Nitric Acid Market Insights: Industry Analysis and Outlook 2023-2030 Nitric acid, a versatile chemical compound with a wide range of applications, is poised to experience substantial growth in the global market. Its solubility in water, strong oxidizing properties, and conductivity make it a valuable component across various industries and processes. Continual patent developments are unlocking new uses for nitric acid, further driving its demand. Key applications in fertilizers, explosives, adhesives, medicinal products, metal purification, dye intermediates, engraving, drug detection, furniture coating, and laboratory use continue to fuel the promising growth of the nitric acid market. Additionally, it finds application as a component of liquid rocket fuel, a crucial ingredient for manufacturing plastics, and a cleaning product in food processing facilities. Read More: https://www.fairfieldmarketresearch.com/report/nitric-acid-market The surge in demand from fertilizer formulators and increased fertilizer usage in rural economies worldwide are expected to propel the growth of the nitric acid market. The US Food and Agriculture Organization (FAO) predicts that global fertilizer demand will reach 197.93 million tonnes in 2021 and 200.92 million tonnes in 2022, with nitrogen-based fertilizers growing at a rate of 1.4% year over year in 2021. The rising 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 crucial role in the production of sought-after nitrogen fertilizers, underscoring the promising growth outlook for the nitric acid market. According to Fertilizers Europe, annual nitrogen fertilizer use in the European Union is expected to reach 10.6 million tonnes by the 2029/2030 season, a decline from 11.2 million tonnes in the present season. After several years of recovery, annual fertilizer consumption is projected to decline for the fourth consecutive year in the next decade, limiting industry growth. However, the increasing use of HNO3 in agriculture to produce fertilizers such as ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate will support the healthy expansion of the nitric acid market. Fertilizer utilization, driven by the need to boost crop productivity and cater to the demands of a growing population, will create opportunities for the nitric acid sector. Improving Food Quality due to Fertilizer to Drive Nitric Acid Market Growth The fertilizer segment is expected to be the fastest-growing segment of the nitric acid market during the forecast period. This growth is primarily attributed to the rising food demand, which has fueled the global expansion of fertilizer units. Farmers are increasingly relying on fertilizers to maximize crop yield within shorter time frames. Over 80% of nitric acid is utilized in the production of fertilizers, with ammonium nitrate and calcium ammonium nitrate being prominent examples. Meeting the needs of the growing global food demand requires the cultivation of more arable land, resulting in a surge in fertilizer demand. As a result, the worldwide fertilizer industry is predicted to grow at a compound annual growth rate (CAGR) of approximately 5% during the projection period. Ammonium nitrate, a popular and highly effective nitrogen-based fertilizer containing around 35% (by mass) of total nitrogen, and calcium ammonium nitrate (CAN) fertilizer, containing 25-28% nitrogen, play pivotal roles in driving the nitric acid market. CAN fertilizer provides essential nitrogen to expedite plant development. The production of calcium ammonium nitrate involves mixing molten ammonium nitrate and calcium carbonate at a temperature of approximately 170°C. Its hygroscopic nature allows it to collect moisture from the air, enabling its utilization in soil even in low-water conditions. Rising Production of Wheat, Maize, Cotton, and Potatoes to Drive Nitric Acid Market Growth in Asia Pacific Asia Pacific is poised to lead the nitric acid market in terms of manufacturing. The demand for agricultural commodities is projected to continue rising as the world's population and affluence expand. Increased output of wheat, maize, cotton, and potatoes in countries such as India, China, and Pakistan primarily drives the utilization of nitric acid in fertilizer production. These factors will drive the demand for nitric acid in the region over the projection period. China, India, and South Korea stand out with the highest production and consumption of fertilizer 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. China, on the other hand, was the second-largest importer in 2020, with 152.8 thousand tonnes imported for various end-user industries, including fertilizers, inks, pigments and dyes, and chemical manufacturing. In India, the Fertilizer Association of India reported that total fertilizer product production reached 43.49 million MT in 2020-21, representing a 1.7% increase over the previous year. Nitrogen-based fertilizer production also saw a slight uptick of 0.2%, reaching 13.74 million MT in 2020-21. The National Bureau of Statistics reveals a 2% rise in grain production in China in 2021, with the output reaching 682.9 million tonnes compared to 650 million tonnes the previous year. Corn acreage increased by 5%, and output rose by 4.6% over the previous year. The market in these countries is expected to be driven by the increasing use of fertilizers to boost productivity and address the challenges posed by shrinking cultivated land. Nitric acid also serves as a raw material for inks, pigments, and dyes, with the textile industry being a primary application. According to the Ministry of Sector and Information Technology, China's textile industry witnessed rapid growth in the first nine months of 2021, with earnings of 171.1 billion yuan (approximately USD 26.80 billion), representing a 31.7% year-on-year rise (MIIT). Global Nitric Acid Market: Competitive Landscape The global nitric acid market features several key players vying for market share and striving to enhance their operations. In October 2020, LSB Industries, Inc. signed a new long-term nitric acid supply contract with a client, targeting an annual supply of 70 to 100 KT of nitric acid. This strategic move aims to improve profits by focusing on marketing and adjusting the product mix. Another significant development took place in July 2020 when KBR partnered with Haifa Group, utilizing patented technology to enhance the production capacity of two nitric acid factories in Israel. This collaboration is set to increase production capacity while simultaneously reducing plant emissions and operational costs. Prominent 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 indispensability 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,as it aligns with the rising food demand and the expansion of agricultural production. The utilization of fertilizers to maximize crop productivity within limited timeframes is driving the demand for nitric acid. With its versatile applications and contribution to the production of nitrogen fertilizers, nitric acid plays a pivotal role in meeting the needs of a growing population. Conclusion The rapid increase in the global population has led to a surge in demand for nitric acid, driven by its extensive applications and its role in fertilizer production. As the world seeks to enhance food quality and meet the growing food demand, the utilization of fertilizers becomes essential. Nitric acid, as a key component in the production of nitrogen-based fertilizers, ensures the optimization of crop yield and supports agricultural productivity. The Asia Pacific region, with its rising agricultural output and demand for fertilizers, stands as a leading market for nitric acid. The competitive landscape features key players focusing on strategic partnerships and supply contracts to strengthen their market position. As the global population continues to grow, the nitric acid market is poised for substantial growth, fuelled by the need for agricultural advancements and food security. FAQs (Frequently Asked Questions) 1. What are the top applications of nitric acid? Nitric acid finds diverse applications, including its use in fertilizers, explosives, adhesives, medicinal products, metal purification, dye intermediates, engraving, drug detection, furniture coating, and laboratory settings. 2. What is driving the growth of the nitric acid market? The growth of the nitric acid market is primarily driven by increased demand from fertilizer formulators, the rising use of fertilizers in rural economies, and the growing global food demand. 3. Which region leads the nitric acid market in terms of manufacturing? The Asia Pacific region, specifically countries like China, India, and South Korea, dominates the nitric acid market due to their high production and consumption of fertilizers and other industries. 4. How does nitric acid contribute to fertilizer production? Nitric acid is a major component in the production of nitrogen fertilizers such as ammonium nitrate and calcium ammonium nitrate, which play a crucial role in enhancing crop productivity. 5. Who are the key players in the nitric acid market? The nitric acid market features prominent players such as The Chemours Company, Dyno Nobel, National Chemical Group, KBR, Koch Fertilizers, OCI Nitrogen, Potash Corp, Eurochem Group, CF Industries, LSB Industries, and Agrium Inc. 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