Global Ammonium Sulfate Market By Product(Solid, Liquid), By Production Process(Caprolactam, Coke Oven Gas, Gypsum, Neutralization, Others), By Application(Fertilizers, Water Treatment, Pharmaceuticals, Food & Feed Additives, Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2033

Market Overview

The Ammonium Sulfate Market size is expected to be worth around USD 6.1 billion by 2033, from USD 3.2 billion in 2023, growing at a CAGR of 6.8% during the forecast period from 2023 to 2033.

This market growth is due to an improved claim for ammonium sulfurate in fertilizer formulations, which are widely used in agriculture. Intake of solid ammonium sulfurate is a major driver of the market.

The ultimatum for liquid ammonium sulfate is expected to rise. Global market growth is driven by the ultimatum for fertilizers, which contain sulfur and nitrogen. Because alkaline soils have high pH levels, it is used to reduce their acidity.

It contains both nitrogenous elements and sulfur which are essential for plant protein synthesis. This product is preferred for rice cultivation in flooded soils. Nitrate-based fertilizers can cause denitrification or leaching.

*Actual Numbers Might Vary In The Final Report

Key Takeaways

• Market Growth Projection: The Ammonium Sulfate Market is expected to witness significant growth, reaching around USD 6.1 billion by 2033 from USD 3.2 billion in 2023, exhibiting a projected CAGR of 6.8%.
• Driving Factors: Agricultural Demand: Increased use in fertilizer formulations due to its significance in agriculture drives market growth.
  Need in Water Treatment: Growing demand for water treatment solutions contributes to market expansion.
• Applications: Fertilizers: Leading application with over 67% market share, utilized for soil fertility and crop growth.
• Pharmaceuticals and Food and feed Additives: Combined share of about 14.5%, finding limited yet specific applications.
• Challenges: Supply Chain Disruptions: Volatility in raw material prices impacting production.
• Opportunities: Growing demand in industries like paper-making due to bans on plastics and expansion in pharmaceuticals and food & beverages.
• Regional Analysis: Asia Pacific: Largest revenue share due to the rise in demand for fertilizers, particularly in economies dependent on farming.
• Competitive Landscape: Intensely competitive market with global brands focusing on long-term relationships and innovation.

Product Analysis

Ammonium Sulfate market can be divided into two distinct segments based on product form: Solid and Liquid.

Solid Ammonium Sulfate: By 2023, Solid Ammonium Sulfate had achieved over 90.0% market share. This form of Ammonium Sulfate is favoured due to its stability, ease of handling and versatility in various applications – often being utilized for agricultural fertilization as well as industrial processes for chemical production or other solid-state properties such as other uses.

Liquid Ammonium Sulfate: While present on the market, liquid ammonium sulfate held a much smaller share than its solid form counterparts. While its use might offer particular advantages such as ease of application or specialty uses, its market presence was far outshone by solids’ superior market share.

Solid Ammonium Sulfate’s widespread acceptance across various industries speaks to its extensive use. Due to its stability and versatility, Solid Sulfate is often the go-to product in agriculture and industrial applications; Liquid form caters specifically for niche uses with smaller market shares.

By Production Process

In 2023, the Ammonium Sulfate market saw various methods employed for its production. Among these, the Gypsum process emerged as the dominant player, capturing a significant market share. This particular method involves a reaction between gypsum and ammonium carbonate to create Ammonium Sulfate. Known for its reliability and efficiency, the Gypsum process stood out as a preferred choice for manufacturing this compound, catering to diverse industrial needs.

Alongside the Gypsum process, other production methods like Caprolactam, Coke Oven Gas, Neutralization, and a few alternative approaches contributed to the Ammonium Sulfate market. Although these methods played their part in meeting demands, their combined share might be relatively smaller compared to the dominant presence of the Gypsum process.

These distinct production methods offer various avenues to produce Ammonium Sulfate, each serving specific industrial requirements and showcasing the compound’s versatility across different sectors and applications.

Application Analysis

In 2023, Fertilizers stood out as the leading application in the Ammonium Sulfate market, securing over 67.0% of the share. Ammonium Sulfate is extensively used as a fertilizer due to its high nitrogen content, providing essential nutrients to enhance soil fertility and crop growth.

Water Treatment held a notable yet smaller market share, approximately 15.5%. Ammonium Sulfate’s use in water treatment involves applications like reducing alkalinity and eliminating impurities in water systems.

Pharmaceuticals and Food & Feed Additives covered a combined share of about 14.5%. In these sectors, Ammonium Sulfate finds limited yet specific applications, such as in pharmaceutical formulations and food processing as an additive.

Other applications contributed to the remaining segment, showcasing the diverse uses of Ammonium Sulfate across various industries beyond the primary categories mentioned.

The dominance of Fertilizers in the Ammonium Sulfate market highlights its crucial role in agriculture, while its applications in Water Treatment, Pharmaceuticals, and Food and feed Additives reflect its versatility across different sectors, catering to varied industrial needs.

*Actual Numbers Might Vary In The Final Report

Key Market Segments

By Product

• Solid
• Liquid

By Production Process

• Caprolactam
• Coke Oven Gas
• Gypsum
• Neutralization
• Others

By Application

• Fertilizers
• Water Treatment
• Pharmaceuticals
• Food & Feed Additives
• Other Applications

Drivers

The rise in global water pollution due to growing populations and increased demand for drinkable water has become a significant concern. Urbanization and industrialization have amplified water consumption across various sectors like manufacturing, construction, commercial, and residential areas. Unfortunately, available freshwater resources are insufficient to meet this escalating demand. Overexploitation of these resources has led to depletion and water scarcity worldwide.

