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Ammonia Market Research Report - Forecast till 2030

Ammonia Market: Information By Form (Liquid, Powder and Gas), Sales Channel (Direct, Distribution), Application (Fertilizers, Chemicals, Refrigeration, Fibers and Plastics, Pharmaceutical, Pulp and Paper and Others) and Region (North America, Europe, Asia-Pacific, Latin America and Middle East & Africa) - Forecast till 2030

ID: MRFR/CnM/1775-CR | February 2021 | Region: Global | 282 pages

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Ammonia Market overview

Ammonia Market is projected to be worth USD 114.73 billion by 2028, registering a CAGR of 6.64% during the forecast period (2021 - 2028)., The market was valued at USD 73.15 billion in 2021.

It’s used primarily in the process of smelting iron to obtain a pure form of the base metal. Industrialists use the Haber process and natural gas to produce it. Iron is used as an agent to speed the reaction up and to produce this material.

COVID-19 analysis

COVID-19 is a novel and interesting virus that is changing the destiny of the world in much the same way that the Bubonic Plague of the 5th century and the Black Death of the 14th century did. The Bubonic Plague pushed the world into the Dark and Middle Ages. The Black Death pushed the world into the modern era. COVID-19 is poised to propel the world further into the digital age and era.

Governments around the world realized that COVID-19 was a dangerous virus that could have deadly consequences early on. They realized this because the virus made many people deathly ill. It even killed a few who got it. Also, most of those who recovered got it again a few months later because the antibodies only lasted for a few months. In any case, these governments sought to impose quarantines and lockdowns in an attempt to contain the spread of the virus. These lockdowns and quarantines were temporary because they had limited effect.

Most markets around the world were negatively affected. The ammonia market was no exception. Manufacturers were forced to shut operations down temporarily or dramatically scale back production. This made ammonia a scarce material. Many end-user industries like agriculture and textiles suffered because they were unable to obtain the material that was necessary for many of their basic operations.

The agricultural industry, for example, suffered because its farmers couldn’t get the fertilizer needed to ensure that crop output continued to stay high. The result was a huge hike in the price of foodstuffs that the average consumer around the world is only now starting to see.

Ammonia Market Revenue, By Application, (USD Million)

Ammonia Market

Sources: MRFR Analysis

Competitive landscape

The global ammonia industry is highly competitive. There are a few reasons for this. One is because the market is very lucrative and is growing at a modest rate. Many large companies with huge treasuries are entering the market every year. This is what is making the industry fragmented as well. Companies find that they must invest heavily in research and development if they want to have a shot at creating the sustainable competitive advantage that will continue to make them profitable enough to survive in the cut-throat industry.

Companies are also finding that they must enter into strategic partnerships with other successful companies or merge with and/or acquire companies that are very successful. Companies find that they increase their knowledge and resource bases by doing this. They are then able to invest in the quality research and development that will allow them to develop better products that are safer and more effective. They also find that they can justify selling these products at higher prices if they market them (products) correctly.

Indian Farmers Fertilizer Cooperative Limited is a major player in the global ammonia industry. It has managed to become a key player and grow dramatically in size over the years by investing heavily in research and development. This allowed it to develop better products that were world-class in terms of quality.

List of Companies

  • Yara (Norway),

  • CF Industries Holdings Inc. (US),

  • Nutrien Ltd. (Canada),

  • Group DF (Ukraine),

  • OCI NV (Netherlands),

  • EuroChem Group AG (Switzerland),

  • SABIC (Saudi Arabia),

  • Acron (Russia),

  • Orica Limited (Australia),

  • Uralchem JSC (Russia),

  • AB ”Achema” (Lithuania),

  • Togliattiazot (Russia),

  • Indian Farmers Fertiliser Cooperative Limited (India),

  • Qatar Fertiliser Company (Qatar), and

  • Koch Fertilizer, LLC (US).

Global Ammonia Market Share, by Region, 2018 (%)
Ammonia Market

Sources: MRFR Analysis

Market dynamics


What drives growth in the ammonia industry has primarily been the rapid expansion and modernization of the global agricultural sector. The rapidly increasing global population is resulting in farmers around the world needing to dramatically increase crop yield to meet the growing global demand for various types of grains and other crops. This needs lots of high-quality fertilizer which can only be produced by using ammonia.

The fertilizer industry currently uses 60% of all ammonia that’s produced worldwide every year.


Ammonia is increasingly being used as a key ingredient in many solutions that refrigerators and other freezing devices need to keep food either very cold or in a frozen state. Manufacturers in the ammonia industry realize this. That’s why they’re investing heavily in research and development in the attempt to develop a new generation of ammonia that has much more innovative applications in many sectors and industries, is of higher quality, and is safer to use around humans.


Concentrated ammonia is very dangerous and can even be deadly to humans and domestic animals/livestock when not used/handled correctly.


Perhaps the greatest challenges manufacturers in the ammonia industry face lies in producing better quality ammonia that’s safer for use around humans and animals while expanding its usages and keeping the price point in a reasonable range.

Cumulative growth analysis

The CAGR for the global ammonia industry is 4.02%. The market is projected to be worth USD 68,354.45 in seven more years.

