Nitric Acid Market: Assessing Industry
Growth and Future Projections 20232030
Nitric acid, a versatile chemical compound with numerous applications, is set to experience
substantial growth in the global market. With its presence felt across multiple industries and
processes, nitric acid continues to find new uses through ongoing patent developments. Key
applications such as fertilizers, explosives, adhesives, medicinal products, metal purification,
dye intermediates, engraving, drug detection, furniture coating, and laboratory use contribute
to the promising growth of the nitric acid market. Additionally, it serves as a vital component
in liquid rocket fuel, an essential ingredient for manufacturing plastics, and a cleaning
product in food processing facilities.
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The increasing demand from fertilizer formulators and the rising utilization of fertilizers in
rural economies worldwide are expected to fuel the growth of the nitric acid market.
According to the US Food and Agriculture Organization (FAO), global fertilizer demand is
projected to reach 197.93 million tonnes in 2021 and 200.92 million tonnes in 2022, with
nitrogen-based fertilizers experiencing a year-over-year growth rate of 1.4% in 2021. The
escalating global food demand has led to the widespread adoption of various fertilizers and
agricultural practices aimed at enhancing crop output, reducing cultivation time, and ensuring
healthy crop growth. Nitric acid plays a significant role in the production of nitrogen
fertilizers, which further supports the positive growth outlook for the nitric acid market.
While annual nitrogen fertilizer use in the European Union is expected to decline over the
next decade, the increasing utilization of HNO3 in agriculture to produce fertilizers like
ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate will
fuel the healthy expansion of the nitric acid market. Despite the anticipated decline in annual
fertilizer consumption for the next ten years, after a period of recovery, the use of fertilizers
to enhance crop productivity and meet the demands of a growing population will create
opportunities for the nitric acid sector.
The fertilizer segment is expected to be the fastest-growing segment of the nitric acid market
during the forecast period. This growth is primarily driven by the rising food demand, leading
to global expansion in fertilizer units. Farmers are increasingly relying on fertilizers to
maximize crop yield within the shortest possible time. With over 80% of nitric acid utilized in
fertilizer production, its usage in manufacturing fertilizers such as ammonium nitrate and
calcium ammonium nitrate is crucial. Meeting the needs of the growing global food demand
requires additional arable land for cultivation, leading to a rise in fertilizer demand.
Consequently, the worldwide fertilizer industry is projected to grow at a compound annual
growth rate (CAGR) of approximately 5% during the forecast period.
Ammonium nitrate, a popular and effective nitrogen-based fertilizer containing around 35%
(by mass) of total nitrogen, and calcium ammonium nitrate (CAN) fertilizer containing 2528% nitrogen, are driving factors in the growth of the nitric acid market. CAN fertilizer
provides nitrogen to accelerate plant development. By mixing molten ammonium nitrate and
calcium carbonate at a temperature of approximately 170°C, calcium ammonium nitrate is
produced. Its hygroscopic nature allows it to retain moisture from the air, enabling its use in
soil even in low-water conditions.
Asia Pacific is expected to lead the nitric acid market in terms of manufacturing. The region's
growing population and affluence are driving the demand for agricultural commodities. The
increased output of wheat, maize, cotton, and potatoes in countries like India, China, and
Pakistan primarily drives the utilization of nitric acid in fertilizers. These factors will
contribute to the growing demand for nitric acid in the region. China, India, andSouth Korea
are the leading producers and consumers of fertilizers in the Asia Pacific region. According to
the ITC trade map, South Korea emerged as the largest exporter of nitric acid in 2021, with
534.2 thousand tonnes exported, while China stood as the second-largest importer in 2020,
with 152.8 thousand tonnes imported for various end-user industries such as fertilizers, inks,
pigments and dyes, and chemical manufacturing.
In India, the total production of fertilizer products reached 43.49 million MT in 2020-21,
marking a 1.7% increase over the previous year. Nitrogen-based fertilizer production also
experienced a slight increase of 0.2%, reaching 13.74 million MT in 2020-21, as reported by
the Fertilizer Association of India. The National Bureau of Statistics reveals that grain
production in China witnessed a 2% rise in 2021, reaching 682.9 million tonnes, with a 5%
increase in corn acreage and a 4.6% increase in output compared to the previous year. The
market in these countries is expected to be driven by the increasing use of fertilizers to boost
productivity and meet the challenges posed by shrinking cultivated land. Nitric acid serves as
a raw material for inks, pigments, and dyes, with the textile industry being its primary
application. The Ministry of Sector and Information Technology reported a rapid increase in
China's textile industry during the first nine months of 2021, with earnings of 171.1 billion
yuan (about USD 26.80 billion), representing a 31.7% year-on-year rise (MIIT).
The competitive landscape of the global nitric acid market features several key players
striving to capture market share and enhance their operations. For instance, LSB Industries,
Inc. signed a new long-term nitric acid supply contract in October 2020, aiming to improve
profits through focused marketing and adjustments to the product mix. In July 2020, KBR
collaborated with Haifa Group, utilizing patented technology to enhance the production
capacity of two nitric acid factories in Israel. This collaboration is expected to increase
production capacity while reducing plant emissions and operational costs.
Notable players in the nitric acid market include The Chemours Company, Dyno Nobel,
National Chemical Group, KBR, Koch Fertilizers, OCI Nitrogen, Potash Corp, Eurochem
Group, CF Industries, LSB Industries, and Agrium Inc.
With the global population experiencing rapid growth, the demand for nitric acid remains
robust due to its indispensable role across various industries and the increasing need for
fertilizers to ensure food security. The nitric acid market is poised for significant growth,
particularly in the fertilizer segment, driven by the rising food demand and the expansion of
agricultural production. The Asia Pacific region, with its increasing population and growing
agricultural output, is expected to lead the nitric acid market in terms of manufacturing.
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