Nitric Acid Market to Reach USD 29.33 Billion by 2029; Nutrien Ag Solutions Engaged into a Contract with Casa do Adubo S.A. to Augur Growth

The global nitric acid market size was USD 22.17 billion in 2021. The market is projected to grow from USD 22.92 billion in 2022 to USD 29.33 billion by 2029, exhibiting a CAGR of 3.6% during the forecast period.

This information is provided by Fortune Business Insights, in its report titled, “Nitric Acid Market Size, Share & COVID-19 Impact Analysis, By Application (Fertilizers, Nitrobenzene, Adipic Acid, Toluene Di-isocyanate, and Others) and Regional Forecast, 2022-2029.”

Disruption in Supply Chains due to Movement Restriction to Affect Manufacturing Sector amid COVID-19

Many end-use sectors were significantly impacted by the coronavirus pandemic, which temporarily stopped trade and manufacturing. Due to declining demand and decreased manufacturing caused by the pandemic, the economy has also suffered, which is causing a disturbance in supply chains. The global standstill had a major impact on trade, which further reduced the supply of raw materials and raised the cost of completed items. Reduced product demand resulted from the temporary closure of production facilities in end-use industries such as the auto industry.

UBE Corporation to Build a Production Facility for High-purity Nitric Acid

Masato Izumihara, President of UBE Corporation, stated that the company has decided to construct a second high-purity nitric acid production facility at the UBE Chemical Factory in Ube City, Yamaguchi Prefecture to satisfy anticipated future demand surge. The production capacity will increase by 50% from the existing level when the new facility begins trial operations in February 2024.

Since it began operations in 1986, UBE Corporation has steadily increased its output capacity in response to the growth of the Japanese semiconductor market and has amassed a sizeable market share.

Increasing Demand from Various End-use Industries such as Agriculture and Construction to Aid Nitric Acid Market Growth

In the agricultural sector, nitric acid is widely utilized in the production of fertilizers such ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate. In order to meet the increased need for food caused by the expanding population, fertilizers are employed to increase crop output. Additionally, as customers' disposable incomes increase, there is a greater demand for high-quality, organic foods, which encourage the use of bio-based fertilizers and support market expansion.

Government rules requiring less industrial waste and environmental protection are issues limiting market expansion. The market is also being restrained by growing concerns over CO2 emissions from autos.

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Competitive Landscape:

Partnerships among Companies to Secure their Brand Values in the Global Market

Prominent players in the market are constantly opting for effective strategies to promote their products and establish their positions in the market. One such strategy is to launch new products by partnering with other companies to extend their reach to end-users.

Key Industry Development:

• July 2022: In order to purchase the Brazilian business Casa do Adubo S.A., Nutrien Ag Solutions engaged in a contract. This deal consists of 10 distribution centers operating under the brand Agrodistribuidor Casal and 39 retail sites operating under the brand Casa do Adubo. The deal complements Nutrien's retail expansion plan in Brazil and is anticipated to boost sales by USD 400 million.

List of Key Players Mentioned in the Report:

• BASF SE (Germany)


• Nutrien (Canada)


• EuroChem (Switzerland)


• CF Industries Holdings, Inc. (U.S.)


• Omnia Holdings Limited (South Africa)


• Dyno Nobel (Australia)


• Enaex S.A. (Chile)


• Sasol (South Africa)


• LSB Industries (U.S.)


• Ixom (Australia)

Further Report Findings

The market based on application is segmented into fertilizers, nitrobenzene, adipic acid, toluene di-isocyanate, and others. The fertilizers segment accounted for the highest nitric acid market share due to rising agricultural activities to fulfil the growing population demand.

The market size in Asia Pacific stood at USD 11.37 million in 2021. The growth is attributed to increasing product demand from various end-use industries that include automobile, agriculture, and construction. The economic development and growing population within countries such as India, China, and Japan create a significant demand in the agriculture industry.

Table of Segmentation