According to the Graphical Research new growth forecast report titled “APAC Ammonium Nitrate Market Size By Product (High Density, Low Density, Solution), By End-user (Agriculture, Mining & Quarrying, Civil Construction) Industry Analysis Report, Country Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026” to Witness Steady Growth by 2026
The APAC ammonium nitrate market growth is primarily driven by the regional agriculture and civil construction industry. The region accounts for approximately 45% global construction spending. The regional construction spending is majorly dominated by China, followed by India and Japan. In 2019, 300 construction projects were declared by the Beijing Municipal Commission, which included 100 projects to support ongoing development in high-tech industries, 100 projects solely aiming towards betterment of livelihood of people and 100 infrastructure development projects.
Favorable government initiatives from the Indian government, such as Housing for All, Smart City Mission, Pradhan Mantri Awas Yojana, etc., to promote construction & infrastructure development along with improvement in the standard of living will also propel the growth of regional construction industry. Rapid urbanization, increasing population, economic development, and rising industrialization are some key factors propelling the regional construction industry growth, and thus supporting APAC ammonium nitrate market growth.
High density product is effective in wet climatic conditions. It can be ascribed to the purified and non-porous state and highly dense prills. This product type also maintains the technical specification under such climatic conditions; thus, HDAN is more popular product type in the agriculture industry as compared to the other product variants. Increasing application of fertilizers in the agriculture industry will drive industry growth during the forecast timeframe.
The agriculture industry will witness around 4% CAGR in APAC ammonium nitrate market owing to the proliferating fertilizers application in the agriculture sector. The product is majorly used as a fertilizer to improve quality & augment the growth of crops. Increasing population has reduced the arable land per person in the region. Increasing population is leading to excessive food demands and thus prospering the use of fertilizers in the agriculture sector. Various government initiatives to spread awareness regarding the importance and fertilizer application in the agriculture sector will also propel the product usage. Neem Coated Urea (NCU) scheme launched by the government of India is primarily focused on controlling the usage of urea increase the nitrogen availability supplied to the crop and cost reduction of the fertilizer application. Under this scheme, farmers can improve the soil health and reduce the cost of cultivation. Government programs and initiatives to enhance the usage of fertilizer in the agriculture sector will prosper APAC ammonium nitrate market expansion in the agriculture segment during the forecast time period.
Market participants in the Asia Pacific ammonium nitrate industry include Borealis AG, Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL), EuroChem Group AG, Yara International ASA, OSTCHEM Holding, CSBP Limited, Austin Powder Company, Incitec Pivot Ltd., Orica Limited, Fertiberia SA, San Corporation, Abu Qir Fertilizers Company and Enaex S.A. Major end-users opts for long-term supply agreements with the product manufacturers to ensure the continuous product supply.