Global Ammonium Sulfate Market Size, Share and Analysis - Report Forecast Trends and Outlook (2024-2032)

Ammonium Sulfate Market Growth

Ammonium sulfate, (NH4)2SO4, is usually available in a dry form (crystalline or compacted and granular). It is highly soluble in and readily absorbs water. The particle size and form of crystalline ammonium sulfate can vary significantly. Conditioning agents such as dust control coatings and anti-caking coatings are extensively utilised at manufacturing and shipping points because ammonium sulfate particles have a tendency to cake in storage and also deteriorate and generate dust. Such treatments may be required at downstream storage and transfer facilities on occasion.

Ammonium sulfate has a variety of food applications. It is used as a stabiliser, buffering agent, bread enhancer and dough strengthener. It is also used in the production of sausage casings, bread and pasta products, and bakers’ yeast fermentation.

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Key Trends and Recent Developments

Growing demand from the agricultural sector, sustainable practices and growth in new markets are few factors driving ammonium sulfate market dynamics and trends.

September 2022

Topsoe has formed a 5GW launch company agreement in collaboration with First Ammonia to reserve first-of-a-kind, industrial provides a solid oxide electrolyzer cell (SOEC) system to produce green ammonia, a fuel for transportation, power storage/generation, and a major source of fertiliser. This agreement appears poised to be the largest agreement to date in the world for any electrolyzer operation and will displace nearly 5 BCM of natural gas and eliminate 13 million tonnes of CO2 emissions every year.

Growing Demand in Agriculture

A key trend in the ammonium sulfate market is that there is an increasing demand for ammonium sulfate within agriculture due to its natural effective nitrogen and sulfur fertiliser characteristics. Since it can improve soil fertility and increase crop yields when applied to sulfur deficient soils, ammonium sulfate is widely used worldwide by farmers.

Move toward Sustainable Practices

The ammonium sulfate market is observing a trend toward improved sustainable and environmentally friendly production practices. Businesses are focused on reducing their carbon footprints and increasing their efficiency level of utilisation of recyclable resources to develop ammonium sulfate conforming with environmental regulations and to meet growing needs within their farming operations to implement more green practices.

Growth in Emerging Markets

Emerging markets, especially in regions like Asia-Pacific and Latin America where there has been more adoption of ammonium, SAP as well as increased kindle agricultural activity, opening up ammonium sulfate market opportunities. The new market growth is attributed to the need to raise productivity in more of the rural agricultural contexts as leverage other investments previously into business and infrastructure of agriculture.

Ammonium sulfate (pharma grade) is used for the precipitation and fractionation of proteins, purification of antibodies, and crystallisation of proteins, protein-nucleic acid complexes and of nucleic acids. It acts as a nitrogen supplier for yeast cultures and micro-organisms. Further, ammonium sulfate is used in the purification of antibodies and as a cleaning agent in vaccination processes. Various other applications of ammonium sulfate include cattle feed, in cellulose insulation, production of persulfates (in the chemical industry), fire extinguisher powder and flame proofing agents, production of metals (such as chromium), and noble metals (such as gold), nutrient for microorganisms (pharmaceuticals), additive to dye baths (textile industry), etc.

Ammonium Sulfate Market Trends

One of the remarkable trends taking place in the ammonium sulfate industry is the growing number of industrial processes producing ammonium sulfate by-products, e.g., caprolactam production or gypsum processing. This trend is gaining traction partly because of sustainability objectives and economic considerations in the agricultural sector, propelling the ammonium sulfate industry growth. Utilising by-products provides a more sustainable form of production, along with minimising waste generation. Meanwhile, there is an increasing demand for ammonium sulfate in the agricultural sector. In addition, this practice is becoming more familiar in industry and would support the circular economy's reflection on sustainable practices that is occurring on a global scale around improving sustainability.

Industry Outlook

The major application category for ammonium sulfate is fertiliser. It accounts for over 70% of the total market share. Other nitrate-based fertilisers may lead to soil denitrification and leaching, making ammonium sulfate-based fertilisers the preferred solution for farmers. A quick acting acidic fertiliser particularly suitable for saline and alkaline soil, ammonium sulfate contains nearly 20.5% nitrogen; in ammonium sulfate based fertilisers, there is no loss of nitrogen through leaching which makes them more suitable for use at the time of planting. Ammonium sulfate carries essential levels of nitrogenous elements as well as protein synthesis catalyst sulfur (24%). It can be used as a direct application fertiliser as well as part of NPK blends and compound fertilisers. Food additives and pharmaceuticals are other key sectors for market growth, carving out new trends of the ammonium sulfate market.

North America, Europe, and Asia Pacific are likely to be key markets. As a dough conditioner or dough strengthener, ammonium sulfate improves the fermentation capacity of yeast and supplies nitrogen, which can easily be used by yeast for protein building and multiplication. The extra nitrogen for yeast growth and consumption promotes consistency, volume, crumb and shelf life of the product.

As there is an increased emphasis on sustainable agricultural practices and more advanced fertilizer technology, demand for ammonium sulfate will also continue to increase. However, issues such as fluctuating price of raw materials and environmental legislation on sustainability are affecting production processes. Companies producing ammonium sulfate are looking for a more environmentally sustainable solution to counter those issues.

