A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global ammonium nitrate market reached USD 14.57 billion in 2020. The market is further expected to reach USD 22.34 billion by 2027 and is projected to grow at a CAGR of 6.7% during 2021-2027 (forecast period). The growth of the global ammonium nitrate market has been positively impacted by the growing agricultural demand around the world. Ammonium nitrate is an important component which is used in fertilizers for enhancing the production level of the agricultural produce. Ammonium nitrate helps in augmenting the production supply of the food grains for meeting the desired demand coming from different countries around the world. Additionally, ammonium nitrate is an agent that is used in various military applications for the production of explosives and as a component in various ammunition.
Rising population and income levels has resulted in rising demand for ammonium nitrate
Over the last few years, the world's population has exploded, with low- and middle-income countries dominating the landscape. The demand for agricultural products rises in lockstep with the growth of the population. Since ammonium nitrate is used in fertilizers to increase the production of various agricultural products and food grains, the global ammonium nitrate demand in these regions has been witnessing a significant increase. Additionally, the rising female labor participation rates in the developed regions have contributed to rising food expenditures, thereby positively impacting the agriculture sector. As a result, the demand in these regions has also been met by enhancing the production levels by leveraging ammonium nitrate fertilizers.
Rising defense expenditure around the world has resulted in more demand for ammonium nitrate
The rising geopolitical tensions with China have resulted in increased defense spending by major economies such as the United States and India, which has boosted demand for ammonium nitrate. Ammonium nitrate is a key ingredient that is used as a raw material in a variety of explosives. Since the demand for ammunition and explosives is directly proportional to a country's defense spending, the global ammonium nitrate market has been showing signs of expansion across regions.
Solid form segment occupies the largest market share in the product type category
Ammonium nitrate is available in the market in two forms—solid ammonium nitrate as well as liquid ammonium nitrate. The solid form held the largest share in the global market in 2020. It is expected to maintain its market dominance during the forecast period as well. The solid form of ammonium nitrate is made up of two components with varying densities with the higher density components finding use in a variety of industries, but mainly in military and demolition operations.
Fertilizers hold the largest share in the application segment
Based on the applications, the global ammonium nitrate market is bifurcated into fertilizers, explosive, food preservation, and others. The fertilizers segment accounted for the largest share in the market and held over XX% of the market share in 2020, and is expected to maintain its dominance in the upcoming years as well due to the growing business investments in the agricultural sector around the world. Ammonium nitrate is a raw material used in the production of fertilizers, which aids in the improvement of agricultural output. Fertilizers, in the form of agricultural imports and exports, have been meeting the demand for growing populations all over the world. These fertilizers not only increase agricultural productivity, but they also enhance soil texture, recycle nitrogen, and provide all necessary components for plants to regain life. The increasing demand for fertilizers is playing a key role in driving the growth of the global ammonium nitrate market.
Sample Copy of the Report :https://www.blueweaveconsulting.com/ammonium-nitrate-market-report/report-sample
Global Ammonium Nitrate Market: Regional Insights
Based on region, the global ammonium nitrate market has been categorized into North America, Europe, the Asia-Pacific, the Middle-East & Africa, and Latin America. The Asia-Pacific region held the largest share in in 2020 and grew at a CAGR of 7% during the historical period. The subcontinent of India and China has the most people in the world, resulting in a greater demand for agricultural products than any other country. As a result, these countries have contributed significantly to the ammonium nitrate market growth. Additionally, China and India are known for agricultural production and exports of granaries around the world, which make them more important than other regions in the fertilizers’ usage.
On the other hand, North America is expected to hold the second-largest share in the global ammonium nitrate market during the forecast period. The surge in defense investments to overcome the military and geopolitical problems with China is expected to enhance the demand for explosives in the region.
COVID Impact Analysis
The COVID-19 pandemic has had a negative impact on the overall ammonium nitrate market. However, as vaccination levels rise worldwide and governments around the world easing lockdown restrictions, the global ammonium nitrate market is steadily gaining control and witnessing increasing demand from various sectors. Moreover, consistent government initiatives are also helping the market grow in the post-COVID era. For example, the new U.S. government has been allocating good amount of funds in the agricultural sector of the Americas.
Additionally, the European regions emphasis on the “Circular Economy” is also spreading its presence in the agricultural sector. However, as a result of these environmental policies, the market for ammonium nitrate as an inorganic fertilizer is projected to decline in these developed regions. However, because of growing population levels, low and middle-income countries such as India, China, and Sub-Saharan Africa are projected to have a high demand for ammonium nitrate after the pandemic.
About Us:
Blueweave Consulting offers a one-stop solution for your market intelligence needs for any service or product. You get well-researched comprehensive reports based on qualitative and quantitative data to put your business plan into action. Your well-informed and timely decisions using our reports avert situations of excessive risks and help you grow your business with optimum risk-return trade-off.