Ammonia: Driving Forces and Dynamics in a Key Global Market

Ammonia Market is experiencing high growth driven by increasing demand for nitrogen fertilizers

Market overview:
Ammonia is a colorless gas with a strong pungent smell. It is mainly used in the production of nitrogen fertilizers such as urea, ammonium nitrate, and ammonium sulfate. About 80-85% of global ammonia produced is consumed for fertilizer applications. Ammonia-based fertilizers play a vital role in the agriculture industry by enhancing the yield and quality of crops. Strong demand from the agriculture industry is one of the primary factors fueling the growth of the ammonia market. Apart from fertilizers, ammonia also finds applications as a refrigerant and in the manufacturing of plastics, fibers, explosives, and other industrial chemicals. The increasing global population and rising food demand have prompted farmers around the world to invest more in improving crop yields through intensive farming and use of fertilizers. This growing need for agricultural productivity is propelling the demand for ammonia and derivatives.
The Global ammonia market is estimated to be valued at US$ 82.74 Billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period between 2024 to 2031.

Key Takeaways
Key players: Key players operating in the ammonia market include Yara International ASA, BASF SE, CF Industries Holdings, Inc., Nutrien Ltd., Potash Corporation of Saskatchewan Inc., Dangyang Huaqiang Chemical Co., Ltd., Shanxi Jinfeng Coal Chemical Co Ltd., GTS Chemical Holdings plc.,Togliattiazot, OCI Nitrogen B.V., Agrium Inc., Sabic, and Koch Fertilizer, LLC among others. These players are focusing on capacity expansion and investments in green ammonia production facilities to cater to the rising demand.

Growing demand: The growing worldwide consumption of meat and dairy products is also augmenting the use of ammonia-based fertilizers. As livestock feed like corn and soy require large amounts of nitrogen to grow, there is increasing demand for ammoni