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Global Ammonium Sulfate Industry Segmentation

“Global Ammonium Sulfate Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

By product, the market is segmented into:

• Solid 
• Liquid

By application, the market is classified according to:

• Fertilisers 
• Pharmaceuticals
• Food and Feed Additives
• Water Treatment
• Others

By region, the market is segmented into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Ammonium Sulfate Market Share

As per ammonium sulfate market analysis, the solid segment of the market is predicted to grow due to the product's versatility in agriculture. Solid ammonium sulfate is preferred because it is easy to apply, store, and handle, making it amenable to large-scale farming. The solid form enables precision application rates, improving its use as a well-mixed granular fertiliser. Cost efficiencies are also part of why most solid forms of ammonium sulfate are less expensive to produce and transport than liquids. These factors all point toward an increasing shift to use solid ammonium sulfate.

Rising Demand for Ammonium Sulfate as A Nitrogen Fertilizer and Additional Use in Food Industry for Flavour Enhancement and Freshness Preservation is Contributing to The Growth of the Global Ammonium Sulfate Market

• Rising demand for ammonium sulfate as a nitrogen fertiliser used in agriculture to improve soil quality and crop productivity.
• Advances in production technologies aimed at improving production efficiencies while reducing the environmental footprint of ammonium sulfate production will likely increase the ammonium sulfate industry revenue.
• Expansion of ammonium sulfate in the food industry as a food additive to enhance flavour and provide freshness as a preservative.
• Expansion of water treatment systems to use ammonium sulfate as a nutrient to help remove contaminants and improve water quality, whether encapsulated or in solution.

Higher Production Costs Associated with the Production Process Relies on Skilled Resources May Challenge Players in The Global Ammonium Sulfate Market

• According to ammonium sulfate industry analysis, higher production costs are associated with high energy costs for production and the cost of raw materials.
• Reliant on specialised machinery and skilled labour to produce ammonium sulfate that is up to quality standards.
• Difficulty in meeting local environmental regulations with regards to production districts and by-product disposal.
• World economic fluctuations influencing levels of investment or demand in other end-use sectors.

Increased Investment in Sustainable Agriculture and Expanding Aquaculture and Hydroponics Industry, Influencing Demand In The Global Ammonium Sulfate Market

• Increased investment in sustainable agricultural practices that favours the use of ammonium sulfate as part of soil conditioning.
• Expansion in aquaculture and hydroponics prompting the demand for ammonium sulfate as a nutrient additive.
• Increased research in novel crop protection solutions is driving novel applications of ammonium sulfate in pesticide formulations and also pushes the ammonium market growth forward. 
• Rapid development in cost-effective and eco-friendly production processes built for the economy in developed and developing countries is making ammonium sulfate more competitive.
• Increased focus on field trials has provided heightened awareness of ammonium sulfate products, as well as regulatory opportunities for sustainable fertilisers which accelerates its market advancement.

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Ammonium Sulfate Market Regional Analysis

The market for ammonium sulfate is projected to experience growth in the Asia-Pacific region due to the region's quickly expanding agricultural segment, increasing crop production needs, and accelerating adoption of efficient agricultural strategies. Countries such as China and India are notable contributors to this segment, motivated by their sized agriculture markets and increasing demand for efficiency in fertilisation applications. Furthermore, numerous countries in the Asia-Pacific region are increasingly focused on soil quality, increased agricultural output, and food security in response to the growing population, which has contributed to increased usage of ammonium sulfate in this region. Investment in agricultural technology and infrastructure will also support the adoption of ammonium sulfate, helping to promote the ammonium sulfate industry in Asia Pacific.

Competitive Landscape

To fulfil the demand for agricultural applications and meet environmental regulations, major players in the ammonium sulfate market are focused on sustainable production technologies, expansion, and supply chain optimization.

Lanxess AG: Established in 2004 and located in Cologne, Germany, Lanxess AG produces ammonium sulfate primarily as a by-product of its caprolactam production. This solid fertilizer supplements the agricultural community by promoting soil fertility and improving crop yield.

Evonik Industries AG: Founded in 2007 and located in Essen, Germany, Evonik Industries AG produces ammonium sulfate as a high purity fertilizer made from its industrial processes. Their product was developed to efficiently deliver nutrients in agriculture and to improve soil quality.

Sumitomo Chemical Co., Ltd.: Established in 1913 and located in Tockyo, Japan, Sumitomo Chemical Co., Ltd. supplies ammonium sulfate as a fertiliser produced from their expertise of chemical production. Their products meet agricultural needs by increasing the nutrient content of the soil and improving crops growth.

Other key players in the ammonium sulfate market report are Honeywell International Inc., and Helm AG, among others.

Key Indicators of Prices in the Global Ammonium Sulfate Market

• Volatility in Ammonia and Sulfur Market: Fluctuations in global ammonia and sulfur prices directly impact the cost structure of ammonium sulfate production, affecting overall ammonium sulfate market revenue. 
• Research and Development Investment: Investment in research and development for advanced ammonium sulfate formulations can lead to higher pricing due to improved product efficacy and production technology.
• Logistics and Transportation Costs: Variations in transportation and logistics costs for ammonium sulfate impact its pricing in different regions, influencing market dynamics.

Key Indicators of Demand in the Global Ammonium Sulfate Market

• Agricultural Utilisation: Growing demand for a successful supply of nitrogen fertilisers in agriculture is contributing to the consumption of ammonium sulfate based on its contribution to agricultural productivity.
• Food Industry: Growth in the food industry for processing products is driving consumption of ammonium sulfate as a high-quality food additive to help compliance with specifications, thereby boosting the growth of the ammonium sulfate market. 
• Water Treatment Industry: Growth of municipal and industrial water treatment projects is contributing to a demand for ammonium sulfate as a key chemical component in treatment.
• Seasonal cycles & economic variables: Seasonal agricultural cycles and economic conditions can also alter buying patterns and hence consumption of ammonium sulfate across a range of markets.