AMMONIUM NITRATE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Ammonium Nitrate Market Size and Trends – 2025-2032

The global ammonium nitrate market is estimated to be valued at USD 18.41 Bn in 2025 and is expected to reach USD 25.21 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2025 to 2032.

Key Takeaways of the Ammonium Nitrate Market:

• The mining sector is projected to account for 31.5% of the ammonium nitrate market share in 2025.
• The agriculture sector is projected to account for 31.6% of the market share in 2025.
• The agriculture-grade segment is anticipated to dominate the market in 2025, capturing a 34.5% share.
• Asia Pacific is projected to lead the market with a 45.6% share in 2025, followed by the North America region, which is expected to hold a 23.5% share in 2025.

Market Overview:

The growth of the fertilizer industry is driving the demand for ammonium nitrate as it is a highly consumed fertilizer. Its wide usage in industries, such as mining and construction, is also fueling the market growth. The increasing world population is putting pressure on agricultural production to meet the growing demand for food. This is expected to increase the consumption of fertilizers for higher agricultural yield, in turn, driving the demand for ammonium nitrate. Furthermore, rising infrastructure development and mining activities across the globe are expected to contribute to the growth of this market during the forecast period.

Segmental Insights

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Application Insights - Mining Dominates Due to Widespread Mining and Quarrying Activities

In terms of application, the mining segment is expected to contribute 31.5% share of the market in 2025, owing to its widespread use in mining and quarrying applications. Ammonium nitrate is a vital commodity used extensively as an oxidizing agent in mining and quarrying operations due to its stability and explosive properties when mixed with fuel oils. It aids in the fragmentation of rock materials and is safer to use and transport compared to conventional high explosives like dynamite. The ability of ammonium nitrate to effectively break down hard rock surfaces helps mining companies maximize ore extraction. Its high dissolving rate also makes it suitable for underground mining where space is limited. 

End-use Industry Insights - Agricultural Demand Fuels Ammonium Nitrate Market Expansion

In terms of end-use industry, the agriculture segment is expected to hold 31.6% share of the market in 2025, owing to its widespread application as a nitrogen-based fertilizer. As a key input, ammonium nitrate helps raise yields by supplying nitrogen - a crucial nutrient - to crops. Population growth has increased global demand for food, augmenting fertilizer consumption and boosting the agricultural segment. Additionally, favorable government initiatives in developing regions to enhance farm outputs through fertilizer usage are benefiting market growth. Ammonium nitrate is also inexpensive and releases nitrogen gradually into the soil, making it ideal for high-value crops such as fruits, vegetables, and cereals.

Grade Insights - Agriculture Grade Enhancing Crop Yields and Soil Fertility

In terms of grade, the Agriculture Grade segment is expected to hold a dominant 34.5% share in the market in 2025, owing to its suitability for fertilizer applications. Agricultural grade ammonium nitrate contains lower levels of impurities and is calibrated specifically for soil applications. It has a nitrogen content optimized for plant needs and releases nutrients gradually to match crop-growth stages. The uniform dissolution and absorptive properties of agricultural grade make it ideal for enhancing soil fertility. It effectively raises the pH of acidic soils and supplies nitrogen when roots absorb it. This prevents losses due to leaching during rains. Farmers favor this grade for its crop-nourishing ability at low costs.

Regional Insights

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Asia Pacific Ammonium Nitrate Market Trends

The Asia Pacific region is anticipated to dominate the ammonium nitrate market, securing a 45.6% share by the end of 2025. This leadership is driven by rapid growth in countries like China and India, where expanding manufacturing and agricultural sectors are increasing demand. Government efforts to modernize agriculture and significant investments in public infrastructure are further boosting market growth.

North America Ammonium Nitrate Market Trends

North America is projected to hold 23.5% of the ammonium nitrate market share by the end of 2025. North America is expected to exhibit the fastest growth in the market which can be attributed to robust demand from key end-use industries such as construction and mining. The region is home to some of the largest mining companies globally who rely heavily on ammonium nitrate for their operations. Moreover, government support for infrastructure growth is boosting construction activities, thereby favoring market growth.

Ammonium Nitrate Market Outlook for Key Countries

U.S. Ammonium Nitrate Market Trends

The U.S. is a major player in the ammonium nitrate market, driven by high demand from the agriculture and mining sectors. The market is expected to grow due to government initiatives aimed at increasing domestic fertilizer production, particularly in response to rising input costs. The Biden administration's proposal of a US$ 500 million grant to enhance domestic fertilizer production, including ammonium nitrate, is a significant development.

