AMMONIUM CARBONATE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Ammonium Carbonate Market Size and Trends

The ammonium carbonate market is estimated to be valued at USD 650.6 Mn in 2024 and is expected to reach USD 927.8 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period. Ammonium carbonate is used in various industries such as pharmaceuticals, leather tanning, and water purification. It is used as a neutralizing agent and cleaning agent in personal care products which is further expected to boost the market growth. The strengthening personal care industry especially in emerging economies of Asia Pacific and Latin America is likely to provide numerous opportunities for ammonium carbonate manufacturers over the coming years.

Use in Baking Powder Production

Ammonium carbonate plays a crucial role in the production of baking powder. It is a key ingredient used extensively in formulations of double-acting baking powders. When baking powder is mixed with other wet ingredients during baking, the ammonium carbonate present in it reacts with the acid components and releases carbon dioxide gas. This allows baked goods like cakes and cookies to rise and attain their light and fluffy texture.  The demand for baking powder has been growing steadily over the years, in line with increasing consumption of packaged bakery products worldwide. People are becoming more health-conscious and opting for baked goods instead of fried alternatives. The fast-paced lifestyle has also fueled the demand for convenience foods where baking powder plays a vital role. The expansion of retail chains and improving cold chain logistics in developing nations has further boosted the availability of packaged bakery items.

Ammonium carbonate manufacturers have calibrated their production capacities to match the requirements of leading baking powder formulators. Strict quality protocols are followed to ensure the consistency in chemical composition and reactivity. Many players have targeted the developing Asian markets by setting up local production bases or through tie-ups with domestic partners. This helps them gain an edge over other imports by offering shorter lead times and competitive landed costs. Overall, the extensive reliance of the baking powder industry on ammonium carbonate is expected to drive steady demand for this chemical in the coming years.

Market Concentration and Competitive Landscape

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Requirement in Refrigerant Industry

Another major end-use driver for the ammonium carbonate market is its application as a feedstock in the production of synthetic refrigerants. One such refrigerant is R-764, which is manufactured through a reaction between ammonium carbonate and hydrogen fluoride. R-764, also known as tetrafluoromethane, serves as an efficient and ozone-friendly alternative to chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) which are being phased out globally. With rising awareness about environmental protection, there is a massive shift occurring from old-generation refrigerants to more sustainable newer alternatives like R-764 across various industries that employ refrigeration systems extensively. Applications include commercial and automotive air-conditioning, industrial process cooling, food cold chain, and others.

Key Takeaways from Analyst:

The ammonium carbonate market is poised to experience moderate growth over the coming years. This is mainly due to the increasing use of ammonium carbonate as a leavening agent in bakery products across developing nations.

Growing adoption in fire extinguishers owing to its toxicity-free nature will also propel the market forward. However, availability of substitute products such as sodium bicarbonate may challenge the market to some extent.

Stringent regulations pertaining to aqua ammonia emissions during the production process pose another constraint.

Rapid economic development and rising disposable incomes in the region have boosted demand from the food manufacturing and metallurgy industries. Within Asia Pacific, developing countries such as India and China will showcase highest consumption rates owing to their large population base and increasing presence of end use sectors. North America and Europe will remain important regional markets driven by stringent industrial safety standards that promote ammonium carbonate use in fire extinguishers.

Market Challenges: Stringent regulations regarding emission and disposal

Stringent regulations regarding emission and disposal standards are posing significant challenges for the growth of the global ammonium carbonate market. Various countries and multilateral bodies have implemented strict environmental protection laws to curb industrial pollution and transition towards more sustainable practices. The chemical industry being a major source of emissions has faced the brunt of these regulations. Ammonium carbonate being an intermediate chemical widely used in fertilizers, plastic manufacturing and other industrial applications has also come under increased regulatory scrutiny. The manufacturing processes for ammonium carbonate involve emitting carbon dioxide and ammonia into the atmosphere. However, as per the Paris Agreement guidelines, prominent economies are endeavoring to reduce their carbon emissions substantially in the coming years to keep global warming under safe levels.

Market Opportunities: Innovation of new applications in emerging industries

The global ammonium carbonate market is currently experiencing a phase of innovation and growth of new applications across emerging industries. Ammonium carbonate has traditionally been used as an acid neutralizing agent, leavening agent and food additive. However, in the recent past, research institutions and technology companies have been exploring new and innovative ways of utilizing ammonium carbonate in areas such as waste treatment, energy storage and agriculture. For example, studies conducted by government research bodies in Europe and the USA have shown that ammonium carbonate can be effectively used as an absorbent in carbon capture technology to trap emissions from coal-fired power plants and industrial facilities. This emerging application in the green technology sector has a huge market potential.

