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The global ammonium sulfate market size was USD 1.04 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 6.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 1.08 billion in 2021 to USD 1.50 billion in 2028 at a CAGR of 4.8% during the 2021-2028 period. The sudden decline in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The global market for ammonium sulfate is anticipated to experience significant growth attributed to increasing demand from agrochemicals and taste-enhancing additives in the food industry. Moreover, the increasing demand from non-agricultural applications like fire extinguishers, flame-retarding agents, and other industrial applications shall contribute positively to the market.
COVID-19 Pandemic: Curbs on Production Activities to have Negative Impact on Market
Though the COVID-19 pandemic is primarily a health hazard, it has created a broader impact on the economic conditions across the globe. This led to vast socio-economic disruptions in almost every sector of the economy. The pandemic outbreak significantly affected the manufacturing and supply of raw materials and finished products in the agrochemical sector. Moreover, agriculture is a labor-intensive sector, which has been severely affected due to the restrictions imposed by the government and regulatory authorities to curb the spread of the virus.
Production, harvesting, and packaging of agriproducts are affected by the pandemic, which in turn, led to the disruption of the supply and demand for food products. For the agrochemical producing companies, changes in suppliers for raw materials and distributors of finished products possess certain risks, including updates in registration for fertilizers and pesticides. Changes in the use of raw materials for agrochemicals, product registration, and other manufacturing activities require updates. The rules and regulations mandated to restrict the spread of the virus are expected to lower the production activities.
However, increasing demand for convenience food products and packaged products have surged the demand for taste-enhancing additives. The sudden filling up of the stockpiles across the globe during the lockdown, in turn, had boosted the demand from the food industry.
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Technological Development in Production Techniques is a Vital Trend
Advancements and implementation of production techniques such as vacuum thermal stripping and vacuum absorption process are expected to aid market growth. The vacuum thermal stripping process allows the manufacturer to produce granules of ammonium sulfate. The ammonia recovery process includes vacuum thermal stripping with acid absorption in which the ammonia is stripped out of the digestate boiling at the temperature below the boiling point using vacuum. Further, it is absorbed into sulfuric acid, which forms crystals. Certain tests demonstrated the formation of high purity ammonium sulfate crystals through this process. The high efficiency of the vacuum stripping production technique coupled with high purity output is expected to increase the adoption rate in manufacturers. High demand for pure ammonium sulfate from end-use sectors is likely to drive the market growth.
High Demand for Agrochemicals to Drive Market Growth
Ammonium sulfate is a quick-acting acidic fertilizer used for alkaline soils. The 20-25% of nitrogen content helps in regaining the fertility of the Nitrogen-deficient and alkaline soil. Increasing demand for food crops accredited to the mounting global population is likely to drive the market for agrochemicals, further driving the market.
According to the Food & Agriculture Organization (FAO), the global supply of ammonia for fertilizer application in 2020 was 160,492 million tons. Nitrogen is one of the significant nutrients of the soil that aids plant growth, food metabolism in plants, and chlorophyll production. A high rate of adoption of Nitrogen-containing fertilizers by farmers to obtain a higher yield of crops is expected to boost the demand for ammonium sulfate. Moreover, the shrinking of cultivable land is another reason driving the demand for fertilizers. For instance, according to the Food & Agriculture Organization (FAO), the share of agricultural land was 37% in 2017, which declined to 36.9% in 2018.
Additionally, the use of ammonium phosphate as a food and feed additive is likely to bolster market growth. It is usually employed as an acidity regulator in flours and pieces of bread, while in feed production, it is used to induce enzyme production and to remove the high levels of potassium present in vinasse, which further enhances the quality of feed.
Increasing Adoption by Industrial Sector to Boost Market Growth
The increasing adoption of ammonium sulfate from the industrial sector for various applications, including wood preservation, NMR spectroscopy, water treatment, feedstock chemical, flame retardants, and others, is expected to drive the demand. The implementation of the product as flame retardant composition acts like diammonium phosphate. It increases the combustion temperature of materials and decreases the weight loss rates, further increasing the production rate of residue. In NMR spectroscopy, a saturated solution of ammonium sulfate in heavy water is used as an external reference in sulfur with a shift value equal to 0. Moreover, the adoption in the healthcare sector as an ingredient for vaccines by the Centre for Disease Control is anticipated to aid the ammonium sulfate market growth.
