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The Ammonium Chloride Market size is estimated to grow by USD 387.79 million at a CAGR of 4.5% between 2022 and 2027. The growth of the market depends on several factors, including diversified applications of ammonium chloride, increasing demand for ammonium chloride from APAC, and increasing demand for ammonium chloride in the fertilizer industry.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for ammonium chloride from APAC is a major factor driving the growth 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.
Investments and government initiatives in China and India bolster ammonium chloride 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 growth. 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 growth 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 2022. 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 602.96 million in 2017 and continued to grow until 2021. 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 38% 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 2022, 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.
Jsdebang- The company offers nitrogen fertilizer, especially suitable for rice, wheat and cotton.
The market research and growth 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 Ammonium Chloride Market thrives amidst urbanization and industrialization, driven by its extensive use across various end-use industries such as water treatment and agriculture. Technological advancements ensure efficient production processes, while adherence to environmental laws promotes sustainability. Despite facing challenges like fluctuating raw material costs and regulatory limitations, global economic factors and commerce barriers influence market dynamics. Emphasis on sustainable practices fosters research and development into eco-friendly alternatives, catering to price-sensitive consumers. The agricultural sector remains a significant consumer, leveraging ammonium chloride for soil fertilization. As markets expand globally, economic circumstances and environmental considerations continue to shape the trajectory of the ammonium chloride market.
The market growth analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Market Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2023-2027 |
USD 387.79 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.32 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
US, Canada, China, Germany, 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 analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market growth and forecasting 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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