H1 2023: The largest ammonia producing companies in H1 2023 were CF Industries, Nutrien, Jinmei Group, and EuroChem Group. However, CF Industries was the top producer of Ammonia globally. In February 2023, BASF declared closing of its ammonia plant at its Ludwigshafen site in Germany. The shutdown includes closing of one ammonia plant, a caprolactam unit, a soda ash unit, a TDI plant, and a few other chemical facilities at different locations across Europe. The reason behind this shutdown was the high production costs which the company wasn’t able to handle. In March 2023, Yara International declared a maintenance shutdown of its plant at Italy site for 24 days. However, Ammonia prices plummeted in Europe in H1 2023 due to reduction in the natural gas prices. The prices continuously fell in Europe further declined from March 2023 due to low feedstock prices and freight prices in the region. Also, low prices of natural gas in Europe contributed to bearish market scenario till the end of H1 2023. Thus, the ammonia market behavior was overall pessimistic in Europe in H1 2023. Also, market sentiment for the ammonia was sluggish even in the US in H1 2023. The ammonia was oversupplied and there were few procurement orders from end-use industries in the US market. Low demand for diammonium phosphate, ammonium sulfate and fertilizers producers supported the bearish price trend in the US. A demand-supply imbalance resulted from the ammonia market being largely oversupplied and having minimal end-user market procurement orders in the US.
The global Ammonia market has reached around 170 million tonnes in 2022 and is expected to grow at a CAGR of 7.22% during the forecast period until 2030.
Ammonia is a colorless gas with a characteristic smell. On the industrial level, Ammonia is mainly obtained from Haber Process. In this process, atmospheric nitrogen is combined with gaseous hydrogen under high pressure and temperature using a catalyst. Also, Ammonia can be generated using coal. Ammonia is used as a raw material for manufacturing nitrogen fertilizer. Furthermore, this chemical is utilized for applications like air conditioner refrigeration, plastics, detergents, explosives, pesticides, etc.
The global Ammonia market is primarily driven by its application in the Agriculture & Fertilizers sector. in 2022, this industry consumed roughly 65% of the global Ammonia market. Regarding crop yield and agricultural productivity, the fertilizer sector is crucial. The usage of nitrogenous fertilizers is primarily in the agriculture sector. Fertilizer sales are projected to increase as a result of the expanding world population and rising food consumption. The global Ammonia market is expected to reach around 300 million tonnes by 2030. Furthermore, the usage of Ammonia in the Pharmaceutical sector as a respiratory stimulant, as neutralizing agent, and for manufacturing drugs due to its anti-bacterial nature further propels the demand for Ammonia. Numerous household cleaning and disinfection products contain the active component ammonium hydroxide, a derivative of Ammonia. It is used to clean various surfaces, such as countertops, basins, bathtubs, floors, and others, which further contributes to the market expansion of global Ammonia.
The Asia Pacific is the leading consumer of Ammonia among all other regions followed by North America and Europe. In 2022, this region consumed approximately 45% of the ammonia in 2022. Additionally, it is anticipated that Ammonia's demand in this will continue to surge in the Asia Pacific region over the coming years of the projection period due to factors such as population growth, resulting in rising demand for crop production, and the agriculture sector's growing reliance on fertilizers for healthy production of crops. Europe is also a prominent consumer of Ammonia, the demand primarily driven by energy production purposes. Based on production, Asia Pacific again leads the ammonia market with major ammonia producers located in the Asian nations like India and China.
Based on the end-user industry, the Ammonia market is segmented into sectors like Agriculture & Fertilizers, Textiles & Pharmaceutical, Explosives, Refrigeration, and Others. However, the Agriculture and Fertilizers Industry is the biggest end-user market of Ammonia. Furthermore, other industries like Textiles & Pharmaceutical are also prominent consumers of the Global Ammonia market.
Significant companies for Global Ammonia are CF Industries, Nutrien, Jinmei Group, Yihua Group, Qatar Fertilizer Co (QAFCO), PetroChina Group, TogliattiAzot, EuroChem Group, Acro Group, Yangmei Group, Parsian Oil and Gas Development Group Co., and Indian Farmers Fertiliser Co-operative Limited (IFFCO).
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2030
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The objective of the Study:
•To assess the demand-supply scenario of Ammonia, which covers the production, demand, and supply of Ammonia around the globe.
•To analyze and forecast the market size of Ammonia.
•To classify and forecast the Global Ammonia market based on end-use and regional distribution.
•To examine global competitive developments such as new capacity expansions, mergers & acquisitions, etc., for the Ammonia market.
To extract data for the Global Ammonia market, primary research surveys were conducted with Ammonia manufacturers, suppliers, distributors, wholesalers, and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst could include manufacturers that could not be identified because of the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for the Global Ammonia market over the coming years.
ChemAnalyst calculated Ammonia demand around the globe by analyzing the historical data and demand forecast, which was carried out considering the production of raw materials to produce Ammonia. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources, such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Ammonia manufacturers and other stakeholders
• Organizations, forums, and alliances related to Ammonia distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Ammonia manufacturers, customers, and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Ammonia market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
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Details
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Market size Volume in 2022
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170 million tonnes
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Market size Volume by 2035
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300 million tonnes
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Growth Rate
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CAGR of 7.30% from 2023 to 2030
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Base year for estimation
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2023
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Historic Data
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2015 – 2022
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Forecast period
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2024 – 2030
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Quantitative units
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Demand in million tonnes and CAGR from 2023 to 2035
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Report coverage
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Industry Market Size, Capacity by Company, Capacity by Location, Operating efficiency, Production by Company, Foreign Trade, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process.
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Segments covered
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By End-Use: (Agriculture & Fertilizers, Textiles & Pharmaceutical, Explosives, Refrigeration, and Others.)
By Sales Channel: (Direct Sale and Indirect Sale)
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Regional scope
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North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Pricing and purchase options
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.
Available Customizations:
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.
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