U.S. Nitric Acid Market Size, Share & COVID-19 Impact Analysis, By Application (Fertilizers, Nitrobenzene, Adipic Acid, Toluene Di-isocyanate, and Others), and Country Forecast, 2023-2030

The U.S. nitric acid market size was worth USD 2.25 billion in 2022 and is projected to grow at a CAGR of 3.5% during the forecast period.

Nitric acid is a group of inorganic acids that is a colorless compound. This acid turns yellow when it decomposes nitrogen and water into oxides. Also, it is utilized in the formulation of plastic, dyes, and ammonium nitrate for fertilizers. Additionally, it is used in the formation of the aqua regia when mixed with hydrochloric acid. The aqua regia is consumed in chemical dissolving applications, such as platinum and gold.

Moreover, it is also used to produce nitrobenzene, adipic acid, and chloronitrobenzene. These end-use products are utilized in the end-use industries, including construction, plastics, and automotive, in formulating multiple products, such as polyurethane foams, concrete, and fertilizers. Thus, the growth of these end-use industries is driving the U.S. nitric acid market during the forecast period.

The COVID-19 pandemic negatively impacted the market due to increased restrictions on business activities, such as the logistics chain manufacturing units, and lower demand for products from the end-use industries. Despite the uncertainties, the market is expected to stabilize gradually owing to the drastic rise in the application of plastics to produce PPE kits and blood bags in the medical industry.  

U.S. Nitric Acid Market Trends

Growing Product Adoption in Lightweight Automobile Components to Fuel Market Growth

The utilization of electric vehicles (EVs) and hybrid vehicles has drastically increased in the U.S. owing to the rise in the programs to neutralize carbon or greenhouse gas emissions. The U.S. government took serious steps after participating in the Paris Agreement 2015. The government imposed limitations on carbon emissions emitted by the different major emitters, including automotive and construction. Thus, the automotive industry is switching to eco-friendly cars, buses, and trucks. Nitric acid is used in the manufacturing of lightweight plastic components such as dashboards and seat covers. Thus, the emerging EV industry in the country is surging the growth of the U.S. nitric acid market.

U.S. Nitric Acid Market Growth Factors

Rising Demand for Nitric Acid from Agriculture Industry to Drive Market Growth

The agriculture industry is growing rapidly in the country owing to the new agriculture policies that encourage farming and related activities. According to the U.S. DEPARTMENT OF AGRICULTURE, the food and agriculture industry has contributed nearly USD 1.26 trillion to the GDP of the U.S. Thus, the demand for raw materials, such as trace elements, stock feed, inhibitors, and dispersants has gained popularity over the past years. Nitric acid is used in the synthesis of calcium ammonium nitrate and ammonium nitrate for fertilizer application. Therefore, the rise in the agriculture industry is expected to drive the U.S. nitric acid market growth.

RESTRAINING FACTORS

Increasing Demand for Green Materials from Different Industries to Hamper Market Growth

Nitric acid is a highly corrosive compound that emits fumes that can be hazardous to human health as well as the environment. It may affect the lungs and skin if inhaled for a long duration. Additionally, the product causes nausea, diarrhea, abdominal pain, and throat infection. Moreover, nitric acid may increase the acidity level in the soil, and it can burn the roots of the plants. To prevent these types of side effects on human health and the environment, the U.S. government set regulations to use green materials for fertilizers and other related end-use applications. Thus, the rise in the awareness of green materials in the country is hindering market growth.

U.S. Nitric Acid Market Segmentation Analysis

By Application Analysis

Based on application, the market is segmented into fertilizers, nitrobenzene, adipic acid, toluene di-isocyanate, and others.

The fertilizers segment accounted for the largest U.S. nitric acid market share in 2022. The growth of the segment is associated with the rising agricultural activities driven by government initiation and private organizations to fulfil the growing demand from the population. Moreover, the growing consumption of nitrogen-based fertilizers is another key driver for the segment’s growth.

The adipic acid segment had a significant market growth owing to its use of lightweight plastic components, such as dashboards and seat foams. The adipic acid produced from nitric acid is used to manufacture nylons and other resins. Thus, the increasing use of nitric acid in this application is boosting the segment’s growth.

List of Key Companies in U.S. Nitric Acid Market

In terms of the competitive landscape, the U.S. nitric acid market depicts the presence of established and emerging companies. Key players include BASF SE, Nutrien, EuroChem Group, CF Industries Holdings, Inc., and Omnia Holdings Limited. Players compete primarily based on the price and application characteristics of the product. Companies are emphasizing product innovation, social marketing, acquisition, and collaborations.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)
• Nutrien (Canada)
• EuroChem Group (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.)

KEY INDUSTRY DEVELOPMENTS:

• July 2022- Nutrien Ag Solutions entered into an agreement to acquire a Brazilian company Casa do Adubo S.A. This acquisition includes 39 retail locations under the brand Casa do Adubo and ten distribution centres under the brand Agrodistribuidor Casal. The agreement supports Nutrien’s retail growth strategy in Brazil and is expected to increase its sales by USD 400 million.   
• June 2022- Nutrien Ag Solutions is increasing its fertilizer production capability. This move will enable the company to respond to changes in global energy, agriculture, and fertilizer markets.

REPORT COVERAGE

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The study report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the country level.

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