Global ammonium sulfate market valuated at around US$2.6 Bn in 2021, which would possibly see healthy expansion over the next few years, shows research.
Investments in Ammonium Sulfate Market Soar as Agriculture Industry Generates Ascending Demand for Agrochemicals
One of the major factors fueling the growth of the ammonium sulfate market is the rise in the application of the product to lessen the acidity in alkaline soils due to their high pH level. Ammonium sulfate market expansion is accelerated by the use of nitrogen-based fertilizers to boost crop output due to rising food demand and the high demand for the product as a soil fertilizer due to its high nitrogen and sulfur content. Ammonium sulfate is becoming more popular due to its benefits for plant growth, such as protein synthesis, and nitrate-based fertilizers are a poor choice for flooded soils used in rice cultivation since they cause denitrification, and leaching. Aside from these factors, the ammonium sulfate market is positively impacted by population increase, the expansion of the agricultural sector, research and development activities, a surge in investment, a rise in consumer knowledge of the product's advantages, and a shortage of arable land.
Furthermore, research and development to enhance the action of agrochemicals will give profitable prospects to the ammonium sulfate market players. The growing need for crop yield due to the growing global population is predicted to fuel the agrochemicals market, in turn boosting the progress of ammonium sulfate market as well. Ammonium sulfate is likely to see growing need as farmers use nitrogen-containing fertilizers more frequently to boost crop yields. The shrinkage of arable land also impacts the demand for fertilizers. For instance, according to the Food & Agriculture Organization (FAO), the agricultural land percentage fell from 37% in 2017 to 36.9% in 2018.
Ammonium Sulfate Market: COVID-19 Impact
Although the COVID-19 pandemic primarily poses a health risk, it has greatly impacted the global economy. Nearly every economic sector saw significant socioeconomic upheavals as a result. The pandemic epidemic substantially impacted the production, supply, and demand of raw materials and finished goods in the agrochemical industry. The limits put in place by the government and regulatory authorities to stop the viral spread have significantly impacted agriculture, a labour-intensive industry. The pandemic hampered agriproduct production, harvesting, and packing, which in turn caused the supply and demand for food goods to be disrupted. However, the need for taste-improving chemicals has increased due to the popularity of packaged goods and convenience foods. The quick filling of inventories during the lockdown had, in turn increased demand from the food industry.
High Demand for Agrochemicals Create a Favourable Growth Atmsphere for Ammonium Sulfate Market
An acidic fertilizer for alkaline soils that works quickly is ammonium sulfate. The nitrogen-deficient, alkaline soil is helped regain fertility by the 20–25% nitrogen concentration. The agrochemical market is projected to continue to grow due to the rising demand for food crops brought on by the expanding world population. The Food & Agriculture Organization (FAO) estimates that 160,492 million tonnes of ammonia will be available for use in fertilizer applications globally in 2020. One important soil ingredient, nitrogen, helps plants grow, process their food, and produce chlorophyll. Additionally, ammonium phosphate's application as a food and feed additive is also anticipated to support market expansion. Feed production is used to induce enzyme production and remove the high levels of potassium present in vinasse, which further improves the quality of feed. It is typically used as an acidity regulator in flour and pieces of bread.
Increasing Adoption by Industrial Sector to Drive Ammonium Sulfate Market Growth
The demand is anticipated to be driven by the industrial sector's growing use of ammonium sulfate for various purposes, such as wood preservation, NMR spectroscopy, water treatment, feedstock chemicals, and flame retardants. The product's use as a flame-retardant composition has a similar effect to diammonium phosphate. It increases the temperature at which materials burn while lowering weight loss rates, thus boosting the rate at which residue is produced. An external reference in sulfur for NMR spectroscopy is a saturated solution of ammonium sulfate in heavy water with a shift value of 0. A further factor projected to support the expansion of the ammonium sulfate market is the Center for Disease Control's adoption of the substance in the healthcare sector as a component of vaccines.
Excessive and Unsupervised Use Continues to Limit Ammonium Sulfate Market Growth
In agricultural fields, excessive nitrogen fertilizer application raises the salt concentration, rendering the soil hazardous for seed germination. Higher pressure is produced by salts, causing water to seep deeper into the earth rather than remaining in the plant. The risk of soil pollution and the high toxicity of ammonium sulfate restrict the expansion of ammonium sulfate market. The trend among consumers is toward natural and organic fertilizers. Although they are made from petroleum byproducts and offer quick results, ammonium sulfate fertilizers are not environmentally beneficial. The significant danger constrains the market's growth that ammonium chemicals would contaminate underground water supplies and the shift to natural alternatives.
