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The global ammonium chloride market size is estimated to grow by USD 387.79 million between 2022 and 2027 exhibiting a CAGR of 4.5%. Ammonium chloride is an inorganic compound with the chemical formula NH4Cl. It is a white crystalline substance that is completely soluble in water. The Solvay process is the principal manufacturing process to produce ammonium chloride. The industrial production of ammonium chloride focuses on minimizing the release of ammonia. Thus, in such circumstances, ammonium chloride can be produced by treating ammonia with a hydrochloric acid solution or hydrogen chloride gas.
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.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for ammonium chloride in the fertilizer industry is a key factor propelling the ammonium chloride market growth. Ammonium chloride is primarily utilized as fertilizer for various crops, including rice and wheat, as well as in plants that yield fruits and vegetables, lawns, and gardens. With the global population steadily increasing and construction activities on the rise, the available land for cultivation has significantly decreased over the years. Given this scarcity of land, fertilizers play a vital role in providing nourishment and promoting plant growth, thereby enhancing crop yield on the limited land available. Many countries are making substantial investments in fertilizers to address this issue.
For example, in March 2022, the USDA announced plans for a USD 250 million investment in grants to support additional fertilizer production. Fertilizer consumption is also witnessing significant growth in several regions. In South Asia, for instance, fertilizer consumption measured in kilograms per hectare of arable land increased from 15.72 kilograms in 1971 to 197.34 kilograms in 2020, growing at an average annual rate of 5.60%. This trend is expected to greatly drive the growth of the global ammonium chloride market during the forecast period, as the compound can enhance crop efficiency on the limited cultivable land available.
Increasing demand for ammonium chloride in the chemical-etching process is a key trend influencing the market. Chemical etching or chemical milling is a photolithographic process in which the undesired parts of a component are dissolved in acids, bases, or alkaline chemicals to yield the desired shape for the product. Photo-chemical etching and electrochemical etching are the major chemical milling processes followed in the automotive, aerospace, electronics, and semiconductor industries that use ammonium chloride extensively. Also, the high demand for etching chemicals for applications in the fabrication of printed circuit boards (PCB), integrated circuits, microprocessors, semiconductors, miniature antennas, lead frames, and optical apertures will significantly propel the growth of the global ammonium chloride market during the forecast period.
Thus, the increased applications of ammonium chloride as an etching chemical and the surging demand for etchants from end-user industries such as electronics, automotive, and aerospace will significantly drive market growth during the forecast period.
Side-effects of ammonium chloride is a major challenge restraining the market growth. Despite various useful applications, ammonium chloride possesses a number of side effects, which can significantly threaten the growth of the global ammonium chloride market. Prolonged, as well as mild exposure to ammonium chloride, leads to side effects such as metabolic acidosis, rashes, seizures, Electroencephalography (EEG) abnormalities, mental confusion, irritability, and drowsiness. Overdosage of ammonium chloride from food and medicinal products or from any other sources may result in high chloride levels in the blood, nausea, vomiting, hyperventilation, and abdominal pain. Thus, medicines and cough syrups that contain ammonium chloride should be consumed only after a thorough examination and consultation with a physician.
Prolonged exposure to ammonium chloride during its production or processing or due to an overdose can also result in renal impairment. Thus, these side effects can hinder the growth of the global ammonium chloride market during the forecast period.
This report extensively covers market segmentation by Application (fertilizers, medical, and others), Type (agricultural grade, industrial grade, and food grade), and Geography (APAC, North America, Europe, Middle East and Africa, and South America).
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 global ammonium chloride 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 ammonium chloride-based nitrogenous fertilizers, the fertilizer segment will witness a rapid growth rate during the forecast period.
Based on type, agricultural grade holds the largest market share. Agricultural-grade ammonium chloride is a fertilizer used to enhance crop growth. It provides essential nitrogen for plant growth and is particularly used in wheat and rice cultivation. Due to the demand for high-yield crops on diminishing fertile land, the ammonium chloride market is expected to grow. The Asia Pacific region is a significant market for agricultural-grade ammonium chloride. Overall, the agricultural-grade segment in the global ammonium chloride market is projected to experience rapid growth.
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, the Asia Pacific (APAC) region emerged as the largest consumer of ammonium chloride, driven by the rising population and increasing per capita income, leading to greater consumption of food products. Countries like India, Japan, and China are major consumers, with India alone producing 7,600 metric tons of ammonium chloride annually.
The demand for ammonium chloride in APAC is primarily fueled by the growing agricultural activities in countries like India and China. Ammonium chloride plays a vital role in maintaining nitrogen levels in fertilizers. The high demand for fertilizers in these countries results in increased ammonia consumption, driving the demand for ammonium chloride. Moreover, government initiatives in India to promote agriculture, such as increased budget allocations for the Department of Agriculture and the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY-PDMC), contribute to the market's focus in the country. These initiatives aim to enhance agricultural infrastructure, further boosting the market's growth in the region. Additionally, the demand for ammonium chloride in zinc-carbon batteries, widely used in the automotive and aviation sectors, also propels market growth.
Furthermore, the presence of ammonium chloride manufacturers establishing production facilities contributes to the region's anticipated high market growth during the forecast period. For instance, Deepak Fertilizers and Petrochemicals announced a significant investment in building a new ammonium chloride manufacturing plant in Taloja, Mumbai suburbs. Such investments in expanding production capacities will further drive market growth in the region.
COVID-19 led to the temporary closure of industrial units, impacting industries except for medical supplies. The pandemic caused a decline in demand for ammonium chloride in agriculture, food, construction, and other sectors. However, the vaccination drive restored the situation, and industries resumed operations. The ongoing growth of the agriculture sector in APAC, driven by the need for higher crop yields, fuels the demand for ammonium chloride in fertilizers. Consequently, the agriculture sector is expected to drive the growth of the ammonium chloride market in the region.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Ammonium Chloride Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Merckgroup- The company offers ammonium chloride that are used for agricultural purposes and provide sources of Nitrogen.
The research 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 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.
Application Outlook (USD Million, 2017 - 2027)
Fertilizers
Medical
Others
Type Outlook (USD Million, 2017 - 2027)
Agricultural grade
Industrial grade
Food grade
Region Outlook (USD Million, 2017 - 2027)
North America
The U.S.
Canada
South America
Chile
Brazil
Argentina
Europe
The U.K.
Germany
France
Rest of Europe
APAC
China
India
Middle East & Africa
Saudi Arabia
South Africa
Rest of the Middle East & Africa
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Ammonium Chloride Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
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Market growth 2023-2027 |
USD 387.79 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.32 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 38% |
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Key countries |
US, Canada, China, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 |
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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 |
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Customization purview |
If our 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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