Ammonia Market Outlook - Supply and Demand Analysis 2025-2034

Ammonia Market

Ammonia, produced by reacting nitrogen and hydrogen at high pressure and temperature, is an important industrial chemical. About 80% of ammonia produced globally is used in fertiliser production. It finds application in the production of plastics, fabrics, explosives, dyes, and other chemicals, and is also utilised as a refrigerant gas to clean/purify water supplies. Further, ammonia is a key component in many household and industrial-strength cleaning solutions. Cleaning solutions especially formulated for industrial use are made using higher concentrations of ammonia.

Global Supply/Demand Outlook

The global ammonia market stood at a volume of around 191,500 KT in 2023. The market is estimated to grow at a CAGR of 2.20% between 2025 and 2034 to reach a volume of about 233,614.51 KT by 2032. Ammonia serves as a primary component in the production of ammonium nitrate fertiliser. The key factors propelling the ammonia market are the increasing global demand for fertiliser and the growing focus on improving crop yield and agricultural productivity. The growing global population is leading to a rise in food demands, which is boosting the consumption of fertilisers in the agriculture sector. Additionally, the growing consumption of cleaning supplies around the world to maintain hygiene is expected to boost the use of ammonia in cleaning solutions. The production of urea is the leading application of ammonia, holding around 55% of the market share.

The global capacity of ammonia was about 240,000 KT in the year 2023, which is further estimated to reach 310,000 KT by 2032. Asia Pacific holds the major share of ammonia capacities representing around more than 50% of the global production capacity. The plant capacity utilization of ammonia was estimated to be 80% in 2023.

Regional Market Analysis

China leads the global ammonia production, and the country accounted for over 30% of the global production in 2023, followed by Russia, the United States, and India. In the long-term, around 65 million tonnes of capacity addition is expected to take place majorly in the Asia Pacific, the US, and Middle East.

Key Market Players

Yara International ASA is one of the leading producers of ammonia. In April 2018, Yara International ASA, in collaboration with BASF announced the opening of a new world-scale ammonia facility in Freeport, Texas, US. The state-of-the-art facility, built in an investment of around $600 million, utilises a process based on by-product hydrogen instead of natural gas, making the production process cost-efficient and sustainable.

Other major manufacturers of ammonia across the world include SABIC, BASF SE, Achema AB, CF industries Holdings, Inc., Nutrien Ltd., Koch Fertilizer, LLC, EuroChem Group AG, Linde plc, and JSC Togliattiazot.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for ammonia by application and region?

• What are the different forms of ammonia available by region?

• Which segments and regions are projected to grow at a faster pace and why in the ammonia market?

• What is the nameplate capacity of ammonia by region from 2018 to 2032?

• How does the plant capacity utilisation of ammonia vary by region between 2018 and 2034?

• Who are the major players in the ammonia market by capacity and region?

• What major plant shutdowns and expansions have occurred in the ammonia market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the ammonia market over the next year and quarters?

• How did export and import dynamics of ammonia vary by region in terms of value between 2018 and 2023?

• How did export and import dynamics of ammonia vary by region in terms of volume between 2018 and 2023?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of ammonia?

• What are the environmental considerations and regulatory impacts affecting the ammonia market?

• What technological innovations are having an impact on the production and application of ammonia?

• What are the key trends and innovations in the ammonia market?

• What are the challenges and opportunities faced by ammonia manufacturers?

• What are the potential risks and barriers to entry for new players in the ammonia market?

• What strategic investments and expansions have major players made in the ammonia market?

• How are geopolitical factors and international trade policies affecting the global ammonia market?

• What are the price trends for ammonia, and how are they expected to change?

• How does the supply chain of ammonia operate, and what are its key components?