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Insights by Type: Rising Demand from the Pharmaceutical Industry Drives the Food & Pharma Grade Segment

The food and pharma grade segment of the ammonium carbonate market is expected to contribute 75.8% share in 2024. This is due to increasing usage in the pharmaceutical industry. Ammonium carbonate is widely used as a leavening agent in pharmaceutical formulations to improve product texture and performance. It allows for consistent dissolution of active ingredients and aids disintegration of tablets for faster absorption in the body.  The growth of the global pharmaceutical industry has raised the demand for effective excipients and processing aids. Manufacturers prefer ammonium carbonate over alternatives due to its versatile functionalities. It is particularly valuable for manufacturing effervescent and chewable drug formulations. This segment adheres to high purity standards to ensure product safety and efficacy. Manufacturers undergo rigorous quality certifications to supply pharmaceutical-grade ammonium carbonate. The proliferation of certified suppliers catering to discerning industry requirements has boosted the market size of this segment. The coronavirus pandemic has further accelerated segment growth by increasing demand for drugs, vaccines and nutritional supplements. Large-scale manufacturing of COVID-19 vaccines and therapies utilized high volumes of food and pharma grade ammonium carbonate.

Insights by Application: Pharmaceutical Applications Dominate Ammonium Carbonate Usage

The pharmaceutical segment is expected to hold 41.2% share of the ammonium carbonate market in 2024, due to the versatile use of the compound in drug formulations. Ammonium carbonate acts as an important excipient in tablets owing to its effervescent properties. It promotes the uniform mixing of ingredients and supports swift disintegration of tablets upon consumption.  Non-effervescent drugs also employ ammonium carbonate as a leavening agent to improve tablet texture, reduce hardness, and enable consistent dosing. Its carbon dioxide releasing ability provides tablets with lighter density and porous structure for easy swallowing. These advantages have increased the ammonium carbonate consumption in chewable and orally disintegrating tablets consumed by geriatric populations. The growing global healthcare expenditure and rising incidence of chronic diseases are important factors driving higher pharmaceutical ingredient demand. Ammonium carbonate manufacturers are therefore catering to pharmaceutical manufacturers by offering tailored grades that adhere to tight purity specifications mandated for drug ingredients. Supportive government policies extend price controls and healthcare access in several countries, thereby increasing pharmaceutical market volumes. This rising uptake of medications positively impacts the demand for functional excipients like ammonium carbonate. Overall, the vital functionalities of ammonium carbonate coupled with expanding global pharmaceutical industry trends have cemented this segment’s leadership in the market.

Regional Insights

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The global ammonium carbonate market is characterized by its diverse regional landscape, with each region contributing unique dynamics to the overall industry. North America has emerged as the dominant region, accounting for a significant 34.5% market share. The region's dominance can be attributed to the strong presence of industries that rely on ammonium carbonate as a key ingredient, such as the pharmaceutical and personal care sectors. The United States, in particular, has been a major driver of growth, with a well-established manufacturing infrastructure and a robust regulatory framework supporting the industry's expansion.

In contrast, the Asia Pacific region has been the fastest-growing market for ammonium carbonate, fueled by the rapid industrialization and economic development in countries like China, India, and Japan. The region's burgeoning pharmaceutical and agricultural sectors have been the primary drivers of demand, as ammonium carbonate finds widespread applications in the production of various drugs, fertilizers, and other chemical compounds. The region's growing middle-class population and increasing disposable incomes have also contributed to the rising demand for personal care products, further bolstering the ammonium carbonate market in the Asia Pacific.

Market Report Scope

Ammonium Carbonate Industry News

• In 2020 BASF acquires proprietary technology for L-glufosinate ammonium from AgriMetis

*Definition: The ammonium carbonate market consists of manufacturers and suppliers of ammonium carbonate. Ammonium carbonate is an inorganic compound with the formula (NH4)2CO3. It is commonly used as an ingredient in baking powder, yeast, explosives, fire extinguishers, and ceramic glazes. The ammonium carbonate market caters to industries like food and beverage, fire protection, ceramics and glass, pharmaceutical, explosives, and others.

Market Segmentation

• Type Insights (Revenue, USD Mn, 2019 - 2031)
  • Food & Pharma grade
  • Technical grade
• Application Insights (Revenue, USD Mn, 2019 - 2031)
  • Pharmaceuticals
  • Food and beverages
  • Industrial
  • Others
• Regional Insights (Revenue, USD Mn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Bayer CropScience
  • Shanghai Mingdou Agrochemical Co. Ltd
  • Taixing Dongyu Chemical
  • Oasis Fine Them
  • Taixing Experimental Chemical
  • Akash Purochem Private Limited
  • Shanghai Tenglong Agrochemical Co. Ltd.
  • Monsanto
  • BASF SE
  • Yixing Waxing Chemical
  • P J Chemicals
  • Syngenta AG
  • SinoHarvest Corporation
  • Vinipul Inorganics India Pvt. Ltd.
  • Nike Chemical
  • Foxkem Industries
  • Mubychem Group
  • Dhanlaxmi Pigments Pvt. Ltd
  • CDH Fine Chemical
  • Haihang Industry