Ammonium Bicarbonate Market Trends

Growth Drivers

• Massive boom in the agriculture sector and fertilizer demand: Ammonium bicarbonate as a pesticide active ingredient acts as a feeding attractant for insects and is commonly used to control olive flies in orchards. The exponential rise in the value addition by agriculture segment to the global gross domestic product (GDP) is directly fueling the ammonium bicarbonate market growth. According to the Bureau of Economic Analysis, food, agriculture, and related sectors approximately contributed USD 1.537 trillion to the U.S GDP in 2023, a 5.5% share. The U.S. farm output was USD 22.3 billion, which was 0.8% of the GDP.  Other agriculture related sectors comprise food and beverage production and storage, food textiles, leather products, fishing, and forestry.
  
  The U.S. Department of Agriculture (USDA) states that 22.1 million part- and full-time employment in 2022 were food and agriculture-related in the country, contributing to 10.4% of the total employment. On-farm jobs accounted for about 2.6 million and 1.2% of the U.S. employment. Rapid urbanization and crop cultivation mandate the availability of necessary approved resources. Ammonium bicarbonate is FDA approved pesticide and is regarded as inert by the EPA, without potential toxic endpoints. As per the EPA, ammonium bicarbonate for agriculture will lead to negligible human exposure to ammonium side effects based on current usage.
  
  Furthermore, the total trade value of fertilizers in 2022 was USD 143 billion, marking a yearly export growth rate of 46.7%, from USD 97.4 billion to USD 143 billion. The top fertilizer exporters, including ammonium nitrate made using ammonium bicarbonate include Russia (USD 18.7 billion), Canada (USD 14.5 billion), China (USD 12.7 billion), the U.S.  (USD 8.19 billion), and Morocco (USD 7.92 billion). A 2024 OSTI report disclosed the U.S. ammonium nitrate fertilizer production capacity of 6200 Kilotons in 2022.
• Rising demand from baking end user segment: The growing food sector, which uses ammonium bicarbonate as an active baking agent to produce baked products like cookies and biscuits, is what propels the ammonium bicarbonate market. Furthermore, during the projected time, the product's highest quality standards are anticipated to support market expansion. Furthermore, the product is being widely utilized in end-use industries, including the leather and rubber sectors, among others. The U.S. expenditures on food ascribed to 12.9% in 2023 of each household spending, which is a 12.8% surge from 2022. Moreover, the household expenditure share on food was third behind housing at 32.9% and transportation at 17.0%. Compared with 2022, the surge in consumer spending on baking products and backed goods is providing an impetus to the ammonium bicarbonate market growth.

Challenge

• Rising environmental concerns and supply chain disruptions: Ammonium bicarbonate is associated with emissions of ammonia during manufacturing and use which raises environmental and regulatory challenges, affecting global sales. Another factor that can affect the ammonium bicarbonate market expansion is the global trade issues and geopolitical tensions can impact the overall distribution. In addition, dependency on raw materials and fluctuating prices in the supply chain can create cost unpredictability.