Toxicity May Hamper Market Growth
Ammonium sulfate is considered toxic for human health. It is acutely toxic in nature but can be fatal if exposed to humans for a longer-term. It is also a known skin and eye irritant and environmental hazard to the aquatic ecosystem. These factors are expected to hamper the growth of the market.
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Fertilizers Segment to Hold the Largest Share Due to High Demand
The market is segmented into fertilizers and industrial in terms of application. The fertilizers segment constituted a market share of 93.1%. Increasing demand for agricultural yield due to increasing population is the prime factor driving the segment growth. Besides increasing demand for nitrogen fertilizer, attributed to the benefits provided shall foster market growth.
Moreover, increasing adoption from the industrial sector for various applications like textile dyeing, feed additives, food additives, leather processing, water treatment, and flame retardant shall support the industrial segment growth.
Asia Pacific Ammonium Sulfate Market Size, 2020 (USD Billion)
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The market size in Asia Pacific stood at USD 0.36 billion in 2020. Asia Pacific region dominated the market by holding 34.8% of the share of the global market and is anticipated to continue its dominance during the forecast period. Increasing demand for agricultural yield and food crops due to the increasing population in China, India, Bangladesh, Indonesia, Pakistan, and Japan is expected to boost the demand for fertilizers and agrochemicals, further supporting regional growth. Additionally, the presence of an ample number of manufacturers in the region is likely to foster growth rate.
Europe holds a significant share attributed to the high agricultural production. According to research conducted by Europa, the EU-27 produced about 299 million tons of cereals in the year 2019. Strong manufacturing, as well as a consumer base for fertilizers, is likely to boost the demand for ammonium sulfate.
North America closely followed Europe in terms of value attributed to the high demand for soil conditioning fertilizers. Implementation of modern farming techniques, usage of soil conditioners, and pH maintaining fertilizers is expected to show considerable growth in demand for ammonium sulfate. Additionally, increasing demand for water treating chemicals attributed to the stringent regulations imposed by the Environmental Protection Agency (EPA) is likely to foster market growth.
Latin America is expected to show considerable growth attributed to the high demand for agrochemicals from agricultural countries like Brazil, Argentina, Mexico, and Chile. Rapid industrialization coupled with social and economic development is positively impacting market growth.
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The Middle East & Africa is expected to show considerable growth. Lack of cultivable land and harsh weather conditions are prime reasons responsible for the lower rate of agriculture. However, large-scale irrigation coupled with mechanization has enabled crop cultivation which is expected to raise demand for fertilizers.
Key Companies to Adopt Strategies and Broaden their Market Presence
With a few global players capturing a significant share, the global market is concentrated in nature. BASF, Evonik, Sumitomo, Lanxess, Domo Chemicals, Arkema, Fibrant, Royal DCM, Novus International, and ArcelorMittal are some of the market's key players.
Industry players operate principally based on the product's price and application characteristics. To boost their market share and achieve a competitive advantage, several major players are engaged in numerous strategic alliances to promote brand and sales. For instance, in April 2019, the four leading producers, namely BASF, Domo Chemicals, Lanxess, and Fibrant, collaborated to form Ammonium Sulfate Producers Europe (ASPE) with the guidance of the European Chemical Industry Council (Cefic) to promote the benefits of their products.
An Infographic Representation of Ammonium sulphate Market
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The ammonium sulfate market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and raw materials. The report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth in recent years. This report includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.
Value (USD Billion) and Volume (Kilo Tons)
By Application; and By Region
Fortune Business Insights says that the global market size was USD 1.04 billion in 2020 and is projected to reach USD 1.50 billion by 2028.
In 2020, the Asia Pacific market size stood at USD 0.36 billion.
Registering a CAGR of 4.8%, the market will exhibit steady growth during the forecast period (2021-2028).
The fertilizers segment is expected to be the leading segment in this market during the forecast period.
The increasing demand for fertilizers is expected to drive the market.
BASF SA, SABIC, DOMO Chemicals, Lanxess, Arkema, Sumitomo Corporation, Evonik, and Fibrant are the major players in the global market.
Asia Pacific dominated the market in terms of share in 2020.
The usage of high-end production techniques by manufacturers is expected to drive the adoption of the products.
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