Japan Ammonium Bicarbonate Market Trends

Growth Drivers

• Thriving food and beverage industry: The food and beverages industry of Japan is amongst the most robust sectors that drive growth in the ammonium bicarbonate market, wherein the non-alcoholic beverage market solely has a valuation of about USD 40 billion. The usage of this chemical as a leavening agent in producing bakery and confectionery items puts it in constant demand. This is further supported by the increasing reliance on imports in Japan, which is valued at approximately USD 1 billion in food-related imports over the last couple of years. A report on the 12% year-on-year increase in the export of chemicals in July 2024 further underlines the increasing demand for food-grade ammonium bicarbonate. Growing consumer preference for processed and ready-to-eat foods adds thrust to the growth of the market.
• Increasing agricultural practices: Ammonium carbonate has emerged as an important element in the fertilizer industry, playing a crucial role in supporting Japan agricultural sector. The demand for this system of farming, with sustainability, has been increasing, and its adoption has been driven especially by the fact that Japan seeks to maximize agricultural output within a small area of arable land. The compound, with its nitrogen-rich profile, should be ideal for enhancing soil fertility and crop productivity. Government initiatives toward organic farming and judicious use of fertilizers have also contributed substantially to the demand for fertilizer-grade ammonium bicarbonate.
• Growth in pharmaceutical manufacturing: The pharmaceutical industry in Japan is one of the largest after the U.S. and China, representing a critical growth avenue for ammonium bicarbonate. Its application in the formulation and manufacturing of drugs underlines its usefulness in this industry. Furthermore, this growth in the pharmaceutical industry is influenced by Japan focus on health improvements and an aging population that heightens the demand for drugs. This trend will have a strong impact on the ammonium bicarbonate market.

Challenges

• Environmental concerns: Increased CO₂ emissions in Japan reached 1.2% higher to 8.61 tons per capita in 2022, leading to the development of strict environmental regulations. These are some of the compliance standards that the ammonium bicarbonate market has to grapple with if costs are to remain affordable. However, the need to re-structure the manufacturing processes due to such constantly changing regulations demands huge investment and innovation on the part of many of the market participants.
• Import quality issues: The quality issues with ammonium bicarbonate imports have dented the reliability aspect of the market in Japan. For instance, the earlier contamination of melamine in ammonium bicarbonate imports resulted in stricter scrutiny by the Ministry of Health, Labour, and Welfare, Japan. As a result, these quality issues pose a challenge to manufacturers dependent on imported raw materials. Given the delays, the increased cost of compliance disturbs their production schedules, which further limits the market growth.