Ammonium Nitrate Market Size

Ammonium Nitrate Market Size

Ammonium Nitrate Market size was valued at over USD 16.28 billion in 2023 and is estimated to register a CAGR of over 5% between 2024 and 2032 driven by its extensive use in agriculture and mining industries. The availability of modern agricultural techniques has prompted the demand for more effective and efficient chemicals, leading to the surging need for ammonium nitrate to increase soil fertility and crop yields.

To get key market trends

  Download Free Sample

For instance, in November 2022, Uralchem invested RUB 50 billion in a port in Taman for ammonia handling. The expanding use in the mining industry as an explosive component for blasting operations will propel the market growth.
 

The use of ammonium nitrate as an explosive for the construction of roads, tunnels, and other infrastructure-related projects, is steadily increasing. Innovations in technology that improve the production and application methods are making the compound more accessible and safer to use. Environmental regulations and eco-friendly formulations are also driving the market growth.
 

However, stringent regulations on the handling, storage, and transportation of ammonium nitrate along with its illegal use in mining are severely hampering the market expansion. Complying with these regulations can be costly and difficult for both manufacturers and distributors. The rise in environmental problems associated with excessive product use in agriculture is also a challenge as it leads to soil erosion and water pollution.