Anthropogenic activities like using fertilizers, herbicides, and insecticides in agriculture have contributed to groundwater contamination. Rainfall carries these chemicals into the ground, further polluting water sources. Moreover, when rainwater mixes with streams, it carries dirt particles, polluting them as well. With freshwater resources becoming scarce, the immediate solution lies in decontaminating the remaining water sources to meet human needs.

Increased demand for water decontamination should spur growth in the global ammonium sulphate market. This compound plays an essential part in water treatment processes, making it an integral component of efforts to purify drinking water sources to meet rising consumer demands for clean drinking water sources.

Restraints

As the dmand for water treatment solutions escalates, there’s been a notable surge in the availability of various alternatives catering to this need. Among these alternatives, chemicals like ammonium sulphate and sodium silicate have gained prominence for their effectiveness and cost-efficiency in water treatment processes. Their widespread use has intensified the competitive landscape in the market.

The availability and adoption of these alternative water treatment chemicals are posing challenges to the market growth of ammonium sulphate. While ammonium sulphate remains a significant player in the water treatment industry, the presence of these alternative solutions is gradually chipping away at its market share. The market for ammonium sulphate is expected to face limitations in its growth trajectory due to the growing utilization of these alternative water treatment materials.

This increased competition among water treatment chemicals and materials offers consumers more choices, but it also puts pressure on the market share of ammonium sulphate. Despite its effectiveness, the presence and preference for alternative solutions might hinder the potential growth prospects of aluminium sulphate in the water treatment sector.

Opportunities

The escalating concern surrounding pollution, especially due to widespread plastic usage and its inadequate disposal, has prompted governmental authorities to impose bans. This has led to a surge in demand for alternative materials like bamboo, jute, and paper. Ammonium sulphate, known for its role in the paper-making industry, is set to benefit significantly from this shift. The growing paper-making sector presents a promising avenue for the market’s expansion.

Beyond the paper industry, ammonium sulphate also finds applications in other key sectors such as chemicals, pharmaceuticals, and food & beverages. The growth trajectory of these industries stands poised to unlock substantial opportunities for the global ammonium sulphate market. As these sectors continue to expand and evolve, the demand for ammonium sulphate is expected to increase, creating lucrative prospects for its market growth.

In essence, the ban on plastics and the subsequent rise in demand for eco-friendly alternatives is steering various industries towards materials like paper, where ammonium sulphate plays a pivotal role. Additionally, the versatility of ammonium sulphate across different sectors positions it to capitalize on the growth opportunities presented by these expanding industries.

Challenges

Supply Chain Disruptions Impacting ammonium Sulphate Production:

The production of ammonium sulphate relies significantly on ammonium hydroxide and sulphuric acid. However, the market faces challenges due to the volatility in ammonium hydroxide prices, impacting the potential expansion of ammonium sulphate. This instability often arises from various factors such as geopolitical shifts, trade disputes, congested supply chains, and production obstacles.

For instance, the outbreak of the epidemic led to widespread lockdowns, limitations, and cross-border closures, abruptly halting economic activities and causing severe disruptions in supply chains across industries. Additionally, the energy crisis stemming from conflicts, like the tensions between Russia and Ukraine, inflicted supply chain bottlenecks, impacting various sectors.

These supply chain bottlenecks, induced by factors like raw material shortages, trade barriers, economic sanctions, or geopolitical tensions, pose significant challenges to the growth prospects of the ammonium sulphate market. The unpredictability and interruptions in the supply chain hinder the seamless production and distribution of essential raw materials required for manufacturing ammonium sulphate, thereby affecting its market growth.

Regional Analysis

Asia Pacific (APAC) had the largest revenue share at over 45% in 2023. This growth can be attributed to a rise in demand for fertilizers for the crop-growing sector, which will in turn lift the demand for ammonium sulfurate. Many of the economies of this region, including India, Sri Lanka, and Bangladesh are dependent on farming as a primary sector. Despite slow growth in agriculture, there are significant growth chances for fertilizers.

In 2021, Europe was second in volume. This is due to a proliferation in the claim for fertilizers that can be used in multiple crops. Multiple agencies have established regulations for the use of synthetic fertilizers within the region.

The forecast period sees a 6.3% revenue-based CAGR in South America and Central America due to the augmented mandate for high-quality ammonium-sulfate-based fertilizers that are used in the healthy growth and maintenance of key crops such as grapes, sunflower seeds, and wheat. Half of South America and Central America GDP is accounted for by the agronomy sector, which includes Argentina, Bolivia, and Paraguay.

*Actual Numbers Might Vary In The Final Report

Key Regions and Countries

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share Analysis

Ammonium sulfate has a highly competitive market. Large global brands are focused on building long-term relationships and trust with end users. The competition will increase due to the continued growth in water treatment and the pharmaceutical sector. Companies like Honeywell International, SABIC, BASF, and Domo Chemicals have high levels of integration throughout the value chain, as they also produce caprolactam. These companies are well-known for being the main producers, and they concentrate on R&D to find new uses for the product.

Key Market Players

• Lanxess Corporation
• BASF SE
• Sumitomo Chemical
• Royal DSM
• Honeywell International
• Evonik Industries
• Novus International
• AdvanSix
• J.R. Simplot Company
• Other Key Players

Recent Developments

In October 2023, BASF announced that it is expanding its production capacity for ammonium sulphate in China. This expansion will help to meet the growing demand for ammonium sulphate in Asia.

In September 2023, Nalco India announced that it has developed a new grade of ammonium sulphate that is specifically designed for use in wastewater treatment.

In August 2023, Kemira announced that it has acquired the ammonium sulphate business of Chemtrade Logistics. This acquisition will strengthen Kemira’s position in the North American ammonium sulphate market.