Ammonia Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Ammonia Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The ammonia market is anticipated to register a CAGR of greater than 2% during the forecast period.

During the COVID-19 pandemic, there has been 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, growing demand in the agriculture 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, often known as NH3, is a highly effective and frequently utilized nitrogen source for plant development. Ammonia's very straightforward application and abundant availability have resulted in its expanded usage as a fertilizer. Ammonia is a fundamental component of ammonium nitrate fertilizer, which produces nitrogen, a vital ingredient for growing plants such as farm crops and lawns. It may also be turned into a range of typical N fertilizers.
• According to United States Geological Survey, ammonia production has been rather steady in recent years. Global ammonia output has reached 150 million metric tons in 2021. East Asia produced the most ammonia, with around 64.6 million metric tons produced. China alone generated around 39 million metric tons of ammonia in 2021, placing it first in the world's ranking of ammonia-producing countries.
• Agriculture dominates the global ammonia market, with an estimated market share of more than 80%. Ammonia is largely used in fertilizers and has consistently expanded in use over the years, accelerating its use in the agricultural sector during the forecast period.
• Fertilizers are plant nutrients that are necessary for agricultural development. With agricultural production increasing over time, the fertilizer industry is likely to develop as well. Consumption of meat, dairy products, fish, sweets, fruits, and vegetables has increased faster than consumption of grains.
• Urea is a dry nitrogen substance that is created by combining ammonia and carbon dioxide. It has the greatest nitrogen content of any frequently used dry fertilizer. In recent years, it has been quickly replacing ammonium nitrate.
• According to the National Bureau of Statistics of China, the gross production value of agricultural industries in China amounted to around CNY 14.7 trillion (USD 2.1 trillion) in 2021, compared to CNY 13.8 trillion (USD 1.9 trillion) in 2020.
• According to the Directorate of Economics and Statistics (DES) India, in the fiscal year 2021, the index number of agricultural output for food grains in India was about 141, up from approximately 139.8 in the previous fiscal year. Rice, wheat, maize, and pulses are the principal food grains produced in the nation.
• According to the United State Department of Agriculture, the value of agricultural exports to Saudi Arabia stood at about USD 1.3 billion in 2021, compared to USD 1.2 billion in 2020.
• All the aforementioned factors are expected to drive the agricultural segment, enhancing the ammonia demand during the forecast period.

• Asia-Pacific holds a prominent share of the ammonia market in terms of market share and market revenue. The region is set to continue to flourish in its dominance over the forecast period.
• China, accounts for approximately 7% of the overall agricultural acreage globally, thus feeding 22% of the world population. Hence, the demand for ammonia, which is used as a fertilizer, is rapidly increasing due to the large-scale agricultural activities in the country.
• According to the General Administration of Customs of the People's Republic of China, imports of agricultural products in China increased by 28.6% in 2021, totaling around USD 84.4 billion. Over the previous 15 years, agricultural imports to China have grown at a faster rate than exports.
• In India, for the year 2020-21, key crops India managed a record output of 303.34 million tons of food grains, 5.84 million tonnes more than the production of foodgrains attained in 2019-20.
• India plans to set up a fund of nearly INR 1 lakh crore (USD 12.11 billion) to provide a boost to companies to manufacture pharmaceutical ingredients domestically by 2023.
• According to the Ministry of Agriculture, Forestry and Fisheries (MAFF) and Statistics Bureau of Japan, the import value of agricultural, forestry, and fishery commodities to Japan amounted to around JPY 10 trillion (USD 75.57 million) in 2021, compared to JPY 8.9 trillion (USD 67.26 million) in 2020.
• The Association of Southeast Asian Nations (ASEAN) includes Thailand, Indonesia, Vietnam, the Philippines, Malaysia, Singapore, Myanmar, Cambodia, Laos, and Brunei. The macroeconomic condition of the Association of Southeast Asian Countries (ASEAN) seems to project strong growth in the coming years.
• Thus, all the above-mentioned factors are likely to provide the increasing demand for the ammonia market during the forecast period.

The ammonia market is fragmented, with the inclusion of 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 Nitrogen, and Ostchem (Group DF), followed by other prominent players.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support