Ammonium Sulfate Market Set to Witness an Uptick during 2020 to 2027

Posted by Mrudula Anil Karmarkar on May 24th, 2021

The global ammonium sulfate market size is projected to reach USD 4.4 billion by 2027, according to a new report by Grand View Research, Inc., registering a CAGR of 4.7% over the forecast period. Growing demand for fertilizers due to the necessity of essential nutrients such as nitrogen and sulfur is expected to drive the market.

The current pandemic situation has created disruption in the manufacturing of agrochemicals by virtue of raw material availability. Furthermore, this continual trend shall have a cascading effect on food productivity and crop yields on economies that are predominantly agrarian, during a time when demand for Agri produce shall register a spike over the medium term. Governments across the developing world are vying to incrementally ease restrictions on the manufacturing of fertilizers and maintain seasonal agricultural activities in order to reduce concerns regarding food security, which is a critical indicator for determining the course of a supply gap in the industry. The report will account for Covid19 as a key market contributor.

Ammonium sulfate is an inorganic salt that is used as an additive to enhance the taste of products in the food industry. This crystalline solid is a preferred food additive as it has a slightly salty taste and no aroma. The food and feed additives segment is expected to be driven by the increasing consumption of ammonium sulfate as an acidity regulator in bread dough and for conditioning dough. Non-agricultural applications currently exhibit marginal market penetration. These applications include its usage as an ingredient in fire extinguisher powder and flame-retardant agents, and for the purification of liquid in textiles and pesticide additives.

North America accounted for the third-largest market share after the Asia Pacific and Europe in 2020. Ammonium sulfate is considered generally recognized as safe (GRAS) by the Food & Drug Administration (FDA). Although the fertilizer segment dominates the consumption of the product in North America, its growth is anticipated to be led by the pharmaceutical and food additive industries. The shifting preference toward organic farming and consumption of safer substitutes such as urea is estimated to hinder the demand for ammonium sulfate fertilizers in the region.

Ammonium sulfate is an inorganic compound mainly manufactured as a byproduct of industrial processes including caprolactam and coke oven production. It is also produced synthetically using pure ammonia and sulfuric acid. A majority of the commercially available products are obtained during the caprolactam oxidation process.

Ammonium Sulfate Market Report Highlights

  • Liquid ammonium sulfate is anticipated to register a significant CAGR of 4.3% from 2020 to 2027 in terms of volume due to its increasing usage in water treatment across the globe
  • The water treatment segment is expected to register a CAGR of 3.4% from 2020 to 2027 in terms of value owing to its disinfectant properties
  • The Asia Pacific dominated the market with a share of 45.3% in terms of volume in 2020. The presence of a significant number of manufacturers and growing population and the subsequent rise in food demand is anticipated to contribute to the high consumption of the product over the forecast period
  • Canada is anticipated to register the highest CAGR in the North American market due to the growing population and increasing agricultural production. According to the FAO, agricultural production in Canada grew from 87.7 million tons in 2014 to 102.9 million tons in 2017
  • The Central and South American market is expected to witness a significant CAGR of 4.3% in terms of value over the forecast period. This is attributed to the high adoption of ammonium sulfate in the textile industry and its use as a fertilizer in the agricultural sector
  • Major manufacturers in the ammonium sulfate market are focusing on mergers and acquisitions to achieve complete integration across the value chain. For instance, in January 2018, Trammo, Inc. acquired Agrium’s North Bend, Ohio production facility. This acquisition was aimed at strengthening the company’s nitrogen supply capacity and provide it with significant ammonia storage capacity for future expansion and better service in the region.

The consumption of ammonium sulfate in the U.S. is largely dependent on its application as a nitrogen fertilizer as it utilized over 70.0% of the total volume produced in 2020. However, the growth of the segment is anticipated to be driven by its rising consumption in the pharmaceutical and food additive industries. The U.S. Food and Drug Administration (FDA) has categorized ammonium sulfate as a safe acidity regulator in bread and flours. As an additive, it aids in controlling the pH level of baked products and is commonly used as a dough conditioner and dough strengthener. These factors are anticipated to have a positive impact on the demand for ammonium sulfate as a food additive in the country.

The pharmaceutical industry is another major contributor that drives the demand for ammonium sulfate in the U.S. The chemical is widely used as a cleaning agent during the vaccination process. According to a report published by Vaccine Fact Book, over two-thirds of the vaccines developed across the globe have originated in the U.S. Moreover, the consumers in the country have a high tendency to spend on vaccinations and medication.

Ammonium sulfate is mainly produced as a byproduct of caprolactam and coke oven processes. Caprolactam is widely used for the manufacturing of nylon fibers. Nylon fibers have a wide range of applications including textiles, carpets, industrial yarn, and fishing lines and nets. The rise in demand for nylon fibers has therefore resulted in a growth in caprolactam manufacturing, subsequently leading to an increase in the supply of ammonium sulfate globally. However, the consumption of the product is estimated to witness a slow growth rate over the forecast period, causing an oversupply in the marketplace. This factor has reduced the price of the product.

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Furthermore, ammonium sulfate is considered to be toxic to human health. Worker exposure to ammonium sulfate in production sites, processing, and transportation could cause severe respiratory route infection due to inhalation of aqueous aerosols and dust. Prolonged skin contact might cause dermatitis, permanent eye damage, and lung damage. Such factors are anticipated to hinder the market growth.

The competitive factors that have a deep impact on the market growth include regulatory approvals, pricing, product grade, and manufacturing technology. Major manufacturers are focusing on the development of long-term contracts with end-users to maintain a long-term demand and sustain in the competitive market. In addition, manufacturers need to be aware of the changing regulatory scenario across borders and thus develop specific grades. Companies such as Domo Chemicals, BASF, SABIC, and Honeywell International have a high degree of integration across the value chain as they are also engaged in the production of caprolactam. These companies have established themselves as key manufacturers and focus on research and development for novel uses of ammonium sulfate. Some other major manufacturers include Novus International, Sumitomo Chemical, and Helm AG.

Grand View Research has segmented the global ammonium sulfate market on the basis of product, application:

Ammonium Sulfate Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Solid
  • Liquid

Ammonium Sulfate Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Fertilizers
  • Pharmaceuticals
  • Food & Feed Additives
  • Water Treatment
  • Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

For More Information:www.grandviewresearch.com

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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