Industry Trends

Europe Ammonium Nitrate Market Value was USD 3.3 billion in 2019 and will grow at a CAGR of 2.8% up to 2026.
 

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Europe market size will be majorly driven by rising product demand from agriculture industry. In 2019, the agricultural and goods output in Europe was recorded at over USD 400 billion. Cereals accounted for over one-fifth of the total agricultural and goods output in the region, majorly dominated by wheat and spelt. In 2016, Europe used 173 million hectares of land for agricultural production and there were approximately 10.5 million farms in the region. Despite net decline in the usable agricultural land in the region, the ongoing trends suggests that the bigger yields will drive the overall agriculture productivity. Though the area of land used for permanent grassland, oilseeds and permanent crops in the region is expected to decline, the use of land for protein crops, cereals and fodder is anticipated to grow in coming years. Regional cereal consumption is poised to increase rapidly owing to rising demand for industrial use and feeds. Maize and wheat areas is likely to witness rapid growth in near future. Total cereal production in Europe is likely to exceed 310 million tonnes by 2030.

The increasing COVID-19 cases has significantly disrupted new the supply chain in the regional agriculture and food industry, thereby negatively influencing the market size at a significant level. The imposition of temporary lockdowns coupled with restricted mobility of people to limit the spread of virus has further resulted in major disruption in production and international trade. Availability of substitutes and fluctuating raw material prices might hinder the product demand in coming years.

Based on the product, the Europe market is segmented into High density ammonium nitrate (HDAN), Low density ammonium nitrate (LDAN) and Ammonium nitrate solution. HDAN, as “fertilizer ammonium nitrate” dominated the industry owing to high product demand from agriculture industry. This grade in the prill form has a bulk density greater than 0.85 g/cc and purity is approximately 99.4%. HDAN is also safer to use than LDAN as it is less porous and has low level of oil absorption & oil retention. The density of HDAN is greater than 0.86. In the agriculture industry, ammonium nitrate can be used in various applications such as top-dressing of winter crops, sugar cane cultivation, perennial pastures & grasses, increasing crop yield, improving fertility of soil types, controlling growth of vegetation mass, increasing gluten & protein content in grains, etc.

Civil construction is likely to have low market share in the market owing to the limited product usage. In the civil construction industry, the product is used in the form of an explosive for many applications including excavation for railways, road making, delay detonators, secondary blasting, tunneling, underground development, etc. The product is majorly preferred in the segment owing to its lower cost. Increasing construction and  infrastructure in the region is likely to drive the product demand in the segment. These factors will increase the use of explosives in the construction industry, which will further propel industry growth over the forecast time period.

Russia accounts for more than 45% share in the Europe ammonium nitrate market. The escalating product usage for fertilizers will drive the product demand. Rising product demand from regional food industry will also positively influence the product consumption in the country.

The main players in the industry include Enaex S.A., Orica Limited, Yara International ASA, Incitec Pivot Ltd., CF Industries Holdings Inc., Neochim AD, EuroChem Group AG, OSTCHEM Holding, Borealis AG, Fertiberia SA, Austin Powder Company, URALCHEM Holding P.L.C and Abu Qir Fertilizers Company. Companies are primarily focusing on product capacity expansion, new product development, and diversifying sales & distribution network to establish a firm presence in the market. Organizations are also engaged in establishing long-term contracts and agreements with manufacturers for continuous material supply.