Technology analysis

CF Industries Holdings Inc is a major American player in the global ammonia industry. It has managed to become an industry leader by creating a sustainable competitive advantage through extensive research and development. This has allowed it to develop and market a new generation of ammonia products that are of higher quality, safer around humans and animals, and have more innovative uses.

Market segmentation

By form

The global ammonia industry can be grouped into the following sub-segments based on the form:

  • Liquid

  • Gas

  • Powder

The liquid sub-segment accounted for 40% of the overall market share three years ago. This sub-segment is projected to have a CAGR of 4.08% until 2028. The reason for this is because liquid ammonia is used in a variety of products - ranging from refrigerators to freezers, to blockbuster medicines that pharma majors develop and market

Farmers can inject ammonia into the surface of the soil on their fields to automatically and dramatically increase crop yields.

By sales channel

The global ammonia industry can be grouped into the following sub-segments based on sales channel:

  • Direct channel

  • Distribution channel

The direct channel sub-segment had a market value of USD 35,272.2 million three years ago.

By application

The global ammonia industry can be grouped into the following sub-segments based on application:

  • Fertilizers

  • Chemicals

  • Refrigerators

  • Fibers and plastics

  • Pharma products

  • Pulp and paper

  • Others

The fertilizer sub-segment is projected to have a CAGR of 4.39% until 2028. This is the highest CAGR of all of the sub-segments in this segment. There is one reason for this. The growing global population means that there are more mouths to feed. Also, the demand for meat is increasing as people around the world become richer. This needs high grain yields since livestock need to eat a lot of grain and hay to be considered slaughter quality.

By region

The global ammonia industry can be grouped into the following sub-segments based on region:

  • Asia-Pacific

  • North America

  • The European Union

  • Latin America

  • The Middle East and North Africa

Regional analysis

The Asia-Pacific region accounted for 50% of the overall global ammonia market share more than three years ago. The ammonia market value in this region was USD 24,798.0 million back then. COVID-19 notwithstanding, this value and share have only increased since the Asia-Pacific region has some of the world’s fastest-growing economies. The nations of Thailand, India, China, and Indonesia, especially, have some of the fastest-growing economies in the world. These nations have seen a dramatic rise in ammonia production and consumption. This has mostly been in the form of greater usage of fertilizers on farms.

Also, approximately 7% of the world’s farmable land is in China. China feeds about 22% of the world with its agricultural produce. The agricultural sector in China is already rapidly expanding to keep pace with its still somewhat rapidly growing population. Added to this is the fact that China is rapidly urbanizing and growing wealthy. As its inhabitants become urban and grow richer, they have more of a preference to consume freshly grown foods (with a preference for organically grown food!) This is also a key factor that contributes to the growth in China’s agricultural sector.

China is also rapidly modernizing its farms. This is leading to major investments in modern agricultural equipment like tractors and combines. It’s also leading to investments in higher-quality fertilizer that produces greater agricultural yields.

China also has one of the world’s largest pharma industries which is growing at breakneck speed. China produces a wide variety of medicines including ancient herbal-based medicines, generic blockbusters, therapeutic medicines, and active pharmaceutical ingredients.

Recent developments

  • OCI recently partnered with other majors to commercialize ammonia in the next few years

  • Qatar approved some major acquisitions and mergers for its ammonia manufacturers. This is poised to dramatically increase output in the near future and make the companies more profitable and competitive

Report overview

The CAGR for the global ammonia industry is 6.64%. The market is projected to be worth USD 114.73 billion in the next 7 years. The agricultural sector is the largest consumer of liquid ammonia and this is going to continue as the world’s agricultural sector is asked to produce more to feed the world’s rapidly growing population. The Asia-Pacific region has the highest regional ammonia market growth.

Report Scope:
Report Attribute/Metric Details
  Market Size   2030: USD 114.73 billion
  CAGR   6.64% (2022–2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Form, Application and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Yara (Norway), CF Industries Holdings Inc. (US), Nutrien Ltd. (Canada), Group DF (Ukraine), OCI NV (Netherlands), EuroChem Group AG (Switzerland), SABIC (Saudi Arabia), Acron (Russia), Orica Limited (Australia), Uralchem JSC (Russia), AB ”Achema” (Lithuania), Togliattiazot (Russia), Indian Farmers Fertiliser Cooperative Limited (India), Qatar Fertiliser Company (Qatar), and Koch Fertilizer, LLC (US).
  Key Market Opportunities   The increasing demand for food coupled with the growing consumption of protein-rich diets, fruits, and vegetables
  Key Market Drivers   The global demand for ammonia is mainly driven by the growth of the fertilizer industry.

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Frequently Asked Questions (FAQ) :

The global ammonia market is touted to record a substantial market valuation of USD 114.73 billion by 2028.

The global ammonia market is projected to register a moderate 6.64%% CAGR in the forecast period.

The increased need for usage of ammonia in fertilizer and the fact that fertilizer production is increasing rapidly.

The fertilizer sector uses it the most

Yara (Norway), CF Industries Holdings Inc. (US), Nutrien Ltd. (Canada)