Global Ammonium Bicarbonate Market Report and Forecast 2024-2032

Global Ammonium Bicarbonate Market Size

The global ammonium bicarbonate market is expected to grow at a CAGR of 4.3% in the forecast period of 2024-2032.

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Ammonium Bicarbonate Market Growth

The Growing Food Industry to Aid the Global Market for Ammonium Bicarbonate

The growing demand for ammonium bicarbonate in the food industry is aiding the growth of the ammonium bicarbonate market. The product is used extensively within the food industry. For example, it is used as a raising agent in the preparations of baked products, like crackers and cookies. The rising demand for such food products in packaged or ready-to-eat formats across both developed as well as emerging economies is boosting the market growth of the product. Furthermore, rapid urbanisation is supporting the growth of the food industry, which, in turn, is enhancing the market for ammonium bicarbonate.

Ammonium Bicarbonate Market Trends

Rising Demand from the End Use Industries to Aid the Global Market Growth for Ammonium Bicarbonate

The ammonium bicarbonate demand is driven by the rising food industry, where it is employed as an active baking agent in the production of baked goods like biscuits, cookies, among others. Further, the growing population and urban development are strengthening the demand for food, which is likely to have a positive impact in the forecast period as well. Moreover, the highest quality standards of the product are also expected to aid the market growth in the forecast period. In addition to this, the product is also finding extensive use in the end-use industries, such as rubber and leather industry, among others. The sustainable growth of these industries is predicted to aid the ammonium bicarbonate industry positively in the forecast period.

However, due to strict regulations and standards associated with the use of chemicals in the food industry, the ammonium bicarbonate industry may find some hindrance over the forecast period.

Recent Developments

As per the recent Indian surveys in 2024, India has witnessed considerable growth in the production of the ammonium bicarbonate grade in the past 5 years. Several companies in the country are investing in modern production facilities that can meet the demand internationally and domestically.

Industry Outlook

According to ITC Trademap, India's ammonia imports decreased from 2,691,051 tons in 2019 to 2,243,843 tons in 2022, followed by a slight rise to 2,336,714 tons in 2023. As per the ammonium bicarbonate industry analysis, the USA's imports showed a gradual decline from 2,510,520 tons in 2019 to 2,177,607 tons in 2023. Morocco's imported 1,587,543 tons in 2019 and 1,885,081 tons in 2022, with a minor decrease to 1,580,275 tons in 2023. South Korea's imports decreased from 1,378,384 tons in 2019 to 1,101,966 tons in 2023.

Turkey saw a drop from 1,024,042 tons in 2019 to 827,985 tons in 2023. China's imports decreased significantly from 1,064,791 tons in 2019 to 235,891 tons in 2022 but then rose to 696,066 tons in 2023 which contributed to the growth of the ammonium bicarbonate industry. France's imports showed a declining trend from 653,896 tons in 2019 to 496,917 tons in 2023.

Saudi Arabia's ammonia exports increased from 6,149,680 tons in 2019 to a peak of 9,541,977 tons in 2020, followed by a decline to 2,417,938 tons in 2023. Indonesia maintained relatively stable export levels, with 1,792,862 tons in 2019 and 1,795,080 tons in 2023. The USA's exports saw a gradual increase from 434,115 tons in 2019 to 1,157,118 tons in 2023. Canada's exports fluctuated, starting at 955,959 tons in 2019, peaking at 1,230,824 tons in 2021, and decreasing to 1,088,736 tons in 2023. Algeria's exports also showed variability, peaking at 1,407,688 tons in 2021 and declining to 853,365 tons in 2023, which influenced the ammonium bicarbonate industry revenue. Oman's exports grew from 84 tons in 2019 to 661,566 tons in 2023. Qatar emerged as a significant exporter with 529,724 tons in 2023.

Factors Contributing to the Growth of the Ammonium Bicarbonate Market Globally

• Rising demand from the food and beverage industry as a leavening agent and pH buffer.

• Increasing use in agriculture as a nitrogen fertilizer and soil amendment.

• Growth in the pharmaceutical industry for its use as a reagent and in medicine formulations aids ammonium bicarbonate demand growth.

• Utilization in the textile industry for dyeing and printing processes.

