.4.14 Sumitomo Chemical Co. Ltd

      15. 6.4.15 Yara

    5. *List Not Exhaustive
  7. 7. Market Opportunities and Future Trends

    1. 7.1 Technological Development in Nitric Acid Manufacturing and Recent Government Incentives

**Subject to Availability

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Frequently Asked Questions

The Nitric Acid Market market is studied from 2017 - 2027.

The Nitric Acid Market is growing at a CAGR of >5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

BASF SE, Nutrien Ltd, Yara, LSB INDUSTRIES, Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) are the major companies operating in Nitric Acid Market.

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