Rapidly Increasing Population to Fuel Growth of Nitric Acid Market
Nitric acid is a conjugate acid of a nitrate, is very soluble in water, is a strong oxidizer, and is a good conductor of electricity. Nitric acid has a strong presence throughout multiple industries and processes. Patents are being developed regularly with new uses for nitric acid. Top applications of nitric acid such as that in fertilizers, explosives, adhesive, medicinal, purifying metals, dye intermediate, engraving, drug detection, furniture coating, and laboratory use continue to sustain promising growth of nitric acid market. It also is used as a component of liquid rocket fuel, an important ingredient for manufacturing plastics, a cleaning product in food processing facilities.
Increased demand for the product from fertilizer formulators and increased fertilizer usage in rural economies throughout the world are predicted to boost the product's growth. According to the US Food and Agriculture Organization (FAO), worldwide fertilizer demand is predicted to reach 197.93 million tonnes in 2021 and 200.92 million tonnes in 2022, with nitrogen-based fertilizers growing by 1.4 % year over year in 2021. Moreover, growing food demand has prompted the global proliferation of various fertilizers and agricultural units to improve crop output, reduce cultivation time, and ensure healthy crop growth. Nitric acid is also a major component in production of the sought-after nitrogen fertilizers, which further suggests a promising growth outlook for nitric acid market.
According to Fertilizers Europe, annual nitrogen fertilizer use in the European Union is predicted to reach 10.6 million tonnes by the 2029/2030 season, down from 11.2 million tonnes in the present season. After several years of recovery, annual fertilizer consumption is expected to decline for the fourth year in a row during the next ten years, limiting industry growth. The increasing use of HNO3 in agriculture to produce fertilizers like ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate would support the healthy expansion of nitric acid market. The use of fertilizers to boost crop productivity and meet the needs of a growing population will create opportunities for the nitric acid sector.
Improving Food Quality due to Fertilizer to Drive Nitric Acid Market Growth
Fertilizers is expected to be the fastest-growing segment of the nitric acid market over the forecast period. Its large part is due to rising food demand, which has resulted in the global growth of fertilizer units. Farmers are using fertilizers to increase crop yield in the shortest amount of time possible. Over 80% of nitric acid is utilised in the production of fertilizers. Nitric acid is used to make fertilizers like ammonium nitrate and calcium ammonium nitrate. More arable land is necessary for cultivation to meet the needs of the growing global food demand. As a result, fertilizer demand is rising, and the worldwide fertilizer industry is predicted to grow at a CAGR of around 5% over the projection period.
Ammonium nitrate is a popular and effective nitrogen-based fertilizer that contains around 35% (by mass) of total nitrogen. Furthermore, calcium ammonium nitrate (CAN) fertilizer contains 25-28 % nitrogen. CAN fertilizer is used to provide nitrogen to help plants develop faster. At a temperature of roughly 170°C, molten ammonium nitrate and calcium carbonate are mixed to make calcium ammonium nitrate. It's hygroscopic, which means it can collect moisture from the air. As a result, calcium ammonium nitrate can be employed in the soil even if there isn't enough water.
Rising Production of Wheat, Maize, Cotton, and Potatoes to Drive Nitric Acid Market Growth in Asia Pacific
Asia Pacific is likely to be the leading nitric acid market in terms of manufacturing. The demand for agricultural commodities is predicted to continue to rise as the world's population and affluence expand. Because of the increased output of wheat, maize, cotton, and potatoes in nations like India, China, and Pakistan, nitric acid is primarily utilized in fertilizer. Over the projection period, these factors will drive demand for nitric acid in the region. Due to the greatest production and consumption of fertilizer in Asia Pacific countries, such as China, India, and South Korea. According to the ITC trade map, South Korea is the largest exporter of nitric acid in 2021, with 534.2 thousand tonnes exported, and China is the second-largest importer in 2020, with 152.8 thousand tonnes imported for various end-user industries such as fertilizers, inks, pigments and dyes, and chemical manufacturing.
According to the Fertilizer Association of India, total fertilizer product production in India reached 43.49 million MT in 2020-21, an increase of 1.7 % over 2019-20. While production of nitrogen-based fertilizers increased somewhat by 0.2 % from 2019-2020 to 13.74 million MT in 2020-21. The National Bureau of Statistics reveals that grain production in 2021 was 682.9 million tonnes, up from 650 million tonnes the previous year, witnessing a 2% rise. Corn acreage increased by 5% and output increased by 4.6 % over the previous year. The market in the country is likely to be driven by the increasing use of fertilizers to boost productivity in order to keep up with the shrinking cultivated land. Nitric acid is a raw material for inks, pigments, and dyes, with the textile industry being its primary application. According to the Ministry of Sector and Information Technology, China's textile industry increased rapidly in the first nine months of 2021, with earnings of 171.1 billion yuan (about USD 26.80 billion), a 31.7 % rise year-on-year (YoY) (MIIT).
Global Nitric Acid Market: Competitive Landscape
For instance, in October 2020, LSB Industries, Inc. signed a new long-term nitric acid supply contract with a client for 70 to 100 KT of nitric acid per year. This is an attempt to improve profits by focusing on marketing and changing the product mix. On the other hand, in July 2020, using patented technology, KBR teamed with Haifa Group to enhance the production capacity of two nitric acid factories in Israel. This collaboration will result in increased production capacity while lowering plant emissions and operational costs.
A few of the players in nitric acid market include The Chemours Company, Dyno Nobel, National Chemical Group, KBR, Koch Fertilizers, OCI Nitrogen, Potash Corp, Eurochem Group, CF Industries, LSB Industries, and Agrium Inc.
Global Nitric Acid Market is Segmented as Below:
Key Elements Included In The Study: Global Nitric Acid Market
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