Sales of Solid Form Dominant in Ammonium Sulfate Market with Superior Performance
Based on form, the ammonium sulfate market is segmented into solid and liquid. The solid category dominated the market over the forecast period. The reason for this is a rise in demand for the solid segment. As an organic sulfate salt, ammonium sulfate is typically recognized as a white, odorless solid. It readily dissolves in water but has not been seen to do so in acetone or alcohol. Due to their capacity to improve the nutritional content and sulfur shortage of alkaline soils, solid ammonium sulfate crystals are widely utilized as fertilizers in this environment. Since the solid or crystalline grade has a high-purity level, it is projected to become more popular in the pharmaceutical sector. On the other hand, the liquid category is anticipated to grow at a significant rate over the forecast period. The product is sold commercially in liquid form as a pale yellowish solution and is known to be a safe, stable, and non-hazardous material. In applications for treating water, liquid ammonium sulfate solution is frequently utilized. Since alternatives to LAS, such as aqueous or anhydrous ammonia, have been dangerous and need adherence to a comprehensive set of protocols for their transport and handling, the market for liquid ammonium sulfate (LAS) is predicted to experience significant expansion.
Fertilizer Remains the Leading Category in Ammonium Sulfate Market
Based on application, the ammonium sulfate market is segmented into fertilizer, additive (pharma and food), water treatment and flame retardant. The fertilizer category held the largest market share in 2021 and is anticipated to increase significantly over the next several years. The demand is due to ammonium sulfate, which includes nitrogen and sulfur, as a fertilizer for alkaline soils. Demand for the product is anticipated to increase over the projection period, particularly in agriculture-based economies. The product decomposes soil into ammonia, nitrogen, sulfur dioxide, and water. While sulfur is necessary for metabolism, plants employ nitrogen and ammonia to produce amino acids. Ammonium sulfate is used extensively in fertilizers, food and feed additives, medicines, and water treatment. Fertilizers are the main factor driving the industry, as ammonium sulfate is a key ingredient in the production of nearly all of the world's leading nitrogenous fertilizer companies. The agricultural sector is forced to use ammonium sulfate products in fertilizer formulations worldwide due to the demand for food goods.
Role of Government Toward Sustainable Farming Products Crucial in Maintaining Asia Pacific’s Primacy in Ammonium Sulfate Market
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. This results from the region's high levels of agricultural productivity, increased usage of nitrogen fertilizers based on nitrogen, increased food consumption, and quick population expansion. Additionally, the region's abundance of manufacturers will likely accelerate the rate of industry expansion. In addition, the growing requirement to increase agricultural productivity and food crop production in countries like India, China, Indonesia, Bangladesh, Japan, and Pakistan is anticipated to increase demand for fertilizers and agrochemicals and promote the expansion of the ammonium sulfate market. However, China's accessible agricultural land area has decreased significantly over the previous two decades due to the country's rapid population expansion. This aspect has raised the need for fertilizer, which has boosted the need for ammonium sulfate.
The European ammonium sulfate market is anticipated to experience stable revenue growth throughout the forecast period. The demand for fertilizers used in developing different crops is blamed for the growth. Numerous entities are responsible for the use of synthetic fertilizers in the region. Additionally, downstream businesses like the pharmaceutical industry increasingly depend on ammonium sulfate. Whether acting independently or cooperating with other businesses, market participants are concentrating on increasing production capacity to meet demand across several regions and nations. The EU-27 produced roughly 299 million tonnes of grains in 2019, according to data by Europa. The demand for ammonium sulfate is projected to increase due to strong manufacturing and a consumer base for fertilizers.
Global Ammonium Sulfate Market: Competitive Landscape
In July 2022, Evonik Corporation committed to supplying blueSulfate, a liquid ammonium sulfate solution, to Interoceanic Corporation from its Alabama facility. This partnership supports Evonik's plan to focus on itscanimal nutrition business by marketing high-value co-products through Interoceanic Corporation. Similarly, in July 2019, the purchase of Arrmaz, a producer of specialized surfactants for the mining industry, infrastructure, and crop nutrition, was completed by Arkema. The company's product profile is likely to be strengthened by this acquisition, which marks another significant turning point in Arkema's drive toward specialty chemicals.
A few of the leading ammonium sulfate market players include BASF SE, Evonik Industries AG, Lanxess, Sumitomo Chemical, Honeywell International, Domo Chemicals, Arkema, OCI Nitrogen, Helm AG, ArcelorMittal S.A., Hawkins, Ube Industries, General Chemical, and Martin Midstream.
Regional Classification of the Global Ammonium Sulfate Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Ammonium Sulfate Market
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