Market Size of Asia-Pacific Ammonium Nitrate Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.14 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Ammonium Nitrate Market Analysis
The Asia-Pacific ammonium nitrate market is estimated to reach 13.81 million tons by the end of this year, and it is projected to reach 15.35 million tons in the next five years, registering a CAGR of 2.14% during the forecast period.
The COVID-19 pandemic affected several industries negatively. The end-user industries, including agriculture, mining, and others, were also affected due to the COVID-19 outbreak since the activities in the industries were on a halt in most countries in the Asia-Pacific region. However, the conditions started recovering in 2021, restoring the market's growth trajectory.
- Over the short run, the increasing demand from the fertilizer industry and the increasing demand for ammonium nitrate-fuel oil are major factors driving the growth of the market studied.
- However, the stringent regulations related to the production, storage, and handling of ammonium nitrate may act as a restraint in the growth of the studied market.
- Nevertheless, the development of smart explosives is likely to create lucrative growth opportunities for the Asia-Pacific market.
- China represents the largest market, and it is expected to be the fastest-growing market over the forecast period due to the increasing consumption from the mining and agricultural sector.
Asia-Pacific Ammonium Nitrate Industry Segmentation
Ammonium nitrate is a widely used chemical compound with various important applications. As a fertilizer in the agricultural industry, it helps feed billions. It is also the main component in many types of mining explosives, where it is mixed with fuel oil and detonated by an explosive charge.
The Asia-Pacific Ammonium Nitrate Market is segmented by Application (Fertilizers, Explosives, and Other Applications), End-user Industry (Agriculture, Mining, Defense, and Other End-user Industries), and Geography (China, India, Japan, South Korea, and the Rest of Asia-Pacific). Each segment's market sizing and forecasts are based on volume (Million tons).
| Application | |
| Fertilizers | |
| Explosives | |
| Other Applications |
| End-User Industry | |
| Agriculture | |
| Mining | |
| Defense | |
| Other End User Industry |
| Geography | |
| China | |
| India | |
| Japan | |
| South Korea | |
| Rest of Asia-Pacific |
Asia-Pacific Ammonium Nitrate Market Size Summary
The Asia-Pacific ammonium nitrate market is poised for steady growth, driven by increasing demand from the fertilizer and mining sectors. The market, which experienced disruptions due to the COVID-19 pandemic, has shown signs of recovery since 2021. Ammonium nitrate's popularity in agriculture is attributed to its high nitrogen content, which is essential for plant growth and metabolic processes. This compound serves as a cost-effective alternative to more expensive fertilizers, making it a preferred choice for agriculturists, particularly in countries like India and China. The agricultural sector's reliance on ammonium nitrate is further bolstered by the need to enhance crop yields and support the livelihoods of a significant portion of the population dependent on farming.
China stands out as the largest and fastest-growing market for ammonium nitrate in the region, fueled by its robust agricultural and mining activities. The country's extensive use of nitrogen fertilizers has been crucial in maintaining food security and boosting agricultural output. Additionally, China's mining industry, one of the largest globally, demands ammonium nitrate for various underground operations. The fragmented nature of the market sees major players like YARA, Orica Limited, and Deepak Fertilisers and Petrochemicals Corporation Ltd. actively contributing to the market dynamics. Recent developments, such as Deepak Fertilisers' new technical ammonium nitrate project in India, highlight ongoing investments aimed at strengthening market presence and meeting the growing demand in the region.
Asia-Pacific Ammonium Nitrate Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 DRIVERS
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1.1.1 Increasing Demand from the Fertilizer Industry
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1.1.2 Increasing Demand for Ammonium Nitrate-Fuel Oil (ANFO)
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1.1.3 Other Drivers
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1.2 Restraints
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1.2.1 Stringent Regulations related to Production, Storage and Handling of Ammonium Nitrate
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1.2.2 Other Restraints
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1.3 Industry Value-Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION (Market Size in Volume)
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2.1 Application
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2.1.1 Fertilizers
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2.1.2 Explosives
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2.1.3 Other Applications
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2.2 End-User Industry
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2.2.1 Agriculture
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2.2.2 Mining
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2.2.3 Defense
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2.2.4 Other End User Industry
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2.3 Geography
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2.3.1 China
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2.3.2 India
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2.3.3 Japan
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2.3.4 South Korea
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2.3.5 Rest of Asia-Pacific
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Asia-Pacific Ammonium Nitrate Market Size FAQs
What is the current Asia-Pacific Ammonium Nitrate Market size?
The Asia-Pacific Ammonium Nitrate Market is projected to register a CAGR of 2.14% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific Ammonium Nitrate Market?
YARA, Orica Limited, San Corporation, Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) and Sumitomo Chemical Co., Ltd. are the major companies operating in the Asia-Pacific Ammonium Nitrate Market.
