The growth of the global ammonium sulfate market is thriving on the back of growing cultivation of rice around the world along with growing trends of the increasing use of bio-based fertilizers for cultivation. Ammonium sulfate-based fertilizers are widely preferred over urea for the cultivation of rice as urea leads to denitrification in flooded soil. Moreover, using ammonium sulfate as a fertilizer provides the soil with the required nitrogen required ror cultivation. Rice is known as a staple food for many communities around the world, and so cultivation of rice is very important for these communities, thereby raising the need for the increasing production of rice. Moreover, with growing concerns for the negative effects of the utilization of chemical fertilizers have raised the concern fort the utilization of biofertilizers, which are composed of living organisms that provide the necessary nutrients to plants and soil for better yield. The increasing rice cultivation around the globe along with the increasing use of biofertilizers are some of the factors that are contributing towards the growth of the global ammonium sulfate market.
The global ammonium sulfate market reached a value of around USD 3400 million in the year 2017 and is expected to garner around USD 4400 million by the end of 2026 by registering a CAGR of around 3% across the globe over the forecast period 2018-2026.
Growth Highlights based on Region during 2018-2026
The global ammonium sulfate market is segmented by regions into North America, Latin America, Europe, Asia Pacific and Middle East and Africa. Among these regions, the market of Asia Pacific ammonium sulfate is primarily driven by nations such as China, India and Japan, where the cultivation of rice is increasingly high on the back of growing population in the nations which is raising the need for production of crops in these nations. The ammonium sulfate market in Asia Pacific was valued at around USD 1400 million in the year 2017 which contributed to a share of around 41% in the same year. The market in the region is further anticipated to reach a value of around USD 1900 million by the end of 2026. Additionally, Asia Pacific is also expected to expand by observing the growth rate of around 1.36x over the assessment period, which in turn is estimated to have a positive effect on the demand for ammonium sulfate in the long run.
Further, the ammonium sulfate market in North America is anticipated to grow at a modest CAGR over the forecast period on the back of alkaline nature of the soil in the region, which is raising the need for greater utilization of ammonium sulfate fertilizers. The market in the region is primarily driven by the United States, which is also known for being the largest individual consumer of aluminum sulfate.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa). CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
The global ammonium sulfate market has been segmented on the basis of application into fertilizers, industries, pharmaceuticals, food & beverages and others. The fertilizers segment with around 88% share in the year 2017, occupies the largest market of ammonium sulfate across the globe. Additionally, fertilizer segment is anticipated to cross USD 3900 million by the end of 2026 and is anticipated to flourish at a modest CAGR over the forecast period. Ammonium sulphate is extensively used to enhance the soil quality and microbial growth which ultimately increases the yield of crops.
Market Drivers and Challenges
According to the statistics of the Food & Agricultural Organization (FAO) of the United Nations, the global demand for fertilizers, namely nitrogen, phosphorus and potassium (in total), is expected to grow from 185063 thousand tonnes in the year 2016 to 200919 thousand tonnes in the year 2022.
The demand for fertilizers across the globe is increasing subsequently owing to the growing population which is raising the need for the production of food that needs to be cultivated within the limited arable land available. Fertilizers are widely used in the cultivation of crops. Amongst all the chemical components available in fertilizers, nitrogen and sulfur are the two key constituents of fertilizers which help to increase soil fertility. Apparently, ammonia is the major raw material which is used to manufacture fertilizers. Chemically, ammonium sulfate-based fertilizers are made up of 21% nitrogen and 24% sulfur. The numerous available advantages of ammonium sulfate in fertilizer applications is thereby expected to drive the growth of the global ammonium sulfate market. Additionally, the growing demand for caprolactam, which is used for the production of ammonium sulfate, in the developing countries, along with the capacity addition for the production of caprolactam is also anticipated to drive the growth of the global ammonium sulfate market.
Availability of substitutes that provide the three primary nutrients, i.e. nitrogen, phosphorus and potassium, responsible for enhancing the nutrient content of fertilizers, along with the concern that ammonium sulfate accounts for nearly 4% of the total demand for nitrogen-based fertilizers, which raises the need for the utilization of substitutes, are some of the factors anticipated to impact negatively towards the growth of the global ammonium sulfate market.
Some of the affluent industry leaders in the global ammonium sulfate market are Sumitomo Chemical Co. Ltd., Nutrien Ltd., Evonik Industries AG, Lanxess, HELM AG, Domo Chemicals, Merck KGaA, DSM, Honeywell International Inc. and BASF SE.
Rising demand for fertilizers amongst farmers in the agriculture industry for increasing production of crops is one of the major factors that is driving the growth of the market.
The market is anticipated to attain a CAGR of around 3% over the forecast period, i.e. 2018-2026.
Asia Pacific (APAC) is anticipated to hold the dominating share in the market.
North America is anticipated to provide more business opportunities for the growth of the market in the future.
The major players in the global ammonium sulfate market are Sumitomo Chemical Co. Ltd., Nutrien Ltd., Evonik Industries AG, Lanxess, HELM AG, Domo Chemicals, Merck KGaA, DSM, Honeywell International Inc. and BASF SE.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
The market is majorly segmented by product form, application and by region.
The fertilizers segment, which is a sub-segment of the application segment, held the largest market share of around 88% in the year 2017 is anticipated to show significant growth opportunity in the future.
Availability of substitutes for meeting the requirements of fertilizers is one of the major factors anticipated to act as a barrier towards the growth of the global ammonium sulfate market.
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