• Applications in the rubber and plastic industries as a blowing agent.

Challenges Faced by Manufacturers in the Global Ammonium Bicarbonate Market Share

• Volatile raw material prices impact production costs and profitability.

• Stringent environmental regulations and compliance requirements increase operational costs.

• Competition from alternative leavening agents and fertilizers pressures market share. 

• Fluctuations in demand from key end-user industries, such as food and agriculture negatively impact ammonium bicarbonate demand forecast.

• Health and safety concerns related to the handling and storage of ammonium bicarbonate.

Key Indicators of Prices of Ammonium Bicarbonate

1.    Raw Material Costs:

• Ammonia and Carbon Dioxide: The primary raw materials for producing ammonium bicarbonate are ammonia and carbon dioxide. Fluctuations in the prices of these raw materials directly impact the production cost and, consequently, the price of ammonium bicarbonate, reducing ammonium bicarbonate market opportunities.

• Energy Costs: The production process is energy-intensive, so changes in energy costs, including electricity and natural gas prices, significantly affect the overall production costs.

2.    Supply and Demand Dynamics:

• Agricultural Demand: Ammonium bicarbonate is commonly used as a fertilizer in the agricultural sector. Seasonal variations in agricultural activities influence demand, affecting prices.

• Industrial Demand: It is also used in various industrial applications such as in the food industry as a leavening agent, in pharmaceuticals, and in plastics. Changes in demand from these sectors can lead to price adjustments and affect ammonium bicarbonate market value.

• Export and Import Levels: The balance between domestic production and international trade (imports and exports) can create supply pressures or relieve them, impacting prices.

3.    Production Capacity and Utilization Rates:

• Capacity Utilization: The efficiency and utilization rates of production facilities affect the cost of production. High utilization rates typically lower the per-unit cost, which can influence market prices.

• Plant Maintenance and Downtime: Scheduled and unscheduled maintenance of production plants can affect supply, causing price fluctuations and hindering demand of ammonium bicarbonate market.

4.    Technological Advancements:

• Production Technology: Advances in production technology can reduce manufacturing costs and increase efficiency, potentially lowering prices.

• Alternative Processes: Development of alternative production processes that are more cost-effective can influence market prices.

5.    Logistics and Transportation Costs:

• Freight Costs: Transportation costs for delivering raw materials to production sites and finished products to markets affect the overall price structure and ammonium bicarbonate market revenue.

• Supply Chain Disruptions: Events such as strikes, natural disasters, or geopolitical tensions that disrupt supply chains can lead to price volatility.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global ammonium bicarbonate market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• BASF SE 

• Sumitomo Chemical Co., Ltd.

• Nissan Chemical Corporation

• Mangalore Chemicals & Fertilizers Limited

• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

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Ammonium Bicarbonate Industry Segmentations

Ammonium bicarbonate refers to a type of inorganic chemical compound. It is a colourless, crystalline bicarbonate salt of the ammonium ion. The chemical is used as a raising agent in the food industry for the preparation of baked goods like cookies and crackers. It can also be used as a nitrogen fertilizer in the agriculture industry. Besides, it can be used as a constituent in the formulation of fire-extinguisher compounds and in the pharmaceutical industry, as well.

On the basis of grade, the ammonium bicarbonate market is divided into:

• Food Grade

• Technical Grade

• Agriculture Grade

Based on end use, the industry can be segmented into:

• Agricultural

• Ceramic

• Food and Beverage

• Pharmaceutical

• Rubber and Leather

• Textile

• Others

The regional markets for the product include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Ammonium Bicarbonate Market Regional Analysis

Region-wise, the Asia Pacific region is a significant market for the product, as it holds a major share in the market. The market is driven by the rising food demand, along with the growing population in the region. As per the ammonium bicarbonate market dynamics and trends, expansion of the aforementioned factors is expected to contribute towards the market growth over the forecast period.

Key Highlights of the Report

Ammonium Bicarbonate Market Report Snapshots

Ammonium Bicarbonate Market Size

Ammonium Bicarbonate Market Growth

Ammonium Bicarbonate Market Trends

Ammonium Bicarbonate Companies

Ammonium Bicarbonate Market Regional Analysis