China Ammonium Nitrate Market Trends

China stands as the largest consumer of ammonium nitrate, primarily due to its extensive agricultural sector and the government's emphasis on enhancing food security and agricultural productivity. Increased investments in modern agricultural techniques and infrastructure further boosted fertilizer consumption. A key contributor to this market is San Corporation, China's leading exporter of ammonium nitrate. San Corporation operates a large-scale factory with an annual production capacity of approximately 1.2 million tons of ammonium nitrate. The company offers a range of products, including Porous Prilled Ammonium Nitrate (PPAN) and Chemical Pure Ammonium Nitrate (CPAN), which are essential for both agricultural and industrial applications.

India Ammonium Nitrate Market Trends

The Indian ammonium nitrate market is experiencing significant growth, bolstered by government initiatives aimed at enhancing agricultural productivity. The National Mission for Sustainable Agriculture (NMSA) focuses on promoting the use of nitrogenous fertilizers, including ammonium nitrate, to achieve self-sufficiency in food production. This focus led to increased adoption of modern agricultural techniques and a corresponding rise in fertilizer consumption. A key contributor to this market expansion is Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), a prominent Indian manufacturer of industrial and agricultural chemicals.

Brazil Ammonium Nitrate Market Trends

Brazil is experiencing growth in its ammonium nitrate market, driven by increasing demand for fertilizers in the agricultural sector. The government's promotion of sustainable agricultural practices has further encouraged the use of ammonium nitrate. A significant contributor to this market is Yara International, a global leader in crop nutrition solutions. Yara has established a strong presence in Brazil, notably through the acquisition of local fertilizer companies and the development of production facilities.

Russia Ammonium Nitrate Market Trends

Russia is a significant producer and exporter of ammonium nitrate, with a strong focus on the agricultural sector. The market experienced growth due to rising global demand for fertilizers. The Russian government has been investing in the modernization of production facilities to enhance efficiency and sustainability in ammonium nitrate production. In 2023, Uralchem accounted for 22.4% of Russia's ammonium nitrate production, with facilities capable of producing over 3 million tonnes annually. The company has been actively modernizing its production processes to improve efficiency and sustainability, aligning with governmental objectives to enhance the country's fertilizer production capabilities

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In January 2024, Incitec Pivot Limited’s Dyno Nobel formed a partnership with Saudi Chemical Company Limited (SCCL) to explore the establishment and operation of a technical ammonium nitrate (TAN) plant in Saudi Arabia. Under this collaboration, Dyno Nobel will contribute to project services and Front End Engineering Design (FEED) for the 300,000 MTPA TAN plant set to be developed in Ras Al-Khair, Saudi Arabia. SCCL is a Saudi-based company engaged in the production and supply of explosives and related products for mining, construction, and defense applications. It also operates in the healthcare and pharmaceutical sectors.
• In January 2024, Ostchem Holding reported a 20% increase in mineral fertilizer production in 2023, reaching 2.1 million tons. This growth also led to a 60% surge in ammonium nitrate production, which amounted to 835,900 tons in the same year. Ostchem Holding – A subsidiary of Group DF, Ostchem is a major Ukrainian chemical company specializing in the production of mineral fertilizers, including ammonium nitrate and urea, serving both domestic and international agricultural markets.
• In October 2022, Austin Powder launched its new Extra Low Density Ammonium Nitrate (ELDN) solutions for safer and more efficient blasting in mining. The ultra-low density enhances blast performance in challenging geological conditions. Austin Powder is a global leader in the manufacturing of industrial explosives and accessories, as well as providing technical and blasting services.

Top Strategies Followed by Global Ammonium Nitrate Market Players

• Established Players: Leading ammonium nitrate companies extensively focus on research and development to create innovative products
• For example, companies like Orica and Dyno Nobel invest over 5% of annual revenues into R&D. This allows them to develop high-performance emulsion explosives and fertilizers. Through specialized R&D centers globally, they can tailor products to various geographies and applications.
• Mid-Level Players: Mid-sized ammonium nitrate suppliers target price-sensitive markets by providing quality products at competitive rates. They optimize production processes to reduce costs. Some partner with local distributors to eliminate superfluous distribution channels. This keeps product prices low without compromising on quality. They also focus on automation and digital technologies for efficient operations.
• Small-Scale Players: Small players meet unique niche needs by offering specialized product variants or formulations. They leverage technological skills to develop solutions like emulsions optimized for difficult drilling conditions. Some supply niche fertilizer blends tailored to specific soil nutrient deficiencies. This allows small companies to find success in restricted market spaces.

Emerging Startups - Ammonium Nitrate Industry Ecosystem

• Innovative Technologies: Startups are developing technologies like smart emulsion sensors and AI-based blast planning software. Companies like Blastmate (UK) uses IoT sensors and data analytics to optimize blasting operations. DeepExplore (Canada) applies machine learning to design efficient emulsions. Such innovations will transform blasting and mining processes.
• Sustainable Solutions: Startups offer eco-friendly alternatives. For example, Acron Group produces ammonium nitrate. Its solution reduces mining industry's carbon footprint. Other startups are developing ammonium nitrate-based fertilizers using bio-based nitrification methods. Such sustainable options can drive the industry towards greener practices.
• Market Contribution: Startups meet specialty needs like bio-oxidation of complex gold ores. Some partner with mining companies to test disruptive explosive mixtures. Others collaborate with research institutions on developing technologies like 3D-printed explosives.

