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The Ammonium Chloride Market size is estimated to grow by USD 391.2 million at a CAGR of 4.36% between 2023 and 2028. The market growth for ammonium chloride hinges on multiple factors. Chief among these are its versatile applications across various industries, particularly its increasing demand in the Asia-Pacific region. APAC's burgeoning industrial and agricultural sectors are driving significant growth in consumption. Furthermore, the fertilizer industry plays a pivotal role, with rising global demand for improved agricultural output fueling increased ammonium chloride usage. These factors underscore a robust market outlook, characterized by expanding applications and regional demands. As industries continue to innovate and expand their use of ammonium chloride, particularly in sectors such as pharmaceuticals, textiles, and metallurgy, the market is poised for sustained growth. This trend reflects a dynamic landscape where evolving applications and regional dynamics shape the future trajectory of the market.
Ammonium Chloride is a white crystalline inorganic compound with the chemical formula NH4Cl. It is an important industrial chemical used in various applications such as in the manufacturing of sodium carbonate through the Solvay process, as an electrolyte in batteries, and as galvanizing, tinning, and soldering fluxes. In veterinary medicine, Ammonium Chloride is used as a source of chloride ions and as a treatment for metabolic alkalosis in sheep, goats, and cattle. In the agriculture sector, Ammonium Chloride is used as a nitrogen fertilizer under the name Sal Ammoniac. It improves soil fertility by increasing the availability of nitrogen to plants. In the electronics industry, it is used as an oxide layers in the manufacturing processes of certain metals.
Ammonium Chloride also finds applications in biotechnological applications processes and green agriculture initiatives. It is used as a substitute products for traditional fertilizers in sustainable agriculture practices. Additionally, it has potential applications in the food industry as a food grade additive. The market is driven by the increasing demand for nitrogen fertilizers, the growth of the electronics manufacturing industry, and the rising demand for sustainable agriculture practices. The market is expected to grow at a steady pace in the coming years. The manufacturing processes of Ammonium Chloride involve the reaction of ammonia and hydrochloric acid. The market is competitive with several key players including companies specializing in chemical manufacturing, agriculture, and electronics industries.
Increasing demand for ammonium chloride from APAC is a major factor driving the development of the market. In APAC, India leads due to population growth and diverse industries. India's high fertilizer production and expanding ammonium chloride use, like in batteries and steel galvanizing, drive the market. For example, India produces 7600 metric tons annually. Japan and China's agricultural output and exports further boost demand.
Moreover, investments and government initiatives in China and India bolster market growth for higher crop yield. China's agriculture, 7.33% of GDP in 2022, relies on cost-effective ammonium chloride for crops like wheat and sugarcane. Foreign investment promotes advanced farming methods, spurring fertilizer demand, including ammonium chloride, in APAC. This demand surge propels market growth.
The growing use of ammonium chloride in cough medicines and food products is one of the market trends. Ammonium chloride serves as a widely used expectorant in cough medicines. An expectorant stimulates, depresses, or modifies secretions from the bronchial or mucous membranes. In its role as an expectorant, ammonium chloride helps alleviate lung and throat congestion by facilitating expulsion.
Beyond this application, ammonium chloride plays a crucial role in dietary supplements, notably in products like yogurts. It serves as a food additive and yeast nutrient in various baked goods such as bread and buns, adding a crisp texture to cookies, and enhancing the flavor of dark chocolate in confectioneries. Consequently, the growing demand for both an expectorant and a dietary supplement is poised to significantly drive market expansion in the projected period.
The availability of substitutes for ammonium chloride is a major challenge hindering market development. Substitutes like potassium chloride, ammonium nitrate, and urea, which are used as fertilizers, may hinder market growth. Ammonium chloride has 25% nitrogen, while ammonium nitrate contains 33%-35% nitrogen and can be easily produced.
Potassium chloride, sourced from brines and salt lakes provides essential elements for plant growth. Urea's higher nitrogen content also competes as a replacement. The availability of cost-effective substitutes with better performance could significantly hamper the market's development in the forecast period.
The market share growth by the fertilizers segment will be significant during the forecast period. The fertilizer segment was the dominant application segment in the market in 2023. Ammonium chloride is a medium-strength nitrogen fertilizer with 25% nitrogen content that stimulates plant growth.
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The fertilizer segment was valued at USD 628.40 million in 2018. Ammonium chloride-based nitrogenous fertilizers comprise essential elements, such as chlorine and nitrogen, that enrich plant growth and prevent wilting and rotting of plants. Such fertilizers are effectively used in crops, lawns, and gardens. They are extremely utilized in the cultivation of rice and wheat to enhance crop productivity. Because of these benefits of nitrogenous fertilizers, the fertilizer segment will witness a rapid growth rate during the forecast period.
Based on type, the agricultural grade segment holds the largest market share. The expansion in demand for more profitable yield crops in decreasing fertile land is anticipated to push the market. The need or demand for ammonium chloride is calculated to strengthen with growth in rice cultivation. Asia Pacific emerges as one of the largest markets for the agricultural grade market. Due to these benefits of the ammonium-based nitrogenous fertilizer, the agricultural grade segment in the global market will witness the fastest growth during the forecast period.
APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In 2023, APAC led ammonium chloride consumption, driven by food demand due to population growth and higher incomes. India, Japan, and China are key consumers, with India producing 7600 metric tons annually. Growing agriculture in APAC, especially India and China, boosts demand for fertilizers. Government initiatives and increased budgets for agricultural development, like the Pradhan Mantri Krishi Sinchayee Yojana, contribute. Ammonium chloride's use in zinc-carbon batteries for vehicles and aviation spurs market growth. APAC's market flourishes as manufacturers establish production facilities, exemplified by Deepak Fertilizers and Petrochemicals' new plant in Taloja. Hence, APAC's market is set for substantial growth, driven by diverse factors.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Jiangsu Debang Chemical Industry Group Co. Ltd - The company offers Ammonium Chloride and Anitrogen fertilizer for various applications.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Apollo Fertilizer, Arkema Group, BASF SE, Central Glass Co. Ltd., Chemcon Speciality Chemicals Ltd., China National Chemical Engineering Co. Ltd., FUJI KASEI Co. Ltd., GFS Chemicals Inc., HELM AG, Honeywell International Inc., Jiangsu Debang Chemical Industry Group Co. Ltd, Jiangsu Huachang Chemical Co. Ltd., Merck KGaA, Nanoshel LLC, ProChem Inc., Star Grace Mining Co. Ltd., The Dallas Group of America Inc., Tinco Industries, Tuticorin Alkali Chemicals and Fertilizers Ltd., and Zaclon LLC
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Ammonium Chloride is an inorganic compound with the chemical formula NH4Cl. It is a white crystalline solid, highly soluble in water, and has a characteristic pungent smell. Ammonium Chloride is produced through the Solvay process, which involves the reaction of ammonia and sodium chloride with carbon dioxide. Ammonium Chloride has various applications in different industries. In veterinary medicine, it is used as an electrolyte replacer for animals suffering from metabolic alkalosis, chloride loss, vomiting, gastric suction, or pyloric stenosis. In agriculture, it is used as a nitrogen fertilizer and as a catalyst in the production of Soda Ash. Ammonium Chloride also finds extensive use in various industries such as metals, where it is used as a flux in galvanizing, tinning, and soldering.
In the chemical industry, it is used as an oxide layer former, catalyst, and in chemical reactions. In the pharmaceutical industry, it is used in cold medicines and cough treatments. Ammonium Chloride is also used in laboratory applications, cooling baths, paleontological research, and in the production of contact explosives, fireworks, safety matches, and dry cell batteries. It is also used as a source of chloride ions in the production of ferric chloride, aluminum chloride, and other chlorides. In food crops and arable land, Ammonium Chloride is used as a source of nitrogen and as a soil conditioner. However, the use of Ammonium Chloride in agriculture should be monitored as it can lead to increased Cd concentration in the soil and crops.
Market Scope |
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Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2024-2028 |
USD 391.2 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
China, US, Germany, Canada, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Apollo Fertilizer, Arkema Group., BASF SE, Central Glass Co. Ltd., Chemcon Speciality Chemicals Ltd., China National Chemical Engineering Co. Ltd., FUJI KASEI Co. Ltd., GFS Chemicals Inc., HELM AG, Honeywell International Inc., Jiangsu Debang Chemical Industry Group Co. Ltd, Jiangsu Huachang Chemical Co. Ltd., Merck KGaA, Nanoshel LLC, ProChem Inc., Star Grace Mining Co. Ltd., The Dallas Group of America Inc., Tinco Industries, Tuticorin Alkali Chemicals and Fertilizers Ltd, and Zaclon LLC |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period.
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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