Market Report Scope

Market Dynamics

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Ammonium Nitrate Market Growth Factors

Increasing demand for fertilizers in agricultural sectors

The global population is rising rapidly with each passing year. With more mouths to feed, the demand for food is growing exponentially as well. However, the amount of agriculturally viable land available is limited. Thus, to meet the spiraling food requirements, farmers are compelled to maximize crop yields from their existing farmlands. Ammonium nitrate has emerged as one of the most important fertilizers used globally to boost agricultural productivity. It supplies both nitrogen and oxygen, two primary nutrients essential for healthy plant growth. When applied appropriately to farms, ammonium nitrate vastly improves crop yields. This is driving strong need for high-performance fertilizers like ammonium nitrate all over the world. The demand is the strongest in populous developing regions of Asia Pacific, Africa, and Latin America where per capita arable land availability is the lowest.

Market Challenge - Stringent regulations regarding the use of ammonium nitrate

This market has been facing stringent regulations regarding the use and handling of ammonium nitrate across various countries. Many governments have imposed strict norms for controlling the availability and end-use of ammonium nitrate to prevent its misuse for illegal activities. Several terrorist attacks in the past few decades have been carried out using improperly stored or handled ammonium nitrate. This has resulted in many countries introducing rigorous controls around procurement, storage, transport, and usage of ammonium nitrate. The regulations require manufacturers and handlers to obtain special licenses and permits. Additionally, the storage facilities are also required to install sophisticated security and monitoring systems. The stringent regulations have increased the overall cost of operations for ammonium nitrate players. Non-compliance with the regulatory standards can lead to hefty penalties and shutting down of manufacturing or storage units. The complex regulatory landscape poses a major challenge for the smooth functioning of the global ammonium nitrate market.

Market Opportunity - Advancements in Agricultural Techniques Boosting Fertilizer Usage

Advancements in agricultural techniques and practices are positively influencing the demand for ammonium nitrate in the market. The rising global population has increased the demand for food, leading farmers to boost crop production. Advanced farming techniques such as precision farming, crop rotation, and proper soil management are enabling farmers to maximize agricultural yields. This requires increased usage of fertilizers including ammonium nitrate. Adoption of these new agricultural practices is driving the consumption of ammonium nitrate-based fertilizers. Fertilizer usage is also growing in developing countries where governments are taking initiatives to enhance farm productivity.

Analyst Opinion (Expert Opinion)

• The global ammonium nitrate market is expected to witness steady growth over the forecast period driven by increased demand from the fertilizer industry. Ammonium nitrate is widely used as a nitrogen-based fertilizer and accounts for over 50% of the global nitrogen fertilizer market. The growing global population and the rising demand for food will drive the consumption of ammonium nitrate-based fertilizers.
• Stringent transportation regulations for ammonium nitrate across many countries may restrain the market growth to some extent. Many nations have imposed restrictions on the transportation of ammonium nitrate due to its hazardous nature. This has led fertilizer producers to establish manufacturing facilities closer to agricultural markets.
• The Asia Pacific region currently dominates the global ammonium nitrate market and is expected to remain the major consumer over the next decade. This can be attributed to the large manufacturing and consumption of nitrogen fertilizers in countries, such as China and India, which are among the biggest agricultural producers globally. The demand is also expected to grow at a higher pace in Latin American countries due to an increase in fertilizer application.

Market Segmentation

•  Application Insights (Revenue, USD Bn, 2020 - 2032)
• • Mining
  • Quarrying
  • Civil Construction
  • Others
•  End-use Industry Insights (Revenue, USD Bn, 2020 - 2032)
• • Agriculture
  • Mining
  • Pharmaceutical
  • Plastics
  • Pulp and Paper
  • Others
•  Grade Insights (Revenue, USD Bn, 2020 - 2032)
• • Agriculture Grade
  • Industrial Grade
  • Food Grade
  • Technical Grade
  • Others
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • 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
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Yara International ASA
  • CF Industries Holdings, Inc.
  • Nutrien Ltd.
  • Orica Limited
  • Nufarm Limited
  • BFG Supply Co.
  • EuroChem Group AG
  • Hanfeng Evergreen Inc.
  • Acron Group
  • Dyno Nobel Inc.
  • Incitec Pivot Limited
  • Uralchem Integrated Chemicals Company
  • Hubei Yihua Chemical Industry Co., Ltd.
  • Grupo Nutrisa
  • Agrium Inc.